TSXV:LM

Stock Analysis Report

Executive Summary

Lingo Media Corporation, together with its subsidiaries, develops, markets, and supports a suite of English language learning solutions in the People’s Republic of China.


Snowflake Analysis

Flawless balance sheet with weak fundamentals.

Share Price & News

How has Lingo Media's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: LM has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

LM

10.0%

CA Media

4.5%

CA Market


1 Year Return

-76.7%

LM

-13.4%

CA Media

-24.5%

CA Market

Return vs Industry: LM underperformed the Canadian Media industry which returned -13.4% over the past year.

Return vs Market: LM underperformed the Canadian Market which returned -24.5% over the past year.


Shareholder returns

LMIndustryMarket
7 Day0%10.0%4.5%
30 Day0%-6.5%-20.1%
90 Day-65.0%-15.4%-24.9%
1 Year-76.7%-76.7%-10.6%-13.4%-22.0%-24.5%
3 Year-90.3%-90.3%4.4%-7.7%-14.2%-22.2%
5 Year-65.0%-65.0%10.1%-11.9%-1.9%-16.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Lingo Media undervalued compared to its fair value and its price relative to the market?

3.04x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: LM (CA$0.04) is trading above our estimate of fair value (CA$0.02)

Significantly Below Fair Value: LM is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: LM is unprofitable, so we can't compare its PE Ratio to the Media industry average.

PE vs Market: LM is unprofitable, so we can't compare its PE Ratio to the Canadian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate LM's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: LM is overvalued based on its PB Ratio (3x) compared to the CA Media industry average (0.7x).


Next Steps

Future Growth

How is Lingo Media forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

6.0%

Forecasted Media industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Lingo Media has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Lingo Media performed over the past 5 years?

-49.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LM is currently unprofitable.

Growing Profit Margin: LM is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: LM is unprofitable, and losses have increased over the past 5 years at a rate of -49.4% per year.

Accelerating Growth: Unable to compare LM's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: LM is unprofitable, making it difficult to compare its past year earnings growth to the Media industry (81.7%).


Return on Equity

High ROE: LM has a negative Return on Equity (-26.14%), as it is currently unprofitable.


Next Steps

Financial Health

How is Lingo Media's financial position?


Financial Position Analysis

Short Term Liabilities: LM's short term assets (CA$1.1M) exceed its short term liabilities (CA$775.8K).

Long Term Liabilities: LM's short term assets (CA$1.1M) exceed its long term liabilities (CA$289.8K).


Debt to Equity History and Analysis

Debt Level: LM is debt free.

Reducing Debt: LM has no debt compared to 5 years ago when its debt to equity ratio was 222.4%.


Balance Sheet

Inventory Level: LM has a high level of physical assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if LM's debt is covered by short term assets.


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable LM has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: LM is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -3.5% per year.


Next Steps

Dividend

What is Lingo Media's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate LM's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate LM's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if LM's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if LM's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of LM's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.


Next Steps

Management

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

3.4yrs

Average management tenure


CEO

Gali Bar-Ziv (47yo)

1.25s

Tenure

CA$174,308

Compensation

Mr. Gali Bar-Ziv has been President, Chief Executive Officer and Director at Lingo Media Corporation since December 11, 2018. He was the Chief Operating Officer of Lingo Media Corporation from June 2009 to ...


CEO Compensation Analysis

Compensation vs Market: Gali's total compensation ($USD123.28K) is about average for companies of similar size in the Canadian market ($USD159.13K).

Compensation vs Earnings: Gali's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Gali Bar-Ziv
President1.25yrsCA$174.31k0.0056% CA$70.0
Khurram Qureshi
CFO, Treasurer & Secretary8.25yrsCA$79.00k1.11% CA$13.7k
Laurent Glorieux
Senior Sales Director3.42yrsno datano data

3.4yrs

Average Tenure

Experienced Management: LM's management team is considered experienced (3.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Gali Bar-Ziv
President1.25yrsCA$174.31k0.0056% CA$70.0
Michael Kraft
Chairman1.25yrsCA$139.42k0.27% CA$3.3k
Jerahmiel Grafstein
Independent Director9.42yrsno data2.53% CA$31.5k
Weibing Gong
Independent Director9.42yrsno datano data
Robert Martellacci
Independent Director2.25yrsno datano data

2.3yrs

Average Tenure

56yo

Average Age

Experienced Board: LM's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.


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.


Top Shareholders

Company Information

Lingo Media Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Lingo Media Corporation
  • Ticker: LM
  • Exchange: TSXV
  • Founded:
  • Industry: Publishing
  • Sector: Media
  • Market Cap: CA$1.244m
  • Shares outstanding: 35.53m
  • Website: https://www.lingomedia.com

Location

  • Lingo Media Corporation
  • 151 Bloor Street West
  • Suite 703
  • Toronto
  • Ontario
  • M5S 1S4
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LMDC.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDSep 2000
LMTSXV (TSX Venture Exchange)YesCommon SharesCACADSep 2000
LIMADB (Deutsche Boerse AG)YesCommon SharesDEEURSep 2000

Biography

Lingo Media Corporation, together with its subsidiaries, develops, markets, and supports a suite of English language learning solutions in the People’s Republic of China. The company operates in two segments, License of Intellectual Property, and Online and Offline Language Learning. The License of Intellectual Property segment publishes print-based English language learning textbook programs. It co-publishes approximately 671 million units from library of program titles. The Online English Language Learning segment provides Web-based educational technology English language learning training and assessment solutions, such as Web-based software licensing subscriptions, online and professional services, audio practice tools, and multi-platform applications. It offers approximately 2,000 hours of interactive learning through various product offerings that include Winnie’s World, English Academy, Scholar, Campus, English for Success, and Master and English for Success. This segment also markets its products in Latin America through a network of distributors. Lingo Media Corporation is headquartered in Toronto, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/31 01:27
End of Day Share Price2020/03/23 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.