Simple Concepts Research Group

Cheap Stock to Watch: Urban One (UONEK)

by | Sep 13, 2021 | Stock Picks

Stock rating for Urban One (UONEK) and stock price target for 2021. Also, a look at recent financial data and key multiples for this bargain stock.

Urban One (UONEK) Company Overview & Stock Price Forecast

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UONEK Stock Rating

Stock Price Target: $14.21

Quick Points

  • Price/Free-Cash-Flow: 3.83
  • Price/Sales: 0.81
  • Prices/Earnings: 11.31
  • EV/EBITDA: 4.71
  • ROIC: 2.96%
  • Share Classes: UONEK shares have a YTD Return of 466.67% in comparison to UONE YTD return of 87.65%

Earnings Yield

The current earnings yield for UONEK is 21.27%, in comparison to 2.84% for the S&P 500 and 1.33% for the 10-year treasury bond. The median earnings yield for the industry in which UONEK operates is 11.75%.

CLICK HERE to view our Current Portfolio return for UONEK.

Stock Price Target: $14.21

Recent Financial Results

  • Broadcast and digital operating income of $49.6 million (increase of 64.3% from the same period in 2020)
  • $37.9 million in operating income for Q2 2021 (up from $20.4 million for the same quarter in 2020
  • Net income of $17.9 million ($0.36 per share compared to $0.03 per share in 2020)
  • EBITDA reported of $44.8 million ($24.5 million for the same period in 2020); up 82.4% YoY
  • $825 million in senior secured notes due 2028 (private offering)

Company Overview

Urban One is an urban focused multi-media company in the US. The company operates through four segments: Radio Broadcasting, Cable Television, Reach Media, and Digital.

Radio Broadcasting segment includes radio broadcasting operations that primarily target African-American and urban listeners. The company currently owns and/or operates 63 broadcast stations, including 54 FM or AM stations, 7 HD stations, and the 2 low power television stations in 13 urban markets.

Cable Television segment operates TV One, an African-American focused cable television network.

Reach Media segment operates syndicated programming, including the Get Up! Mornings with Erica Campbell Show, Rickey Smiley Morning Show, the Russ Parr Morning Show, and the DL Hughley Show.

Digital segment operates Interactive One, a digital platform serving the African-American community through social content, news, information, and entertainment websites, including Bossip, HipHopWired, and MadameNoire digital platforms.

In Q1 2021, Urban One received tentative approval from the City of Richmond for the construction of a new hotel and gaming facility, One Casino + Resort. A referendum on the project is scheduled for November 2021.

The company was founded in 1980 and is headquartered in Silver Spring, Maryland. The current CEO is Alfred Liggins lll.