Reservoir Media Inc. Common Stock (RSVR)

FairStock Score: 21/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for businesses that earn high returns on capital and turn accounting profits into cash. Reservoir Media owns music publishing and recorded music catalogs, a business I can understand: songs and recordings generate royalties. But the numbers show a fragile enterprise. In fiscal 2026, the year ended 2026-03-31, revenue was $175.7 million and net income was $8.3 million, up from $158.7 million and $7.7 million in fiscal 2025. That is modest progress. The latest filed quarter, fiscal Q1 2027 ended 2026-06-30, had $41.5 million of revenue and a net loss of $93,111, so the trend is uneven. FairStock's calculations at the 2026-10-13 close show a price of $9.59, a P/E of 68.50, P/B of 1.67, ROE of 2.13%, ROCE of 2.64%, and debt-to-equity of 1.24. Trailing free cash flow was negative $66.1 million, a negative 10.5% FCF yield. The Piotroski F-Score is 0/9, the Altman Z-Score is 0.80, and the FairStock Score is 21/100, all warning signs. The Graham Number is $4.25, so the close was far above a conservative asset-based value, with a negative margin of safety of 125.65%. FairStock also labels it a slow grower—shrinking, with profit down 2.1% a year over five years. Music catalogs can be durable, but durable assets bought with debt and weak cash generation can destroy value. At this price, the stock reflects hope rather than demonstrated compounding. I see no margin of safety.

In plain English: Reservoir Media owns and manages music rights, including songs and recordings. Revenue has been rising, but profits are thin, the latest reported quarter had a small loss, and the company is spending more cash than it brings in. At the current price, the stock looks expensive compared with its earnings and asset value, and its financial strength looks weak.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q1 2027 10-Q (period ended 2026-06-30) · fiscal Q3 2026 10-Q (period ended 2025-12-31) · fiscal Q2 2026 10-Q (period ended 2025-09-30) · fiscal Q1 2026 10-Q (period ended 2025-06-30) · FY2026 10-K (period ended 2026-03-31) · FY2025 10-K (period ended 2025-03-31) · FY2024 10-K (period ended 2024-03-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer