TSX:RAY.A

Stock Analysis Report

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Executive Summary

Stingray Group Inc. operates as a music, media, and technology company worldwide. More Details


Snowflake Analysis

Moderate growth potential and slightly overvalued.


Similar Companies

Share Price & News

How has Stingray Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: RAY.A is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: RAY.A's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

0.3%

RAY.A

0.5%

CA Media

-1.5%

CA Market


1 Year Return

31.4%

RAY.A

3.4%

CA Media

12.7%

CA Market

Return vs Industry: RAY.A exceeded the Canadian Media industry which returned 3.4% over the past year.

Return vs Market: RAY.A exceeded the Canadian Market which returned 12.7% over the past year.


Shareholder returns

RAY.AIndustryMarket
7 Day0.3%0.5%-1.5%
30 Day-4.4%3.8%2.7%
90 Day9.4%5.0%5.9%
1 Year37.1%31.4%7.4%3.4%16.9%12.7%
3 Year-22.2%-30.8%22.8%10.2%23.3%11.5%
5 Year20.6%2.9%44.4%19.7%56.3%32.6%

Long-Term Price Volatility Vs. Market

How volatile is Stingray Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Stingray Group undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: RAY.A (CA$7.11) is trading below our estimate of fair value (CA$16.73)

Significantly Below Fair Value: RAY.A is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: RAY.A is poor value based on its PE Ratio (21.4x) compared to the CA Media industry average (13.9x).

PE vs Market: RAY.A is poor value based on its PE Ratio (21.4x) compared to the Canadian market (16.5x).


Price to Earnings Growth Ratio

PEG Ratio: RAY.A is poor value based on its PEG Ratio (2x)


Price to Book Ratio

PB vs Industry: RAY.A is overvalued based on its PB Ratio (1.8x) compared to the CA Media industry average (1.4x).


Next Steps

Future Growth

How is Stingray Group forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

10.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RAY.A's forecast earnings growth (10.7% per year) is above the savings rate (1.5%).

Earnings vs Market: RAY.A's earnings (10.7% per year) are forecast to grow slower than the Canadian market (25.6% per year).

High Growth Earnings: RAY.A's earnings are forecast to grow, but not significantly.

Revenue vs Market: RAY.A's revenue (9.3% per year) is forecast to grow faster than the Canadian market (8% per year).

High Growth Revenue: RAY.A's revenue (9.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: RAY.A's Return on Equity is forecast to be high in 3 years time (23%)


Next Steps

Past Performance

How has Stingray Group performed over the past 5 years?

3.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RAY.A has a large one-off gain of CA$12.2M impacting its December 31 2020 financial results.

Growing Profit Margin: RAY.A's current net profit margins (9.5%) are higher than last year (8.4%).


Past Earnings Growth Analysis

Earnings Trend: RAY.A's earnings have grown by 3.4% per year over the past 5 years.

Accelerating Growth: RAY.A's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: RAY.A had negative earnings growth (-6.6%) over the past year, making it difficult to compare to the Media industry average (8.3%).


Return on Equity

High ROE: RAY.A's Return on Equity (8.6%) is considered low.


Next Steps

Financial Health

How is Stingray Group's financial position?


Financial Position Analysis

Short Term Liabilities: RAY.A's short term assets (CA$91.6M) do not cover its short term liabilities (CA$122.2M).

Long Term Liabilities: RAY.A's short term assets (CA$91.6M) do not cover its long term liabilities (CA$430.3M).


Debt to Equity History and Analysis

Debt Level: RAY.A's debt to equity ratio (115.4%) is considered high.

Reducing Debt: RAY.A's debt to equity ratio has increased from 40.9% to 115.4% over the past 5 years.

Debt Coverage: RAY.A's debt is well covered by operating cash flow (28.4%).

Interest Coverage: RAY.A's interest payments on its debt are well covered by EBIT (3.2x coverage).


Balance Sheet


Next Steps

Dividend

What is Stingray Group current dividend yield, its reliability and sustainability?

4.22%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: RAY.A's dividend (4.22%) is higher than the bottom 25% of dividend payers in the Canadian market (1.6%).

High Dividend: RAY.A's dividend (4.22%) is low compared to the top 25% of dividend payers in the Canadian market (4.99%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, RAY.A has been paying a dividend for less than 10 years.

