Townsquare Story

TSQ -  USA Stock  

USD 11.56  2.02  14.87%

As many millenniums are trying to avoid communication services space, it makes sense to recap Townsquare Media a little further and try to understand its current market patterns. We will check why this entity may not get much respect from insiders given the current market uncertainty. Is Townsquare Media valuation sustainable? Here I will cover a perspective on valuation of Townsquare to give you a better outlook on taking a position in this stock.
Published over a month ago
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Will Townsquare Media (NYSE:TSQ) price increase in June 2021?
Townsquare Media has 595.8 M in debt with debt to equity (D/E) ratio of 5.91, demonstrating that the firm may be unable to create cash to meet all of its financial commitments. The entity has a current ratio of 2.3, demonstrating that it is liquid and is capable to disburse its financial commitments when the payables are due.
Our advice tool can cross-verify current analyst consensus on Townsquare Media and to analyze the firm potential to grow in the current economic cycle.
We determine the current worth of Townsquare Media using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Townsquare Media based exclusively on its fundamental and basic technical indicators. By analyzing Townsquare Media's financials, quarterly and monthly indicators, and related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Townsquare Media's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Townsquare Media. We calculate exposure to Townsquare Media's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Townsquare Media's related companies.

Townsquare Media Investment Alerts

Townsquare investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring Townsquare Media performance across your portfolios.Please check all investment alerts for Townsquare

Townsquare Media Valuation Ratios as Compared to Competition

Our valuation model uses many indicators to compare Townsquare value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Townsquare Media competition to find correlations between indicators driving the intrinsic value of Townsquare.

How Townsquare utilizes its cash?

To perform a cash flow analysis of Townsquare Media, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Townsquare Media is receiving and how much cash it distributes out in a given period. The Townsquare Media cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Townsquare Media Net Cash Flow from Operations is very stable at the moment as compared to the past year. Townsquare Media reported last year Net Cash Flow from Operations of 31.49 Million

Another Deeper Perspective

The firm reported the last year's revenue of 371.34 M. Reported Net Loss for the year was (82.47 M) with profit before taxes, overhead, and interest of 86.91 M.
 2014 2015 2020 2021 (projected)
Interest Expense46.5 M35.98 M32.38 M32.45 M
Gross Profit120.45 M123.39 M111.05 M99.86 M

Margins Breakdown

Townsquare profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or Townsquare Media itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of Townsquare Media profit margins.
Operating Margin(20.7)
EBITDA Margin(14.9)
Gross Margin29.04
Profit Margin(22.79)


Townsquare Media Revenue Per Employee is increasing over the last 8 years. The previous year's value of Townsquare Media Revenue Per Employee was 149,939. Also, Townsquare Media Net Income Per Employee is very stable at the moment.

Our take on today Townsquare Media roll up

The standard deviation is down to 3.22 as of today. Townsquare Media currently demonstrates below-average downside deviation. It has Information Ratio of -0.02 and Jensen Alpha of 0.1. However, we advise investors to further question Townsquare Media expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk. 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.

When is the right time to buy or sell Townsquare Media? Buying stocks such as Townsquare Media isn't very hard. However, what challenging for most investors is doing it at the right time. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities, deliver winning trades and diversify portfolios on a daily basis.
The bottom line, as of the 9th of May 2021, we see that Townsquare Media moves slightly opposite to the market. The firm is undervalued with average odds of financial turmoil within the next 24 months. However, our current 90 days buy vs. sell advice on the firm is Strong Sell.

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 Ellen Johnson do not own shares of Townsquare Media. Please refer to our Terms of Use for any information regarding our disclosure principles.

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