The company is overvalued at 3.85 per share with modest projections ahead.
Salem Media holds a
performance score of 16 on a scale of zero to a hundred. The entity has a beta of -0.3782, which indicates possible diversification benefits within a given portfolio. Let's try to break down what Salem's beta means in this case. As returns on the market increase, returns on owning Salem Media are expected to decrease at a much lower rate. During the bear market, Salem Media is likely to outperform the market. Although it is essential to pay attention to
Salem Media Grp current price movements, it is also good to be reasonable about what you can do with equity historical returns. Our philosophy towards measuring
future performance of any stock is to look not only at its past charts but also at the business as a whole, including all fundamental and
technical indicators. To evaluate if Salem Media Grp expected return of 1.58 will be sustainable into the future, we have found twenty-seven different
technical indicators, which can help you to check if the expected returns are sustainable. Use Salem Media Grp
maximum drawdown, as well as the
relationship between the expected short fall and
rate of daily change to analyze future returns on Salem Media Grp.
The performance of Salem Media Group in the marketplace will significantly impact your decision to invest in its stock. Revenue growth, profitability, competitive positioning, management quality, and industry trends can influence Salem Media's
stock prices. When investing in Salem Media, there are several factors to consider and potential outcomes to expect. As a company performs well, its stock price may increase, allowing investors to benefit from price appreciation. However, Salem OTC Stock can experience significant price fluctuations due to market conditions, economic factors, industry trends, or company-specific news. This is why investing in stocks such as Salem Media carries risks, including the potential for capital loss. Stock prices can decline, and investors may incur losses if they sell shares at a lower price than their initial investment.
Watch out for price decline
Please consider monitoring Salem Media on a daily basis if you are holding a position in it. Salem Media is trading at a penny-stock level, and the possibility of delisting is much higher compared to other otcs. However, just because the otc stock is trading under one dollar, does not mean it will be marked for deletion.
Most exchanges require public instruments, such as Salem Media stock to be traded above the $1 level to remain listed. If Salem Media otc stock price falls below $1 for 30 consecutive trading days, the exchange can delist it. Once the company reaches this point, they will be sent an initial price violation notice directly from an exchange.
How important is Salem Media's Liquidity
Salem Media
financial leverage refers to using borrowed capital as a funding source to finance Salem Media Group ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Salem 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. Financial leverage can amplify the potential profits to Salem Media's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Salem Media's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between Salem Media's total debt and its cash.
An Additional Perspective On Salem Media Group
Salem Media Grp shows a total of twenty-one million three hundred twenty thousand
outstanding shares. Salem Media Grp maintains significant amount of outstanding shares owned by
insiders. An
insider is usually defined as a CEO, other corporate executive, director, or
institutional investor who own at least 10% of the company outstanding shares. Since such a large part of the company is owned by insiders, it is advisable to analyze if each of these insiders have been buying or selling the stock in recent months. Please note that no matter how much assets the company owns, if the real value of the company is less than the current market value, you may not be able to make money on it.
| 2014 | 2015 | 2020 | 2021 (projected) |
Interest Expense | 15.99 M | 15.43 M | 17.74 M | 22.66 M | Gross Profit | 65.6 M | 64.81 M | 58.33 M | 59.39 M |
Ownership Breakdown
| Retail Investors36.59% | Insiders47.4% | Institutions16.01% |
| Retail Investors | 36.59 |
| Insiders | 47.4 |
| Institutions | 16.01 |
Our take on today Salem Media hike
Sortino ratio is down to 0.15. It may denote a possible volatility pull down. Salem Media Grp is displaying above-average volatility over the selected time horizon. Investors should scrutinize Salem Media Grp independently to ensure intended market timing strategies are aligned with expectations about Salem Media volatility. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Salem Media's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Salem Media's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.
Our Takeaway on Salem Media Investment
While other companies under the broadcasting industry are still a bit expensive, Salem Media may offer a potential longer-term growth to stakeholders. To conclude, as of the 23rd of October 2021, our research shows that Salem Media is a rather very risky investment opportunity with a
below average chance of distress in the next two years. From a slightly different view, the entity currently appears to be
overvalued. Our ongoing 90 days buy-hold-sell advice on the company is
Cautious Hold.
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Vlad Skutelnik is a Macroaxis Contributor. Vlad covers stocks, funds, cryptocurrencies, and ETFs that are traded in North America, focusing primarily on fundamentals, valuation and market volatility. He has many years of experience in fintech, predictive investment analytics, and risk management.
View Profile 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 Vlad Skutelnik do not own shares of Salem Media Group. Please refer to our
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