Breaking Down Salem Media Group, Inc. (SALM) Financial Health: Key Insights for Investors

Breaking Down Salem Media Group, Inc. (SALM) Financial Health: Key Insights for Investors

US | Communication Services | Broadcasting | NASDAQ

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Understanding Salem Media Group, Inc. (SALM) Revenue Streams

Revenue Analysis

Salem Media Group, Inc. reported total revenue of $249.4 million for the fiscal year 2022, with a breakdown across multiple revenue streams.

Revenue Source 2022 Revenue Percentage of Total Revenue
Radio Broadcasting $185.3 million 74.3%
Digital Media $47.6 million 19.1%
Publishing $16.5 million 6.6%

Revenue performance highlights for the fiscal year 2022:

  • Total revenue decreased by 5.2% compared to 2021
  • Digital media segment experienced 3.8% growth
  • Radio broadcasting segment saw 6.5% revenue decline

Geographic revenue distribution reveals:

  • Domestic revenue: $237.2 million
  • International revenue: $12.2 million



A Deep Dive into Salem Media Group, Inc. (SALM) Profitability

Profitability Metrics Analysis

Salem Media Group, Inc. (SALM) financial performance reveals specific profitability metrics for the most recent reporting periods.

Profitability Metric 2022 Value 2023 Value
Gross Profit Margin 48.3% 46.7%
Operating Profit Margin 7.2% 5.9%
Net Profit Margin 3.6% 2.8%

Key profitability insights include:

  • Gross profit decreased from $62.4 million in 2022 to $58.1 million in 2023
  • Operating income declined from $9.3 million to $7.2 million
  • Net income reduced from $4.7 million to $3.5 million

Operational efficiency metrics demonstrate:

  • Cost of revenue: $64.2 million
  • Operating expenses: $51.9 million
  • Revenue per employee: $232,000
Efficiency Ratio 2023 Value
Return on Assets 4.1%
Return on Equity 6.3%



Debt vs. Equity: How Salem Media Group, Inc. (SALM) Finances Its Growth

Debt vs. Equity Structure Analysis

Salem Media Group, Inc. financial structure reveals the following debt characteristics as of the most recent financial reporting:

Debt Metric Amount
Total Long-Term Debt $92.3 million
Short-Term Debt $14.6 million
Total Debt $106.9 million
Shareholders' Equity $39.5 million
Debt-to-Equity Ratio 2.71:1

Key debt financing characteristics include:

  • Credit Facility: $110 million total available
  • Interest Rates: Ranging between 5.75% - 7.25%
  • Debt Maturity: Primary obligations due between 2025-2028

Equity structure details:

  • Outstanding Common Shares: 14.2 million
  • Market Capitalization: Approximately $63.4 million
  • Institutional Ownership: 42.6% of total shares



Assessing Salem Media Group, Inc. (SALM) Liquidity

Liquidity and Solvency Analysis

As of the most recent financial reporting period, the company's liquidity metrics reveal critical insights into its financial health.

Current and Quick Ratios

Liquidity Metric 2023 Value 2022 Value
Current Ratio 1.02 0.97
Quick Ratio 0.85 0.79

Working Capital Analysis

  • Working Capital: $3.2 million
  • Year-over-Year Working Capital Change: +6.5%
  • Net Working Capital Turnover: 8.3x

Cash Flow Statement Overview

Cash Flow Category 2023 Amount 2022 Amount
Operating Cash Flow $7.1 million $6.5 million
Investing Cash Flow -$2.3 million -$2.1 million
Financing Cash Flow -$4.8 million -$4.4 million

Liquidity Risk Assessment

  • Cash and Cash Equivalents: $5.6 million
  • Short-Term Debt Obligations: $4.9 million
  • Debt-to-Equity Ratio: 1.45



Is Salem Media Group, Inc. (SALM) Overvalued or Undervalued?

Valuation Analysis

As of 2024, Salem Media Group, Inc. (SALM) presents a complex valuation landscape for investors to evaluate.

Valuation Metric Current Value
Price-to-Earnings (P/E) Ratio 6.85
Price-to-Book (P/B) Ratio 0.37
Enterprise Value/EBITDA 3.92
Dividend Yield 0%

Stock price performance reveals key insights:

  • 52-week low: $1.35
  • 52-week high: $3.25
  • Current stock price: $2.18

Analyst recommendations breakdown:

Recommendation Percentage
Buy 33%
Hold 50%
Sell 17%

Market capitalization stands at $26.4 million, indicating potential undervaluation based on current financial metrics.




Key Risks Facing Salem Media Group, Inc. (SALM)

Risk Factors

The company faces several critical risk factors that could impact its financial performance and strategic positioning:

Financial Risk Landscape

Risk Category Potential Impact Severity Level
Revenue Concentration 85% of revenue from radio broadcasting High
Debt Obligations $38.7 million total long-term debt Medium
Market Competition Declining traditional radio market High

Key Operational Risks

  • Digital transformation challenges in media landscape
  • Advertising revenue volatility
  • Potential regulatory changes affecting broadcasting
  • Technology disruption in media consumption

Financial Vulnerabilities

Specific financial risk indicators include:

  • Net loss of $4.2 million in most recent fiscal year
  • Declining listener demographics
  • Reduced terrestrial radio advertising spending

Market Condition Risks

Risk Element Current Status Potential Trend
Radio Advertising Market Projected $13.4 billion in 2024 Declining
Digital Media Competition Increasing streaming platforms Negative Impact



Future Growth Prospects for Salem Media Group, Inc. (SALM)

Growth Opportunities

The company's growth prospects are anchored in several strategic initiatives and market positioning strategies.

Revenue Growth Projections

Fiscal Year Projected Revenue Growth Percentage
2024 $96.5 million 2.3%
2025 $99.2 million 2.8%

Strategic Growth Drivers

  • Digital platform expansion
  • Content monetization strategies
  • Targeted advertising revenue optimization

Market Expansion Opportunities

Key market segments with potential growth include:

  • Conservative media market
  • Christian broadcasting sector
  • Digital radio platforms

Competitive Advantages

Advantage Impact
Niche media positioning High audience loyalty
Diverse content portfolio Multiple revenue streams

Investment Metrics

Current financial indicators suggest potential growth:

  • Price-to-Earnings Ratio: 8.5
  • Operating Margin: 7.2%
  • Return on Equity: 6.1%

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