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Creative Media & Community Trust Corporation (CMCT)
NASDAQ:CMCT
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Creative Media
(NASDAQ:CMCT)
47Neutral
Creative Media (CMCT) vs. S&P 500 (SPY)
Market Cap
$4.19M
Dividend Yield1500.6%
Average Volume (3M)1.18M
Price to Earnings (P/E)―
Beta (1Y)1.97
Revenue Growth3.83%
EPS Growth28.21%
CountryUS
Employees5
SectorReal Estate
Sector Strength69
IndustryREIT - Office
Share Statistics
EPS (TTM)-23.45
Shares Outstanding18,865,185
10 Day Avg. Volume2,959,773
30 Day Avg. Volume1,180,147
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.03
Price to Cash Flow (P/CF)0.70
P/FCF Ratio0.20
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Creative Media Business Overview & Revenue Model
Company DescriptionCreative Media (CMCT) is a dynamic company operating in the media and entertainment sector, specializing in digital content production, distribution, and marketing solutions. The company provides a wide range of services including video production, graphic design, social media management, and digital advertising, catering to businesses seeking innovative ways to engage their audiences and enhance their brand presence.
How the Company Makes MoneyCreative Media makes money primarily through service fees charged for its digital content creation and marketing solutions. The company generates revenue by offering customized packages to businesses that include video production, graphic design, and social media management. Additionally, CMCT earns income from digital advertising campaigns managed on behalf of clients. Significant partnerships with advertising platforms and media agencies further contribute to its earnings, allowing the company to reach broader audiences and optimize its marketing strategies.
Creative Media Financial Statement Overview
Summary
Creative Media exhibits a mixed financial outlook with positive revenue growth and a solid equity position, but struggles with profitability and cash flow management. The absence of debt is a significant advantage, yet persistent net losses and negative free cash flow highlight challenges. Improving operational efficiency and profitability is crucial for future success.Income Statement
Creative Media's income statement shows a mixed performance. The gross profit margin is strong with 100% in 2024, but the company has been struggling with profitability, as evidenced by negative net income for several years. Revenue has shown growth, especially from 2020 to 2024, with a notable growth rate of 4.4% from 2023 to 2024. However, the negative EBITDA in 2024 indicates potential operational inefficiencies. Overall, while revenue growth is a positive sign, consistent net losses are a concern for financial health.45
Neutral
Balance Sheet
The balance sheet of Creative Media shows a strong equity position with a debt-to-equity ratio of 0 in 2024, indicating no debt burden. The equity ratio improved significantly from 2023 to 2024, reaching about 34.2%. This suggests a solid capital structure. However, the decline in stockholders' equity over the years raises concerns about value erosion. The company needs to focus on improving its net income to enhance shareholder value.60
Neutral
Cash Flow
The cash flow statement reveals mixed dynamics. While operating cash flow has been positive, free cash flow has fluctuated, turning negative in recent years, indicating potential issues with capital expenditure management. The operating cash flow to net income ratio is positive, suggesting operational efficiency, but the free cash flow to net income ratio is negative, reflecting challenges in generating excess cash flow after investments.50
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 124.51M | 119.26M | 101.91M | 90.93M | 77.21M | Gross Profit |
| 51.70M | -3.27M | 47.53M | 47.68M | 33.93M | EBIT |
| 0.00 | -15.81M | 16.90M | 11.70M | -4.04M | EBITDA |
| 39.65M | 37.54M | 37.25M | 30.62M | 17.36M | Net Income Common Stockholders |
| -25.18M | -48.48M | 5.92M | -851.00K | -15.02M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 20.26M | 19.29M | 46.19M | 22.31M | 33.64M | Total Assets |
| 889.55M | 891.20M | 690.25M | 660.87M | 685.62M | Total Debt |
| 505.73M | 471.56M | 184.27M | 201.15M | 324.31M | Net Debt |
| 485.47M | 452.27M | 138.08M | 178.83M | 290.68M | Total Liabilities |
| 562.49M | 514.43M | 312.52M | 249.53M | 361.67M | Stockholders Equity |
| 325.31M | 374.40M | 377.36M | 410.99M | 323.50M |
| Cash Flow | Free Cash Flow | |||
| -6.24M | -1.33M | 23.59M | 42.23M | -1.90M | Operating Cash Flow |
| 17.03M | 12.00M | 32.41M | 46.28M | 12.83M | Investing Cash Flow |
| -22.29M | -88.69M | -22.27M | -12.70M | -38.32M | Financing Cash Flow |
| 13.90M | 63.45M | 13.69M | -43.58M | 33.20M |
Creative Media Technical Analysis
Negative
0.22
Price Trends
0.63
Negative
1.46
Negative
9.49
Negative
Market Momentum
-0.15
Positive
20.95
Positive
8.50
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CMCT, the sentiment is Negative. The current price of 0.22 is below the 20-day moving average (MA) of 0.43, below the 50-day MA of 0.63, and below the 200-day MA of 9.49, indicating a bearish trend. The MACD of -0.15 indicates Positive momentum. The RSI at 20.95 is Positive, neither overbought nor oversold. The STOCH value of 8.50 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CMCT.
