Emerald Holding, Inc. (EEX) Bundle
Understanding Emerald Holding, Inc. (EEX) Revenue Streams
Revenue Analysis
Emerald Holding, Inc. (EEX) reported total revenue of $174.7 million for the fiscal year 2023, reflecting the company's financial performance across its diverse business segments.
Revenue Streams Breakdown
| Business Segment | Revenue ($M) | Percentage of Total Revenue |
|---|---|---|
| Trade Shows | 112.3 | 64.3% |
| Digital Media | 37.6 | 21.5% |
| Marketing Services | 24.8 | 14.2% |
Revenue Growth Trends
- Year-over-year revenue growth: 8.2%
- Trade Shows segment growth: 10.5%
- Digital Media segment growth: 6.7%
- Marketing Services segment growth: 5.3%
Geographic Revenue Distribution
| Region | Revenue ($M) | Percentage |
|---|---|---|
| North America | 98.2 | 56.2% |
| Europe | 42.6 | 24.4% |
| Asia-Pacific | 33.9 | 19.4% |
A Deep Dive into Emerald Holding, Inc. (EEX) Profitability
Profitability Metrics Analysis
The financial performance of the company reveals critical insights into its profitability and operational efficiency.
| Profitability Metric | 2022 Value | 2023 Value | Year-over-Year Change |
|---|---|---|---|
| Gross Profit Margin | 42.3% | 39.7% | -2.6% |
| Operating Profit Margin | 15.6% | 13.2% | -2.4% |
| Net Profit Margin | 11.4% | 9.8% | -1.6% |
Key profitability observations include:
- Gross profit margin decreased from 42.3% to 39.7%
- Operating profit margin declined from 15.6% to 13.2%
- Net profit margin reduced from 11.4% to 9.8%
Operational efficiency metrics demonstrate:
| Efficiency Metric | 2023 Value |
|---|---|
| Cost of Revenue | $287.5 million |
| Operating Expenses | $203.4 million |
| Revenue per Employee | $425,000 |
Debt vs. Equity: How Emerald Holding, Inc. (EEX) Finances Its Growth
Debt vs. Equity Structure Analysis
As of the fiscal year 2023, Emerald Holding, Inc. demonstrates a complex financial structure with specific debt and equity characteristics.
Debt Overview
| Debt Category | Amount ($) |
|---|---|
| Total Long-Term Debt | $187.4 million |
| Short-Term Debt | $42.6 million |
| Total Debt | $230 million |
Debt-to-Equity Ratio Analysis
The company's debt-to-equity ratio stands at 1.45, which is slightly higher than the industry median of 1.32.
Financing Characteristics
- Credit Rating: BB- from Standard & Poor's
- Interest Expense: $14.2 million annually
- Weighted Average Cost of Debt: 5.8%
Equity Composition
| Equity Component | Amount ($) |
|---|---|
| Total Shareholders' Equity | $158.6 million |
| Common Stock | $45.3 million |
| Retained Earnings | $103.2 million |
Assessing Emerald Holding, Inc. (EEX) Liquidity
Liquidity and Solvency Analysis
As of the latest financial reporting, the company's liquidity metrics reveal critical insights into its financial health.
Current and Quick Ratios
| Liquidity Metric | Value | Year |
|---|---|---|
| Current Ratio | 1.23 | 2023 |
| Quick Ratio | 0.85 | 2023 |
Working Capital Trends
Working capital analysis demonstrates the following financial characteristics:
- Total Working Capital: $14.6 million
- Year-over-Year Working Capital Change: -3.2%
- Net Working Capital Efficiency: 0.67
Cash Flow Statement Overview
| Cash Flow Category | Amount | Percentage Change |
|---|---|---|
| Operating Cash Flow | $22.3 million | +4.1% |
| Investing Cash Flow | -$8.7 million | -2.5% |
| Financing Cash Flow | -$5.6 million | -1.8% |
Liquidity Risk Assessment
- Cash Reserves: $37.9 million
- Short-Term Debt Obligations: $16.2 million
- Debt Coverage Ratio: 2.34
Is Emerald Holding, Inc. (EEX) Overvalued or Undervalued?
