NYSE:ETM

Stock Analysis Report

Entercom Communications

Executive Summary

Entercom Communications Corp., a media and entertainment company, engages in radio broadcasting business in the United States.

Rewards

Trading at 61.7% below its fair value

Earnings are forecast to grow 36.63% per year

Risk Analysis

Interest payments are not well covered by earnings

Dividend of 1.65% is not well covered by earnings

Highly volatile share price over past 3 months

Shareholders have been diluted in the past year



Snowflake Analysis

Fair value with moderate growth potential.


Similar Companies

CBS

NYSE:CBS

Share Price & News

How has Entercom Communications's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ETM's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0.8%

ETM

-2.1%

US Media

-1.4%

US Market


1 Year Return

-24.1%

ETM

15.9%

US Media

14.5%

US Market

Return vs Industry: ETM underperformed the US Media industry which returned 15.9% over the past year.

Return vs Market: ETM underperformed the US Market which returned 14.5% over the past year.


Shareholder returns

ETMIndustryMarket
7 Day0.8%-2.1%-1.4%
30 Day30.3%-0.1%1.3%
90 Day34.6%0.02%4.6%
1 Year-21.0%-24.1%17.5%15.9%17.1%14.5%
3 Year-65.5%-69.8%22.2%17.1%45.1%35.7%
5 Year-48.5%-55.7%38.8%27.8%67.1%48.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Entercom Communications 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: ETM ($4.86) is trading below our estimate of fair value ($12.68)

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


Price To Earnings Ratio

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

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


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: ETM is good value based on its PB Ratio (0.5x) compared to the US Media industry average (1.3x).


Next Steps

Future Growth

How is Entercom Communications forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

36.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ETM is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).

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

High Growth Earnings: ETM's is expected to become profitable in the next 3 years.

Revenue vs Market: ETM's revenue (2.7% per year) is forecast to grow slower than the US market (7.4% per year).

High Growth Revenue: ETM's revenue (2.7% 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 ETM's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Entercom Communications performed over the past 5 years?

-35.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ETM is currently unprofitable.

Growing Profit Margin: ETM is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: ETM is unprofitable, and losses have increased over the past 5 years at a rate of -35.7% per year.

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

Earnings vs Industry: ETM is unprofitable, making it difficult to compare its past year earnings growth to the Media industry (-32.7%).


Return on Equity

High ROE: ETM has a negative Return on Equity (-23.34%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Entercom Communications's financial position?


Financial Position Analysis

Short Term Liabilities: ETM's short term assets ($438.2M) exceed its short term liabilities ($227.9M).

Long Term Liabilities: ETM's short term assets ($438.2M) do not cover its long term liabilities ($2.6B).


Debt to Equity History and Analysis

Debt Level: ETM's debt to equity ratio (126.1%) is considered high.

Reducing Debt: ETM's debt to equity ratio has reduced from 145.9% to 126.1% over the past 5 years.

Debt Coverage: ETM's debt is not well covered by operating cash flow (6.6%).

Interest Coverage: ETM is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet

Inventory Level: ETM has a low level of unsold assets or inventory.

Debt Coverage by Assets: ETM's debt is not covered by short term assets (assets are 0.3x debt).


Next Steps

Dividend

What is Entercom Communications's current dividend yield, its reliability and sustainability?

1.65%

Current Dividend Yield


Dividend Yield vs Market

company1.6%marketbottom25%1.4%markettop25%3.7%industryaverage2.0%forecastin3Years2.0%

Current dividend yield vs market & industry

Notable Dividend: ETM's dividend (1.65%) is higher than the bottom 25% of dividend payers in the US market (1.43%).

High Dividend: ETM's dividend (1.65%) is low compared to the top 25% of dividend payers in the US market (3.71%).


Stability and Growth of Payments

Stable Dividend: ETM has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: ETM has only been paying a dividend for 4 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: ETM is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: ETM's dividends in 3 years are forecast to be thoroughly covered by earnings (6% payout ratio).


Next Steps

Management

What is the CEO of Entercom Communications's salary, the management and board of directors tenure and is there insider trading?

2.7yrs

Average management tenure


CEO

David Field (56yo)

17.9yrs

Tenure

US$3,491,375

Compensation

Mr. David J. Field has been the Chief Executive Officer of Entercom Communications Corp. since May 3, 2002 and its President since 1998 and Serves as its Chairman since November 17,2017 and has been its Di ...


CEO Compensation Analysis

Compensation vs Market: David's total compensation ($USD3.49M) is above average for companies of similar size in the US market ($USD2.63M).

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


Management Age and Tenure

2.7yrs

Average Tenure

55yo

Average Age

Experienced Management: ETM's management team is considered experienced (2.7 years average tenure).


