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Cineverse (CNVS)
NASDAQ:CNVS
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Cineverse
(NASDAQ:CNVS)
62Neutral
Positive Factors
Financial Performance
Cineverse beat the revised revenue estimate by almost $2 million, with all of that upside flowing through to EBITDA.
Strategic Planning
The company's roadmap includes 3-4 films planned for distribution with better economics in the near-term, ramping to 8-10 films per year over the medium-term.
Negative Factors
Market Uncertainty
Expectations are tempered by a combination of timing and lack of clarity around success in merchandising and physical sales contributions.
Cineverse (CNVS) vs. S&P 500 (SPY)
Market Cap
$58.17M
Dividend YieldN/A
Average Volume (3M)223.68K
Price to Earnings (P/E)―
Beta (1Y)0.97
Revenue Growth39.86%
EPS Growth3.86%
CountryUS
Employees179
SectorCommunication Services
Sector Strength79
IndustryTraditional Media
Share Statistics
EPS (TTM)-0.99
Shares Outstanding15,979,558
10 Day Avg. Volume159,990
30 Day Avg. Volume223,681
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.80
Price to Cash Flow (P/CF)2.00
P/FCF Ratio1.50
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$8.50Price Target Upside143.55% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Cineverse Business Overview & Revenue Model
Company DescriptionCineverse (CNVS) is a dynamic entertainment company that operates within the digital media and entertainment industries. The company focuses on providing a wide array of content through streaming services, offering a diverse library that includes movies, television shows, and original programming. Cineverse aims to deliver engaging and high-quality entertainment experiences to a global audience, leveraging digital platforms to reach viewers across various devices and preferences.
How the Company Makes MoneyCineverse generates revenue primarily through subscription fees from its streaming service. By offering a tiered subscription model, the company appeals to different consumer segments, from casual viewers to avid entertainment enthusiasts. Additionally, Cineverse capitalizes on advertising revenue through ad-supported streaming options. The company also engages in licensing agreements, distributing its original and acquired content to other platforms and networks. Furthermore, Cineverse explores strategic partnerships with content creators and technology providers to enhance its offerings and expand its market reach. These diverse revenue streams enable Cineverse to maintain a competitive position within the rapidly evolving digital entertainment landscape.
Cineverse Financial Statement Overview
Summary
Cineverse shows a mixed financial health profile with notable revenue growth and improved cash flow management. However, persistent net losses and negative profitability metrics highlight challenges. The balance sheet has improved leverage, yet the negative return on equity indicates ongoing profitability issues.Income Statement
Cineverse displays significant volatility in its income statement metrics. The TTM gross profit margin is robust at 50.85%, yet the net profit margin is negative due to consistent net losses indicating profitability challenges. Revenue growth from the previous year is notable at 47.5%, but historical volatility raises concerns about sustainable growth. The negative EBITDA margin highlights operational inefficiencies.45
Neutral
Balance Sheet
The company's debt-to-equity ratio has improved to 0.12 in the TTM, reflecting reduced leverage risk. However, the equity ratio stands at 46.46%, suggesting moderate financial stability. Return on equity is negative, indicating profitability issues impacting shareholder returns.55
Neutral
Cash Flow
Cineverse shows positive free cash flow in the TTM, with a significant turnaround from previous negative figures, signaling improved cash management. The operating cash flow to net income ratio is positive, indicating efficient cash generation relative to reported losses.60
Neutral
| Breakdown | |||||
| TTM | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 | Mar 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 72.47M | 49.13M | 68.03M | 56.05M | 31.42M | 39.29M | Gross Profit |
| 36.85M | 30.00M | 27.90M | 30.59M | 8.40M | 12.75M | EBIT |
| 7.19M | -15.70M | -8.17M | 1.08M | -13.47M | -4.35M | EBITDA |
| -4.59M | -16.42M | -4.46M | 6.41M | -52.21M | 2.24M | Net Income Common Stockholders |
| -11.97M | -21.41M | -9.73M | 2.21M | -62.82M | -14.73M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 6.08M | 5.17M | 7.15M | 13.06M | 16.85M | 14.29M | Total Assets |
| 80.54M | 64.38M | 88.08M | 104.64M | 75.45M | 110.44M | Total Debt |
