F

Entravision Communications Corp — Earnings Quality Grade F

EVC · Communication Services

Major red flags

Revenue
$448M
2025
Net Income
-$79M
2025
Gross Margin
23.8%
Free Cash Flow
$4M
01

Screening Summary

11
Passed
3
Watch
4
Failed
-3.14
M-Score

Management Signals

No recent CEO, CFO, board, or accounting leadership signals found in SEC 8-K filings.
02

Financial Trends

Revenue & Net Income ($B)

Margins (%)

03

18-Point Screening

01

Revenue Quality

A1DSO Change

DSO 77 days, change +9 days YoY

!
A2AR vs Revenue Growth

AR growth 38.9% exceeds revenue growth 22.6%

A3Revenue vs CFFO

Revenue grew 22.6% but CFFO declined -85.7%

Small-cap context: Small-cap revenue/CFFO ratio is sensitive to growth-stage working-capital draws.

02

Expense Quality

B1Inventory vs COGS

No material inventory

B2CapEx vs Revenue

CapEx growth -15.7% vs revenue 22.6%. Normal

B3SG&A Ratio

SG&A/Gross Profit = 62.6%. Normal

!
B4Gross Margin

Gross margin swung -10.8pp (34.7% → 23.8%)

03

Cash Flow Quality

C1CFFO vs Net Income

CFFO < Net Income for 3 consecutive years

Small-cap context: Small-cap CFFO/NI often diverges from working-capital swings, not necessarily manipulation.

C2Free Cash Flow

FCF $0.0B, FCF/NI = -0.04

C3Accruals Ratio

Accruals ratio = -23.2%. Low accruals

C4Cash vs Debt

Cash $0.1B covers only 30% of debt $0.2B

04

Balance Sheet Health

D1Goodwill + Intangibles

Goodwill+Intangibles $0.1B = 240% of equity. Over 50%

!
D2Leverage

Interest coverage = 0.0x (<2x). Financial stress

D3Soft Asset Growth

Other assets -57.2% vs revenue 22.6%. Normal

D4Asset Impairment

Write-offs normal

05

Acquisition Risk

E1Serial Acquirer FCF

FCF after acquisitions positive

E2Goodwill Surge

Goodwill+Intangibles change -30% YoY. Normal

06

Manipulation Score

F1Beneish M-Score

M-Score = -3.14 (< -2.22). Unlikely manipulator

Portfolio monitoring

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04

Beneish M-Score

Manipulation Probability-3.14
-4.0 Clean-2.22 Grey-1.78 Danger0
1.133
DSRI
AR growing faster than revenue?
1.454
GMI
Gross margin declining?
0.885
AQI
Asset quality deteriorating?
1.226
SGI
Revenue growth rate
1.047
DEPI
Depreciation slowing?
0.866
SGAI
SG&A ratio changing?
-0.2318
TATA
Accruals level
1.359
LVGI
Leverage increasing?
05

Altman Z-Score

-6.48
Distress Zone
0 Distress1.102.605.0+ Safe
0.16
Liquidity
-1.93
Cumulative profit
-0.2097
Operating efficiency
0.167
Leverage

Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-25