PodcastOne, Inc. (NASDAQ: PODC)

Sector: Communication Services Industry: Internet Content & Information CIK: 0001940177
Market Cap 62.83 Mn
P/B 4.27
P/E -11.52
P/S 1.10
ROIC (Qtr) -36.96
Div Yield % 0.00
Rev 1y % (Qtr) 24.70
Total Debt (Qtr) 0.00
Debt/Equity (Qtr) 0.00

About

PodcastOne, Inc., listed on the Nasdaq Capital Market under the ticker symbol PODC, is a prominent player in the podcast industry. As a subsidiary of LiveOne, Inc., PodcastOne is at the forefront of podcasting, making its content available on various platforms such as its website, Apple Podcasts, Spotify, and Amazon Music. The company's primary business activities revolve around the creation, distribution, and monetization of podcast content. With a presence in multiple countries, PodcastOne caters to a wide range of audiences and advertisers. Revenue...

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Price action

Investment thesis

Bull case

  • Robust free cash flow of 1.39M exceeds capital expenditure of 131000 by 10.63x, indicating strong organic growth funding capability.
  • Robust tangible asset base of 9.59M provides 7.26x coverage of working capital 1.32M, indicating strong operational backing.
  • Free cash flow of 1.39M provides robust 31.64x coverage of R&D expenses 44000, enabling sustainable innovation investment.
  • Cash position of 2.75M represents healthy 2.08x of working capital 1.32M, demonstrating strong operational liquidity.
  • Operating cash flow of 1.52M provides strong 11.63x coverage of capital expenditure 131000, enabling organic growth.

Bear case

  • Operating cash flow of 1.52M barely covers its investment activities of (131000), with a coverage ratio of -11.63, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (131000) provide weak support for R&D spending of 44000, which is -2.98x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • The company's operating cash flow of 1.52M shows concerning coverage of stock compensation expenses of 4.88M, with a 0.31 ratio indicating potential earnings quality issues.
  • Operating earnings of (5.44M) show weak coverage of depreciation charges of 873000, with a -6.23 ratio indicating high capital intensity and potential reinvestment needs.
  • High depreciation of 873000 relative to operating cash flow of 1.52M, which is 0.57x suggests significant maintenance capital requirements affecting free cash flow.

Peer comparison

Companies in the Internet Content & Information
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 GOOGL Alphabet Inc. 4,538.16 Bn 131.46 27.23 33.71 Bn
2 META Meta Platforms, Inc. 1,747.49 Bn 74.30 23.25 51.06 Bn
3 SPOT Spotify Technology S.A. 103.00 Bn 62.32 5.18 2.57 Bn
4 BIDU Baidu, Inc. 62.73 Bn 49.63 3.42 13.66 Bn
5 RDDT Reddit, Inc. 32.18 Bn 92.16 16.90 0.03 Bn
6 NBIS Nebius Group N.V. 27.81 Bn 127.53 81.80 4.51 Bn
7 TME Tencent Music Entertainment Group 24.66 Bn 15.77 5.54 0.54 Bn
8 PINS Pinterest, Inc. 16.95 Bn 8.53 4.18 0.21 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 2.70 1.10
EV to Cash from Ops. EV/CFO 40.02 -3.08
EV to Debt EV to Debt 0.00 28.98
EV to EBIT EV/EBIT -11.21 -26.54
EV to EBITDA EV/EBITDA -13.35 9.30
EV to Free Cash Flow [EV/FCF] EV/FCF 43.79 -67.01
EV to Market Cap EV to Market Cap 0.97 0.90
EV to Revenue EV/Rev 1.07 61.25
Price to Book Value [P/B] P/B 4.27 1.56
Price to Earnings [P/E] P/E -11.52 2.92
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 0.33
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 -8.92
Dividend per Basic Share Div per Share (Qtr) 0.00 0.31
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 2.58
Interest Coverage Int. cover (Qtr) 0.00 -202.56
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -165.83 -24.06
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 102.73 175.36
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.94
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 18.43 31.53
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 11.43 -472.14
EBIT Growth (1y) % EBIT 1y % (Qtr) 17.82 32.66
EBT Growth (1y) % EBT 1y % (Qtr) 17.82 -25.80
EPS Growth (1y) % EPS 1y % (Qtr) 25.00 -18.36
FCF Growth (1y) % FCF 1y % (Qtr) -25.72 20.83
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 16.48 19.58
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 2.52 0.74
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.02
Cash Ratio Cash Ratio (Qtr) 0.35 1.54
Current Ratio Curr Ratio (Qtr) 1.17 3.38
Debt to Equity Ratio Debt/Equity (Qtr) 0.00 -0.39
Interest Cover Ratio Int Coverage (Qtr) 0.00 -202.56
Times Interest Earned Times Interest Earned (Qtr) 0.00 -202.56
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -8.00 -4,283.87
EBIT Margin % EBIT Margin % (Qtr) -9.55 -4,786.62
EBT Margin % EBT Margin % (Qtr) -9.55 -5,002.12
Gross Margin % Gross Margin % (Qtr) 9.30 58.65
Net Profit Margin % Net Margin % (Qtr) -9.60 -5,003.08