LiveOne, Inc. (NASDAQ: LVO)

Sector: Communication Services Industry: Entertainment CIK: 0001491419
Market Cap 41.85 Mn
P/B -2.58
P/E -1.69
P/S 0.48
ROIC (Qtr) 906.32
Div Yield % 0.00
Rev 1y % (Qtr) -42.44
Total Debt (Qtr) 15.69 Mn
Debt/Equity (Qtr) -0.97

About

LiveOne, Inc. (LVO) is a prominent player in the music and entertainment industry, specializing in the acquisition, distribution, and monetization of live music events, Internet radio, podcasting, and music-related membership, streaming, and video content. The company's four core integrated services include LiveOne, Slacker, PodcastOne, and Custom Personalization Solutions, Inc. (CPS). LiveOne stands as a leading online live music streaming platform, delivering premium live-streamed, digital audio, and on-demand music experiences from the world's...

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Price action

Investment thesis

Bull case

  • Healthy cash reserves of 11.75M provide 20.13x coverage of short-term debt 584000, demonstrating strong liquidity position and minimal refinancing risk.
  • Tangible assets of 29.83M provide exceptional 30.85x coverage of deferred revenue 967000, showing strong service capability backing.
  • Retained earnings of (274.95M) represent substantial 16.94x of equity (16.23M), indicating strong internal capital generation.
  • Tangible assets of 29.83M provide robust 5.21x coverage of other current liabilities 5.72M, indicating strong asset backing.
  • R&D investment of 3.62M represents healthy 3.74x of deferred revenue 967000, indicating strong future innovation pipeline.

Bear case

  • Operating cash flow of (7M) barely covers its investment activities of (8.64M), with a coverage ratio of 0.81, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (8.64M) provide weak support for R&D spending of 3.62M, which is -2.39x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating cash flow of (7M) provides insufficient coverage of deferred revenue obligations of 967000, which is -7.24x, raising concerns about future service delivery capabilities.
  • High receivables of 7.65M relative to inventory of 1.46M (5.23 ratio) suggests aggressive credit terms or collection difficulties, potentially masking revenue quality issues.
  • The company's operating cash flow of (7M) shows concerning coverage of stock compensation expenses of 6.49M, with a -1.08 ratio indicating potential earnings quality issues.

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 0.85 1.53
EV to Cash from Ops. EV/CFO -6.55 25.10
EV to Debt EV to Debt 2.92 5.03
EV to EBIT EV/EBIT -2.06 165.24
EV to EBITDA EV/EBITDA -2.14 -156.71
EV to Free Cash Flow [EV/FCF] EV/FCF -4.34 72.07
EV to Market Cap EV to Market Cap 1.10 2.12
EV to Revenue EV/Rev 0.53 6.42
Price to Book Value [P/B] P/B -2.58 2.40
Price to Earnings [P/E] P/E -1.69 -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) -8.14 -38.17
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -15.34 -33.75
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 6.05 248.04
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.52
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -634.81 -100.15
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -1,550.85 -28.24
EBIT Growth (1y) % EBIT 1y % (Qtr) -651.18 -85.91
EBT Growth (1y) % EBT 1y % (Qtr) -267.70 24.10
EPS Growth (1y) % EPS 1y % (Qtr) -200.00 18.31
FCF Growth (1y) % FCF 1y % (Qtr) -196.90 118.70
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -42.74 30.85
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 1.61 0.60
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.04
Cash Ratio Cash Ratio (Qtr) 0.33 0.45
Current Ratio Curr Ratio (Qtr) 0.63 1.09
Debt to Equity Ratio Debt/Equity (Qtr) -0.97 1.01
Interest Cover Ratio Int Coverage (Qtr) -8.14 -38.17
Times Interest Earned Times Interest Earned (Qtr) -8.14 -38.17
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -22.10 -65.26
EBIT Margin % EBIT Margin % (Qtr) -25.68 -79.53
EBT Margin % EBT Margin % (Qtr) -28.83 -82.47
Gross Margin % Gross Margin % (Qtr) 20.80 35.56
Net Profit Margin % Net Margin % (Qtr) -28.60 -83.18