Beasley Broadcast (NASDAQ:BBGI) offers a perfect buying opportunity for the short-term investors, thanks to strong fundamentals and technical indicators. The company also looks like a strong candidate for the long-term investors considering a dividend yield of 1.45%. Moreover, its earnings and cash generation stability will allow it increase the potential returns for investors.
The company currently offers a quarterly dividend of $0.045 per share, while its financial numbers provide a room for further growth. In the latest quarter, its revenue increased 112% to $59 million, over the same period last year. Its operating income also surged 32% year over year to $13.9 million, supported by its cost-cutting and expansion strategies.
The company has been actively managing its broadcasting portfolio. In 2016, the Beasley acquired 18 radio stations from Greater Media Stations. Beasley Broadcast is currently working on the strategy of improving the synergy targets as well as integration goals for the Greater media acquired stations. Moreover, the company is also seeking to reduce debt, increase the leverage, and return increasing cash to investors through our dividends.
The CEO stated, “We remain confident in the radio industry and believe that Beasley’s ongoing initiatives to drive sales, productivity and efficiency across our platform, combined with prudent management of our capital structure, is a proven formula for sustained llong-termfinancial growth and the creation of shareholder value.”
Investors are admiring its business strategies and strong financial number, which is reflecting from the strong growth in its share price.
Beasley stock price soared almost 100% in the last twelve months, rallying 150% in the last three years. Despite the lofty stock gains, BBGI stock price appears undervalued trading at only 5 times to earnings and 1.6 times to sales ratio, relative to the industry average of 39 and 3 times, respectively. Beasley’s 52-week trading range hovers between $5.70 to$ 18.19 per share. Its stock is currently trading at $13 a share, representing a strong entry point, supported by the recent dip and strong future fundamentals. Thus, buying Beasley stock is a perfect strategy for both short and the long-term investors.
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