Given the difficult environment for advertising, Tva Group is still a cash cow relative to its market cap. I have computed ebitda for the last 12 months which is lower than 2021 but still pretty strong. Last year, advertising dollars was higher mostly due to Tva sports which benefitted from the Montreal Canadians reaching the finals.
12 months ending Q3,2022:
Income - $3,468k
other - ($813k)
taxes - $1,488k
restructuring - $4,670k
finance expense - $1,277k
d&a - $30,297k
ebitda - $40,387k
market cap - =~ $ 75.6 m
Lease payments - $2.832m
Maintenance capital expenditures =~ $14.9m (3 yr avg)
intangibles - $ 3.3m (3 yr avg)
free cash : $40.387- $1.277m - $1.488 - $14.9m - $3.3m - $2.832m
=~ $16.59m (22% free cash flow yield)
There are catalysts in place that will allow the company to increase its cash flow by a healthy amount when Mels 4 becomes operational in spring 2023. I estimate an additional $5m + in additional ebitda when productions ramps up and could be a catalyst for its share price increasing.
If you remove the working capital from its market cap, the company is trading at under 1.5 times free cash flow!