Entravision Communications Fundamental Analysis (NYSE: EVC)
Entravision Communications Fundamental Analysis (NYSE: EVC)
Entravision Communications (NYSE: EVC) shows weak financial fundamentals with a PE ratio of 205.63, profit margin of 0.72%, and ROE of 6.98%. The company generates $0.7B in annual revenue with strong year-over-year growth of 22.65%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 35.8/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze EVC's fundamental strength across five key dimensions:
Efficiency Score
WeakEVC struggles to generate sufficient returns from assets.
Valuation Score
ModerateEVC shows balanced valuation metrics.
Growth Score
ExcellentEVC delivers strong and consistent growth momentum.
Financial Health Score
ModerateEVC shows balanced financial health with some risks.
Profitability Score
WeakEVC struggles to sustain strong margins.
Key Financial Metrics
Is EVC Expensive or Cheap?
P/E Ratio
EVC trades at 205.63 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, EVC's PEG of 0.49 indicates potential undervaluation.
Price to Book
The market values Entravision Communications at 9.07 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 17.93 times EBITDA. This signals the market has high growth expectations.
How Well Does EVC Make Money?
Net Profit Margin
For every $100 in sales, Entravision Communications keeps $0.72 as profit after all expenses.
Operating Margin
Core operations generate 8.41 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $6.98 in profit for every $100 of shareholder equity.
ROA
Entravision Communications generates $1.09 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Entravision Communications generates limited operating cash flow of $63.24M, signaling weaker underlying cash strength.
Free Cash Flow
Entravision Communications produces free cash flow of $53.96M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.59 in free cash annually.
FCF Yield
EVC converts 7.16% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
205.63
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.49
vs 25 benchmark
P/B Ratio
Price to book value ratio
9.07
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.11
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
2.47
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.48
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.07
vs 25 benchmark
ROA
Return on assets percentage
0.01
vs 25 benchmark
ROCE
Return on capital employed
0.20
vs 25 benchmark
How EVC Stacks Against Its Sector Peers
| Metric | EVC Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 205.63 | 19.41 | Worse (Expensive) |
| ROE | 6.98% | 578.00% | Weak |
| Net Margin | 0.72% | 922.00% | Weak |
| Debt/Equity | 2.47 | -0.50 (disorted) | Distorted |
| Current Ratio | 1.48 | 1.90 | Neutral |
| ROA | 1.09% | 257.00% | Weak |
EVC outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Entravision Communications's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
20.25%
Industry Style: Growth, Technology, Streaming
High GrowthEPS CAGR
-1753.14%
Industry Style: Growth, Technology, Streaming
DecliningFCF CAGR
-84.49%
Industry Style: Growth, Technology, Streaming
Declining