CMLS Cumulus stock Story

CMLS -  USA Stock  

USD 11.60  0.16  1.40%

It seems Cumulus Media will continue to recover much faster as its share price surged up 0.58% today. Cumulus Media's current daily volatility is 4.53 percent, with a beta of 0.34 and an alpha of 0.46 over DOW. While some millenniums are indifferent towards communication, it makes sense to sum up Cumulus Media. We will evaluate why we are still optimistic in anticipation of a recovery.
Published over six months ago
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Is Cumulus Media (NASDAQ:CMLS) way too risky for millennials?
Cumulus Media currently holds roughly 196.91 M in cash with 107.73 M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 9.69, which can makes it an attractive takeover target, given it will continue generating positive cash flow.
Investing in Cumulus Media, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding Cumulus Media along with other instruments in the same portfolio. Using conventional technical analysis and fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.
Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Cumulus Media's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy. Please use the tools below to analyze the current value of Cumulus Media in the context of predictive analytics.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Cumulus Media. Your research has to be compared to or analyzed against Cumulus Media's peers to derive any actionable benefits. When done correctly, Cumulus Media's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in Cumulus Media.

How important is Cumulus Media's Liquidity

Cumulus Media financial leverage refers to using borrowed capital as a funding source to finance Cumulus Media ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Cumulus Media financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Cumulus Media's total debt and its cash.

How CMLS Cumulus utilizes its cash?

To perform a cash flow analysis of Cumulus Media, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Cumulus Media is receiving and how much cash it distributes out in a given period. The Cumulus Media cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Cumulus Media Net Cash Flow from Operations is relatively stable at the moment as compared to the past year. Cumulus Media reported last year Net Cash Flow from Operations of 33.21 Million

Cumulus Media Correlation with Peers

Investors in CMLS Cumulus can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in Cumulus Media. Diversification will allow for the same portfolio return with reduced risk. The correlation table of Cumulus Media and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities CMLS Cumulus is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with your current brokerage.
Please check volatility of CMLS Cumulus for more details

An Additional Perspective On Cumulus Media

Cumulus Media appears to be moderately volatile, given 1 month investment horizon. Cumulus Media secures Sharpe Ratio (or Efficiency) of 0.11, which signifies that the company had 0.11% of return per unit of risk over the last month. Our standpoint towards foreseeing the volatility of a stock is to use all available market data together with stock specific technical indicators that cannot be diversified away. By analyzing Cumulus Media technical indicators you can presently evaluate if the expected return of 0.52% is justified by implied risk. Please makes use of Cumulus Media Downside Deviation of 3.01, risk adjusted performance of 0.1289, and Mean Deviation of 2.79 to double-check if our risk estimates are consistent with your expectations.
Click cells to compare fundamentals   Check Volatility   Backtest Portfolio

Cumulus showing record of lower volatility

Cumulus Media latest risk adjusted performance advances over 0.13. Cumulus Media shows above-average downside volatility for the selected time horizon. We advise investors to inspect Cumulus Media further and ensure that all market timing and asset allocation strategies are consistent with the estimation of Cumulus Media future alpha.

Our Final Takeaway

While many other companies under the broadcasting industry are still a bit expensive, Cumulus Media may offer a potential longer-term growth to retail investors. While some retail investors may not share our view we believe that the current risk-reward utility is not appealing enough to do any trading. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Cumulus Media.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Gabriel Shpitalnik do not own shares of Cumulus Media. Please refer to our Terms of Use for any information regarding our disclosure principles.

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