iHeartMedia, Inc. (IHRT) Analysis

This report is auto-generated by an AI stock research platform for informational purposes only. The content is for general information and research reference, and does not constitute financial advice. Data may lag or be incomplete. Always conduct your own research and consult qualified professionals before making any financial decisions. # [Qiltrack AI] iHeartMedia Inc (IHRT) 3-Minute Overview > **💡 One-Sentence Summary** > > Simply put, iHeartMedia is a traditional radio giant trying to evolve into a digital audio company, but right now the story is less about growth and more about whether it can outgrow its heavy debt burden. > **📍 Basic Profile** > > Market Cap **$0.75 billion** · Media · NASDAQ NMS - GLOBAL MARKET · Price **$5.42** > **⚡ 3 Things You Should Know** > > 1. 💰 High-margin business, but not a profitable one: iHeart’s gross margin is a healthy **58.3%**, which says the core media/ad model still has value, but its **-12.2% net margin** shows debt, interest, and operating pressure are eating that value away. > > 2. 📉 The business mix is shifting, but not fast enough yet: recent results suggest **digital audio is growing** while legacy broadcast is under pressure. That’s encouraging strategically, but for shareholders the key question is whether digital can become big enough to offset declines before the balance sheet becomes the main problem. > > 3. ⚠️ This is a balance-sheet stock as much as a media stock: with **debt-to-equity above 8x**, **negative interest coverage**, and four straight major EPS misses, the market is treating IHRT less like a stable media franchise and more like a leveraged turnaround bet. > **🎯 Quick Health Check** > > | Dimension | Rating | Details | > |-----------|--------|---------| > | Profitability | Weak👎 | Net margin **-12.23%**, loss-making | > | Growth Rate | Slow🐢 | 3-year revenue growth **-0.4%** | > | Financial Health | Tight🧡 | Debt ratio/debt-to-equity **8.02x**, interest coverage **negative** | > | Valuation | Cheap | No meaningful PE; **P/S 0.19x** suggests market is pricing in distress | --- ### 📋 Layer 2: 2-Minute Deep Dive #### 📊 How Does This Company Make Money? **Business Model in One Sentence:** iHeartMedia sells advertising and audio audience access to marketers, making money from broadcast radio, digital audio, podcasts, and related media services. **Revenue Breakdown:** | Business | Share | Trend | Comment | |----------|-------|-------|---------| | Broadcast radio / legacy media | [Data unavailable] | ↓ | Still likely the core business, but structurally pressured as ad dollars migrate | | Digital audio / podcast / streaming-related | [Data unavailable] | ↑ | Recent news suggests this is the brighter spot and key to the turnaround story | **Profitability Metrics:** | Metric | Value | Ranking | Interpretation | |--------|-------|---------|----------------| | Gross Margin | 58.26% | Above Average | The product itself is not the problem; content and ad inventory still monetize reasonably well | | Net Margin | -12.23% | Below Average | After interest and overhead, the business is losing money | | ROE | -67.27% | Below Average | Deeply negative ROE reflects losses and a leveraged capital structure, not just a temporary wobble | --- #### 📈 How's the Growth? **Growth Assessment:** Slowing | Metric | Latest | vs Last Year | Trend | |--------|--------|--------------|-------| | Revenue Growth | [Data unavailable] | [Data unavailable] | Slowing | | Profit Growth | [Data unavailable] | [Data unavailable] | Slowing | **Growth Quality:** > What’s interesting is that the latest quarter looked mixed rather than outright broken: revenue slightly increased and digital performance sounded solid, but that did not translate into earnings. In other words, some of the growth appears real on the top line, but the quality is weak because it isn’t flowing through to profit, partly due to legacy pressure and financing costs. --- #### 💰 Financial Health Check **One Sentence:** Think of this like someone with a recognizable brand and decent income potential, but a very heavy mortgage and not much room for error. | Metric | Value | Safe Zone | Assessment | |--------|-------|-----------|------------| | Debt Ratio | 8.02x debt-to-equity | <60% safe | 🚨Dangerous | | Current Ratio | 1.51 | >1.5 healthy | ✅Safe | | Cash Flow | Negative cash flow/share **-4.02** | >0 | 🚨Negative | --- #### 🏷️ Is It Expensive Now? **Price Position (based on 52-week range):** - 52-Week Low: **$0.99** - 52-Week High: **$5.44** - Current: **$5.42**, **very close to high** | Position Range | Cheap Zone | Fair Zone | Pricey Zone | |----------------|------------|-----------|-------------| | Criteria | 0-33% | 33-66% | 66-100% | | **Current** | | | ●(**99.6%** position) | **Valuation Comparison:** | Comparison | Current | Reference | Assessment | |------------|---------|-----------|------------| | vs Own History | PE [Data unavailable] | 5-year avg [Data unavailable] | [Data