Urban One, Inc. (NASDAQ: UONE)

Sector: Communication Services Industry: Broadcasting CIK: 0001041657
Market Cap 53.23 Mn
P/B 0.68
P/E -0.42
P/S 0.14
ROIC (Qtr) -14.02
Div Yield % 0.00
Rev 1y % (Qtr) -16.05
Total Debt (Qtr) 522.09 Mn
Debt/Equity (Qtr) 6.62
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About

Urban One, Inc., a Delaware corporation, is a prominent player in the multi-media industry, specifically targeting African-American and urban consumers (Urban One, Inc.). The company boasts an array of media properties, including radio broadcasting, cable television, digital media, and entertainment segments. Urban One's core business lies in its radio broadcasting franchise, which is the largest radio broadcasting operation in the United States, focusing on African-American and urban listeners. The company's primary business activities encompass...

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Investment thesis

Bull case

  • Healthy cash reserves of 79.81M provide 12.15x coverage of short-term debt 6.57M, demonstrating strong liquidity position and minimal refinancing risk.
  • Operating cash flow of 43.75M provides exceptional 237.76x coverage of minority interest expenses 184000, showing strong core operations.
  • Operating cash flow of 43.75M provides strong 11.77x coverage of stock compensation 3.72M, indicating sustainable incentive practices.
  • Robust free cash flow of 35.33M exceeds capital expenditure of 8.42M by 4.20x, indicating strong organic growth funding capability.
  • Cash position of 79.81M provides exceptional 433.75x coverage of minority interest expenses 184000, indicating strong liquidity.

Bear case

  • Operating cash flow of 43.75M barely covers its investment activities of (7.26M), with a coverage ratio of -6.03, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating earnings of (65.39M) show weak coverage of depreciation charges of 47.94M, with a -1.36 ratio indicating high capital intensity and potential reinvestment needs.
  • Free cash flow of 35.33M represents just -0.56x of debt issuance (62.63M), suggesting concerning reliance on leverage rather than internal cash generation for growth.
  • High depreciation of 47.94M relative to operating cash flow of 43.75M, which is 1.10x suggests significant maintenance capital requirements affecting free cash flow.
  • Operating cash flow of 43.75M barely covers operating expenses of 174.27M with a 0.25 ratio, suggesting thin operational efficiency margins and limited flexibility.

Segments Breakdown of Revenue (2023)

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 0.68 0.87
EV to Cash from Ops. EV/CFO 11.18 -0.15
EV to Debt EV to Debt 0.94 6.39
EV to EBIT EV/EBIT -7.48 3.66
EV to EBITDA EV/EBITDA -6.99 3.24
EV to Free Cash Flow [EV/FCF] EV/FCF 13.85 7.40
EV to Market Cap EV to Market Cap 9.19 6.46
EV to Revenue EV/Rev 1.24 1.70
Price to Book Value [P/B] P/B 0.68 614.59
Price to Earnings [P/E] P/E -0.42 -1.43
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) -311.76 -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) -1.57 -1.29
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -24.36 19.60
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -30.89 18.99
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 17.54
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -139.90 546.44
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -282.37 -17.28
EBIT Growth (1y) % EBIT 1y % (Qtr) -67.26 266.27
EBT Growth (1y) % EBT 1y % (Qtr) -18.45 -496.56
EPS Growth (1y) % EPS 1y % (Qtr) -67.65 -40.46
FCF Growth (1y) % FCF 1y % (Qtr) 114.98 25.60
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -16.50 3.01
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.54 0.48
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.20
Cash Ratio Cash Ratio (Qtr) 0.90 0.41
Current Ratio Curr Ratio (Qtr) 2.59 1.64
Debt to Equity Ratio Debt/Equity (Qtr) 6.62 2.17
Interest Cover Ratio Int Coverage (Qtr) -1.57 -1.29
Times Interest Earned Times Interest Earned (Qtr) -1.57 -1.29
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -4.40 -11.99
EBIT Margin % EBIT Margin % (Qtr) -16.61 -20.47
EBT Margin % EBT Margin % (Qtr) -27.18 -27.40
Gross Margin % Gross Margin % (Qtr) 67.10 34.96
Net Profit Margin % Net Margin % (Qtr) -32.50 -28.49