Growing Dividend: RAY.A's dividend payments have increased, but the company has only paid a dividend for 6 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (90.2%), RAY.A's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: RAY.A's dividends in 3 years are forecast to be well covered by earnings (30.8% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

6.0yrs

Average management tenure


CEO

Eric Boyko (50 yo)

14.08yrs

Tenure

CA$976,000

Compensation

Mr. Eric Boyko, CGA, CPA, Co-founded Stingray Group Inc. (formerly known as Stingray Digital Group Inc.) (alternatively Stingray Digital Inc.) in 2007 and has been its President and Chief Executive Officer...


CEO Compensation Analysis

Compensation vs Market: Eric's total compensation ($USD768.49K) is about average for companies of similar size in the Canadian market ($USD742.01K).

Compensation vs Earnings: Eric's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Eric Boyko
Co-Founder14.08yrsCA$976.00k1.66%
CA$ 8.6m
Jean-Pierre Trahan
Chief Financial Officer10.08yrsCA$574.29k0.20%
CA$ 1.1m
Mario DuBois
Senior VP & CTO14.08yrsCA$543.47k0.37%
CA$ 1.9m
Lloyd Feldman
Senior VP6yrsCA$698.98k0.25%
CA$ 1.3m
Simon Foster
General Manager of Chatterno dataCA$1.65mno data
Mathieu Péloquin
Senior Vice President of Marketing & Communications8.08yrsCA$606.99k0.13%
CA$ 662.9k
Sébastien Côté
Vice President of Human Resources5.08yrsno data0.0036%
CA$ 18.8k
Rick Bergan
Head of Content Distribution - United States4.5yrsno datano data
David Purdy
Chief Revenue Officer2.5yrsCA$1.03m0.36%
CA$ 1.9m
Ryan Fuss
Senior Vice-President of Advertising Sales2.33yrsno datano data
Ian Lurie
President of Radio Operationsno dataCA$1.61m0.0021%
CA$ 10.7k

6.0yrs

Average Tenure

Experienced Management: RAY.A's management team is seasoned and experienced (6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Eric Boyko
Co-Founder14.08yrsCA$976.00k1.66%
CA$ 8.6m
Pascal Tremblay
Independent Non-Executive Director13.17yrsCA$80.00k0.25%
CA$ 1.3m
Robert Steele
Independent Non-Executive Director5.83yrsCA$53.71k7.91%
CA$ 40.9m
Jacques Parisien
Independent Lead Directorno dataCA$79.49kno data
Mark Pathy
Independent Chairmanno dataCA$109.06k5.38%
CA$ 27.8m
François-Charles Sirois
Independent Non-Executive Director13.83yrsno data0.033%
CA$ 170.6k
Frederic Lavoie
Independent Non-Executive Director0.50yrno datano data
Claudine Blondin
Independent Non-Executive Director5.83yrsCA$70.56k0.10%
CA$ 534.5k
Gary Rich
Independent Non-Executive Director5.83yrsCA$64.35kno data
Karinne Bouchard
Directorno datano datano data

5.8yrs

Average Tenure

51yo

Average Age

Experienced Board: RAY.A's board of directors are considered experienced (5.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Stingray Group Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Stingray Group Inc.
  • Ticker: RAY.A
  • Exchange: TSX
  • Founded: NaN
  • Industry: Broadcasting
  • Sector: Media
  • Market Cap: CA$516.533m
  • Shares outstanding: 72.68m
  • Website: https://www.stingray.com

Number of Employees


Location

  • Stingray Group Inc.
  • 730 Wellington Street
  • 8th Floor
  • Montreal
  • Quebec
  • H3C 1T4
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RAY.BTSX (The Toronto Stock Exchange)Variable Subordinate Voting SharesCACADJun 2015
RAY.ATSX (The Toronto Stock Exchange)YesSubordinate Voting SharesCACADJun 2015
317ADB (Deutsche Boerse AG)YesSubordinate Voting SharesDEEURJun 2015
317VBST (Boerse-Stuttgart)Variable Subordinate Voting SharesDEEURJun 2015
STGY.FOTCPK (Pink Sheets LLC)YesSubordinate Voting SharesUSUSDJun 2015

Biography

Stingray Group Inc. operates as a music, media, and technology company worldwide. The company offers Stingray Music, which delivers music products and services on television (TV), web, and mobile; Stingray...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/03/01 00:54
End of Day Share Price2021/02/26 00:00
Earnings2020/12/31
Annual Earnings2020/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.