Investment Talk: Stingray Digital Group Inc

Sound bite for Twitter is: Dividend Paying Consumer. Results of stock price testing is that the stock price could still be reasonable, but be cautious. Debt Ratios are fine, but the company has a lot of debt. The Dividend Payout Ratios (DPR) are fine. The current dividend yield is moderate with dividend growth stopped. See my spreadsheet on Stingray Digital Group Inc.

Is it a good company at a reasonable price? I have done fine with this stock. I have made several purchases over the years. I am planning on holding on to what I have. I have no plans on buying more, but then I currently have no spare money in my TFSA account. The stock is at a high, so generally that is not a good time to buy. The price could be reasonable, but it also could be on the expensive side.

I own this stock of Stingray Digital Group Inc (TSX-RAY.A, OTC-STGYF). I found this an interesting small cap, so I bought for my TFSA account.

When I was updating my spreadsheet, I noticed that I have this year made a good return on my investment. My Total Return is 11.38% per year with 7.69% from capital gains and 3.69% from dividends. I have had this stock for almost 7 years. It would be nice if they increased the dividends again. They have been flat since 2021.

If you had invested in this company in December 2014, for $1,000.50 you would have bought 138 shares at $7.25 per share. In December 2024, after 10 years you would have received $340.86 in dividends. The stock would be worth $1,041.90. Your total return would have been $1,382.76. This would be a total return of 3.67% per year with 0.41% from capital gain and 3.26% from dividends.

Cost	Tot. Cost	Shares	Years	Dividends	Stock Val	Tot Ret
$7.25	$1,000.50	138	10	$340.86	$1,041.90	$1,382.76

See Total Returns below when I use the last 10 years to the end of December 2024 and to the end of the financial year of March 2025. The stock price is up almost 38% this year so far.

The current dividend yield is moderate with dividend growth stopped. The dividend yield is moderate (2% to 4% ranges) at 2.88%. The 5 year median dividend yield is good (5% and 6% ranges) at 5%. The 9 year and historical dividend yields are also moderate at 3.91%. Dividend increases stopped in 2022. Analysts do not see any change in the near future.

The Dividend Payout Ratios (DPR) are fine. The DPR for 2024 for Earnings per Share (EPS) is too high at 57% with 5 year coverage at 82%. However, the DPR for AEPS is more important. The DPR for 2024 for Adjusted Earnings per Share (AEPS) is good at 29% with 5 year coverage at 37%. The DPR for 2024 for Adjusted Free Cash Flow (AFCF) is high at 57% with 5 year coverage at 81%. These ratios would be better in the 40% range or lower. The DPR for 2024 for Cash Flow per Share (CFPS) is good at 16% with 5 year coverage at 19%. The DPR for 2024 for Free Cash Flow (FCF) is good at 28% with 5 year coverage at 30%. Here again, there is no agreement on what the FCF is, but they are not that far off.

Item	Cur	5 Years
EPS	56.60%	81.52%
AEPS	28.57%	34.78%
AFCF	56.60%	81.52%
CFPS	16.14%	18.76%
FCF	28.12%	30.25%

Debt Ratios are fine, but the company has a lot of debt. The Long Term Debt/Market Cap Ratio for 2024 is fine at 0.56 and currently good at 0.48. The Liquidity Ratio for 2024 is too low at 1.00 and 1.00 currently. If you added in Cash Flow after dividends, the ratios are fine at 1.64 and currently at 1.80. The Debt Ratio for 2024 is good at 1.49 and 1.49 currently. The Leverage and Debt/Equity Ratios for 2024 are too high at 3.06 and 2.06 and currently at 3.06 and 2.06. These would be better at if they were below 3.00 and 2.00.

Type	Yr End	Ratio Curr
Lg Term R	0.56	0.48
Intang/GW	1.04	0.90
Int less BL	0.60	0.51
Liquidity	1.00	1.00
Liq. + CF	1.64	1.80
Debt Ratio	1.49	1.49
Leverage	3.06	3.06
D/E Ratio	2.06	2.06

The Total Return per year is shown below for years of 5 to 10 to the end of December 2024. Under the Capital Gain column is the portion of the Total Return attributable to capital gains. Under the Dividend column is the portion of the Total Return attributable to dividends. See chart below.

From	Years	Div. Gth	Tot Ret	Cap Gain	Div.
2019	5	1.39%	5.24%	1.12%	4.11%
2014	10	10.22%	3.67%	0.41%	3.26%

There is quite a difference when using the March financial year as the year ends. The Total Return per year is shown below for years of 5 to 10 to the end of March 2025. Under the Capital Gain column is the portion of the Total Return attributable to capital gains. Under the Dividend column is the portion of the Total Return attributable to dividends. See chart below.

