Troika Media Group (NasdaqCM:TRKA) - Share price, News & Analysis

TRKA fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	5/6
Past Performance	0/6
Financial Health	3/6
Dividends	0/6

TRKA Stock Overview

Troika Media Group, Inc. operates as a brand consulting and marketing agency specializing in the entertainment and sports media sectors worldwide.

Rewards

Earnings are forecast to grow 115.59% per year

Risk Analysis

Highly volatile share price over the past 3 months

Shareholders have been substantially diluted in the past year

Does not have a meaningful market cap ($54M)

Troika Media Group Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Troika Media Group
Historical stock prices
Current Share Price	US$0.85
52 Week High	US$3.61
52 Week Low	US$0.33
Beta	0
1 Month Change	-15.00%
3 Month Change	-22.02%
1 Year Change	-71.19%
3 Year Change	n/a
5 Year Change	n/a
Change since IPO	-72.76%

Shareholder Returns

	TRKA	US Media	US Market
7D	-9.3%	3.1%	6.6%
1Y	-71.2%	-33.0%	-18.5%

Return vs Industry: TRKA underperformed the US Media industry which returned -33.6% over the past year.

Return vs Market: TRKA underperformed the US Market which returned -20.5% over the past year.

Price Volatility

Is TRKA's price volatile compared to industry and market?
TRKA volatility
TRKA Average Weekly Movement	26.3%
Media Industry Average Movement	9.0%
Market Average Movement	8.0%
10% most volatile stocks in US Market	16.6%
10% least volatile stocks in US Market	3.1%

Stable Share Price: TRKA is more volatile than 90% of US stocks over the past 3 months, typically moving +/- 26% a week.

Volatility Over Time: TRKA's weekly volatility has increased from 20% to 26% over the past year.

About the Company

Founded	Employees	CEO	Website
n/a	101	Sid Toama	https://www.thetmgrp.com

Troika Media Group, Inc. operates as a brand consulting and marketing agency specializing in the entertainment and sports media sectors worldwide. It offers media services and analytics platform, digital marketing, data analytics and reporting, media content for events and hospitality customers, sponsorship partnerships and advertising opportunities, analytics and big data; strategic media buying and planning, design and branding, market research and insights, brand strategy, 360 brand design, advertising and sponsorship integration, brand experience and fan engagement, content creation, and sonic branding and original music services, as well as design, animation, and post production studio services. The company also provides brand fundamentals development, brand voice and personality development, marketing strategy, public relations, crisis management, and physical and digital experiential services.

Troika Media Group Fundamentals Summary

How do Troika Media Group's earnings and revenue compare to its market cap?
TRKA fundamental statistics
Market Cap	US$54.49m
Earnings (TTM)	-US$27.41m
Revenue (TTM)	US$34.78m

1.6x

P/S Ratio

-2.0x

P/E Ratio

Is TRKA overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
TRKA income statement (TTM)
Revenue	US$34.78m
Cost of Revenue	US$21.30m
Gross Profit	US$13.48m
Other Expenses	US$40.89m
Earnings	-US$27.41m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	-0.43
Gross Margin	38.76%
Net Profit Margin	-78.81%
Debt/Equity Ratio	333.3%

How did TRKA perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

Is TRKA undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

Price-To-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for TRKA?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for TRKA. This is calculated by dividing TRKA's market cap by their current preferred multiple.
What is TRKA's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	US$54.49m

TRKA key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	3.2x
Enterprise Value/EBITDA	-4.1x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does TRKA's PS Ratio compare to its peers?

TRKA PS Ratio vs Peers

The above table shows the PS ratio for TRKA vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PS	Estimated Growth	Market Cap
Peer Average	1.7x

Forward PS

Price-To-Sales vs Peers: TRKA is good value based on its Price-To-Sales Ratio (1.6x) compared to the peer average (1.7x).

Price to Earnings Ratio vs Industry

How does TRKA's PE Ratio compare vs other companies in the U.S. Media Industry?

Price-To-Sales vs Industry: TRKA is expensive based on its Price-To-Sales Ratio (1.6x) compared to the US Media industry average (1.1x)

Price to Sales Ratio vs Fair Ratio

What is TRKA's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

TRKA PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	1.6x
Fair PS Ratio	3.6x

Price-To-Sales vs Fair Ratio: TRKA is good value based on its Price-To-Sales Ratio (1.6x) compared to the estimated Fair Price-To-Sales Ratio (3.6x).

Share Price vs Fair Value

What is the Fair Price of TRKA when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: Insufficient data to calculate TRKA's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate TRKA's fair value for valuation analysis.

Price to Earnings Growth Ratio

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

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Future Growth

How is Troika Media Group forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

Future Growth Score

5/6

Future Growth Score 5/6

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

115.6%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: TRKA is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.9%).

Earnings vs Market: TRKA is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: TRKA is expected to become profitable in the next 3 years.

Revenue vs Market: TRKA's revenue (50% per year) is forecast to grow faster than the US market (8.3% per year).

High Growth Revenue: TRKA's revenue (50% per year) is forecast to grow faster than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

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

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Past Performance

How has Troika Media Group performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

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

-17.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: TRKA is currently unprofitable.

Growing Profit Margin: TRKA is currently unprofitable.

Past Earnings Growth Analysis

Earnings Trend: TRKA is unprofitable, and losses have increased over the past 5 years at a rate of 17.9% per year.

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

Earnings vs Industry: TRKA is unprofitable, making it difficult to compare its past year earnings growth to the Media industry (18.8%).

Return on Equity

High ROE: TRKA has a negative Return on Equity (-109.49%), as it is currently unprofitable.

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Financial Health

How is Troika Media Group's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Stable Cash Runway
Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: TRKA's short term assets ($75.2M) exceed its short term liabilities ($67.4M).

Long Term Liabilities: TRKA's short term assets ($75.2M) do not cover its long term liabilities ($128.2M).

Debt to Equity History and Analysis

Debt Level: TRKA's net debt to equity ratio (164%) is considered high.

Reducing Debt: TRKA's debt to equity ratio has increased from 36.7% to 333.3% over the past 5 years.

Balance Sheet

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: TRKA has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: TRKA has sufficient cash runway for more than 3 years if free cash flow continues to reduce at historical rates of 10.4% each year

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Dividend

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

Dividend Score

0/6

Dividend Score 0/6

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

Dividend Yield vs Market

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

High Dividend: Unable to evaluate TRKA'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 TRKA's dividends per share have been stable in the past.

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

Earnings Payout to Shareholders

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

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as TRKA has not reported any payouts.

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Management

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

0.4yrs

Average management tenure

CEO

Sid Toama (39 yo)

0.25

Tenure

Mr. Sadiq Toama, also known as Sid, has been President & Director at Troika Media Group, Inc since March 21, 2022 and also serves as its Chief Executive Officer since May 2022. He joined Converge in 2016....

Leadership Team

Experienced Management: TRKA's management team is not considered experienced ( 0.4 years average tenure), which suggests a new team.

Board Members

Experienced Board: TRKA's board of directors are not considered experienced ( 0.7 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: TRKA insiders have bought more shares than they have sold in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 76.3%.

Data	Last Updated (UTC time)
Company Analysis	2022/06/24 00:00
End of Day Share Price	2022/06/24 00:00
Earnings	2022/03/31
Annual Earnings	2021/06/30