7 Penny Stocks with Low PE Ratios

4. Dolphin Entertainment, Inc. (NASDAQ:DLPN)

Share Price: $0.66

Forward P/E: 3.67

EPS Growth This Year: 91.70%

Number of Hedge Fund Holders: 3

Dolphin Entertainment (NASDAQ:DLPN) is an independent entertainment production and marketing company that operates through its subsidiaries. These include The Door Marketing Group LLC (The Door), 42West LLC (42West), and Shore Fire Media, Ltd (Shore Fire Media). The company offers publicity and marketing services to brands in the television, film, music, hospitality, and gaming industries.

Dolphin Entertainment’s (NASDAQ:DLPN) operations are divided into two segments: entertainment publicity and marketing and content production. The entertainment publicity and marketing segment provides diversified services, including social media and influencer marketing, strategic communications, entertainment content marketing, public relations, celebrity booking, production of promotional video content, and strategic communications. The content production segment covers Dolphin Films, Inc. and a department within the company that produces, develops, and distributes television content, films, and other digital content.

The company has strong fundamentals in place, with revenue for Q2 coming up to $11.4 million, bringing the total revenue for the first half of 2024 to $26.6 million. It expects to continue this profitability trajectory, improving it even further in the second half and taking revenue for fiscal 2024 ahead of its goal of $50 million. It is aiming for more than 20% year over year growth.

In addition, the company generated a positive adjusted operating income of around $900,000 and is on target to report positive adjusted operating income for all of 2024 and beyond. It is thus entering a phase of financial flexibility.

The company also recently announced the acquisition of Elle Communications, a leading PR agency specializing in social and environmental impact. Elle has joined the company as part of its publicity and marketing group as a division of 42West and will share clients with its other preeminent PR firms, benefitting them all in the process. This acquisition has strengthened Dolphin Entertainment’s (NASDAQ:DLPN) portfolio, positioning it to expand its position through its combined relationships and referrals. The company ranks fourth on our list of the 7 penny stocks with low P/E ratios.