From	Years	Div. Gth	Tot Ret	Cap Gain	Div.
2019	5	1.39%	23.25%	17.59%	5.67%
2014	10	10.22%	5.15%	2.15%	3.00%

The 5-year low, median, and high median Price/Earnings per Share Ratios are 9.58, 13.22 and 16.86. The corresponding 10 year ratios are 13.32, 15.38 and 17.45. The corresponding historical ratios are 13.32, 15.38 and 17.45. The current P/E Ratio is 11.78 based on a stock price of $10.72 and EPS estimate for 2026 of $0.91. The current ratio is below the low ratio for the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap.

I also have Adjusted Earnings per Share (AEPS) Data. The 5-year low, median, and high median Price/Earnings per Share Ratios are 5.22, 7.20 and 9.18. The corresponding 10 year ratios are 7.33, 8.46 and 10.54. The current P/AEPS ratio is 8.38 based on a stock price of $10.72 and AEPS estimate for 2026 of 1.28. The current ratio is between the low and median ratio of the 10 year ratios. This stock price testing suggests that the stock price is relatively reasonable and below the median.

I get a Graham Price of $10.62. The 10-year low, median, and high median Price/Graham Price Ratios are 0.75, 0.86 and 1.00. The current ratio is 1.01 based on a stock price of $10.72. This stock price testing suggests that the stock price is relatively expensive.

I get a 10-year median Price/Book Value per Share Ratio of 1.99. The current P/B Ratio is 2.74 based on a stock price of $10.72, Book Value of $267M and Book Value per Share of $3.92. The current ratio is 37% above the 10 year ratio. This stock price testing suggests that the stock price is relatively expensive.

I also have an estimate for the Book Value per Share for 2026 of $4.67. This implies a ratio of 2.30 with a stock price of $10.72 and Book Value of $318M. This ratio is 15% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable but above the median.

I get a 10-year median Price/Cash Flow per Share Ratio of 5.76. The current P/CF Ratio is 5.73 based on a stock price of $10.72, Cash Flow per Share estimate for 2026 of $1.87 and Cash Flow of $127M. The current ratio is 0.5% below 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median.

I get an historical and 10 year median dividend yield of 3.91%. The current dividend yield is 2.88% based on a dividend of $0.30 and a stock price of $10.72. The current dividend yield is 26% below the historical and 10 year median dividend yield. This stock price testing suggests that the stock price is relatively expensive. This test works best with increasing dividends and the dividend increases were stopped in 2022.

The 10-year median Price/Sales (Revenue) Ratio is 1.80. The current P/S Ratio is 1.76 based Revenue estimate for 2026 of $415.3M, Revenue per Share of $6.10 and a stock price of $10.72. The current ratio is 2% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median.

Results of stock price testing is that the stock price could still be reasonable, but be cautious. The P/S Ratio testing is saying that the stock price is reasonable. However, the dividend yield testing is saying that the stock price is expensive. There is a problem with this test as it works better with increasing dividends and here the dividends are flat. However, a company that stops dividend increases is showing problems. For the rest of the testing, it goes from cheap to expensive.

When I look at analysts’ recommendations, I find Strong Buy (3) and Buy (3). The consensus would be a Strong Buy. The 12 months target price is $13.12 with a high of $13.50 and low of $13.00. The 12 month target price of $13.12 implies a total return of 28.91% with 26.03% from capital gains and 2.88% from dividends.

The last comment on Stock Chase for this stock is in 2023. Analysts says that the company is profitable but concentrated in Canada. He is watching it. Christopher Liew on Motley Fool says that Stingray Group is viable because of numerous growth catalysts and opportunities. Christopher Liew on Motley Fool wrote about this stock also in January 2025. He seems to be the only one on Motley Fool covering this stock. The company put out a Press Release about their fourth quarter results for 2025.

Simply Wall Street via Yahoo Finance talks about this stock because it is a growth stock with insider ownership up to 22%.

Stingray Group Inc is a provider of multi-platform music services. It broadcasts music and video content on several platforms, including radio stations, premium television channels, digital TV, satellite TV, IPTV, the Internet, mobile devices, and game consoles. Geographically, the company derives its key revenue from Canada and the rest from the United States and other countries. Its web site is here Stingray Digital Group Inc.

The last stock I wrote about was about was Loblaw Companies Ltd (TSX-L, OTC-LBLCF) … learn more. The next stock I will write about will be Well Health Technologies Corp (TSX-WELL, OTCQX-WHTCF) … learn more on Wednesday, August 6, 2025 around 5 pm. Tomorrow on my other blog I will write about Dividend Stocks August 2025…. …. learn more on Tuesday, August 5, 2025 around 5 pm.

This blog is meant for educational purposes only and is not to provide investment advice. I am not a licensed professional investment advisor. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.

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