Long-established in the Media - Diversified industry, Beasley Broadcast Group Inc (NASDAQ:BBGI) has enjoyed a stellar reputation. However, it has recently witnessed a decline of 12.84%, juxtaposed with a three-month change of -11.21%. Fresh insights from the GuruFocus Score Rating hint at potential headwinds. Notably, its diminished rankings in financial strength, growth, and valuation suggest that the company might not live up to its historical performance. Join us as we dive deep into these pivotal metrics to unravel the evolving narrative of Beasley Broadcast Group Inc.
Understanding the GF Score
The GF Score is a stock performance ranking system developed by GuruFocus using five aspects of valuation, which has been found to be closely correlated to the long-term performances of stocks by backtesting from 2006 to 2021. The stocks with a higher GF Score generally generate higher returns than those with a lower GF Score. Therefore, when picking stocks, investors should invest in companies with high GF Scores. The GF Score ranges from 0 to 100, with 100 as the highest rank.
1. Financial strength rank: 4/10
2. Profitability rank: 5/10
3. Growth rank: 2/10
4. GF Value rank: 10/10
5. Momentum rank: 2/10
Based on the above method, GuruFocus assigned Beasley Broadcast Group Inc the GF Score of 62 out of 100, which signals poor future outperformance potential.
Beasley Broadcast Group Inc: A Snapshot
Beasley Broadcast Group Inc is a multi-platform media company, whose primary business is operating radio stations throughout the United States. The Company offers local and national advertisers integrated marketing solutions across audio, digital and event platforms. The Company owns and operates stations in various markets including Atlanta, GA, Augusta, GA, Boston, MA, Charlotte, NC, Detroit, MI, Fayetteville, NC, Fort Myers-Naples, FL, Las Vegas, NV, Middlesex, NJ, Monmouth, NJ, Morristown, NJ, Philadelphia, PA, Tampa-Saint Petersburg, FL, and Wilmington, DE. The Company currently operates three operating segments Audio, Digital and esports. With a market cap of $28.46 million and sales of $257.09 million, the company has an operating margin of 7.02%.
Financial Strength Analysis
Beasley Broadcast Group Inc's financial strength indicators present some concerning insights about the company's balance sheet health. The company's interest coverage ratio of 0.68 positions it worse than 94.68% of 620 companies in the Media - Diversified industry. This ratio highlights potential challenges the company might face when handling its interest expenses on outstanding debt. The company's Altman Z-Score is just 0.52, which is below the distress zone of 1.81. This suggests that the company may face financial distress over the next few years. Additionally, the company's low cash-to-debt ratio at 0.11 indicates a struggle in handling existing debt levels.
Beasley Broadcast Group Inc's low Profitability rank can also raise warning signals. The company's Operating Margin has declined over the past five years ((-60.65%)), as shown by the following data: 2018: 15.09; 2019: 12.19; 2020: 0.12; 2021: 5.99; 2022: 5.94; .
A lack of significant growth is another area where Beasley Broadcast Group Inc seems to falter, as evidenced by the company's low Growth rank. The company's revenue has declined by -2.6 per year over the past three years, which underperforms worse than 56.41% of 959 companies in the Media - Diversified industry. Stagnating revenues may pose concerns in a fast-evolving market. Lastly, Beasley Broadcast Group Inc predictability rank is just one star out of five, adding to investor uncertainty regarding revenue and earnings consistency.
Given Beasley Broadcast Group Inc's financial strength, profitability, and growth metrics, the GuruFocus Score Rating highlights the firm's unparalleled position for potential underperformance. It's crucial for investors to consider these factors when making investment decisions. GuruFocus Premium members can find more companies with strong GF Scores using the following screener link: GF Score Screen.
This article first appeared on GuruFocus.