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1. Company Snapshot

1.a. Company Description

Entravision Communications Corporation operates as an advertising, media, and technology solutions company worldwide.The company operates through three segments: Digital, Television, and Audio.It reaches and engages Hispanics across acculturation levels and media channels.


The company's portfolio encompasses integrated end-to-end advertising solutions, including digital, television, and audio properties.It also offers a suite of end-to-end digital advertising solutions, including digital commercial partnerships services, as well as advertising customers billing and technological and other support services, including strategic marketing and training; and Smadex, a programmatic ad purchasing platform that enables advertising customers or ad agencies to purchase advertising electronically and manage data-driven advertising campaigns through online marketplaces.In addition, the company provides a branding and mobile performance solutions, such as managed services to advertisers looking to connect with consumers on mobile devices; and digital audio advertising solutions for advertisers.


Further, it sells advertisements and syndicated radio programming solutions through its Entravision radio network.As of March 3, 2022, the company had 50 television stations; and 46 Spanish-language radio stations.It serves advertisers from various industries, such as e-commerce, retail, entertainment, gaming, delivery services, financial technology, communications, lifestyle, and travel.


The company was founded in 1996 and is headquartered in Santa Monica, California.

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1.b. Last Insights on EVC

Entravision Communications Corporation's recent performance was driven by the growth of its adtech business, which is poised to benefit from increasing operating leverage. The company's legacy broadcasting assets may also see value appreciation due to potential FCC deregulation. Additionally, Entravision's undervalued assets, estimated to be worth at least $3 per share, present a compelling opportunity for long-term growth. The company's recent Q1 2025 earnings release has not been publicly disclosed, but its adtech business and potential regulatory changes are expected to drive future growth.

1.c. Company Highlights

2. Entravision's Q3 2025 Earnings: A Mixed Bag

Entravision reported a 24% increase in consolidated revenue to $120 million, driven primarily by the ATS segment's more than doubling of revenue to $76.1 million. However, the Media segment reported a 26% decline in revenue to $44.5 million due to lower political advertising and national television revenue. The company's consolidated operating loss was $9.1 million, primarily due to the Media segment's operating loss of $3.5 million. Entravision's EPS came out at -$0.62, missing estimates of $0.14.

Publication Date: Nov -12

📋 Highlights
  • ATS Segment Growth:: Revenue doubled to $76.1M, driving 24% overall revenue increase to $120M.
  • Media Segment Decline:: Revenue fell 26% to $44.5M due to reduced political ads and TV revenue.
  • Cost-Cutting Measures:: $3.2M restructuring costs, 5% workforce reduction, and $5M annual savings expected.
  • Operating Loss:: Consolidated loss of $9.1M, primarily from Media segment losses ($3.5M) and restructuring.
  • Balance Sheet Strength:: $66M in cash, $15M debt reduction, and $4.5M dividend paid to shareholders.

Segment Performance

The ATS segment's revenue growth was driven by higher monthly active customers and revenue per customer, resulting in a 58% increase in operating expenses. In contrast, the Media segment's operating loss was primarily due to restructuring costs and impairment charges. The company has taken steps to reduce expenses, including a 5% reduction in the Media segment's workforce and abandoning leased facilities, which is expected to reduce operating expenses by approximately $5 million annually.

Balance Sheet and Cash Flow

Entravision's balance sheet remains strong, with over $66 million in cash and marketable securities. The company has reduced debt payments by $15 million and paid $4.5 million in dividends to shareholders. With a Dividend Yield of 6.64%, the stock may appeal to income investors. The company's Net Debt / EBITDA ratio is -0.05, indicating a healthy debt position.

Outlook and Valuation

Michael Christenson noted that Entravision is well-positioned to capture a significant share of the expected increase in political spending in 2026. However, analysts estimate next year's revenue growth at -34.5%. With a P/S Ratio of 0.65, the stock appears to be undervalued relative to its revenue. Additionally, the EV/EBITDA ratio is -3.13, which may indicate that the company's valuation is not entirely justified by its current earnings. The ROE and ROIC are both negative, at -114.51% and -36.85% respectively, which is a concern.

