Reservoir Media (RSVR) AI Stock Analysis

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Reservoir Media

(NASDAQ:RSVR)

Rating:63Neutral

Price Target:―

Reservoir Media shows strong revenue growth and a solid financial foundation with effective cash flow management. The raised guidance and strategic acquisitions bolster future prospects. However, the high P/E ratio suggests potential overvaluation, and increased operating costs and debt levels pose risks. Technical indicators are mixed, reflecting a cautious market outlook. Overall, the stock presents a balanced risk-reward profile.

Reservoir Media (RSVR) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$509.36M

Dividend YieldN/A

Average Volume (3M)64.56K

Price to Earnings (P/E)66.6

Beta (1Y)0.75

Revenue Growth11.32%

EPS Growth3803.23%

CountryUS

Employees99

SectorCommunication Services

Sector Strength88

IndustryEntertainment

Share Statistics

EPS (TTM)0.04

Shares Outstanding65,302,650

10 Day Avg. Volume116,369

30 Day Avg. Volume64,559

Financial Highlights & Ratios

PEG Ratio0.02

Price to Book (P/B)<0.01

Price to Sales (P/S)0.00

P/FCF Ratio-17.57

Enterprise Value/Market Cap1.63

Enterprise Value/Revenue1.39

Enterprise Value/Gross Profit9.63

Enterprise Value/Ebitda3.91

Forecast

1Y Price Target

$15.00

Price Target Upside92.31% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering1

Reservoir Media Business Overview & Revenue Model

Company DescriptionReservoir Media, Inc. operates as a music publishing company. It operates in two segments, Music Publishing and Recorded Music. The Music Publishing segment acquires interests in music catalogs, as well as signs songwriters. The Recorded Music segment engages in the acquisition of sound recording catalogs; discovery and development of recording artists; and marketing, distribution, sale, and licensing of the music catalogs. The company was founded in 2007 and is headquartered in New York, New York. Reservoir Media, Inc. is a subsidiary of Reservoir Holdings, Inc.

How the Company Makes MoneyReservoir Media generates revenue through multiple streams within the music industry. The primary source of revenue is music publishing, where the company earns money by acquiring rights to song catalogs and collecting royalties whenever these songs are played on radio, used in movies or TV shows, streamed online, or covered by other artists. Additionally, Reservoir Media earns income from recorded music by owning and managing masters, which involves licensing recordings for use in various media. The company also leverages its extensive network and partnerships to facilitate collaborations and placements that further enhance its revenue potential. Key factors contributing to Reservoir's earnings include strategic acquisitions of high-value catalogs and effective management of its diverse portfolio.

Reservoir Media Earnings Call Summary

Earnings Call Date:May 28, 2025

(Q4-2025)

% Change Since: 0.00%|

Next Earnings Date:Jul 30, 2025

Earnings Call Sentiment Positive

Reservoir Media demonstrated strong financial performance in fiscal 2025, exceeding revenue and EBITDA expectations, deploying significant capital for strategic acquisitions, and expanding internationally. However, challenges such as declines in physical and performance revenue and increased interest expenses were noted. Despite these lowlights, the positive achievements and strategic growth initiatives outweigh the negatives.

Q4-2025 Updates

Positive Updates

Exceeding Fiscal 2025 Expectations

Reservoir Media exceeded both guidance and expectations with a top-line annual revenue growth of 10% and an 18% improvement in adjusted EBITDA.

Significant Capital Deployment

Over $115 million was deployed towards acquisitions and advances, including notable publishing deals with artists like Snoop Dogg and k.d. lang.

Expansion and International Growth

The launch of PopIndia and the acquisition of Omar Kamal's catalog highlight Reservoir's international expansion and strategic focus on emerging markets.

Strong Fourth Quarter Performance

Fourth quarter revenue increased by 6% to $41.4 million, with a 14% increase in adjusted EBITDA to $18.2 million, driven by synchronization and digital growth.

Full Year Record Results

For fiscal 2025, revenue reached $158.7 million, a 10% year-over-year increase, with a 24% increase in OIBDA and an 18% increase in adjusted EBITDA.

Negative Updates

Physical Revenue Decline

Physical revenue decreased by 26% in the fourth quarter due to a lighter planned release schedule compared to the previous year.

Performance Revenue Decrease

Performance revenue in the Music Publishing segment decreased by 13% year-over-year in the fourth quarter.

Increased Interest Expense

Interest expense for the fourth quarter was $6.1 million, up from $5.2 million in the same period last year, due to increased debt from acquisitions.

Company Guidance

During Reservoir Media's Fourth Quarter Fiscal Year 2025 Earnings Conference Call, it was reported that the company exceeded its guidance with a notable annual revenue growth of 10% and an 18% improvement in adjusted EBITDA. The company deployed over $115 million towards acquisitions and advances, enhancing its portfolio with significant deals such as Snoop Dogg and k.d. lang publishing agreements. The fourth quarter revenue increased by 6% year-over-year to $41.4 million, driven by a 6% growth in the Music Publishing segment. Operating performance saw a 14% increase in adjusted EBITDA to $18.2 million, attributed to stronger revenue and improved margins in synchronization and digital segments. For the full fiscal year 2025, revenue reached $158.7 million, surpassing the guidance range, with Music Publishing and Recorded Music segments growing by 12% and 4% respectively. The company closed the year with a net income of $7.7 million, significantly up from $800,000 the previous year, and diluted earnings per share of $0.12. Looking ahead, Reservoir Media projects fiscal 2026 revenue to be between $164 million and $169 million, with adjusted EBITDA expected to range from $68 million to $72 million, leveraging a strong pipeline of potential acquisitions and continued organic growth efforts.

