Deep Value: cash covers more than 100% of the stock price

This company holds roughly $46M in cash and investments — more than its entire stock-market value, based on its latest quarterly filing. You're paying very little for the actual business. Sometimes that's a genuine bargain or a takeover target, sometimes it's cheap for a reason. Not a buy signal on its own — always ask why it's this cheap.

Highlight Communications AG

HLG.DE

Media & Entertainment · Technology

Exchange

Frankfurt Stock Exchange

Winston Score

Winston is worried

Weak fundamentals across most pillars.

Data as of Aug 23, 2026 · filings through Dec 31, 2025

How the score breaks down

Quality

Weak

Growth

Mixed

Cash Flow

Mixed

Stability

Weak

Valuation

Data not available

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Winston Score History

The full picture

Highlight Communications AG is a Swiss media and entertainment company. It owns and operates businesses in two main areas: film and TV content production and distribution, and sports marketing. Its subsidiaries include Constantin Film, one of the larger German-language film studios, which produces and distributes movies and TV series for audiences across German-speaking Europe.

The company earns money by selling distribution rights to films and TV shows, licensing content to broadcasters and streaming platforms, and through sports marketing contracts. It operates mainly in Germany, Switzerland, and Austria, with Constantin Film being its most recognized asset. Highlight is a small company with a market cap around $0.1 billion, and its competitive position depends heavily on its ability to produce commercially successful German-language content. The thin gross margin of roughly 5.5% and negative operating margin highlight how costly content production is, and the key risk is that rising competition from global streaming giants like Netflix could squeeze demand for its content and reduce licensing fees.

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+101.1% YoY

YoY Growth Rate

Revenue accelerating

EPS Growth

<−1,000% YoY

YoY Growth Rate

Earnings declining

Insider Activity

71.7%ownership

→ Flat

Insider ownership roughly steady over the past year

Cash Position

Cash flow positive

€37M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Revenue accelerating

Highlight Communications AG grew revenue 101% year-over-year and the growth rate is speeding up. That's the kind of momentum growth investors look for — the question is whether margins can follow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

Each metric is explained in plain language so you know exactly what you're looking at. Start your free trial now.

Quality

Profit per sale

Gross Margin

-5.9%

Thin — -5.9% gross margin

Profit after running costs

Operating Margin

-4.6%

Losing money on operations — -4.6%

Return on the money invested

ROCE

-14.6%

Weak — -14.6% return on capital

Negative ROIC means the business is losing money on every dollar invested in it.

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Growth

Sales growth

Sales YoY

+51.5%

Fast-growing sales (+51.5% YoY)

Profit growth

EPS YoY

N/A

Data not available

How steady the profit is

EPS Consistency

2/8 quarters

Earnings rarely grow — volatile business

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Cash Flow

Profit that turns into cash

Cash Conversion

N/A

Data not available

Spare cash per sale

FCF Margin

32.4%

Converts sales into free cash efficiently (32.4%)

Free cash flow margin above 20%. Out of every $100 in sales, more than $20 is real cash they keep.

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Stability

What it owes vs what it owns

Debt / Equity

29.49

Heavy debt load (29.49)

Covers its interest

Interest Cover

N/A

Data not available

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Valuation

Price vs profit

P/E Ratio (TTM)

N/M

no trend

Negative earnings — P/E not meaningful

Cheaper or dearer next year

P/E vs Forward

N/A

not available

Data not available

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Dividends

Not applicable for this business.

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