Investment Thesis
Beasley Broadcast Group is in severe financial distress with negative shareholders' equity of -$46.1M, indicating technical insolvency. The company is burning cash from operations (-$3.5M OCF) while experiencing significant revenue declines (-14.3% YoY), creating an unsustainable capital structure with $217.5M in debt and only $6.4M in cash.
Strengths
- Maintains positive net income of $3.2M despite operational challenges
- Operating margin of 18.1% shows underlying business can generate operating profits
- Current ratio of 1.10x provides minimal near-term liquidity cushion
Risks
- Negative stockholders' equity of -$46.1M indicates technical insolvency and balance sheet distress
- Negative operating cash flow of -$3.5M shows business is destroying cash despite accounting profits
- Revenue declining 14.3% YoY in structurally challenged radio broadcasting industry facing secular headwinds from streaming and digital competition
Key Metrics to Watch
- Operating cash flow trend - critical indicator of ability to continue servicing debt obligations
- Stockholders' equity recovery - essential progress toward solvency and viability
- Debt refinancing activity - ability to roll over or restructure $217.5M long-term debt burden
Financial Metrics
Revenue
42.6M
Net Income
3.2M
EPS (Diluted)
$1.77
Free Cash Flow
-4.1M
Total Assets
281.5M
Cash
6.4M
Profitability Ratios
Gross Margin
N/A
Operating Margin
18.1%
Net Margin
7.5%
ROE
N/A
ROA
1.1%
FCF Margin
-9.7%
Balance Sheet & Liquidity
Current Ratio
1.10x
Quick Ratio
1.10x
Debt/Equity
N/A
Debt/Assets
116.4%
Interest Coverage
2.36x
Long-term Debt
217.5M
Disclaimer: This analysis is generated by AI based on publicly available SEC EDGAR filings.
It does not include stock price data and should not be considered financial advice.
All fundamental data is sourced from SEC public domain filings.
Always conduct your own research before making investment decisions.
Data Source: SEC EDGAR |
Analysis Date: 2026-05-16T08:00:50.932856 |
Data as of: 2026-03-31 |
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