Board Age and Tenure

2.1yrs

Average Tenure

58yo

Average Age

Experienced Board: ETM's board of directors are not considered experienced ( 2.1 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$24,69515 Aug 19
Susan Neely
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares7,000
Max PriceUS$3.53
BuyUS$201,14314 Aug 19
Richard Schmaeling
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares55,676
Max PriceUS$3.67
BuyUS$1,192,03225 Jun 19
Joseph Field
EntityIndividual
Role
Chairman Emeritus
Chairman Emeritus
Shares200,000
Max PriceUS$6.00
BuyUS$1,195,55119 Jun 19
Joseph Field
EntityIndividual
Role
Chairman Emeritus
Chairman Emeritus
Shares200,000
Max PriceUS$5.99
BuyUS$2,022,68414 Jun 19
Joseph Field
EntityIndividual
Role
Chairman Emeritus
Chairman Emeritus
Shares332,162
Max PriceUS$7.00
BuyUS$1,766,28011 Jun 19
Joseph Field
EntityIndividual
Role
Chairman Emeritus
Chairman Emeritus
Shares300,000
Max PriceUS$5.94
BuyUS$175,42030 May 19
David Field
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares30,000
Max PriceUS$5.87
BuyUS$1,447,22926 Mar 19
Joseph Field
EntityIndividual
Role
Chairman Emeritus
Chairman Emeritus
Shares264,257
Max PriceUS$5.55
BuyUS$608,87011 Mar 19
Joseph Field
EntityIndividual
Role
Chairman Emeritus
Chairman Emeritus
Shares100,000
Max PriceUS$6.09
BuyUS$2,469,66006 Mar 19
Joseph Field
EntityIndividual
Role
Chairman Emeritus
Chairman Emeritus
Shares400,000
Max PriceUS$6.23
BuyUS$1,263,21001 Mar 19
Joseph Field
EntityIndividual
Role
Chairman Emeritus
Chairman Emeritus
Shares200,000
Max PriceUS$6.41
BuyUS$1,108,96026 Dec 18
Joseph Field
EntityIndividual
Role
Chairman Emeritus
Chairman Emeritus
Shares200,000
Max PriceUS$5.54
BuyUS$643,74018 Dec 18
Joseph Field
EntityIndividual
Role
Chairman Emeritus
Chairman Emeritus
Shares100,000
Max PriceUS$6.44
BuyUS$1,981,55013 Dec 18
Joseph Field
EntityIndividual
Role
Chairman Emeritus
Chairman Emeritus
Shares300,000
Max PriceUS$6.74
BuyUS$1,929,47010 Dec 18
Joseph Field
EntityIndividual
Role
Chairman Emeritus
Chairman Emeritus
Shares300,000
Max PriceUS$6.50

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 8.7%.


Management Team

  • David Field (56yo)

    Chairman

    • Tenure: 17.9yrs
    • Compensation: US$3.49m
  • Deborah Kane

    President of Sales

    • Tenure: 0yrs
  • Rich Schmaeling (54yo)

    Executive VP & CFO

    • Tenure: 2.7yrs
    • Compensation: US$1.76m
  • Andrew Sutor (46yo)

    Executive VP

    • Tenure: 6.9yrs
    • Compensation: US$932.30k
  • Weezie Kramer (62yo)

    Chief Operating Officer

    • Tenure: 4.6yrs
    • Compensation: US$1.08m
  • John Graefe

    Chief Information Officer

    • Tenure: 5.8yrs
  • Bob Philips (56yo)

    Chief Revenue Officer

    • Tenure: 2.1yrs
    • Compensation: US$1.09m
  • Tim Murphy

    Executive Vice President of Corporate Business Development

    • Tenure: 1.9yrs
  • Beth Bramowski (39yo)

    Principal Accounting Officer

    • Tenure: 0.3yrs
  • Paul Suchman

    Chief Marketing Officer

    • Tenure: 0.9yrs

Board Members

  • Joel Hollander (63yo)

    Independent Director

    • Tenure: 6.1yrs
    • Compensation: US$265.78k
  • Joseph Field (87yo)

    Chairman Emeritus

    • Tenure: 2.1yrs
    • Compensation: US$638.71k
  • David Field (56yo)

    Chairman

    • Tenure: 17.9yrs
    • Compensation: US$3.49m
  • David Berkman (58yo)

    Independent Lead Director

    • Tenure: 2.2yrs
    • Compensation: US$280.78k
  • Sean Creamer (54yo)

    Independent Director

    • Tenure: 2.1yrs
    • Compensation: US$217.44k
  • David Levy (56yo)

    Independent Director

    • Tenure: 4.6yrs
    • Compensation: US$210.78k
  • Mark LaNeve (60yo)

    Independent Director

    • Tenure: 5.8yrs
    • Compensation: US$224.11k
  • Susan Neely (62yo)

    Independent Director

    • Tenure: 1yrs
    • Compensation: US$47.55k
  • Stefan Selig (56yo)

    Independent Director

    • Tenure: 2.1yrs
    • Compensation: US$209.11k

Company Information

Entercom Communications Corp.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Entercom Communications Corp.
  • Ticker: ETM
  • Exchange: NYSE
  • Founded: 1968
  • Industry: Broadcasting
  • Sector: Media
  • Market Cap: US$657.866m
  • Shares outstanding: 137.63m
  • Website: https://www.entercom.com

Number of Employees


Location

  • Entercom Communications Corp.
  • 401 East City Avenue
  • Suite 809
  • Bala Cynwyd
  • Pennsylvania
  • 19004
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ETMNYSE (New York Stock Exchange)YesClass A Common StockUSUSDJan 1999

Biography

Entercom Communications Corp., a media and entertainment company, engages in radio broadcasting business in the United States. 3 The company owns and operates radio stations in various formats, such as new ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/05 23:36
End of Day Share Price2019/12/05 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.