Stingray Group (TSX:RAY.B) - Share price, News & Analysis

RAY.B fundamental analysis
Snowflake Score
Valuation	5/6
Future Growth	3/6
Past Performance	4/6
Financial Health	2/6
Dividends	3/6

RAY.B Stock Overview

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

Rewards

Trading at 71.6% below our estimate of its fair value

Earnings are forecast to grow 18.57% per year

Earnings grew by 66.7% over the past year

Risk Analysis

Has a high level of debt

Unstable dividend track record

Large one-off items impacting financial results

Stingray Group Competitors

Corus Entertainment

TSX:CJR.B

CA$802.3m

Apple

NasdaqGS:AAPL

US$2.4t

BCE

TSX:BCE

CA$62.2b

Rogers Communications

TSX:RCI.B

CA$32.6b

Price History & Performance

Summary of all time highs, changes and price drops for Stingray Group
Historical stock prices
Current Share Price	CA$6.11
52 Week High	CA$8.46
52 Week Low	CA$6.11
Beta	0.94
1 Month Change	-11.58%
3 Month Change	-20.13%
1 Year Change	-14.55%
3 Year Change	-0.97%
5 Year Change	-21.36%
Change since IPO	-18.32%

Shareholder Returns

	RAY.B	CA Media	CA Market
7D	-8.8%	-6.1%	-4.7%
1Y	-14.5%	-10.4%	3.8%

Return vs Industry: RAY.B underperformed the Canadian Media industry which returned -10.4% over the past year.

Return vs Market: RAY.B underperformed the Canadian Market which returned 3.8% over the past year.

Price Volatility

Is RAY.B's price volatile compared to industry and market?
RAY.B volatility
RAY.B Average Weekly Movement	4.5%
Media Industry Average Movement	4.5%
Market Average Movement	9.4%
10% most volatile stocks in CA Market	15.9%
10% least volatile stocks in CA Market	4.0%

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

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

About the Company

Founded	Employees	CEO	Website
2007	1,000	Eric Boyko	https://www.stingray.com

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 on television (TV), web, and mobile; Stingray Naturescape, a channel in 4K resolution; Stingray Now 4K, a curated 4K TV channel; and Stingray Festival 4K, a television channel that broadcasts exclusively in native 4K and Dolby Digital audio. It also provides Stingray Qello, an over-the-top streaming service on TV, mobile, and the web; Stingray Classica, a TV channel dedicated to classical music, including operas, ballets, concerts, and documentaries; Stingray iConcerts, a source for various live concerts; and Stingray DJAZZ, a TV channel dedicated to jazz and jazz-related genres, such as soul, blues, funk, gospel, hip-hop, fusion, reggae, Latin, swing, and bebop.

Stingray Group Fundamentals Summary

How do Stingray Group's earnings and revenue compare to its market cap?
RAY.B fundamental statistics
Market Cap	CA$425.22m
Earnings (TTM)	CA$40.90m
Revenue (TTM)	CA$272.59m

10.4x

P/E Ratio

1.6x

P/S Ratio

Is RAY.B overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
RAY.B income statement (TTM)
Revenue	CA$272.59m
Cost of Revenue	CA$162.16m
Gross Profit	CA$110.43m
Other Expenses	CA$69.53m
Earnings	CA$40.90m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	0.58
Gross Margin	40.51%
Net Profit Margin	15.00%
Debt/Equity Ratio	122.5%

How did RAY.B perform over the long term?

See historical performance and comparison

Dividends

4.9%

Current Dividend Yield

53%

Payout Ratio

Does RAY.B pay a reliable dividends?

See RAY.B dividend history and benchmarks

When do you need to buy RAY.B by to receive an upcoming dividend?
Stingray Group dividend dates
Ex Dividend Date	May 30 2022
Dividend Pay Date	Jun 15 2022
Days until Ex dividend	18 days
Days until Dividend pay date	34 days

Does RAY.B pay a reliable dividends?

