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Our Company Reservoir Media, Inc., together with its wholly-owned subsidiaries (the Company , we , our , us and Reservoir ), is one of the world s leading independent music companies. We operate a music publishing business, a recorded music business, a management business and a rights management entity in the Middle East.
$10.14
+$0.02 (+0.20%)
Price from 2 days ago
21.76% operating margin is above average. ROIC at 4.36%. Note that capital returns lag the margin, the business may be capital-intensive despite high margins.
Revenue grew 10.7%, still solid.
At 78x earnings, the current multiple leaves limited room for execution misses or growth deceleration. Net debt of $438M represents 8.8x FCF, leverage limits flexibility.
78.0x earnings, 13.5x FCF. The market is pricing in years of above-average growth. If that thesis breaks, downside from multiple compression alone could be 30%+. This is a stock where you're paying for the future, not the present.
Based on TTM earnings · Diluted shares
Profitability & Returns
Revenue (TTM)
$176M
▲ +10.7% YoY
Net Income (TTM)
$8M
▲ +7.1% YoY
Op. Margin
21.76%
▼ -0.3pp YoY
ROIC
4.36%
▼ -0.2pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
$50M
▲ +9.9% YoY
Op. Cash Flow (TTM)
$50M
▲ +10.7% YoY
Net Debt
$438M
Cash & Equiv.
$26M
5Y CAGR: +17.0%
5Y CAGR: +27.7%
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