TEGNA (TGNA) AI Stock Analysis

• Market Cap: $2.56B
• Dividend Yield: 3.12%
• Average Volume (3M): 2.23M
• Price to Earnings (P/E): 4.5
• Beta (1Y): 0.95
• Revenue Growth: 6.56%
• EPS Growth: 57.12%
• Country: US
• Employees: 5,900
• Sector: Communication Services
• Sector Strength: 76
• Industry: Broadcasting
• EPS (TTM): 3.54
• Shares Outstanding: 159,898,060
• 10 Day Avg. Volume: 2,035,293
• 30 Day Avg. Volume: 2,225,542
• PEG Ratio: 0.08
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.96
• Price to Cash Flow (P/CF): 3.00
• P/FCF Ratio: 3.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $22.00
• Price Target Upside: 39.86% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

TEGNA's overall stock score reflects strong financial performance with effective cash flow management and an attractive valuation. The earnings call highlights significant revenue growth and cost-cutting achievements, although challenges in advertising revenue remain. Technical analysis indicates stable stock momentum, contributing to a favorable outlook.

Positive Factors

Cost Management

New CEO Mike Steib is effectively going through expenses with a fine-toothed comb, potentially leading to more cost savings and possibly even revenue growth longer-term.

Investment and Growth

The company's investment in growing OTT ad capabilities can be beneficial as that media gains share of spend by candidates.

Regulatory Environment

There is optimism for regulatory relief, including conversations with lawmakers to modernize rules, which could benefit TEGNA.

Negative Factors

Market Trends

Fourth quarter AMS trends were impacted by political displacement and were down 11% YOY.

National Advertising Market

The new CEO faces challenges in convincing stakeholders of TEGNA's potential beyond acquisitions, amidst stuttering growth at Premion and a challenging national advertising market.

Subscription Growth

Subscription growth may struggle to post positive gains for the second consecutive year, following a likely 5% decline.

TEGNA Business Overview & Revenue Model

Company Description

TEGNA Inc. operates as a media company in the United States. The company operates television stations that deliver television programming and digital content. It offers news content to consumers across various platforms, including online, mobile, and social platforms; owns and operates multicast networks under the names True Crime Network, Quest, and Twist that offer on-demand episodes of shows; and operates VAULT Studios, which provides true crime and investigative content in the form of podcasts and original television programs. The company also provides solutions for advertisers through TEGNA Marketing Solutions (TMS). TMS delivers results for advertisers across television and digital platforms, as well as over-the-top (OTT) platforms, including Premion OTT advertising network. As of February 28, 2022, it operated 64 television stations in 51 markets. The company was formerly known as Gannett Co., Inc. and changed its name to TEGNA Inc. in June 2015. TEGNA Inc. was founded in 1906 and is headquartered in Tysons, Virginia.

How the Company Makes Money

TEGNA Inc. generates revenue primarily through advertising sales and retransmission consent fees. Advertising sales are driven by its television stations, which attract local and national advertisers looking to reach audiences through broadcast and digital platforms. These advertisements can be displayed during commercial breaks in programming or integrated into digital content. Retransmission consent fees are payments received from cable and satellite operators who retransmit TEGNA's television stations to their subscribers. Additionally, TEGNA may earn revenue from producing and distributing original content, syndication deals, and digital advertising on its websites and mobile applications. Strategic partnerships with other media companies and content producers can also contribute to its earnings by expanding its content offerings and audience reach.

TEGNA Financial Statement Overview

Summary

TEGNA demonstrates strong financial performance with stable profitability and robust cash flow generation. Despite high leverage posing a risk, effective equity utilization and cash flow management mitigate these concerns. Continued focus on revenue growth and debt management could enhance future financial health.

Income Statement

TEGNA demonstrates strong profitability with a consistent Gross Profit Margin and an improving Net Profit Margin due to efficient cost management. Revenue growth was volatile, but recent years show a recovery trend. EBIT and EBITDA margins are stable, indicating operational efficiency.

Balance Sheet

The company's Debt-to-Equity Ratio is relatively high, reflecting significant leverage, which can pose financial risks. However, TEGNA maintains a solid Return on Equity, showcasing effective use of shareholder investments. The Equity Ratio has improved over time, indicating better asset management.

Cash Flow

TEGNA has demonstrated robust Free Cash Flow growth, improving its liquidity position. The strong Operating Cash Flow to Net Income Ratio highlights efficient cash generation relative to net earnings, signaling financial stability and capability to cover debts.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
3.10B	2.91B	3.28B	2.99B	2.94B
	Gross Profit
1.35B	1.19B	1.59B	1.39B	1.43B
	EBIT
784.78M	733.54M	990.63M	802.22M	870.98M
	EBITDA
1.06B	892.69M	1.13B	940.57M	1.00B
	Net Income Common Stockholders
599.82M	476.72M	629.91M	477.00M	481.83M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
693.21M	361.04M	551.68M	56.99M	40.97M
	Total Assets
7.33B	7.00B	7.33B	6.92B	6.85B
	Total Debt
3.14B	3.16B	3.15B	3.32B	3.65B
	Net Debt
2.45B	2.80B	2.60B	3.26B	3.61B
	Total Liabilities
4.30B	4.28B	4.24B	4.38B	4.78B
	Stockholders Equity
3.00B	2.70B	3.07B	2.52B	2.06B
Cash Flow		Free Cash Flow
632.53M	532.55M	760.82M	438.54M	759.64M
	Operating Cash Flow
684.97M	587.25M	812.15M	501.61M	805.14M
	Investing Cash Flow
31.77M	-27.99M	-51.23M	-69.26M	-59.52M
	Financing Cash Flow
-384.56M	-749.90M	-266.23M	-416.33M	-734.05M

TEGNA Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 15.73
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TGNA, the sentiment is Negative. The current price of 15.73 is below the 20-day moving average (MA) of 18.00, below the 50-day MA of 17.89, and below the 200-day MA of 16.40, indicating a bearish trend. The MACD of 0.18 indicates Negative momentum. The RSI at 55.65 is Neutral, neither overbought nor oversold. The STOCH value of 36.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TGNA.

TEGNA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SSP	80 Outperform	$208.35M	2.38	11.68%	―	9.46%	―
NXST	79 Outperform	$4.68B	7.17	31.65%	4.52%	9.61%	128.67%
TGNA	74 Outperform	$2.56B	4.54	21.01%	3.12%	6.56%	57.12%
GTN	71 Outperform	$403.85M	1.08	13.50%	8.79%	11.06%	―
Sector *	58 Neutral	$24.96B	3.11	-10.53%	4.28%	2.32%	-43.03%
SBGI	56 Neutral	$915.95M	2.94	71.43%	7.26%	13.21%	―
GCI	44 Neutral	$418.53M	―	-11.19%	―	-5.79%	-10.12%

TEGNA Corporate Events

Karen Grimes to Retire from TEGNA’s Board

On February 9, 2025, Karen Grimes announced her decision to retire from TEGNA Inc.’s Board of Directors and not to seek re-election at the 2025 annual meeting of shareholders. Her departure is not due to any disagreements with the company, and TEGNA expressed gratitude for her service and contributions.