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No. of Recommendations: 2
Beasley Broadcast Group (NASDAQ: BBGI) was the twelfth stock mentioned in this post: , which makes it next up for review.

Beasley Broadcast Group is a company that owns radio stations, an industry that has been considered to be on its last legs for several years. Shortly after my wife purchased shares, a major insider cashed out, and the stock dropped substantially. Fortunately, her position only ever represented less than 0.5% of our net worth, so we were able to stomach the drop and hold on. Of course, because it was such a small position to begin with (and one that got smaller when the stock dropped), it also fell off our radar in terms of paying attention to what was happening to it. Fortunately, that's what these reviews are designed to cover, so it's time to take a look and see what the business is doing today.

Dividends: Beasley pays a quarterly dividend of $0.05 per share, a level it has maintained since early 2018. Prior to that, its dividend was $0.045 per share since late 2013, which makes it pretty clear that it is not a company that strives for annual dividend increases. The dividend represents around 52% of the company's earnings, but closer to only around 20% of its operating cash flow. At its current price, it sports a yield just above 5%. Based on its stagnant dividend, I wouldn't be a buyer of the company's stock today, but based on its coverage and yield, I also don't feel compelled to sell based on it, either.

Balance Sheet: Beasley has a debt to equity ratio just above 1.0, sports a current ratio of around 1.6, and has in the neighborhood of $11 million in cash and equivalents on hand. The company has been a net acquirer recently, including a purchase of the Houston Outlaws e-sports team. The key risk to its balance sheet is that if advertising dollars migrate away from radio, much of the revenue to support its debt service could dry up. Still, its balance sheet seems reasonable enough that I don't feel compelled to sell based on what I'm seeing today.

Valuation: Beasley is expected to report earnings this upcoming week, and of course, earnings reports are a key reason to change a valuation estimate. Still, based on what I can find today, I estimate the company's value to be around $4.20 per share, slightly ahead of the $3.90 its shares fetch today. Based on its valuation, I'd be willing to consider holding the shares, and might even be willing to consider buying more, depending on the outlook in the upcoming earnings announcement.

Next Steps: I intend to pay attention (believe it or not) to the upcoming earnings release, and we may change my mind based on what I hear there, but absent a major change in the company's outlook or strategy, my wife will likely continue to hold on to the shares she owns.

Discovery/HR Home Fool
Disclosure: My wife owns shares of Beasley Broadcasting Group
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