TSXV:LM

Stock Analysis Report

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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. More Details


Snowflake Analysis

Flawless balance sheet with outstanding track record.

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 is more volatile than 90% of Canadian stocks over the past 3 months, typically moving +/- 22% a week.

Volatility Over Time: Insufficient data to determine LM's volatility change over the past year.


Market Performance


7 Day Return

-10.5%

LM

0.2%

CA Media

0.7%

CA Market


1 Year Return

13.3%

LM

-12.9%

CA Media

-2.0%

CA Market

Return vs Industry: LM exceeded the Canadian Media industry which returned -12.8% over the past year.

Return vs Market: LM exceeded the Canadian Market which returned -1.8% over the past year.


Shareholder returns

LMIndustryMarket
7 Day-10.5%0.2%0.7%
30 Day0%0.6%5.3%
90 Day70.0%-4.4%4.0%
1 Year13.3%13.3%-9.5%-12.9%1.6%-2.0%
3 Year-50.0%-50.0%2.7%-8.1%10.2%-0.5%
5 Year-88.5%-88.5%27.5%5.3%44.5%22.3%

Long-Term 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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: LM (CA$0.1) is trading below our estimate of fair value (CA$2.71)

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


Price To Earnings Ratio

PE vs Industry: LM is good value based on its PE Ratio (3.7x) compared to the CA Media industry average (12.5x).

PE vs Market: LM is good value based on its PE Ratio (3.7x) compared to the Canadian market (15x).


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 (1.9x) compared to the CA Media industry average (1.1x).


Next Steps

Future Growth

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

7.3%

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?

-28.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LM has high quality earnings.

Growing Profit Margin: LM's current net profit margins (44.7%) are higher than last year (4%).


Past Earnings Growth Analysis

Earnings Trend: LM has become profitable over the past 5 years, growing earnings by -28.2% per year.

Accelerating Growth: LM's earnings growth over the past year (1077%) exceeds its 5-year average (-28.2% per year).

Earnings vs Industry: LM earnings growth over the past year (1077%) exceeded the Media industry 88.9%.


Return on Equity

High ROE: LM's Return on Equity (52.1%) is considered outstanding.


Next Steps

Financial Health

How is Lingo Media's financial position?


Financial Position Analysis

Short Term Liabilities: LM's short term assets (CA$2.2M) exceed its short term liabilities (CA$463.4K).

Long Term Liabilities: LM's short term assets (CA$2.2M) exceed its long term liabilities (CA$539.7K).


Debt to Equity History and Analysis

Debt Level: LM's debt to equity ratio (2.3%) is considered satisfactory.

Reducing Debt: LM's debt to equity ratio has reduced from 35.6% to 2.3% over the past 5 years.

Debt Coverage: LM's debt is well covered by operating cash flow (2206.8%).

Interest Coverage: LM's interest payments on its debt are well covered by EBIT (23.4x coverage).


Balance Sheet


Next Steps

Dividend

What is Lingo Media 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 recent payouts.

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

4.2yrs

Average management tenure


CEO

Gali Bar-Ziv (48 yo)

1.92yrs

Tenure

CA$193,691

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 ($USD148.25K) is about average for companies of similar size in the Canadian market ($USD165.33K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Gali Bar-Ziv
President1.92yrsCA$193.69k0.0056%
CA$ 170.0
Khurram Qureshi
CFO, Treasurer & Secretary8.92yrsCA$74.58k1.11%
CA$ 33.4k
Laurent Glorieux
Senior Sales Director4.17yrsno datano data

4.2yrs

Average Tenure

Experienced Management: LM's management team is considered experienced (4.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Gali Bar-Ziv
President1.92yrsCA$193.69k0.0056%
CA$ 170.0
Michael Kraft
Chairman1.92yrsCA$75.85k0.27%
CA$ 8.1k
Jerahmiel Grafstein
Independent Director10.17yrsno data2.53%
CA$ 76.5k
Laurent Mareschal
Director0.17yrno datano data
Weibing Gong
Independent Director10.17yrsno datano data
Robert Martellacci
Independent Director2.92yrsno datano data

2.4yrs

Average Tenure

57yo

Average Age

Experienced Board: LM's board of directors are not considered experienced ( 2.4 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.


Recent Insider Transactions

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$3.020m
  • 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 segmen...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/23 23:53
End of Day Share Price2020/11/23 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.