Dolphin Entertainment, Inc. (NASDAQ: DLPN)

Sector: Communication Services Industry: Advertising Agencies CIK: 0001282224
Market Cap 17.15 Mn
P/B 2.03
P/E -2.83
P/S 0.32
ROIC (Qtr) -11.71
Div Yield % 0.00
Rev 1y % (Qtr) 16.67
Total Debt (Qtr) 27.25 Mn
Debt/Equity (Qtr) 3.23
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About

Dolphin Entertainment, Inc. (DLPN) is a prominent player in the entertainment industry, specializing in marketing and production services. The company's subsidiaries, such as 42West, Shore Fire, and The Door, are renowned for their expertise in entertainment public relations, music public relations, and hospitality and lifestyle public relations, respectively. Dolphin Entertainment's primary business activities revolve around providing strategic marketing and publicity services to top brands in various sectors, including motion picture, television,...

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Investment thesis

Bull case

  • Tangible assets of 29.99M provide exceptional 16.55x coverage of deferred revenue 1.81M, showing strong service capability backing.
  • Operating cash flow of (1.75M) fully covers other non-current liabilities (1.37M) by 1.28x, showing strong long-term stability.
  • Cash reserves of 8.76M provide comfortable 20.01x coverage of tax obligations 437592, showing strong fiscal management.
  • Cash position of 8.76M provides strong 4.83x coverage of deferred revenue 1.81M, ensuring service delivery capability.
  • Cash position of 8.76M fully covers payables of 2.80M by 3.13x, showing strong vendor relationship management.

Bear case

  • Operating cash flow of (1.75M) provides insufficient coverage of deferred revenue obligations of 1.81M, which is -0.97x, raising concerns about future service delivery capabilities.
  • The company's operating cash flow of (1.75M) shows concerning coverage of stock compensation expenses of 52645, with a -33.32 ratio indicating potential earnings quality issues.
  • Free cash flow of (1.76M) provides weak coverage of capital expenditures of 1119, with a -1568.45 ratio suggesting additional external financing needs for growth initiatives.
  • Operating cash flow of (1.75M) provides minimal -20.35x coverage of tax expenses of 86193, suggesting potential tax planning inefficiencies or unsustainable tax positions.
  • Operating earnings of (3.71M) show weak coverage of depreciation charges of 2.41M, with a -1.54 ratio indicating high capital intensity and potential reinvestment needs.

Product and Service Breakdown of Revenue (2024)

Peer comparison

Companies in the Advertising Agencies
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 APP AppLovin Corp 127.41 Bn 45.02 23.08 3.51 Bn
2 OMC Omnicom Group Inc. 14.77 Bn 15.35 1.09 7.07 Bn
3 TTD Trade Desk, Inc. 12.45 Bn 28.38 4.46 0.38 Bn
4 WPP WPP plc 3.86 Bn 7.39 0.20 -
5 QMMM QMMM Holdings Ltd 1.98 Bn -702.35 1,054.15 -
6 MGNI Magnite, Inc. 1.64 Bn 28.22 2.33 0.63 Bn
7 CCO Clear Channel Outdoor Holdings, Inc. 1.41 Bn -238.00 1.35 6.46 Bn
8 ZD Ziff Davis, Inc. 1.31 Bn 11.84 0.90 0.87 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.57 12.80
EV to Cash from Ops. EV/CFO -19.54 -9.24
EV to Debt EV to Debt 1.26 865.17
EV to EBIT EV/EBIT -9.23 -23.35
EV to EBITDA EV/EBITDA -20.05 -13.82
EV to Free Cash Flow [EV/FCF] EV/FCF -19.52 -15.99
EV to Market Cap EV to Market Cap 2.00 -11.05
EV to Revenue EV/Rev 0.64 29.66
Price to Book Value [P/B] P/B 2.03 18.02
Price to Earnings [P/E] P/E -2.83 -21.31
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 111.99
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 6.00
Dividend per Basic Share Div per Share (Qtr) 0.00 0.13
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 13.23
Interest Coverage Int. cover (Qtr) -1.63 -127.87
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 87.01 -7,492.41
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 32.99 58.50
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 6.50
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 79.11 161.56
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 88.38 -120.45
EBIT Growth (1y) % EBIT 1y % (Qtr) 79.40 -65.24
EBT Growth (1y) % EBT 1y % (Qtr) 70.45 -164.00
EPS Growth (1y) % EPS 1y % (Qtr) 76.15 12.86
FCF Growth (1y) % FCF 1y % (Qtr) -53.80 -627.41
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 5.99 -10.90
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.89 0.88
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.05
Cash Ratio Cash Ratio (Qtr) 0.29 0.60
Current Ratio Curr Ratio (Qtr) 0.82 2.20
Debt to Equity Ratio Debt/Equity (Qtr) 3.23 -1.37
Interest Cover Ratio Int Coverage (Qtr) -1.63 -127.87
Times Interest Earned Times Interest Earned (Qtr) -1.63 -127.87
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -2.40 -7.55
EBIT Margin % EBIT Margin % (Qtr) -6.95 -208.19
EBT Margin % EBT Margin % (Qtr) -11.21 -119.23
Gross Margin % Gross Margin % (Qtr) 95.90 41.53
Net Profit Margin % Net Margin % (Qtr) -11.40 -119.40