Salem Media Group, Inc. (SALM) Bundle
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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