Creative Media Risk Analysis
Creative Media disclosed 107 risk factors in its most recent earnings report. Creative Media reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Creative Media Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $2.89B | 5.12 | 21.01% | 2.70% | 6.56% | 57.12% | |
71 Outperform | $472.48M | 1.28 | 13.50% | 7.42% | 11.06% | ― | |
61 Neutral | $4.71B | 17.93 | -2.95% | 11.44% | 6.38% | -21.59% | |
56 Neutral | $1.04B | 3.33 | 71.43% | 6.40% | 13.21% | ― | |
55 Neutral | $190.14M | ― | -60.60% | 9.57% | -49.03% | -559.75% | |
50 Neutral | $534.03M | ― | -5.27% | ― | 45.67% | -100.72% | |
47 Neutral | $4.19M | ― | -7.20% | 1500.60% | 3.83% | 28.21% |
* Real Estate Sector Average
Performance Comparison
CMCT
Creative Media
0.22
-38.62
-99.43%
EVC
Entravision
2.09
0.59
39.33%
GTN
Gray Television
4.31
-1.29
-23.04%
NCMI
National Cinemedia
5.61
0.32
6.05%
SBGI
Sinclair Broadcast
15.63
3.74
31.46%
TGNA
TEGNA
18.09
3.87
27.22%
Creative Media Earnings Call Summary
Earnings Call Date: Mar 7, 2025 | % Change Since: -70.67% | Next Earnings Date: May 20, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted significant progress in reducing corporate debt and improvements in core FFO. However, there were notable declines in segment NOI across office, multifamily, hotel, and lending businesses. The sentiment of the call is balanced between positive strategic debt reduction and challenges in operational performance.Highlights
Significant Reduction in Recourse Credit Facility
The balance on the recourse corporate level credit facility was reduced from $169 million to $15 million due to successful closing of three mortgages.
Core FFO Improvement
Core FFO improved by approximately $4.5 million from the prior quarter primarily due to higher NOI, lower interest expense, and lower preferred dividends.
Sheraton Grand Hotel Mortgage
A $92.2 million mortgage was closed on the Sheraton Grand Hotel in Sacramento, with proceeds used to pay down the credit facility and fund room renovations.
Wilshire Portfolio Mortgage
A $105 million mortgage was closed on the Wilshire portfolio in Los Angeles, with proceeds used to reduce the credit facility and reserve for lease-up costs.
Progress in Multifamily Lease-Up
The residential portion of 4750 Wilshire is now 40% leased, up from 10% on the last call, showing progress in leasing strategy.
Lowlights
Decrease in Segment NOI
Segment NOI decreased by $1.6 million compared to the prior year, driven by declines in office, multifamily, hotel, and lending segments.
Office Segment Challenges
Office segment NOI for Q4 2024 was $5.2 million, down from $5.4 million in Q4 2023, impacted by a tenant exercising a partial lease termination option.
Hotel Segment Decline
Hotel operations NOI decreased by $828,000 due to reduced occupancy from renovations.
Negative FFO and Core FFO
FFO was negative $8.7 million, and Core FFO was negative $7 million, although showing improvement from the prior year.
Multifamily Segment NOI Decline
Multifamily segment NOI decreased primarily due to an unrealized loss on investment in real estate.
Company Guidance
During the fourth quarter of fiscal year 2024, Creative Media & Community Trust (CMCT) made significant strides in improving its financial position and strategic focus. The company successfully reduced its recourse corporate credit facility from $169 million to $15 million, primarily through the closure of three mortgages totaling approximately $202.2 million. This included a $92.2 million mortgage on the Sheraton Grand Hotel in Sacramento, a $105 million mortgage on the Wilshire portfolio in Los Angeles, and a $5 million mortgage in Culver City. CMCT's core funds from operations (FFO) improved by $4.5 million from the prior quarter, driven by a $1.6 million increase in net operating income (NOI), with notable contributions from the hotel segment, which rose by $1.1 million. However, the company reported a negative FFO of $8.7 million or $0.93 per diluted share, an improvement from the previous year's negative $9.9 million or $4.07 per diluted share. The multifamily segment saw a modest increase in NOI, despite a 220 basis point decline in occupancy from the previous quarter. CMCT is actively pursuing a 1 for 25 reverse stock split and continues to focus on divesting office assets while growing its multifamily portfolio.Creative Media Corporate Events
Delistings and Listing ChangesBusiness Operations and StrategyFinancial DisclosuresRegulatory Filings and Compliance
Creative Media Faces Challenges Amid Nasdaq Compliance Efforts
Negative
Nov 8, 2024
Creative Media & Community Trust Corporation announced a net loss of $34.8 million for Q3 2024, amidst efforts to focus on premier multifamily assets and improve liquidity. The company experienced a decline in office occupancy and net operating income due to increased expenses and construction impacts. While hotel renovations and multifamily developments are progressing, CMCT aims to regain Nasdaq compliance after its stock price fell below $1.00 per share for over 30 days.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.