Cumulus Media own and operates radio stations in 90 United States media markets; and approximately 8,500 broadcast radio affiliates and various digital channels. The company was founded in 1997 and is based in Atlanta, Georgia.
CMLS Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Cumulus Media Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Cumulus Media Inc ranked in the 89th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 2001.5%. The most interesting components of our discounted cash flow analysis for Cumulus Media Inc ended up being:
8% of the company's capital comes from equity, which is greater than merely 2.87% of stocks in our cash flow based forecasting set.
Cumulus Media Inc's effective tax rate, as measured by taxes paid relative to net income, is at 0 -- greater than merely 0% of US stocks with positive free cash flow.
Relative to other stocks in its sector (Consumer Cyclical), Cumulus Media Inc has a reliance on debt greater than 97.06% of them.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
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Cumulus Media (CMLS) has wrapped the initial closing of its tower portfolio monetization deal, for $208M gross. The company received about $202M in net proceeds after transaction fees and costs; the use of those proceeds are governed by its term loan due 2026 and its 6.75% first-lien notes due 2026....
Cumulus Media (CMLS): Q2 GAAP EPS of -$1.79 beats by $0.57.Revenue of $146.02M (-47.8% Y/Y) misses by $7.15M.Executed agreement to monetize tower portfolio and related assets for $213M, and expects to use the funds to pay down debt, anticipates first closing for 85% or more of proceeds in Q4.Press Release...
The negative outlook for Cumulus reflects the impact of the economic recession arising from the coronavirus outbreak which Moody's expects will materially impact radio advertising revenue in the near term and lead to higher leverage levels and lower cash outflow from operations. As a result, the Speculative Grade Liquidity (SGL) rating was downgraded to SGL-3 from SGL-2.