iHeartMedia Inc Class AIHRT
▼ NegativeCapitalrelevance
Weak revenue growth, declining ROIC, high debt, and poor fundamentals highlighted in Q1 earnings analysis.
Impact on stocks 1
Communication Services
iHeartMedia Inc Class AiHeartMedia shares have moved in line with the broader market, returning 6.9% over the past six months compared to the S&P 500's 8.5% gain. The company's long-term revenue growth has been weak, with a compounded annual growth rate of just 6.5% over the last five years, falling short of benchmarks for the consumer discretionary sector. Its return on invested capital has been declining, suggesting limited profitable growth opportunities. iHeartMedia also carries significant debt of $5.77 billion against only $135.1 million in cash, resulting in a net-debt-to-EBITDA ratio of 8 times based on trailing twelve-month EBITDA of $673.8 million. While the stock trades at 7.9 times forward EV-to-EBITDA, or $4.44 per share, the high leverage and weak fundamentals warrant caution, and there are better opportunities elsewhere.
iHeartMedia Inc Class AWeak revenue growth, declining ROIC, high debt, and poor fundamentals highlighted in Q1 earnings analysis.