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Gray Television (GTN)
NYSE:GTN
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Gray Television
(NYSE:GTN)67Neutral
Positive Factors
Debt Management
The company is continuing to make progress on its debt load and save on interest expense, having reduced debt outstanding by $520 million in 2024.
Profitability
Lower-than-expected expense levels supported profitability, with EBITDA of $325 million, ahead of expectations.
Negative Factors
Revenue Generation
Several challenging trends include continuing linear churn, a slowing pace of progress in retransmission revenue generation, and still-high programming costs obligations.
Gray Television (GTN) vs. S&P 500 (SPY)
Market Cap
$394.68M
Dividend Yield8.84%
Average Volume (3M)1.50M
Price to Earnings (P/E)1.1
Beta (1Y)0.74
Revenue Growth11.06%
EPS GrowthN/A
CountryUS
Employees9,923
SectorCommunication Services
Sector Strength85
IndustryTraditional Media
Share Statistics
EPS (TTM)3.33
Shares Outstanding91,812,950
10 Day Avg. Volume1,977,602
30 Day Avg. Volume1,501,691
Financial Highlights & Ratios
PEG Ratio0.02
Price to Book (P/B)N/A
Price to Sales (P/S)0.10
Price to Cash Flow (P/CF)0.30
P/FCF Ratio0.20
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$5.00Price Target Upside33.69% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
Gray Television Business Overview & Revenue Model
Company DescriptionGray Television, Inc. is a media company headquartered in Atlanta, Georgia, focusing primarily on broadcasting television stations and digital content. The company owns and operates television stations across the United States, providing comprehensive local news, weather, sports, and entertainment programming. Gray Television's portfolio includes stations affiliated with major networks such as CBS, NBC, ABC, and FOX, as well as digital properties and platforms that extend its reach and engagement with audiences.
How the Company Makes MoneyGray Television generates revenue primarily through advertising sales, retransmission consent fees, and production services. Advertising sales constitute the largest portion of its revenue, driven by the broadcast of commercials during local and network programming on its television stations. The company also earns significant income through retransmission consent agreements with cable and satellite providers, which pay Gray Television for the right to carry its broadcast content. Additionally, the company offers production services and content creation for third parties, further diversifying its revenue streams. Partnerships with major network affiliates enhance its programming capabilities, attracting both viewers and advertisers, which in turn boosts its revenue potential.
Gray Television Financial Statement Overview
Summary
Gray Television demonstrates strong operational performance with improving profit margins and revenue growth. However, its high leverage and capital allocation risks warrant caution. Strong free cash flow growth and cash conversion rates are positive indicators of financial health, yet careful management of debt levels and strategic investments are crucial for sustained performance.Income Statement
Gray Television shows a strong gross profit margin of 96.56% in 2024, indicating efficient cost management. However, net profit margin improved to 10.29% from a negative margin in 2023, reflecting a recovery in profitability. Revenue growth rate from 2023 to 2024 was 11.07%, which is positive but somewhat volatile given past fluctuations. EBIT and EBITDA margins in 2024 are robust at 23.36%, showing strong core operational performance.70
Positive
Balance Sheet
The company has a high debt-to-equity ratio of 0.04 in 2024, indicating significant leverage which may pose financial risk. Return on equity for 2024 stands at 16.42%, which is a healthy return for shareholders. However, the unavailability of total assets data limits the analysis of equity ratio, which could provide further insight into financial stability.55
Neutral
Cash Flow
Gray Television's free cash flow exhibited strong growth of 102.67% in 2024, enhancing financial flexibility. The operating cash flow to net income ratio is 2.00, showing strong cash generation relative to reported earnings. Free cash flow to net income ratio is high at 1.62, indicating efficient conversion of earnings into cash. However, high investing and financing cash flow outflows highlight potential risks in capital allocation.65
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 3.64B | 3.28B | 3.68B | 2.41B | 2.38B | Gross Profit |
| 3.52B | 898.00M | 1.43B | 803.00M | 989.00M | EBIT |
| 851.00M | 383.00M | 990.00M | 381.00M | 752.00M | EBITDA |
| 1.27B | 697.00M | 1.33B | 594.00M | 936.00M | Net Income Common Stockholders |
| 375.00M | -76.00M | 455.00M | 90.00M | 410.00M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 135.00M | 21.00M | 61.00M | 189.00M | 773.00M | Total Assets |
| 10.54B | 10.64B | 11.15B | 11.11B | 7.64B | Total Debt |
| 92.00M | 6.24B | 6.53B | 6.83B | 4.03B | Net Debt |
| 92.00M | 6.22B | 6.47B | 6.64B | 3.26B | Total Liabilities |
| 7.61B | 8.02B | 8.39B | 8.70B | 5.24B | Stockholders Equity |
| 2.28B | 2.62B | 2.77B | 2.41B | 2.40B |
| Cash Flow | Free Cash Flow | |||
| 608.00M | 300.00M | 393.00M | 93.00M | 542.00M | Operating Cash Flow |
| 751.00M | 648.00M | 829.00M | 300.00M | 652.00M | Investing Cash Flow |
| -28.00M | -291.00M | -503.00M | -3.53B | -211.00M | Financing Cash Flow |
| -609.00M | -397.00M | -454.00M | 2.65B | 120.00M |
Gray Television Technical Analysis
Negative
3.74
Price Trends
3.62
Positive
4.16
Negative
4.62
Negative
Market Momentum
-0.04
Positive
44.85
Neutral
11.97
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GTN, the sentiment is Negative. The current price of 3.74 is below the 20-day moving average (MA) of 3.89, above the 50-day MA of 3.62, and below the 200-day MA of 4.62, indicating a neutral trend. The MACD of -0.04 indicates Positive momentum. The RSI at 44.85 is Neutral, neither overbought nor oversold. The STOCH value of 11.97 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GTN.
