Townsquare Media, Inc. (TSQ) stock analysis

P/E against its history

Not enough price and earnings history to compare.

P/E against the industry

Needs positive earnings and enough profitable companies in the industry.

EV/EBITDA above its 5-year median

Townsquare Media's EV/EBITDA of 22.3 is above its 5-year median of 9.8.

P/S below the industry

Townsquare Media's price-to-sales of 0.06 is below the Communications median of 0.52 (book value is negative, so we use sales).

Trading below fair value

The share price of $1.50 is below our fair value estimate of $14.85.

Margin of safety over 20%

The price is 89.9% below fair value, more than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew -2.6% a year over the last three fiscal years, short of the 10% we look for.

EPS growth over 3 years

Needs positive EPS three years ago and today.

Earnings acceleration

Needs positive net income now, a year ago and five years ago.

Growing slower than the industry

Revenue grew -2.1% over the last twelve months; the Communications median is 1.2%.

Guidance lowered

Townsquare Media lowered its full year 2026 Adjusted EBITDA outlook on Aug 6, 2026.

Gross margin slipping

Gross margin was 24.8% over the last twelve months, against 27.5% a year earlier.

Return on equity

Needs positive equity and five years of results.

Return on invested capital

Needs operating income and invested capital.

Return on equity against the industry

Needs positive equity.

Earnings over 5 years

Needs positive net income five years ago and in the latest year.

Net margin below its 5-year average

Net margin was -11.3% over the last twelve months, against a 5-year average of -1.7%.

Net margin below the industry

Townsquare Media's net margin of -11.3% is below the Communications median of -4.4%.

Debt level

Needs debt and equity figures.

Debt trend

Needs a balance sheet from five years ago with positive equity.

Debt not well covered by cash flow

Operating cash flow over the last twelve months equals 5.7% of total debt; we look for at least 20%.

Interest not well covered

Operating income covers interest expense 0.0 times; we look for at least 5.

Short-term assets cover short-term debts

Current assets are 1.04 times current liabilities.

Elevated bankruptcy risk

The Altman Z-score is -0.24; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Townsquare Media paid dividends worth 40.0% of the share price over the last twelve months.

Yield above Treasuries

The 40.0% yield is above the 4.4% on a 1-year Treasury.

Yield in the top quarter

The top quarter of US dividend payers yield 3.8% or more; Townsquare Media yields 40.0%.

Dividend was cut

The dividend per share fell by more than 10% at least once in the last 9 fiscal years.

Earnings cover

Needs dividends paid and net income.

Cash-flow cover

Needs dividends paid and free cash flow.