Gaia, Inc (NASDAQ: GAIA)

Sector: Communication Services Industry: Entertainment CIK: 0001089872
Market Cap 92.41 Mn
P/B 1.07
P/E -19.37
P/S 0.94
ROIC (Qtr) -6.41
Div Yield % 0.00
Rev 1y % (Qtr) 13.42
Total Debt (Qtr) 10.75 Mn
Debt/Equity (Qtr) 0.12

About

Price action

Investment thesis

Bull case

  • Strong operating cash flow of 6.57M provides robust 0.61x coverage of total debt 10.75M, indicating excellent debt servicing capability and financial flexibility.
  • Healthy cash reserves of 14.16M provide 2.16x coverage of short-term debt 6.55M, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 102.17M provides 9.50x coverage of total debt 10.75M, indicating robust asset backing and low credit risk.
  • Tangible assets of 102.17M provide exceptional 5.30x coverage of deferred revenue 19.29M, showing strong service capability backing.
  • Tangible assets of 102.17M provide robust 4.07x coverage of other current liabilities 25.09M, indicating strong asset backing.

Bear case

  • Operating cash flow of 6.57M barely covers its investment activities of (7.48M), with a coverage ratio of -0.88, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 6.57M provides insufficient coverage of deferred revenue obligations of 19.29M, which is 0.34x, raising concerns about future service delivery capabilities.
  • The company's operating cash flow of 6.57M shows concerning coverage of stock compensation expenses of 1.48M, with a 4.45 ratio indicating potential earnings quality issues.
  • Free cash flow of 1.10M provides weak coverage of capital expenditures of 5.46M, with a 0.20 ratio suggesting additional external financing needs for growth initiatives.
  • Operating earnings of (5M) show weak coverage of depreciation charges of 19.65M, with a -0.25 ratio indicating high capital intensity and potential reinvestment needs.

Peer comparison

Companies in the Entertainment
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 NFLX Netflix Inc 398.09 Bn 38.16 9.18 14.46 Bn
2 DIS Walt Disney Co 204.13 Bn 16.46 2.16 42.03 Bn
3 WBD Warner Bros. Discovery, Inc. 70.69 Bn 145.75 1.87 33.52 Bn
4 FWONA Liberty Media Corp 53.12 Bn -399.43 13.15 7.04 Bn
5 LYV Live Nation Entertainment, Inc. 33.40 Bn 103.67 1.36 9.39 Bn
6 FOXA Fox Corp 33.26 Bn 16.34 2.02 6.60 Bn
7 PSKY Paramount Skydance Corp 18.94 Bn -1,353.00 0.66 14.73 Bn
8 TKO TKO Group Holdings, Inc. 17.56 Bn 76.76 4.05 4.04 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.59 1.53
EV to Cash from Ops. EV/CFO 13.63 25.10
EV to Debt EV to Debt 8.32 5.03
EV to EBIT EV/EBIT -17.89 165.24
EV to EBITDA EV/EBITDA 6.63 -156.71
EV to Free Cash Flow [EV/FCF] EV/FCF 80.99 72.07
EV to Market Cap EV to Market Cap 0.97 2.12
EV to Revenue EV/Rev 0.91 6.42
Price to Book Value [P/B] P/B 1.07 2.40
Price to Earnings [P/E] P/E -19.37 -114.33
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.00 1.03
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 -17.28
Dividend per Basic Share Div per Share (Qtr) 0.00 0.14
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 7.73
Interest Coverage Int. cover (Qtr) 19.25 -38.17
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 11.62 -33.75
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 224.44 248.04
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.52
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 23.00 -100.15
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -0.08 -28.24
EBIT Growth (1y) % EBIT 1y % (Qtr) 22.69 -85.91
EBT Growth (1y) % EBT 1y % (Qtr) 23.56 24.10
EPS Growth (1y) % EPS 1y % (Qtr) 29.63 18.31
FCF Growth (1y) % FCF 1y % (Qtr) -12.92 118.70
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 16.51 30.85
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.65 0.60
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.04
Cash Ratio Cash Ratio (Qtr) 0.32 0.45
Current Ratio Curr Ratio (Qtr) 0.52 1.09
Debt to Equity Ratio Debt/Equity (Qtr) 0.12 1.01
Interest Cover Ratio Int Coverage (Qtr) 19.25 -38.17
Times Interest Earned Times Interest Earned (Qtr) 19.25 -38.17
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 15.00 -65.26
EBIT Margin % EBIT Margin % (Qtr) -5.11 -79.53
EBT Margin % EBT Margin % (Qtr) -4.85 -82.47
Gross Margin % Gross Margin % (Qtr) 87.20 35.56
Net Profit Margin % Net Margin % (Qtr) -4.90 -83.18