RSVRReservoir Media, Inc.
Is the business good?
A genuinely good business: earnings fully cash-backed (1.6×) and margins widening.
Operating profit is fully backed by cash.
Negative operating leverage, costs are rising faster than sales, squeezing margins as it grows.
A balanced mix of margins, efficiency, and leverage. ROE 2% = margin × turnover × leverage.
Unless marked, from derived.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is RSVR?
Reservoir Media, Inc. earns 3.6% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
Return on invested capital · cost of capital 9.0% · 5.3 points below what the capital costs: growth destroys value
- Operating margin
- 21%
Operating margin · Entertainment median 4.3% · 12 months to Q1 2027
- Cash conversion
- 1.59×
Cash conversion · 1.55× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- +0.59%
Share count, year on year · flat: no meaningful dilution
| Year | Operating margin |
|---|---|
| FY2021 | 23% |
| FY2022 | 18% |
| FY2023 | 17% |
| FY2024 | 17% |
| FY2025 | 22% |
| FY2026 | 22% |
Details›
- Gross margin12 months to Q1 2027
- 65%
- Operating margin12 months to Q1 2027
- 21%
- Net margin12 months to Q1 2027
- 4.9%
- Free cash flow margin
- 23%
- Revenue, trailing twelve months
- $180M
- Free cash flow, trailing twelve months
- $42M
- Net income, trailing twelve months
- $8.8M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 3.6%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.