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TEGNA (TGNA)
NYSE:TGNA
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TEGNA
(NYSE:TGNA)76Outperform
Positive Factors
Corporate Strategy
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.
Regulatory Environment
Frequent regulatory headlines under the new FCC are expected to support valuations sector-wide, especially benefiting TGNA.
Negative Factors
Market Challenges
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.
TEGNA (TGNA) vs. S&P 500 (SPY)
Market Cap
$2.82B
Dividend Yield2.75%
Average Volume (3M)1.41M
Price to Earnings (P/E)5.0
Beta (1Y)0.99
Revenue Growth6.56%
EPS Growth57.12%
CountryUS
Employees6,200
SectorCommunication Services
Sector Strength85
IndustryTraditional Media
Share Statistics
EPS (TTM)3.54
Shares Outstanding159,898,060
10 Day Avg. Volume2,155,390
30 Day Avg. Volume1,412,365
Financial Highlights & Ratios
PEG Ratio0.09
Price to Book (P/B)N/A
Price to Sales (P/S)0.91
Price to Cash Flow (P/CF)2.80
P/FCF Ratio2.80
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$22.00Price Target Upside23.60% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
TEGNA Business Overview & Revenue Model
Company DescriptionTEGNA Inc. is a publicly traded media company headquartered in Tysons, Virginia, primarily operating in the television broadcasting sector. The company owns and manages a diverse portfolio of television stations across the United States, providing local news coverage, entertainment, and other content. TEGNA focuses on delivering high-quality, locally relevant programming and is committed to serving its communities through various media platforms.
How the Company Makes MoneyTEGNA 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 presents a strong financial profile with stable profitability and cash flow generation. Leverage remains a concern, but effective equity utilization and cash flow management mitigate risks. 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.78
Positive
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.70
Positive
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.82
Very Positive
| 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
Positive
17.80
Price Trends
17.96
Negative
17.73
Positive
15.95
Positive
Market Momentum
-0.15
Negative
51.22
Neutral
43.14
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TGNA, the sentiment is Positive. The current price of 17.8 is above the 20-day moving average (MA) of 17.69, below the 50-day MA of 17.96, and above the 200-day MA of 15.95, indicating a neutral trend. The MACD of -0.15 indicates Negative momentum. The RSI at 51.22 is Neutral, neither overbought nor oversold. The STOCH value of 43.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TGNA.
TEGNA Risk Analysis
TEGNA disclosed 12 risk factors in its most recent earnings report. TEGNA 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
TEGNA 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% | |
76 Outperform | $2.82B | 4.99 | 21.01% | 2.75% | 6.56% | 57.12% | |
59 Neutral | $30.54B | 0.25 | -13.23% | 4.04% | 2.36% | -49.53% | |
53 Neutral | $957.16M | 3.07 | 71.43% | 6.94% | 13.21% | ― |
* Communication Services Sector Average
Performance Comparison
TGNA
TEGNA
17.80
3.12
21.25%
NXST
Nexstar Media Group
177.85
18.99
11.95%
SBGI
Sinclair Broadcast
14.40
1.62
12.68%
TEGNA Earnings Call Summary
Earnings Call Date: Feb 27, 2025 | % Change Since: 7.81% | Next Earnings Date: May 12, 2025
Earnings Call Sentiment Positive
The earnings call reflects a positive sentiment with strong revenue growth, particularly from political advertising and digital revenue, and significant progress in cost-cutting initiatives. However, there are challenges in AMS revenue, increased programming expenses, and ongoing advertising sector difficulties, particularly in automotive.Highlights
Record Revenue Growth
TEGNA's total company revenue for the fourth quarter increased 20% year over year to $871 million, and for the full year, revenue grew 7% to $3.1 billion.
Political Advertising Success
TEGNA generated $373 million in political advertising revenue for full year 2024, nearly matching 2020 results despite fewer competitive races.
Digital Revenue Growth
TEGNA reported digital revenue growth year over year, driven by its owned and operated suite of digital products offsetting a slight decline in premium revenue.
Cost-Cutting Initiatives
TEGNA achieved approximately $50 million in annualized savings by the end of 2024, contributing to a target of $90 to $100 million in core non-programming annualized savings by the end of 2025.
Strong Financial Position
TEGNA reported cash and cash equivalents totaling $693 million at year-end, with a net leverage of 2.7 times, below the three times annual guidance.
Lowlights
Advertising and Marketing Services Revenue Decline
AMS revenue faced pressure in the fourth quarter, finishing 11% below last year due to political displacement and continued softness from national accounts.
Programming Expenses Increase
Fourth quarter expenses finished 2% higher than last year, driven by programming expenses, which include local sports rights.
Core Advertising Challenges
Automotive advertising continues to be challenged, mostly in tier one and tier two, despite some sequential improvement.
Company Guidance
During the Q4 2024 earnings call, TEGNA Inc. provided guidance for both the full year and the first quarter of 2025. They reported a 20% year-over-year increase in Q4 revenue to $871 million, driven by political advertising. For the full year, they achieved $3.1 billion in revenue and $931 million in adjusted EBITDA. TEGNA reaffirmed their 2024-2025 guidance, projecting adjusted EBITDA between $1 billion and $1.1 billion. For Q1 2025, they expect a 4% to 7% revenue decline due to reduced political advertising but anticipate non-GAAP operating expenses to remain flat or increase slightly. The company aims to achieve $90 to $100 million in annualized savings by the end of 2025. TEGNA plans to renew approximately 45% of their traditional MVPD subscribers in 2025, with a focus on leveraging digital revenue growth and operational efficiencies.TEGNA Corporate Events
Executive/Board ChangesShareholder Meetings
Karen Grimes to Retire from TEGNA’s Board
Neutral
Feb 12, 2025
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.
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.