Hemisphere Media (HMTV) Company Overview & Stock Price Forecast
This article provides a brief analysis and stock rating for Hemisphere Media Group (HMTV) including an updated stock price target. Additional data on the company’s earnings yield, price/earnings ratio, return on invested capital and YTD performance are discussed as well.
Hemisphere Media Fundamentals
Stock Price Target: $12.83
In the section below, we discuss the earnings yield, P/E, return on invested capital and YTD performance for Hemisphere Media Group in comparison to the Broadcasting industry and the S&P 500.
Hemisphere Media Group is a Small Cap company with a Market Cap of $254.8M.
How are investors using Hemisphere Media earnings yield to assess the company?
The earnings yield is used to show the percentage of a company’s earnings per share. Investors typically use earnings yield to determine which assets are underpriced or overpriced relative to other variables, like sector, industry or bond yields. Simply put, the earnings yield of a company can be used to assess how expensive a company is in relation to the earnings that are generated. When valuing companies, the SIS Research Group does not utilize the inverse P/E ratio to calculate the earnings yield. Instead, we use an adjusted earning yield calculation to capture variation amongst companies (i.e. debt and tax rates).
The current earnings yield for Hemisphere Media is 15.17%, in comparison to 3.97% for the S&P 500 and 1.92% for the 10-year treasury bond. The median earnings yield for the Broadcasting industry is 13.64%.
What does Hemisphere Media Price-to-Earnings Ratio (P/E) tell investors about the company?
The price-to-earnings ratio (P/E) is a relatively popular metric used by investors and analysts for valuing a company’s stock. The P/E ratio can be used to show how a stock’s valuation compares to other companies and the total market. Investors use the P/E ratio to determine what the market is willing to pay today based on a company’s past or future earnings. A high P/E ratio could mean that a stock’s price is too high relative to earnings, which could be a signal that a stock is currently overvalued. In turn, a low P/E ratio could indicate that a company’s current stock price is low relative to earnings.
Hemisphere Media is currently trading at a P/E of 11.51. The P/E for the Broadcasting industry is 17.19 and the P/E for the S&P 500 is 25.2.
What is the current Price-to-Sales Ratio (P/S) for Hemisphere Media?
The Price-to-Sales Ratio (P/S) looks at a company’s market cap and revenue to determine valuation. The P/S ratio is calculated by taking a company’s market cap and dividing by the total sales or revenue. The P/S ratio gives an idea of how much the market values every dollar of a company’s sales and can be effective in valuing unprofitable growth stocks or companies that are currently undergoing special situations or challenges. A lower the P/S ratio can be an indicator of good value.
Hemisphere Media is currently trading at a P/S of 1.65. The P/S for the Broadcasting industry is 0.95 and the P/S for the S&P 500 is 2.92.
How does Hemisphere Media Price-to-BookRatio (P/B) compare to the Broadcasting industry?
Price-to-book value (P/B) is the ratio of the market value of a company’s shares divided by its book value of equity (the value of it’s assets on the books). The book value is the difference between the book value of assets and liabilities. Typically, investors use the P/B ratio to assess if a stock is valued properly (a value of one means that the stock price is trading in line with the book value of the company). A company with a high P/B ratio could mean the stock price is overvalued as well as the converse.
Hemisphere Media P/B ratio is 1.08. The P/B for the Broadcasting industry is 1.33 and the P/B for the S&P 500 is 4.49.
How attractive is Hemisphere Media Return on Invested Capital (ROIC) to investors?
Investors use the return on invested capital (ROIC) to assess how efficient a company is at turning capital into profits. The ROIC is the amount of money a company makes on it’s investments that is above the average cost of debt and equity.
Investors can use the ROIC to provide context for metrics like the (P/E) ratio. For instance, when used in isolation a low P/E ratio could suggest a company is oversold but the decline could be because a company is no longer generating value for shareholders. Conversely, companies that consistently generate high rates of ROIC can plausibly trade at a premium compared to other stocks, even if their P/E ratios are high.
Hemisphere Media ROIC is currently 4.75% in comparison to 5.88% for the Broadcasting industry and 9.10% for the S&P 500.
How has HMTV stock performed over the past year? What is the current analyst price target?
Over the past 52 weeks, Hemisphere Media has traded between the range of $5.89 and $14.44.
The current Analyst Price Target for Hemisphere Media is $12.83.
What is Hemisphere Media YOY Performance in comparison to its industry and the total market?
The YOY performance for Hemisphere Media is -42.48%. The Broadcasting industry has a YOY performance of -7.97% in comparison to the YOY S&P 500 performance of 11.86%.
Recent Financial Results
- Net revenues were $50.8M for the three months ended September 30, 2021, an increase of 37%, as compared to $37.2M for the same period in 2020
- Net revenues were $138.8M for the nine months ended September 30, 2021, an increase of 33%, as compared to $104.3M for the same period in 2020
- Operating expenses were $58.2M for the three months ended September 30, 2021, an increase of $34.4M, as compared to operating expenses of $23.8M for the same period in 2020
- Adjusted EBITDA was $5.3M for the three months ended September 30, 2021, as compared to Adjusted EBITDA of $16.7M for the same period in 2020
- As of September 30, 2021, the Company had $253M in debt and $54.7M of cash
Stock Price Target: $12.83
Company Overview
Hemisphere Media Group, the Spanish-language media company, operates broadcast and cable television networks, and digital content platforms. It operates Cinelatino, a cable movie network with approximately 17.9 million subscribers in the United States, Latin America, and Canada; WAPA, a broadcast television network and television content producer; WAPA.TV, a news and entertainment website, as well as mobile apps, featuring content produced by WAPA; and WAPA Deportes, a sports television network in Puerto Rico.
Hemisphere Media Group, Inc. was founded in 2013 and is headquartered in Coral Gables, Florida. The current CEO is Alan Sokol.
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This material is provided for informational purposes only and is not financial advice. The information contained herein should not solely be used for the formation of an investment decision, whether you are a long term or short term investor.