Lingo Media (ELL) AI Stock Analysis

• Market Cap: C$1.25M
• Dividend Yield: N/A
• Average Volume (3M): 13.92K
• Price to Earnings (P/E): 3.0
• Beta (1Y): -0.34
• Revenue Growth: 8.80%
• EPS Growth: N/A
• Country: CA
• Employees: N/A
• Sector: Communication Services
• Sector Strength: 83
• Industry: Education & Training Services
• EPS (TTM): 0.01
• Shares Outstanding: 35,642,525
• 10 Day Avg. Volume: 10,670
• 30 Day Avg. Volume: 13,917
• PEG Ratio: -0.33
• Price to Book (P/B): 0.33
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.99
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Lingo Media's strong financial performance, characterized by high profitability margins and low debt levels, supports a favorable outlook. The stock's undervaluation further suggests potential for appreciation. However, technical indicators warn of short-term overbought conditions, which may lead to price corrections.

Lingo Media Business Overview & Revenue Model

Company Description

Lingo Media (ELL) is an educational technology company specializing in developing and commercializing English language learning products and solutions. The company operates within the digital and print learning sectors, offering a range of services that cater to individuals, educational institutions, and corporations. Its core products include online and interactive English language learning platforms, digital content, and traditional print-based educational materials.

How the Company Makes Money

Lingo Media makes money through a diversified revenue model that includes sales of its digital and print educational products. The company's key revenue streams include subscriptions and licensing fees from its online learning platforms, sales of digital content and applications, and traditional print material sales. Significant partnerships with educational institutions and corporate clients also contribute to its earnings by expanding its market reach and product offerings. Additionally, the company may engage in strategic collaborations to enhance its product distribution and scaling potential in various markets.

Lingo Media Financial Statement Overview

Summary

Lingo Media exhibits strong profitability margins and a robust equity base. The company has improved its cash flow significantly, although revenue growth is moderate. Low debt levels reduce financial risk, positioning the company well for future growth opportunities.

Income Statement

Lingo Media has shown a solid gross profit margin, maintaining profitability despite fluctuations in revenue. The gross profit margin for 2023 is approximately 82.8%, indicating efficient cost control. Net profit margin improved significantly to 4.2% in 2023 from a negative value in 2022, reflecting a positive turnaround in profitability. However, revenue growth remains a concern with a modest growth rate of 5.3% in 2023 compared to a decline in the previous year. EBIT margin has also improved to 5.1%, showcasing an improvement in operational efficiency.

Balance Sheet

The balance sheet of Lingo Media shows a strong equity position with an equity ratio of 91.0% in 2023, which underscores financial stability. The debt-to-equity ratio is low at 0.03, indicating minimal reliance on debt financing. ROE improved to 3.2% in 2023, reflecting better utilization of equity to generate profits. The company's robust equity position mitigates financial risks, though there is room for enhancing returns on equity.

Cash Flow

The cash flow statement reveals a remarkable turnaround in operating cash flow, improving to $819,696 in 2023 from a negative value in 2022. Free cash flow growth is significant, driven by improved cash generation capabilities. The operating cash flow to net income ratio is favorable, indicating strong cash conversion efficiency. However, the free cash flow to net income ratio suggests potential volatility in cash flows relative to net income.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
2.32M	2.39M	2.27M	2.64M	2.10M	1.96M
	Gross Profit
1.92M	1.98M	1.99M	2.30M	1.55M	1.74M
	EBIT
22.26K	122.88K	-122.61K	551.36K	1.35M	440.19K
	EBITDA
194.03K	126.21K	162.32K	1.00M	1.34M	531.19K
	Net Income Common Stockholders
199.08K	100.51K	-86.38K	779.09K	1.11M	162.57K
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
270.94K	1.91M	1.46M	1.88M	1.21M	442.49K
	Total Assets
5.29M	3.42M	3.49M	3.10M	2.40M	1.95M
	Total Debt
350.00K	80.00K	0.00	0.00	89.60K	574.76K
	Net Debt
79.06K	-1.83M	-1.46M	-1.88M	-1.12M	132.27K
	Total Liabilities
1.91M	469.15K	679.35K	447.08K	529.01K	1.19M
	Stockholders Equity
3.38M	3.11M	2.91M	2.65M	1.87M	766.28K
Cash Flow		Free Cash Flow
700.47K	819.70K	-424.38K	648.05K	725.80K	278.00K
	Operating Cash Flow
700.47K	819.70K	-423.39K	650.30K	728.12K	278.45K
	Investing Cash Flow
-376.64K	-376.64K	―	-2.25K	-2.32K	-450.00
	Financing Cash Flow
-80.00K	0.00	6.80K	20.00K	44.48K	-69.36K

Lingo Media Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ELL	73 Outperform	C$1.25M	2.97	12.67%	―	8.80%	―
STC	64 Neutral	C$269.09M	―	-2.67%	―	-1.72%	76.81%
Sector *	60 Neutral	$14.09B	6.89	-3.35%	3.69%	2.42%	-36.25%
BB	58 Neutral	C$3.29B	―	-7.59%	―	-31.15%	30.02%
REAL	54 Neutral	C$441.09M	205.52	1.37%	―	7.77%	―
VQS	45 Neutral	C$12.04M	―	-417.39%	―	6.80%	62.78%