3. NewsRoom

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Reviewing Sirius XM (NASDAQ:SIRI) and Entravision Communications (NYSE:EVC)

Nov -26

Source: defenseworld.net

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Entravision Communications Corporation (EVC) Q3 2025 Earnings Call Transcript

Nov -05

Source: seekingalpha.com

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Entravision Communications Corporation Reports Third Quarter 2025 Results

Nov -04

Source: businesswire.com

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Entravision to Announce Third Quarter 2025 Financial Results

Oct -27

Source: businesswire.com

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Entravision Communications: How EVC Could Add To Its Recent Gains

Aug -27

Source: seekingalpha.com

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Entravision Communications Corporation (EVC) Q2 2025 Earnings Call Transcript

Aug -05

Source: seekingalpha.com

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Entravision to Announce Second Quarter 2025 Financial Results

Jul -24

Source: businesswire.com

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Entravision Announces Strategic Amendment to Its Credit Agreement

Jul -16

Source: businesswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (10.45%)

6. Segments

Digital

Expected Growth: 11.5%

Entravision Communications Corporation's Digital segment growth of 11.5% is driven by increasing demand for digital advertising, expansion of its digital footprint through strategic acquisitions, and growing adoption of its digital marketing solutions by clients. Additionally, the company's focus on mobile and video advertising, as well as its investments in data analytics and technology, are contributing to its growth momentum.

Television

Expected Growth: 4.83%

Entravision Communications Corporation's Television segment growth of 4.83% is driven by increasing demand for Spanish-language content, expansion into new markets, and strategic partnerships. Additionally, the company's focus on digital transformation, including the development of its digital advertising platform, has contributed to revenue growth.

Audio

Expected Growth: 4.83%

Entravision Communications Corporation's 4.83% growth in Audio segment is driven by increasing demand for digital audio advertising, expansion of podcasting and streaming services, and growing Hispanic population in the US. Additionally, the company's strategic acquisitions and partnerships have enhanced its audio offerings, contributing to the segment's growth.

7. Detailed Products

Television Broadcasting

Entravision owns and operates a diverse portfolio of television stations across the United States, offering a range of programming including news, sports, and entertainment.

Radio Broadcasting

Entravision owns and operates a network of radio stations across the United States, offering a range of programming including music, news, and talk radio.

Digital Media

Entravision offers a range of digital media services, including online advertising, mobile marketing, and digital content creation.

Out-of-Home Advertising

Entravision offers out-of-home advertising services, including billboards, transit shelters, and mall displays.

Content Creation

Entravision creates and distributes original content, including television shows, digital series, and podcasts.

8. Entravision Communications Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Entravision Communications Corporation operates in a niche market, providing Spanish-language media and marketing solutions. While there are some substitutes available, such as online advertising platforms, the company's specialized services and strong relationships with advertisers and media outlets mitigate the threat of substitutes.

Bargaining Power Of Customers

Entravision Communications Corporation's customers, primarily advertisers and media buyers, have limited bargaining power due to the company's strong market position and diversified revenue streams.

Bargaining Power Of Suppliers

Entravision Communications Corporation relies on a network of suppliers, including content providers and technology vendors. While suppliers have some bargaining power, the company's scale and diversified supply chain mitigate this risk.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry in the Spanish-language media market, including the need for specialized expertise and established relationships with advertisers and media outlets.

Intensity Of Rivalry

The Spanish-language media market is highly competitive, with several established players vying for market share. Entravision Communications Corporation faces intense rivalry from competitors such as Univision and Telemundo.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 49.35%
Debt Cost 7.75%
Equity Weight 50.65%
Equity Cost 8.89%
WACC 8.33%
Leverage 97.43%

11. Quality Control: Entravision Communications Corporation passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

2.79$

Current Price

2.79$

Potential

-0.00%

Expected Cash-Flows