iHeartMedia, Inc. Fundamental Analysis (NASDAQ: IHRT)
iHeartMedia, Inc. (NASDAQ: IHRT) shows moderate financial fundamentals with a PE ratio of -1.45, profit margin of -7.17%, and ROE of 15.12%. The company generates $3.3B in annual revenue with weak year-over-year growth of 0.27%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 66.1/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze IHRT's fundamental strength across five key dimensions:
Efficiency Score
WeakIHRT struggles to generate sufficient returns from assets.
Valuation Score
ExcellentIHRT trades at attractive valuation levels.
Growth Score
ModerateIHRT shows steady but slowing expansion.
Financial Health Score
ExcellentIHRT maintains a strong and stable balance sheet.
Profitability Score
ModerateIHRT maintains healthy but balanced margins.
Key Financial Metrics
Is IHRT Expensive or Cheap?
P/E Ratio
IHRT trades at -1.45 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, IHRT's PEG of -0.17 indicates potential undervaluation.
Price to Book
The market values iHeartMedia, Inc. at -0.21 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -8.18 times EBITDA. This is generally considered low.
How Well Does IHRT Make Money?
Net Profit Margin
For every $100 in sales, iHeartMedia, Inc. keeps $-7.17 as profit after all expenses.
Operating Margin
Core operations generate 0.40 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $15.12 in profit for every $100 of shareholder equity.
ROA
iHeartMedia, Inc. generates $-5.89 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
iHeartMedia, Inc. generates limited operating cash flow of $98.18M, signaling weaker underlying cash strength.
Free Cash Flow
iHeartMedia, Inc. generates weak or negative free cash flow of $29.91M, restricting financial flexibility.
FCF Per Share
Each share generates $0.23 in free cash annually.
FCF Yield
IHRT converts 10.40% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-1.45
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.17
vs 25 benchmark
P/B Ratio
Price to book value ratio
-0.21
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.09
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
-2.87
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.41
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.15
vs 25 benchmark
ROA
Return on assets percentage
-0.06
vs 25 benchmark
ROCE
Return on capital employed
0.004
vs 25 benchmark
How IHRT Stacks Against Its Sector Peers
| Metric | IHRT Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -1.45 | 19.41 | Better (Cheaper) |
| ROE | 15.12% | 578.00% | Weak |
| Net Margin | -7.17% | 922.00% | Weak |
| Debt/Equity | -2.87 | -0.50 (disorted) | Distorted |
| Current Ratio | 1.41 | 1.90 | Neutral |
| ROA | -5.89% | 257.00% | Weak |
IHRT outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews iHeartMedia, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
23.32%
Industry Style: Growth, Technology, Streaming
High GrowthEPS CAGR
76.77%
Industry Style: Growth, Technology, Streaming
High GrowthFCF CAGR
-59.67%
Industry Style: Growth, Technology, Streaming
Declining