Cineverse Corp. (NASDAQ: CNVS)

Sector: Communication Services Industry: Entertainment CIK: 0001173204
Market Cap 33.75 Mn
P/B 0.89
P/E -21.89
P/S 0.42
ROIC (Qtr) 5.70
Div Yield % 0.00
Rev 1y % (Qtr) -3.00
Total Debt (Qtr) 7.20 Mn
Debt/Equity (Qtr) 0.19

About

Price action

Investment thesis

Bull case

  • Strong tangible asset base of 36.74M provides 5.10x coverage of total debt 7.20M, indicating robust asset backing and low credit risk.
  • Cash position of 2.34M provides exceptional 16.34x coverage of minority interest expenses 143000, indicating strong liquidity.
  • Tangible assets of 36.74M provide robust 749.86x coverage of other current liabilities 49000, indicating strong asset backing.
  • Strong cash position of 2.34M provides 47.67x coverage of other current liabilities 49000, indicating excellent liquidity.
  • Operating cash flow of (1.90M) exceeds working capital of (1.27M) by 1.50x, showing strong operational efficiency.

Bear case

  • The company's operating cash flow of (1.90M) shows concerning coverage of stock compensation expenses of 1.86M, with a -1.02 ratio indicating potential earnings quality issues.
  • Free cash flow of (2.56M) provides weak coverage of capital expenditures of 658000, with a -3.89 ratio suggesting additional external financing needs for growth initiatives.
  • Operating cash flow of (1.90M) provides minimal -14.98x coverage of tax expenses of 127000, suggesting potential tax planning inefficiencies or unsustainable tax positions.
  • Operating earnings of 2.41M show weak coverage of depreciation charges of 4.17M, with a 0.58 ratio indicating high capital intensity and potential reinvestment needs.
  • Operating cash flow of (1.90M) barely covers operating expenses of 4.17M with a -0.46 ratio, suggesting thin operational efficiency margins and limited flexibility.

Peer comparison

Companies in the Entertainment
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 NFLX Netflix Inc 349.87 Bn 31.86 7.74 14.46 Bn
2 DIS Walt Disney Co 195.56 Bn 15.96 2.04 46.64 Bn
3 WBD Warner Bros. Discovery, Inc. 66.35 Bn 136.80 1.75 33.52 Bn
4 FWONA Liberty Media Corp 46.91 Bn -352.74 11.61 7.04 Bn
5 LYV Live Nation Entertainment, Inc. 32.65 Bn 101.32 1.33 9.39 Bn
6 FOXA Fox Corp 29.03 Bn 15.35 1.75 6.60 Bn
7 TKO TKO Group Holdings, Inc. 17.65 Bn -220.73 5.07 4.04 Bn
8 WMG Warner Music Group Corp. 15.37 Bn 768.35 4.64 4.61 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.58 1.60
EV to Cash from Ops. EV/CFO -18.82 74.22
EV to Debt EV to Debt 4.98 109.74
EV to EBIT EV/EBIT 14.87 24.34
EV to EBITDA EV/EBITDA 5.41 31.84
EV to Free Cash Flow [EV/FCF] EV/FCF -13.98 -338.96
EV to Market Cap EV to Market Cap 1.06 62.35
EV to Revenue EV/Rev 0.45 9.43
Price to Book Value [P/B] P/B 0.89 3.87
Price to Earnings [P/E] P/E -21.89 -61.07
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) -4.32 1.25
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 -16.52
Dividend per Basic Share Div per Share (Qtr) 0.00 0.14
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 7.95
Interest Coverage Int. cover (Qtr) 0.69 -7.86
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 53.60 -46.16
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -3.83 2,379.93
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.45
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 113.14 -74.64
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 149.49 3.12
EBIT Growth (1y) % EBIT 1y % (Qtr) 111.73 -56.93
EBT Growth (1y) % EBT 1y % (Qtr) 95.16 11.72
EPS Growth (1y) % EPS 1y % (Qtr) 94.71 23.88
FCF Growth (1y) % FCF 1y % (Qtr) 69.01 -92.46
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 55.93 0.48
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 1.29 0.60
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.04
Cash Ratio Cash Ratio (Qtr) 0.10 0.48
Current Ratio Curr Ratio (Qtr) 0.95 1.22
Debt to Equity Ratio Debt/Equity (Qtr) 0.19 1.03
Interest Cover Ratio Int Coverage (Qtr) 0.69 -7.86
Times Interest Earned Times Interest Earned (Qtr) 0.69 -7.86
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 8.20 -64.95
EBIT Margin % EBIT Margin % (Qtr) 3.02 -79.29
EBT Margin % EBT Margin % (Qtr) -1.33 -82.30
Gross Margin % Gross Margin % (Qtr) 52.30 35.55
Net Profit Margin % Net Margin % (Qtr) -1.90 -82.96