GRAY MEDIA INC (GTN) Stock Fundamental Analysis
NYSE:GTN - New York Stock Exchange, Inc. - US3893751061 - Common Stock - Currency: USD
Taking everything into account, GTN scores 5 out of 10 in our fundamental rating. GTN was compared to 97 industry peers in the Media industry. While GTN belongs to the best of the industry regarding profitability, there are concerns on its financial health. GTN may be a bit undervalued, certainly considering the very reasonable score on growth Finally GTN also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
GTN had positive earnings in the past year.
In the past year GTN had a positive cash flow from operations.
Of the past 5 years GTN 4 years were profitable.
Each year in the past 5 years GTN had a positive operating cash flow.
1.2 Ratios
GTN has a Return On Assets of 2.17%. This is in the better half of the industry: GTN outperforms 70.10% of its industry peers.
GTN has a better Return On Equity (7.78%) than 72.16% of its industry peers.
With a decent Return On Invested Capital value of 6.44%, GTN is doing good in the industry, outperforming 71.13% of the companies in the same industry.
GTN had an Average Return On Invested Capital over the past 3 years of 5.68%. This is in line with the industry average of 7.56%.
The last Return On Invested Capital (6.44%) for GTN is above the 3 year average (5.68%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.17% | ||
| ROE | 7.78% | ||
| ROIC | 6.44% |
ROA(3y)1.82%
ROA(5y)2.1%
ROE(3y)6.9%
ROE(5y)7.44%
ROIC(3y)5.68%
ROIC(5y)5.66%
1.3 Margins
The Profit Margin of GTN (6.27%) is better than 78.35% of its industry peers.
GTN's Profit Margin has improved in the last couple of years.
GTN's Operating Margin of 23.23% is amongst the best of the industry. GTN outperforms 94.85% of its industry peers.
In the last couple of years the Operating Margin of GTN has remained more or less at the same level.
Looking at the Gross Margin, with a value of 33.58%, GTN is in line with its industry, outperforming 47.42% of the companies in the same industry.
In the last couple of years the Gross Margin of GTN has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.23% | ||
| PM (TTM) | 6.27% | ||
| GM | 33.58% |
OM growth 3Y10.89%
OM growth 5Y0.17%
PM growth 3Y77.88%
PM growth 5Y8.17%
GM growth 3Y0.85%
GM growth 5Y-1.16%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so GTN is still creating some value.
Compared to 1 year ago, GTN has more shares outstanding
Compared to 5 years ago, GTN has less shares outstanding
GTN has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.82, we must say that GTN is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of GTN (0.82) is comparable to the rest of the industry.
The Debt to FCF ratio of GTN is 8.12, which is on the high side as it means it would take GTN, 8.12 years of fcf income to pay off all of its debts.
GTN's Debt to FCF ratio of 8.12 is fine compared to the rest of the industry. GTN outperforms 67.01% of its industry peers.
A Debt/Equity ratio of 1.92 is on the high side and indicates that GTN has dependencies on debt financing.
GTN has a worse Debt to Equity ratio (1.92) than 71.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.92 | ||
| Debt/FCF | 8.12 | ||
| Altman-Z | 0.82 |
ROIC/WACC1.08
WACC5.95%
2.3 Liquidity
GTN has a Current Ratio of 0.91. This is a bad value and indicates that GTN is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.91, GTN is doing worse than 73.20% of the companies in the same industry.
A Quick Ratio of 0.91 indicates that GTN may have some problems paying its short term obligations.
GTN's Quick ratio of 0.91 is on the low side compared to the rest of the industry. GTN is outperformed by 72.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.91 |
3. Growth
3.1 Past
GTN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 2075.00%, which is quite impressive.
The Earnings Per Share has been growing by 21.70% on average over the past years. This is a very strong growth
The Revenue has grown by 9.08% in the past year. This is quite good.
GTN shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.42% yearly.
EPS 1Y (TTM)2075%
EPS 3Y46.87%
EPS 5Y21.7%
EPS Q2Q%-129.11%
Revenue 1Y (TTM)9.08%
Revenue growth 3Y14.73%
Revenue growth 5Y11.42%
Sales Q2Q%-4.98%
3.2 Future
The Earnings Per Share is expected to decrease by -27.52% on average over the next years. This is quite bad
Based on estimates for the next years, GTN will show a decrease in Revenue. The Revenue will decrease by -3.68% on average per year.
EPS Next Y-122.11%
EPS Next 2Y-13.35%
EPS Next 3Y-27.52%
EPS Next 5YN/A
Revenue Next Year-12.79%
Revenue Next 2Y0.07%
Revenue Next 3Y-3.68%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 2.08, which indicates a rather cheap valuation of GTN.
