Townsquare Media has roughly 79.11
M in cash with 38.03
M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 4.17.
On a scale of 0 to 100, Townsquare Media holds a
performance score of 12. The entity has a beta of 0.1007, which indicates not very significant fluctuations relative to the market. Let's try to break down what Townsquare's beta means in this case. As returns on the market increase, Townsquare Media returns are expected to increase less than the market. However, during the bear market, the loss on holding Townsquare Media will be expected to be smaller as well. Although it is vital to follow
Townsquare Media current price movements, it is good to be conservative about what you can do with the information regarding equity historical returns. The philosophy towards measuring
future performance of any stock is to evaluate the business as a whole together with its past performance, including all
available fundamental and
technical indicators. We have found twenty-one
technical indicators for Townsquare Media, which you can use to evaluate the performance of the company. Please operates Townsquare Media
standard deviation, as well as the
relationship between the value at risk and
kurtosis to make a quick decision on whether Townsquare Media existing
price patterns will revert.
Investing in Townsquare 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 Townsquare 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, anticipate that the market will even out over time. This tendency of Townsquare 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 note, it is not enough to conduct a financial or market analysis of a single entity such as Townsquare Media. Your research has to be compared to or analyzed against Townsquare Media's peers to derive any actionable benefits. When done correctly, Townsquare Media's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in Townsquare Media.
How important is Townsquare Media's Liquidity
Townsquare Media
financial leverage refers to using borrowed capital as a funding source to finance Townsquare Media ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Townsquare 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 Townsquare 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 Townsquare 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 Townsquare Media's total debt and its cash.
Townsquare Media Gross Profit
Townsquare Media Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Townsquare Media previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Townsquare Media Gross Profit growth over the last 10 years. Please check Townsquare Media's
gross profit and other
fundamental indicators for more details.
Townsquare Media Correlation with Peers
Investors in Townsquare can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in Townsquare Media. Diversification will allow for the same portfolio return with reduced risk. The correlation table of Townsquare Media and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities Townsquare 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 Townsquare for more details
Another Deeper Perspective
Townsquare Media appears to be somewhat reliable, given 1 month investment horizon.
Townsquare Media owns Efficiency Ratio (i.e. Sharpe Ratio) of 0.17, which indicates the firm had 0.17% of return per unit of risk over the last month. Our standpoint towards measuring the volatility of a stock is to use all available market data together with stock specific
technical indicators that cannot be
diversified away. By inspecting
Townsquare Media technical indicators you can presently evaluate if the expected return of 0.56% is justified by implied risk. Please operate Townsquare Media Risk Adjusted Performance of 0.1425,
coefficient of variation of 606.79, and Semi Deviation of 2.75 to confirm if our risk estimates are consistent with your expectations.
Our take on Townsquare Media small decline
Recent Total Risk Alpha is up to 0.03. Price may decline again. Townsquare Media shows above-average downside volatility for the selected time horizon. We advise investors to inspect Townsquare Media further and ensure that all market timing and asset allocation strategies are consistent with the estimation of Townsquare Media future alpha. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Townsquare 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 Townsquare 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 Final Take On Townsquare Media
Although many of the other players within the advertising agencies industry are still a little expensive, even after the recent corrections, Townsquare Media may offer a potential longer-term growth to insiders. With an impartial outlook on the current market volatility, it may be better to hold off any inventment activity and neither trade nor exit any shares of Townsquare Media at this time. The Townsquare Media risk-reward trade off 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 Townsquare Media.
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Rifka Kats is a Member of Macroaxis Editorial Board. Rifka writes about retail product and service companies from the perspective of a regular consumer and sophisticated investor at the same time. She is passionate about corporate ethics and equality in the workforce.
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 Rifka Kats do not own shares of Townsquare Media. Please refer to our
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