See RAY.B dividend history and benchmarks

Valuation

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

Valuation Score

5/6

Valuation Score 5/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: RAY.B (CA$6.11) is trading below our estimate of fair value (CA$21.53)

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

Price To Earnings Ratio

PE vs Industry: RAY.B is good value based on its PE Ratio (10.4x) compared to the Canadian Media industry average (10.6x).

PE vs Market: RAY.B is good value based on its PE Ratio (10.4x) compared to the Canadian market (11.2x).

Price to Earnings Growth Ratio

PEG Ratio: RAY.B is good value based on its PEG Ratio (0.6x)

Price to Book Ratio

PB vs Industry: RAY.B is overvalued based on its PB Ratio (1.5x) compared to the CA Media industry average (1.3x).

Future Growth

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

Future Growth Score

3/6

Future Growth Score 3/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

18.6%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: RAY.B's forecast earnings growth (18.6% per year) is above the savings rate (1.6%).

Earnings vs Market: RAY.B's earnings (18.6% per year) are forecast to grow faster than the Canadian market (8.2% per year).

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

Revenue vs Market: RAY.B's revenue (13.6% per year) is forecast to grow faster than the Canadian market (6.5% per year).

High Growth Revenue: RAY.B's revenue (13.6% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: Insufficient data to determine if RAY.B's Return on Equity is forecast to be high in 3 years time

Past Performance

How has Stingray Group performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

48.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: RAY.B has a large one-off loss of CA$16.7M impacting its December 31 2021 financial results.

Growing Profit Margin: RAY.B's current net profit margins (15%) are higher than last year (9.5%).

Past Earnings Growth Analysis

Earnings Trend: RAY.B's earnings have grown significantly by 48.1% per year over the past 5 years.

Accelerating Growth: RAY.B's earnings growth over the past year (66.7%) exceeds its 5-year average (48.1% per year).

Earnings vs Industry: RAY.B earnings growth over the past year (66.7%) exceeded the Media industry 0.8%.

Return on Equity

High ROE: RAY.B's Return on Equity (14.6%) is considered low.

Financial Health

How is Stingray Group's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: RAY.B's short term assets (CA$104.5M) do not cover its short term liabilities (CA$149.9M).

Long Term Liabilities: RAY.B's short term assets (CA$104.5M) do not cover its long term liabilities (CA$463.4M).

Debt to Equity History and Analysis

Debt Level: RAY.B's net debt to equity ratio (118.5%) is considered high.

Reducing Debt: RAY.B's debt to equity ratio has increased from 50.5% to 122.5% over the past 5 years.

Debt Coverage: RAY.B's debt is well covered by operating cash flow (25.1%).

Interest Coverage: RAY.B's interest payments on its debt are well covered by EBIT (4.8x coverage).

Balance Sheet

Dividend

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

Dividend Score

3/6

Dividend Score 3/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

4.94%

Current Dividend Yield

Upcoming Dividend Payment

Dividend Yield vs Market

Notable Dividend: RAY.B's dividend (4.94%) is higher than the bottom 25% of dividend payers in the Canadian market (1.9%).

High Dividend: RAY.B's dividend (4.94%) is low compared to the top 25% of dividend payers in the Canadian market (5.03%).

Stability and Growth of Payments

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

Growing Dividend: RAY.B's dividend payments have increased, but the company has only paid a dividend for 7 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (52.5%), RAY.B's dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (30.5%), RAY.B's dividend payments are well covered by cash flows.

Next Steps

Explore strong dividend paying companies in the Media industry.

Management

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

7.3yrs

Average management tenure

CEO

Eric Boyko (51 yo)

15.33yrs

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 ($USD1.04M) is about average for companies of similar size in the Canadian market ($USD960.56K).

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

Leadership Team

Experienced Management: RAY.B's management team is seasoned and experienced (7.3 years average tenure).

Board Members

Experienced Board: RAY.B's board of directors are considered experienced (7.1 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.

Ownership Breakdown

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

Data	Last Updated (UTC time)
Company Analysis	2022/05/11 00:00
End of Day Share Price	2022/05/11 00:00
Earnings	2021/12/31
Annual Earnings	2021/03/31