Gray Television Risk Analysis
Gray Television disclosed 29 risk factors in its most recent earnings report. Gray Television reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Gray Television Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $5.27B | 8.06 | 31.65% | 4.01% | 9.61% | 128.67% | |
74 Outperform | $2.82B | 4.99 | 21.01% | 2.77% | 6.56% | 57.12% | |
67 Neutral | $394.68M | 1.08 | 13.50% | 8.84% | 11.06% | ― | |
59 Neutral | $30.54B | 0.25 | -13.23% | 4.04% | 2.36% | -49.53% | |
53 Neutral | $971.78M | 3.12 | 71.43% | 6.84% | 13.21% | ― | |
41 Neutral | $21.49M | ― | -193.00% | ― | -2.07% | -138.25% | |
36 Underperform | $234.34M | ― | 86.54% | ― | 2.76% | 9.71% |
* Communication Services Sector Average
Performance Comparison
GTN
Gray Television
3.74
-1.76
-32.00%
CMLS
Cumulus Media
0.52
-3.16
-85.87%
NXST
Nexstar Media Group
177.85
18.99
11.95%
SBGI
Sinclair Broadcast
14.40
1.62
12.68%
TGNA
TEGNA
17.80
3.12
21.25%
IHRT
iHeartMedia
1.83
-0.36
-16.44%
Gray Television Earnings Call Summary
Earnings Call Date: Feb 27, 2025 | % Change Since: -3.36% | Next Earnings Date: May 2, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant achievements in revenue growth, adjusted EBITDA, and debt reduction. However, challenges remain with core advertising revenues, particularly in the automobile sector, and with network affiliation fees. The company is optimistic about future opportunities in sports broadcasting and regulatory changes.Highlights
Significant Revenue Growth
Total revenue in Q4 2024 was $1 billion, an increase of 21% from Q4 2023.
Substantial Increase in Adjusted EBITDA
Adjusted EBITDA for Q4 2024 was $402 million, an increase of 86% from Q4 2023.
Successful Debt Reduction
Reduced company's total principal debt by $520 million in 2024, exceeding the $0.5 billion goal.
New Programming and Partnerships
Premiered new shows like 'Grosse Pointe Garden Society' and 'Beyond the Gates,' and secured rights to broadcast Atlanta Braves games.
Strong Liquidity Position
Ended 2024 with $135 million in cash and a $680 million revolving credit facility available.
Lowlights
Core Advertising Revenue Decline
Core advertising revenue is expected to be down 7% to 8% in Q1 2025 compared to Q1 2024.
Automobile Advertising Hesitancy
Automobile advertisers are pausing or reducing campaigns due to tariffs and high interest rates.
Network Affiliation Fee Challenges
First-ever year-over-year decrease in network affiliation fees in 2024, with upcoming renewals in 2025.
Company Guidance
During the Gray Media 2024 Q4 earnings call, the company reported a total revenue of $1 billion for the quarter, marking a 21% increase from Q4 2023. Operating expenses were 2% below the low end of their guidance, and net income attributable to common stockholders was $156 million, compared to a net loss of $22 million in Q4 2023. Adjusted EBITDA rose by 86% to $402 million, primarily due to political advertising revenue. The company reduced its principal amount of debt by $278 million since October 1, 2024, and a total of $520 million for the year, surpassing their goal of $0.5 billion. Gray Media also highlighted a decrease in network affiliation fees for the first time, which they anticipate will continue. Looking forward to Q1 2025, the company expects core advertising revenue to decline by 7% to 8% compared to Q1 2024, influenced by political and economic uncertainty, the airing of the Super Bowl on FOX instead of CBS, and one less billing day due to Leap Day.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.