TSX:RAY.A

Stock Analysis Report

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Market Cap

CA$558.8m

Last Updated

2021/08/01 00:32 UTC

Data Sources

Company Financials +

Executive Summary

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


Snowflake Analysis

Solid track record and fair value.


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 +/- 3% a week.

Volatility Over Time: RAY.A's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

0.4%

RAY.A

-0.7%

CA Media

1.4%

CA Market


1 Year Return

59.1%

RAY.A

32.4%

CA Media

29.1%

CA Market

Return vs Industry: RAY.A exceeded the Canadian Media industry which returned 32.4% over the past year.

Return vs Market: RAY.A exceeded the Canadian Market which returned 29.1% over the past year.


Shareholder returns

RAY.AIndustryMarket
7 Day0.4%-0.7%1.4%
30 Day-3.5%-0.2%-0.2%
90 Day7.3%0.9%3.9%
1 Year64.9%59.1%37.1%32.4%33.0%29.1%
3 Year-2.4%-13.5%47.6%33.2%31.5%18.7%
5 Year27.9%8.5%63.9%35.9%51.8%29.4%

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$7.81) is trading below our estimate of fair value (CA$16.55)

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 (12.7x) compared to the Canadian Media industry average (10.1x).

PE vs Market: RAY.A is good value based on its PE Ratio (12.7x) compared to the Canadian market (13.6x).


Price to Earnings Growth Ratio

PEG Ratio: RAY.A is poor value based on its PEG Ratio (2.9x)


Price to Book Ratio

PB vs Industry: RAY.A is overvalued based on its PB Ratio (2.1x) compared to the CA Media industry average (1.7x).


Future Growth

How is Stingray Group forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

4.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RAY.A's forecast earnings growth (4.4% per year) is above the savings rate (1.5%).

Earnings vs Market: RAY.A's earnings (4.4% per year) are forecast to grow slower than the Canadian market (13.6% per year).

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

Revenue vs Market: RAY.A's revenue (8.6% per year) is forecast to grow faster than the Canadian market (5.4% per year).

High Growth Revenue: RAY.A's revenue (8.6% 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 (21%)


Past Performance

How has Stingray Group performed over the past 5 years?

20.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RAY.A has high quality earnings.

Growing Profit Margin: RAY.A's current net profit margins (18.1%) are higher than last year (4.6%).


Past Earnings Growth Analysis

Earnings Trend: RAY.A's earnings have grown significantly by 20.7% per year over the past 5 years.

Accelerating Growth: RAY.A's earnings growth over the past year (222.9%) exceeds its 5-year average (20.7% per year).

Earnings vs Industry: RAY.A earnings growth over the past year (222.9%) exceeded the Media industry 19.7%.


Return on Equity

High ROE: RAY.A's Return on Equity (16.4%) is considered low.


Financial Health

How is Stingray Group's financial position?


Financial Position Analysis

Short Term Liabilities: RAY.A's short term assets (CA$90.6M) do not cover its short term liabilities (CA$120.5M).

Long Term Liabilities: RAY.A's short term assets (CA$90.6M) do not cover its long term liabilities (CA$427.7M).


Debt to Equity History and Analysis

Debt Level: RAY.A's debt to equity ratio (122.1%) is considered high.

Reducing Debt: RAY.A's debt to equity ratio has increased from 38.8% to 122.1% over the past 5 years.

Debt Coverage: RAY.A's debt is well covered by operating cash flow (31.1%).

Interest Coverage: RAY.A's interest payments on its debt are well covered by EBIT (3.8x coverage).


Balance Sheet


Dividend

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

3.84%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: RAY.A's dividend (3.84%) is higher than the bottom 25% of dividend payers in the Canadian market (1.58%).

High Dividend: RAY.A's dividend (3.84%) is low compared to the top 25% of dividend payers in the Canadian market (4.57%).


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 reasonably low payout ratio (48.7%), RAY.A's dividend payments are 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 (29.1% payout ratio).


Next Steps

Management

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

6.4yrs

Average management tenure


CEO

Eric Boyko (51 yo)

14.5yrs

Tenure

CA$1,340,667

Compensation

Mr. Eric Boyko, CGA, C.P.A., Co-founded Stingray Group Inc. (formerly known as Stingray Digital Group Inc.) in 2007 and has been its President and Chief Executive Officer since 2010. Mr. Boyko Co-Founded S...


CEO Compensation Analysis

Compensation vs Market: Eric's total compensation ($USD1.08M) is about average for companies of similar size in the Canadian market ($USD833.87K).

Compensation vs Earnings: Eric's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: RAY.A's management team is seasoned and experienced (6.4 years average tenure).


Board Members

Experienced Board: RAY.A's board of directors are considered experienced (6.3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: RAY.A 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: 2007
  • Industry: Broadcasting
  • Sector: Media
  • Market Cap: CA$558.762m
  • Shares outstanding: 71.54m
  • Website: https://www.stingray.com

Number of Employees


Location

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

Listings


Biography

Stingray Group Inc. operates as a music, media, and technology company worldwide. The company offers Stingray Music, a multiplatform music service that gives listeners free access to curated music channels...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/08/01 00:32
End of Day Share Price2021/07/30 00:00
Earnings2021/03/31
Annual Earnings2021/03/31


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.