Salem Media Stock Analysis, Valuation (NASDAQ:SALM)

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$4.63 $0.08 (1.76%) SALM stock closing price Feb 16, 2018 (Closing)
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Salem Media
Updated on : Feb 16, 2018
previous close
SALM 4.6 (0%)
S&P 500 2732.2 (0%)
Closing Price On: Feb 16, 2018
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Broadcasting-Radio-TV
Sector :
Consumer Discretionary
5 Quarter Revenue
Revenue Growth
2017-Q3
$million
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
3.4%
Operating Profit
Operating Margin:
8.2%
Sector Average:
11%
5 Quarter Net Profit
Net Margins
2017-Q3
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
256.1M
Debt/Equity Ratio:
 1.2
Compared to the industry
Cash Flow
Operating cash flow:
$8.6M
Net Income:
-$0.1M
Dividend Yield
SALM dividend yield:
6.06%
PROS      CONS
High Dividend Yield
PE Valuation
PS Valuation
Recent Growth
Long Term Growth
High Debt Burden
ROE
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
SALM PS :
0.5
Industry PS :
1.7
Sector:   Consumer Discretionary.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
3%
Return on Equity:
2.5%
Free Cash Flow Margin:
7.7%
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Salem Media Stock Analysis

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View the Salem Media stock analysis video on Amigobulls. This video puts forward our latest analysis highlighting the pros and cons for SALM stock.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

Salem Media Group Inc Stock Rating 2.5/5

Amigobulls SALM stock analysis uses latest quarter 2017 Q3 financial data like Salem Media revenue growth, profit margins and cash flows. Salem Media valuation forms a crucial part of our stock analysis. Salem Media stock rating encapsulates our opinion about the company based on the fundamentals.

Should you buy SALM stock?

  • SALM stock is trading at an earnings multiple of 11.3 which is better than the industry average of 22.8.
  • The lower PS ratio 0.5 for SALM stock versus Broadcasting-Radio-TV industry average of 1.7 is a positive for the company.
  • Salem Media is a dividend paying stock with a high yield of 6.06%.

Should you sell SALM stock?

  • Salem Media sales shrank by -8.2% year-over-year in 2017 Q3.
  • Long term revenue growth of 3.4% over the past 5 years has been disappointing.
  • With a debt/equity ratio of  1.2, Salem Media is highly leveraged in comparison to Consumer Discretionary peers.
  • Salem Media has a low return on equity of 2.5% over the last twelve months.

Comments on this video and Salem Media stock

Amigobulls Salem Media stock analysis helps investors in understanding how the company's fundamentals have performed in the last few quarters. Fundamentals of a company give detailed information which helps in making invesment decisions.

Among the financials of the company, Salem Media revenue growth along with the profit or net income give a clear picture of the financial health. Technical analysis comes in handy to check whether the market sentiment is in line with the fundamental picture of the company.