The Singing Machine Company Stock in Brief

Now trading at a price of $1.27, The Singing Machine Company has moved -5.2% so far today.

The Singing Machine Company returned losses of -82.9% last year, with its stock price reaching a high of $10.1 and a low of $0.95. Over the same period, the stock underperformed the S&P 500 index by -99.0%. As of April 2023, the company's 50-day average price was $1.38. The Singing Machine Company, Inc., together with its subsidiaries, engages in the development, marketing, and sale of consumer karaoke audio equipment, accessories, and musical recordings in North America, Europe, and Australia. Based in Fort Lauderdale, FL, the small-cap Consumer Staples company has 32 full time employees. The Singing Machine Company has not offered a dividend during the last year.

The Company Trades Below Its Net Current Asset Value:

2020-03-31 2021-03-31 2022-03-31
Revenue (k) $41,418 $45,803 $47,512
Gross Margins 26.8% 26.8% 22.8%
Operating Margins -7.1% 3.2% 0.2%
Net Margins -6.9% 4.74% 0.49%
Net Income (k) -$2,857 $2,172 $230
Net Interest Expense (k) -$254 -$474 -$580
Depreciation & Amort. (k) -$269 -$298 -$246
Earnings Per Share -$2.1 $1.67 -$1.72
EPS Growth n/a 179.52% -202.99%
Diluted Shares (k) 1,284 1,304 3,153
Free Cash Flow (k) -$73 -$30 -$2,130
Capital Expenditures -$518 -$201 -$118
Net Current Assets (k) $2,907 $4,127 $7,213
Current Ratio 1.45 1.85 1.65
Long Term Debt (k) $1,086 $484 $139
Net Debt / EBITDA -0.38 0.5 1.49

The Singing Machine Company has growing revenues and decreasing reinvestment in the business, positive EPS growth, and healthy leverage. However, The Singing Machine Company has slimmer gross margins than its peers, consistently negative margins with a stable trend, and negative and highly variable cash flows. Finally, we note that The Singing Machine Company has a decent current ratio.

Since its earnings per share are currently negative, The Singing Machine Company does not have a meaningful trailing twelve month P/E ratio. The Consumer Staples sector has an average P/E ratio of 24.36. On the other hand, the market is undervaluing The Singing Machine Company in terms of its equity because its P/B ratio is 0.3. In comparison, the sector average is 4.29.

Overview of The Singing Machine Company's Market Factors:

The Singing Machine Company has a very low short interest because 1.7% of the company's shares are sold short. Institutions own 12.4% of the company's shares, and the insider ownership rate stands at 68.83%, suggesting a large amount of insider shareholders. The largest shareholder is Perritt Capital Management, Inc., whose 3% stake in the company is worth $139,313.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.