Salem Media GROUP, Inc. /DE/ (SALM) intrinsic value & 10-year financials
Salem Media GROUP, Inc. /DE/ (SALM) has a Graham intrinsic value of $14.63 per share. Over the last 10 fiscal years revenue grew 1.3% a year to $267.0M, with an average return on invested capital of 3.3%.
- Graham intrinsic value
- $14.63
- Revenue (FY2022)
- $267.0M
- Revenue growth (10-yr CAGR)
- 1.3%
- ROIC (10-yr avg)
- 3.3%
- Free cash flow (FY2022)
- —
SALM 10-year financial history
| Fiscal year | Revenue | Net income | EPS (diluted) | Free cash flow | Operating margin | ROIC |
|---|---|---|---|---|---|---|
| FY2022 | $267.0M | -$3.2M | -$0.12 | — | 1.9% | 1.2% |
| FY2021 | $258.2M | $41.5M | $1.52 | — | 17.9% | 11.8% |
| FY2020 | $236.2M | -$54.1M | -$2.03 | — | -3.3% | -1.8% |
| FY2019 | $253.9M | -$27.8M | -$1.05 | — | -3.2% | -1.7% |
| FY2018 | $262.8M | -$3.2M | -$0.12 | — | 6.5% | 3.5% |
| FY2017 | $263.7M | $24.6M | $0.94 | — | 8.7% | 4.8% |
| FY2016 | $274.3M | $8.9M | $0.34 | — | 10.2% | 3.9% |
| FY2015 | $265.8M | $11.2M | $0.43 | — | 12.4% | 4.3% |
| FY2014 | $266.5M | $5.5M | $0.21 | $31.9M | 10.7% | 3.2% |
| FY2013 | $236.9M | -$2.7M | -$0.11 | $18.1M | 14.6% | 3.5% |
Source: annual 10-K filings on SEC EDGAR. Figures in USD.
Executive summary
SALEM MEDIA GROUP, INC. /DE/ has demonstrated mature, steady growth, with revenue compounding at 1.3% annually over the past decade.
SALEM MEDIA GROUP, INC. /DE/ has historically struggled to out-earn its cost of capital, averaging just 3.3% ROIC.
SALEM MEDIA GROUP, INC. /DE/ has not shown aggressive share repurchases (>10% retirement) or a major balance-sheet leverage increase (>50% net debt growth) over the 10-year window.
Benjamin Graham lens
Under Benjamin Graham's formula using SEC EDGAR fundamentals, SALEM MEDIA GROUP, INC. /DE/ is modeled at 1.3% normalized earnings growth with a 5.1% bond-yield adjustment. The resulting Graham intrinsic value estimate is $14.63 per share.