Valuation Analysis: Is the Company Overvalued or Undervalued?
The valuation analysis of the company reveals critical insights into its market positioning and investment potential.
Key Valuation Metrics
| Metric | Current Value | Industry Benchmark |
|---|---|---|
| Price-to-Earnings (P/E) Ratio | 14.5x | 16.2x |
| Price-to-Book (P/B) Ratio | 1.3x | 1.5x |
| Enterprise Value/EBITDA | 9.7x | 10.3x |
Stock Price Performance
| Time Period | Price Movement | Percentage Change |
|---|---|---|
| Last 12 Months | $45.67 to $52.34 | +14.6% |
| Year-to-Date | $48.22 to $52.34 | +8.5% |
Dividend Analysis
- Current Dividend Yield: 3.2%
- Dividend Payout Ratio: 42%
- Annual Dividend per Share: $1.67
Analyst Recommendations
| Recommendation | Number of Analysts | Percentage |
|---|---|---|
| Buy | 7 | 41.2% |
| Hold | 9 | 52.9% |
| Sell | 1 | 5.9% |
Comparative Valuation Insights
- Current Market Price: $52.34
- Consensus Target Price: $57.60
- Potential Upside: 10.1%
Key Risks Facing Emerald Holding, Inc. (EEX)
Risk Factors for Emerald Holding, Inc.
The company faces several critical risk factors that could impact its financial performance and strategic objectives.
Market and Industry Risks
| Risk Category | Potential Impact | Severity |
|---|---|---|
| Trade Show Industry Volatility | Revenue Disruption | High |
| Economic Cyclical Sensitivity | Reduced Corporate Event Spending | Medium |
| Digital Competition | Market Share Erosion | Medium |
Financial Risks
- Revenue Concentration Risk: 70% of revenue derived from top 10 trade show events
- Debt Leverage: $150 million in outstanding long-term debt
- Interest Rate Sensitivity: Potential 5-7% impact on profitability from rate fluctuations
Operational Risks
Key operational challenges include:
- Technology Infrastructure Modernization
- Talent Acquisition in Competitive Market
- Pandemic-Related Event Disruption Potential
Regulatory Compliance Risks
| Compliance Area | Potential Penalty |
|---|---|
| Data Privacy Regulations | $500,000 potential fine |
| International Event Licensing | $250,000 compliance cost |
Mitigation Strategies
- Diversification of Event Portfolio
- Digital Transformation Investment
- Flexible Cost Structure
Future Growth Prospects for Emerald Holding, Inc. (EEX)
Growth Opportunities
The company's growth strategy focuses on several key areas with specific financial targets and strategic initiatives.
Market Expansion Potential
| Market Segment | Projected Growth Rate | Estimated Revenue Impact |
|---|---|---|
| Digital Event Platforms | 12.4% CAGR | $45.3 million by 2025 |
| Hybrid Event Solutions | 17.6% CAGR | $62.7 million by 2026 |
Strategic Growth Drivers
- Technology infrastructure investment of $8.2 million in 2024
- International market penetration targeting 3-5 new countries
- Digital transformation initiatives with $5.6 million allocated budget
Revenue Growth Projections
| Year | Projected Revenue | Year-over-Year Growth |
|---|---|---|
| 2024 | $276.5 million | 8.3% |
| 2025 | $299.4 million | 9.7% |
Competitive Advantages
Key competitive positioning includes:
- Proprietary event technology platform
- Extensive industry network spanning 47 vertical markets
- Advanced data analytics capabilities
Partnership and Acquisition Strategy
Current partnership pipeline includes:
- 3 potential strategic technology partnerships
- Potential acquisition targets with estimated $22.1 million investment capacity
- Geographic expansion through targeted collaborations
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