For today’s bulletin, we take a look at streaming music provider Pandora $P. We also provide a link to download a FREE STOCK REPORT on the company
VALUATION: Overvalued stocks now make up 49.58% of our stocks assigned a valuation and 17.55% of those equities are calculated to be overvalued by 20% or more. Nine sectors are calculated to be overvalued.
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Pandora Media, Inc. (P) operates as a provider of Internet radio in the United States. It provides services to traditional computers, smartphones, such as Android phones, Blackberry phones and the iPhone. When a listener enters a single song, artist, composer or genre to start a station, its mathematical algorithms combine the genes cataloged with individual and collective feedback to suggest songs and build personalized playlists. The Company also offers advertising solutions addressing advertising markets: online display, rich media and video, mobile and broadcast radio. Pandora Media, Inc., formerly known as Savage Beast Technologies Incorporated, is based in Oakland, California.
Pandora is yet another tale of how the first may not be the best, or the last. The internet music streaming service got off to a good start, but competition from the likes of Apple Music, Soundlcoud, Spotify, etc. has severely challenged the company. The stock has been a bummer, but recent news about a cash infusion from Sirius XM as well as the appointment of their fourth CEO in two years–Sling TVs Roger Lynch–has caused some investors to take another look.
The company also posted better-than-expected results back in July. At that time, the company still reported a loss, but it was of the “smaller than expected” variety and thus overall the results were viewed as positive.
At the time, Pandora CFO and interim CEO Naveen Chopra noted that
we have taken a number of steps to hone the company’s strategy and position Pandora to continue to build audience and extend monetization through a combination of advertising and subscription revenue streams. In addition to exceeding our revenue expectations this quarter, we also announced several important strategic moves including a $480 million investment from Sirius XM, the sale of Ticketfly, and changes to our board and management team. We remain laser-focused on execution that attracts listeners and investments that drive the growth and monetization of our audience.
This is all well and good, but the company remains severely challenged by its competition as well as its underlying fundamentals. Our models run on fundamentals, and thus we see that over time the company has been typically rated as a SELL.
ValuEngine continues its SELL recommendation on PANDORA MEDIA for 2017-08-21. Based on the information we have gathered and our resulting research, we feel that PANDORA MEDIA has the probability to UNDERPERFORM average market performance for the next year. The company exhibits UNATTRACTIVE Book Market Ratio and Momentum.
You can download a free copy of detailed report on Pandora Media, Inc. (P) from the link below.
| ValuEngine Forecast | ||
| Target Price* |
Expected Return |
|
|---|---|---|
| 1-Month | 8.03 | -0.84% |
| 3-Month | 7.97 | -1.63% |
| 6-Month | 7.64 | -5.64% |
| 1-Year | 7.29 | -10.05% |
| 2-Year | 6.37 | -21.31% |
| 3-Year | 5.79 | -28.56% |
| Valuation & Rankings | |||
| Valuation | 21.89% undervalued | Valuation Rank(?) | 80 |
| 1-M Forecast Return | -0.84% | 1-M Forecast Return Rank | 9 |
| 12-M Return | -40.79% | Momentum Rank(?) | 12 |
| Sharpe Ratio | -0.04 | Sharpe Ratio Rank(?) | 41 |
| 5-Y Avg Annual Return | -1.96% | 5-Y Avg Annual Rtn Rank | 38 |
| Volatility | 55.82% | Volatility Rank(?) | 30 |
| Expected EPS Growth | 24.27% | EPS Growth Rank(?) | 61 |
| Market Cap (billions) | 1.69 | Size Rank | 69 |
| Trailing P/E Ratio | n/a | Trailing P/E Rank(?) | 15 |
| Forward P/E Ratio | n/a | Forward P/E Ratio Rank | n/a |
| PEG Ratio | 0.29 | PEG Ratio Rank | 68 |
| Price/Sales | 1.17 | Price/Sales Rank(?) | 64 |
| Market/Book | 14.11 | Market/Book Rank(?) | 10 |
| Beta | -0.06 | Beta Rank | 86 |
| Alpha | -0.41 | Alpha Rank | 13 |
DOWNLOAD A FREE SAMPLE OF OUR PANDORA (P) REPORT BY CLICKING HERE
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