unavailable] | | vs Peers | P/S **0.19x** | Industry avg [Data unavailable] | Likely low, but reflects distress rather than obvious bargain | **What the Current Valuation is Betting On:** > Basically, the stock price is sending two messages at once: on sales multiple it still looks distressed, but on 52-week positioning it has already had a huge recovery. That means the market is betting on some combination of digital stabilization, cost cuts, refinancing relief, or even strategic optionality like M&A—but not yet pricing IHRT like a clean, healthy media compounder. --- #### 📰 Any Recent News? | Date | Event | Impact | |------|-------|--------| | 2026-03-02 | Q4 2025 results: revenue beat, EPS missed badly | Negative — top-line held up better than expected, but profit quality was weak | | 2026-03-02 | Management highlighted digital growth and strategic cost actions | Neutral/Positive — shows the turnaround path, but not proof of success yet | | 2026-04-25 | Sirius XM / iHeart merger rumors surfaced | Positive/Speculative — could create financial and operating synergies, but this is not confirmed value yet | --- ### 📊 Layer 3: Want More? 3-Minute Complete Analysis #### I. Detailed Financial Data **Profitability Trends:** | Metric | This Year | Last Year | Year Before | 3-Year Trend | |--------|-----------|-----------|-------------|--------------| | Gross Margin | 58.26% | [Data unavailable] | [Data unavailable] | [Data unavailable] | | Net Margin | -12.23% | [Data unavailable] | [Data unavailable] | [Data unavailable] | | ROE | -67.27% | [Data unavailable] | [Data unavailable] | [Data unavailable] | **Growth Trends:** | Metric | This Year | Last Year | Year Before | 3-Year Trend | |--------|-----------|-----------|-------------|--------------| | Revenue Growth | [Data unavailable] | [Data unavailable] | [Data unavailable] | ↓ | | Profit Growth | [Data unavailable] | [Data unavailable] | [Data unavailable] | [Data unavailable] | | EPS Growth | [Data unavailable] | [Data unavailable] | [Data unavailable] | [Data unavailable] | --- #### II. Earnings Track Record **Last 4 Quarters vs Expectations:** | Quarter | EPS Expected | EPS Actual | Surprise | |---------|--------------|------------|----------| | 2025-12-31 | $0.14 | -$0.26 | -291.2% Miss 😟 | | 2025-09-30 | -$0.01 | -$0.43 | -4115.7% Miss 😟 | | 2025-06-30 | -$0.28 | -$0.54 | -94.2% Miss 😟 | | 2025-03-31 | -$0.53 | -$1.84 | -248.2% Miss 😟 | **Earnings Trend Interpretation:** Four straight large misses usually mean the Street is consistently overestimating how quickly this business can stabilize. What you might care about is that this damages credibility: even if revenue pockets are improving, investors may hesitate until management can finally convert that into numbers that beat or at least match expectations. --- #### III. What the Market Thinks **Analyst Ratings:** | Rating | Count | Percentage | |--------|-------|------------| | Strong Buy/Buy | 0 firms | 0% | | Hold | 4 firms | 44.4% | | Sell | 5 firms | 55.6% | **Target Price:** [Data unavailable] ~ [Data unavailable] (Median [Data unavailable]) **vs Current Price:** [Data unavailable] **Insider Activity:** Net mixed, with notable recent **CEO open-market buying** > Worth noting: CEO Robert Pittman bought shares in early March, which is one of the more constructive signals in this dataset because open-market purchases are usually more meaningful than routine option-related filings. On the other hand, several other insider transactions appear tied to option exercises or tax withholding, so I wouldn’t overread those. --- #### IV. Key Risk Alerts **3 Risks to Watch:** 1. **Balance Sheet Risk:** Debt remains very high and interest coverage is negative → If refinancing gets tougher or rates stay painful, equity holders could get squeezed even if revenue stabilizes 2. **Execution Risk:** Digital audio is growing, but legacy radio still faces structural pressure → If digital growth slows or fails to scale, the turnaround narrative weakens fast 3. **Earnings Credibility Risk:** The company has posted four consecutive major EPS misses → If this pattern continues, the stock may remain highly volatile and sentiment-driven rather than fundamentally re-rated --- ### 🎬 Summary & Next Steps > **📝 Three-Sentence Summary** > > **What it is:** iHeartMedia is a legacy radio and audio advertising company trying to reinvent itself through digital audio and podcasts. > > **Key strength:** The underlying media assets still generate decent gross margin, and digital appears to be one of the few genuinely improving parts of the business. > > **Key risk:** The debt load is so heavy that even modest operating weakness can overwhelm the equity story. --- > **🔍 Want to Learn More?** > > • Want to know if this company has a strong moat? → Try【Buffett Mode】for deeper analysis > > • Want to check for hidden landmines? → Try【Muddy Mode】for risk screening > > • Is this a growth stock? 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