Reservoir Media Financial Statement Overview

Summary

Reservoir Media exhibits strong revenue and profit growth with reasonable operational efficiency. The balance sheet shows a healthy equity position but carries a significant debt burden, which could introduce risk if not managed properly. Cash flows are strong, supporting operational and strategic flexibility. Overall, the company is financially stable with room for improvement in cost management and debt reduction.

Income Statement

Positive

Reservoir Media shows strong revenue growth with a TTM revenue of $117.33 billion, up significantly from previous years. The gross profit margin is healthy at approximately 63.18% for TTM, suggesting good profitability from core operations. However, the net profit margin of 4.33% indicates potential cost management issues or high operating expenses. EBIT and EBITDA margins also reflect strong operational efficiency.

Balance Sheet

Positive

The debt-to-equity ratio is approximately 1.05 (TTM), indicating a moderate level of leverage. While stockholders' equity is substantial at $359.51 billion, the high total debt level may pose risks if revenues decline. The equity ratio stands at 43.18%, reflecting a solid equity base relative to total assets, which enhances financial stability.

Cash Flow

Positive

Operating cash flow is robust at $33.12 billion (TTM), highlighting strong cash generation capabilities. The free cash flow growth rate is positive, indicating effective management of expenditures and investments. However, the free cash flow to net income ratio is high, suggesting reliance on cash flow rather than net income for financing activities.

TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Breakdown
Income Statement		Total Revenue
156.43M	144.86M	122.29M	107.84M	80.25M	63.24M
	Gross Profit
86.15M	89.38M	74.30M	63.65M	47.39M	35.93M
	EBIT
33.41M	24.58M	21.06M	19.35M	18.33M	15.48M
	EBITDA
58.28M	47.25M	43.13M	38.38M	32.41M	23.90M
	Net Income Common Stockholders
7.88M	644.94K	2.54M	13.08M	9.25M	6.62M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
18.13M	18.13M	14.90M	17.81M	9.21M	25.00K
	Total Assets
792.72M	783.53M	754.08M	684.27M	461.86M	25.00K
	Total Debt
338.48M	337.51M	318.56M	269.86M	212.53M	180.34M
	Net Debt
320.35M	319.38M	303.66M	252.04M	203.32M	180.32M
	Total Liabilities
438.23M	429.05M	404.42M	336.82M	267.49M	1.23K
	Stockholders Equity
352.99M	352.99M	348.36M	346.39M	193.36M	23.77K
Cash Flow		Free Cash Flow
-26.74M	-14.16M	-41.03M	-181.88M	-103.89M	11.35M
	Operating Cash Flow
46.89M	36.19M	31.20M	12.48M	14.71M	11.88M
	Investing Cash Flow
-75.30M	-50.55M	-72.23M	-196.82M	-118.61M	-107.81M
	Financing Cash Flow
26.52M	17.56M	38.46M	196.53M	47.22M	147.03M

Reservoir Media Technical Analysis

Technical Analysis Sentiment

Positive

Last Price7.80

Price Trends

50DMA

7.31

Positive

100DMA

7.60

Positive

200DMA

8.00

Negative

Market Momentum

MACD

0.09

Negative

RSI

59.56

Neutral

STOCH

57.68

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RSVR, the sentiment is Positive. The current price of 7.8 is above the 20-day moving average (MA) of 7.41, above the 50-day MA of 7.31, and below the 200-day MA of 8.00, indicating a neutral trend. The MACD of 0.09 indicates Negative momentum. The RSI at 59.56 is Neutral, neither overbought nor oversold. The STOCH value of 57.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RSVR.

Reservoir Media Risk Analysis

Reservoir Media disclosed 37 risk factors in its most recent earnings report. Reservoir Media reported the most risks in the “Finance & Corporate” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Reservoir Media Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WMG	64 Neutral	$13.72B	30.59	89.20%	2.70%	-0.91%	-14.87%
RSVR	63 Neutral	$509.36M	66.55	2.16%	―	11.32%	3803.23%
Sector *	61 Neutral	$14.27B	5.74	-4.20%	3.66%	2.73%	-35.75%
SIRI	55 Neutral	$7.33B	―	-37.30%	4.94%	-4.08%	-248.39%
DLPN	45 Neutral	$11.95M	―	-98.74%	―	0.31%	27.47%
ANGH	43 Neutral	$38.78M	―	-270.84%	―	88.72%	-85.53%
KUKE	41 Neutral	$15.77M	―	-218.47%	―	―	―

* Communication Services Sector Average

Performance Comparison

RSVR

Reservoir Media

7.80

-0.18

-2.26%

SIRI

Sirius XM Holdings

21.68

-4.88

-18.37%

DLPN

Dolphin Entertainment

1.07

-1.21

-53.07%

WMG

Warner Music Group

26.32

-4.07

-13.39%

ANGH

Anghami Inc.

0.58

-0.52

-47.27%

KUKE

Kuke Music Holding

3.17

-26.33

-89.25%

Reservoir Media Corporate Events

Business Operations and StrategyFinancial Disclosures

Reservoir Media Releases Investor Presentation on Strategic Goals

Neutral

Feb 19, 2025

On February 19, 2025, Reservoir Media, Inc. made an investor presentation available on its website, outlining various forward-looking statements about future opportunities and strategic goals for their business. The presentation included unaudited financial information and non-GAAP financial measures, with a disclaimer regarding the reliability of forward-looking statements and third-party data.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.