Glacier Media Inc. (TSX:GVC) is a company that has recently caught the attention of many investors due to its use of debt in its business operations. However, the important question to ask is, how much risk is this debt creating? In this article, we will examine Glacier Media’s Inc. (TSX:GVC) debt levels and earnings performance, to help investors make informed decisions about the company.
Understanding Debt Risk
Debt can be a useful tool for businesses, but it can also bring significant risk. If a company struggles to pay off its debt, lenders can take control of the business, or the company may have to raise equity capital at a low price, permanently diluting shareholders. Therefore, it’s vital to consider a company’s debt levels when evaluating its risk profile.
As of September 2022, Glacier Media had CA$7.74m of debt, which increased from CA$4.63m in the previous year. However, it also had CA$24.9m in cash, resulting in a net cash position of CA$17.2m. While the company had significant liabilities of CA$47.7m due within a year, and CA$28.1m due beyond that, it also had CA$33.9m in receivables due within 12 months.
Glacier Media Inc. Stock Analysis
Stock Target Advisor has conducted an analysis of Glacier Media Inc.’s stock and the findings are Slightly Bearish, based on 6 positive indicators and 9 negative ones. As of the latest closing, Glacier Media Inc.’s stock was valued at CAD 0.33. Over the past week, the stock price has experienced a -5.80% change, while the last month saw a +0.00% shift. Over the course of the previous year, the stock price has suffered a decline of -7.14%.
Is Glacier Media a Risky Investment?
Based on its positive free cash flow and net cash position, we do not believe that Glacier Media is too risky in the near term. However, until the company generates positive EBIT, investors should be cautious about investing in the company, especially considering its modest revenue growth.
Company Profile
Glacier Media Inc. is a company that operates in Canada and the United States, providing information and marketing solutions in various industries such as agriculture, mining, real estate, environmental risk, and community media. The company operates through three segments, offering environmental risk data, digital media, listings, publications, exhibitions, weather, and commodities marketing subscriptions, among other services. It also licenses community website platform software and prints newspapers. The company was founded in 1988 and is based in Vancouver, Canada.