| 4.38M | 7.16M | 6.21M | 749.00K | 11.99M | 49.97M | Net Debt |
| -1.71M | 2.00M | -947.00K | -12.31M | -4.86M | 35.67M | Total Liabilities |
| 44.08M | 32.23M | 49.01M | 63.69M | 59.56M | 129.73M | Stockholders Equity |
| 37.43M | 33.27M | 40.34M | 42.25M | 17.24M | -18.01M |
| Cash Flow | Free Cash Flow | ||||
| 1.95M | -11.66M | -10.24M | 4.24M | -22.62M | 6.51M | Operating Cash Flow |
| 3.49M | -10.59M | -8.97M | 4.88M | -20.01M | 7.76M | Investing Cash Flow |
| -704.00K | -531.00K | -1.27M | -12.30M | -1.71M | -1.25M | Financing Cash Flow |
| -2.24M | 9.14M | 4.33M | 2.64M | 24.27M | -10.09M |
Cineverse Technical Analysis
Negative
3.49
Price Trends
3.83
Negative
3.46
Positive
2.18
Positive
Market Momentum
-0.11
Positive
41.56
Neutral
45.41
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CNVS, the sentiment is Negative. The current price of 3.49 is below the 20-day moving average (MA) of 3.98, below the 50-day MA of 3.83, and above the 200-day MA of 2.18, indicating a neutral trend. The MACD of -0.11 indicates Positive momentum. The RSI at 41.56 is Neutral, neither overbought nor oversold. The STOCH value of 45.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CNVS.
Cineverse Risk Analysis
Cineverse disclosed 30 risk factors in its most recent earnings report. Cineverse 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
Cineverse Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Performance Comparison
CNVS
Cineverse
3.49
2.22
174.80%
IMAX
IMAX
24.23
7.29
43.03%
AMC
AMC Entertainment
2.97
-1.39
-31.88%
Cineverse Earnings Call Summary
Earnings Call Date: Feb 13, 2025 | % Change Since: -22.10% | Next Earnings Date: Jul 15, 2025
Earnings Call Sentiment Positive
The earnings call was overwhelmingly positive, highlighting record revenue and net income driven by the success of Terrifier 3, strong financial health with zero debt, and promising growth in streaming and digital revenues. Although SG&A expenses increased, the overall outlook is optimistic with plans to expand the film slate using a proven model.Highlights
Record Revenue and Net Income
Cineverse recorded $40.7 million in total revenues, a 207% increase from the same quarter last year, and generated a net income of $7.2 million, a $9.9 million increase from the prior year quarter.
Terrifier 3 Success
Terrifier 3 became the highest grossing non-rated film ever with more than $54 million at the domestic box office. It was marketed with only a $500,000 out-of-pocket spend.
Strong Balance Sheet
Cineverse had over $13 million in cash on hand and zero debt, with a full $7.5 million available on their line of credit.
Growth in Streaming and Digital Revenues
Year-over-year, streaming and digital revenues grew by 48%, and podcast and other revenue grew by 138%.
Expansion of Film Slate
Cineverse plans to release more films, including Silent Night, Deadly Night, Toxic Avenger, and Wolf Creek: Legacy, following a successful model with favorable economics.
Lowlights
Increased SG&A Expenses
SG&A expenses for the quarter were $9.4 million, an increase of $3 million from the prior year quarter, primarily due to expenses associated with Terrifier 3.
Dependency on Terrifier 3
The unprecedented success of Terrifier 3 was a major catalyst for the record revenue, indicating a potential risk if future films do not perform as well.
Company Guidance
During the Cineverse Third Quarter Fiscal 2025 Financial Results Conference Call, the company reported record-breaking metrics, with total revenues reaching $40.7 million, a significant increase of $27.5 million compared to the prior year quarter. Net income soared to $7.2 million, marking a $9.9 million rise from the previous year, while adjusted EBITDA was reported at $10.8 million, up by $9 million. Cineverse also achieved an operating margin of 48%, within their targeted range of 45% to 50%. The company highlighted their strong balance sheet with over $13 million in cash on hand and zero debt. The impressive revenue growth was largely attributed to the success of "Terrifier 3," which became the highest-grossing non-rated film ever with over $54 million at the domestic box office. The company also noted significant year-over-year growth in their streaming and digital revenues by 48% and podcast and other revenue by 138%. Additionally, Cineverse surpassed analyst consensus guidance in revenue, net income, diluted EPS, and adjusted EBITDA. Looking forward, the company anticipates a material increase in revenue for the fiscal fourth quarter compared to the prior year, driven by continued strong financial performance and strategic growth initiatives.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.