Breaking Down Emerald Holding, Inc. (EEX) Financial Health: Key Insights for Investors

Breaking Down Emerald Holding, Inc. (EEX) Financial Health: Key Insights for Investors

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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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