Reservoir Media (RSVR) AI Stock Analysis

• Market Cap: $485.79M
• Dividend Yield: N/A
• Average Volume (3M): 56.17K
• Price to Earnings (P/E): 65.0
• Beta (1Y): 0.80
• Revenue Growth: 11.17%
• EPS Growth: N/A
• Country: US
• Employees: 99
• Sector: Communication Services
• Sector Strength: 97
• Industry: Entertainment
• EPS (TTM): 0.03
• Shares Outstanding: 65,559,020
• 10 Day Avg. Volume: 42,661
• 30 Day Avg. Volume: 56,169
• PEG Ratio: 0.06
• Price to Book (P/B): 1.36
• Price to Sales (P/S): 3.13
• P/FCF Ratio: -9.69
• Enterprise Value/Market Cap: 1.81
• Enterprise Value/Revenue: 5.29
• Enterprise Value/Gross Profit: 12.01
• Enterprise Value/Ebitda: 13.23
• 1Y Price Target: $15.00
• Price Target Upside: 103.25% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: $8.00 ▲(8.40% Upside)

Reservoir Media's overall stock score is driven by strong earnings call performance and strategic growth initiatives, particularly in catalog acquisitions and market expansion. However, the high P/E ratio and negative technical indicators weigh down the score. The company's financial performance shows potential but is hindered by profitability and cash flow challenges.

Reservoir Media Business Overview & Revenue Model

Company Description

Reservoir Media (RSVR) is a global music rights company that specializes in the acquisition, management, and monetization of music intellectual property. Operating in the music publishing and recorded music sectors, Reservoir Media offers a diverse catalog of songs across various genres and provides services such as licensing, royalty collection, and distribution. The company's core products include music rights management and a robust catalog of original compositions, which are utilized by artists, advertisers, and media producers worldwide.

How the Company Makes Money

Reservoir Media generates revenue primarily through the licensing of its music catalog for use in television, film, advertising, and other media platforms. The company earns money from performance royalties when its songs are played on radio and streaming services, as well as mechanical royalties from physical and digital sales. Additionally, Reservoir Media engages in strategic partnerships with artists and labels, allowing for collaborative projects that enhance its catalog and revenue potential. The management of music rights and the provision of related services, such as synchronization licensing, further contribute to its diverse revenue streams.

Reservoir Media Financial Statement Overview

Summary

Reservoir Media demonstrates solid revenue growth and operational efficiency, but profitability and cash flow management need improvement. The balance sheet reflects moderate leverage, which could pose risks if not managed carefully. Overall, the company is on a stable growth trajectory but should focus on enhancing profitability and cash flow.

Income Statement

Reservoir Media shows consistent revenue growth with a TTM increase of 2.95%. Gross profit margin is strong at 64.51%, indicating effective cost management. However, the net profit margin is relatively low at 4.67%, suggesting room for improvement in profitability. EBIT and EBITDA margins are healthy, reflecting operational efficiency.

Balance Sheet

The company's debt-to-equity ratio is 1.07, indicating a moderate level of leverage. Return on equity is low at 2.08%, suggesting limited returns for shareholders. The equity ratio stands at 41.05%, showing a balanced capital structure but with potential risks due to debt levels.

