Newsmax Inc. (NYSE: NMAX)

Sector: Communication Services Industry: Broadcasting CIK: 0002026478
Market Cap 202.45 Mn
P/B 1.91
P/E -2.81
P/S 1.18
ROIC (Qtr) 0.00
Div Yield % 0.00
Rev 1y % (Qtr) 4.04
Total Debt (Qtr) 5.21 Mn
Debt/Equity (Qtr) 0.05
Add ratio to table...

About

Investment thesis

Bull case

  • Healthy cash reserves of 14.18M provide 4.08x coverage of short-term debt 3.48M, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 233.33M provides 44.81x coverage of total debt 5.21M, indicating robust asset backing and low credit risk.
  • Tangible assets of 233.33M provide exceptional 17.02x coverage of deferred revenue 13.71M, showing strong service capability backing.
  • Short-term investments of 116.18M provide solid 2.28x coverage of other current liabilities 50.90M, indicating strong liquidity.
  • Tangible assets of 233.33M provide robust 4.58x coverage of other current liabilities 50.90M, indicating strong asset backing.

Bear case

  • Short-term investments of 116.18M significantly exceed cash reserves of 14.18M, which is 8.19x, indicating potentially excessive yield-seeking behavior at the expense of liquidity.
  • High receivables of 30.62M relative to inventory of 1.80M (17.03 ratio) suggests aggressive credit terms or collection difficulties, potentially masking revenue quality issues.
  • Operating cash flow of 0 provides insufficient coverage of deferred revenue obligations of 13.71M, which is 0x, raising concerns about future service delivery capabilities.
  • Retained earnings of (324.90M) provide limited buffer against comprehensive income items of 810725, which is -400.75x, indicating elevated exposure to market risks.
  • Short-term investments of 116.18M represent 0.95x of working capital 122.02M, suggesting potentially excessive financial asset allocation versus operational needs.

Peer comparison

Companies in the Broadcasting
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 NXST Nexstar Media Group, Inc. 8.26 Bn 23.87 1.67 6.40 Bn
2 TGNA Tegna Inc 4.06 Bn 7.22 1.41 2.59 Bn
3 SBGI Sinclair, Inc. 1.07 Bn 0.49 0.18 4.24 Bn
4 SSP E.W. SCRIPPS Co 0.81 Bn -7.98 0.35 2.74 Bn
5 IHRT iHeartMedia, Inc. 0.53 Bn -1.32 0.14 5.87 Bn
6 FUBO FuboTV Inc. 0.46 Bn 2.96 0.17 0.41 Bn
7 GTN Gray Media, Inc 0.23 Bn -7.34 0.80 5.68 Bn
8 NMAX Newsmax Inc. 0.20 Bn -2.81 1.18 0.01 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.00 0.87
EV to Cash from Ops. EV to Cash from Ops. 0.00 -0.15
EV to Debt EV to Debt 0.00 6.39
EV to EBIT EV to EBIT 0.00 3.66
EV to EBITDA EV to EBITDA 0.00 3.24
EV to Free Cash Flow [EV/FCF] EV to Free Cash Flow [EV/FCF] 0.00 7.40
EV to Market Cap EV to Market Cap 0.00 6.46
EV to Revenue EV to Revenue 0.00 1.70
Price to Book Value [P/B] P/B 1.91 614.59
Price to Earnings [P/E] P/E -2.81 -1.43
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.00 -21.94
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 114.41
Dividend per Basic Share Div per Share (Qtr) 0.00 0.74
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 23.53
Interest Coverage Int. cover (Qtr) 0.00 -1.29
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 0.00 19.60
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 0.00 18.99
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 17.54
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 0.00 546.44
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 0.00 -17.28
EBIT Growth (1y) % EBIT 1y % (Qtr) 0.00 266.27
EBT Growth (1y) % EBT 1y % (Qtr) 0.00 -496.56
EPS Growth (1y) % EPS 1y % (Qtr) 0.00 -40.46
FCF Growth (1y) % FCF 1y % (Qtr) 0.00 25.60
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 0.00 3.01
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.00 0.48
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.20
Cash Ratio Cash Ratio (Qtr) 0.20 0.41
Current Ratio Curr Ratio (Qtr) 2.74 1.64
Debt to Equity Ratio Debt/Equity (Qtr) 0.05 2.17
Interest Cover Ratio Int Coverage (Qtr) 0.00 -1.29
Times Interest Earned Times Interest Earned (Qtr) 0.00 -1.29
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 0.00 -11.99
EBIT Margin % EBIT Margin % (Qtr) 0.00 -20.47
EBT Margin % EBT Margin % (Qtr) 0.00 -27.40
Gross Margin % Gross Margin % (Qtr) 0.00 34.96
Net Profit Margin % Net Margin % (Qtr) 0.00 -28.49