Cash Flow

Operating cash flow is strong, but free cash flow is negative, indicating challenges in generating cash after capital expenditures. The free cash flow to net income ratio is negative, highlighting potential liquidity issues. Despite this, the operating cash flow to net income ratio is 0.80, showing decent cash generation relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	166.32M	158.71M	144.86M	122.29M	107.84M	80.25M
Gross Profit	73.30M	74.98M	64.39M	52.23M	44.63M	33.31M
EBITDA	66.56M	58.05M	47.25M	45.24M	47.27M	34.50M
Net Income	9.61M	7.75M	644.94K	2.54M	11.89M	5.89M
Balance Sheet
Total Assets	903.54M	865.13M	783.53M	754.08M	684.27M	461.86M
Cash, Cash Equivalents and Short-Term Investments	27.94M	21.39M	18.13M	14.90M	17.81M	9.21M
Total Debt	428.46M	393.86M	337.51M	318.56M	269.86M	212.53M
Total Liabilities	531.42M	498.93M	429.05M	404.42M	336.82M	267.49M
Stockholders Equity	370.94M	364.88M	352.99M	348.36M	346.39M	193.36M
Cash Flow
Free Cash Flow	-45.35M	-51.28M	-14.16M	-41.03M	-181.88M	-103.89M
Operating Cash Flow	48.71M	45.28M	36.19M	31.20M	12.48M	14.71M
Investing Cash Flow	-136.04M	-96.72M	-50.55M	-72.23M	-196.82M	-118.61M
Financing Cash Flow	94.35M	54.52M	17.56M	38.46M	196.53M	47.22M

Reservoir Media Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 7.38
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RSVR, the sentiment is Negative. The current price of 7.38 is below the 20-day moving average (MA) of 7.50, below the 50-day MA of 7.71, and below the 200-day MA of 7.62, indicating a bearish trend. The MACD of -0.10 indicates Negative momentum. The RSI at 43.47 is Neutral, neither overbought nor oversold. The STOCH value of 32.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RSVR.

Reservoir Media Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WMG	63 Neutral	$15.76B	53.49	54.66%	2.41%	1.36%	-45.79%
RSVR	61 Neutral	$485.79M	65.00	2.64%	―	11.17%	―
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
GAIA	53 Neutral	$105.96M	―	-5.63%	―	12.98%	27.93%
DLPN	50 Neutral	$17.49M	-0.69	-101.62%	―	4.84%	-9.71%
LION	50 Neutral	$1.99B	―	―	―	97.19%	-21.46%
ANGH	41 Neutral	$18.69M	-0.25	―	―	88.72%	-85.54%

Reservoir Media Corporate Events

Reservoir Media’s Earnings Call Highlights Growth and Strategic Moves

Reservoir Media’s recent earnings call painted a picture of robust growth and strategic expansion, with a generally positive sentiment. The company highlighted strong revenue growth and strategic catalog acquisitions, including the iconic Miles Davis catalog. While there is confidence in continued performance, concerns were raised over rising operating and interest expenses.

Reservoir Media Releases Investor Presentation August 2025

On August 19, 2025, Reservoir Media, Inc. released an investor presentation on its website, detailing its financial condition, growth initiatives, and market opportunities. The presentation includes forward-looking statements about the company’s future prospects, emphasizing the inherent risks and uncertainties involved. This release could impact stakeholders by providing insights into Reservoir’s strategic direction and financial performance, although the information is subject to change and should not be solely relied upon for future predictions.

The most recent analyst rating on (RSVR) stock is a Hold with a $8.00 price target. To see the full list of analyst forecasts on Reservoir Media stock, see the RSVR Stock Forecast page.

Reservoir Media Holds Annual Stockholders Meeting

On August 7, 2025, Reservoir Media, Inc. held its Annual Meeting of Stockholders, where key decisions were made regarding the company’s governance and financial oversight. Shareholders approved the election of three Class I Directors, Helima Croft, Neil de Gelder, and Rell Lafargue, to serve until the 2028 Annual Meeting. Additionally, the appointment of Deloitte & Touche LLP as the independent registered public accounting firm for the fiscal year ending March 31, 2026, was ratified by the shareholders.

The most recent analyst rating on (RSVR) stock is a Buy with a $15.00 price target. To see the full list of analyst forecasts on Reservoir Media stock, see the RSVR Stock Forecast page.

Reservoir Media Earnings Call: Growth Amid Challenges

Reservoir Media’s recent earnings call painted a picture of cautious optimism, highlighting positive growth in revenue and strategic acquisitions. The company demonstrated strong performance in its Recorded Music and Music Publishing segments. However, challenges such as increased administrative expenses, a net loss, and decreased cash from operating activities were also noted. Despite these hurdles, the overall sentiment was positive, with the highlights outweighing the lowlights.