GTN's Price/Earnings ratio is rather cheap when compared to the industry. GTN is cheaper than 96.91% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.45. GTN is valued rather cheaply when compared to this.
GTN is valuated cheaply with a Price/Forward Earnings ratio of 1.93.
Based on the Price/Forward Earnings ratio, GTN is valued cheaper than 98.97% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of GTN to the average of the S&P500 Index (21.90), we can say GTN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.08 | ||
| Fwd PE | 1.93 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GTN indicates a rather cheap valuation: GTN is cheaper than 86.60% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of GTN indicates a rather cheap valuation: GTN is cheaper than 100.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 0.72 | ||
| EV/EBITDA | 5.23 |
4.3 Compensation for Growth
GTN has a very decent profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as GTN's earnings are expected to decrease with -27.52% in the coming years.
PEG (NY)N/A
PEG (5Y)0.1
EPS Next 2Y-13.35%
EPS Next 3Y-27.52%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.50%, GTN is a good candidate for dividend investing.
GTN's Dividend Yield is rather good when compared to the industry average which is at 4.64. GTN pays more dividend than 91.75% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, GTN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.5% |
5.2 History
On average, the dividend of GTN grows each year by 15.86%, which is quite nice.
GTN has been paying a dividend for at least 10 years, so it has a reliable track record.
GTN has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)15.86%
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
37.17% of the earnings are spent on dividend by GTN. This is a low number and sustainable payout ratio.
DP37.17%
EPS Next 2Y-13.35%
EPS Next 3Y-27.52%
4.92
+0.05 (+1.03%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners75.74%
Inst Owner Change5.36%
Ins Owners5.81%
Ins Owner Change27.19%
Market Cap500.81M
Analysts74
Price Target5.2 (5.69%)
Short Float %4.56%
Short Ratio2.92
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.5% |
Yearly Dividend0.86
Dividend Growth(5Y)15.86%
DP37.17%
Div Incr Years0
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)42.45%
Min EPS beat(2)29.9%
Max EPS beat(2)55%
EPS beat(4)2
Avg EPS beat(4)17.66%
Min EPS beat(4)-7.38%
Max EPS beat(4)55%
EPS beat(8)4
Avg EPS beat(8)51.61%
EPS beat(12)6
Avg EPS beat(12)25.81%
EPS beat(16)7
Avg EPS beat(16)19.33%
Revenue beat(2)1
Avg Revenue beat(2)-0.09%
Min Revenue beat(2)-0.38%
Max Revenue beat(2)0.2%
Revenue beat(4)1
Avg Revenue beat(4)-1.27%
Min Revenue beat(4)-2.79%
Max Revenue beat(4)0.2%
Revenue beat(8)2
Avg Revenue beat(8)-0.78%
Revenue beat(12)5
Avg Revenue beat(12)-0.73%
Revenue beat(16)8
Avg Revenue beat(16)0%
PT rev (1m)-5.56%
PT rev (3m)-5.56%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-122.22%
EPS NY rev (1m)-13.8%
EPS NY rev (3m)-4.21%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.05%
Revenue NY rev (1m)-0.59%
Revenue NY rev (3m)-1.78%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.08 | ||
| Fwd PE | 1.93 | ||
| P/S | 0.14 | ||
| P/FCF | 0.72 | ||
| P/OCF | 0.61 | ||
| P/B | 0.17 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.23 |
EPS(TTM)2.37
EY48.17%
EPS(NY)2.55
Fwd EY51.73%
FCF(TTM)6.79
FCFY137.98%
OCF(TTM)8.01
OCFY162.74%
SpS35.4
BVpS28.53
TBVpS-52.18
PEG (NY)N/A
PEG (5Y)0.1
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.17% | ||
| ROE | 7.78% | ||
| ROCE | 8.45% | ||
| ROIC | 6.44% | ||
| ROICexc | 6.58% | ||
| ROICexgc | 43.11% | ||
| OM | 23.23% | ||
| PM (TTM) | 6.27% | ||
| GM | 33.58% | ||
| FCFM | 19.18% |
ROA(3y)1.82%
ROA(5y)2.1%
ROE(3y)6.9%
ROE(5y)7.44%
ROIC(3y)5.68%
ROIC(5y)5.66%
ROICexc(3y)5.72%
ROICexc(5y)5.89%
ROICexgc(3y)32.02%
ROICexgc(5y)33.23%
ROCE(3y)7.45%
ROCE(5y)7.43%
ROICexcg growth 3Y30.28%
ROICexcg growth 5Y1.83%
ROICexc growth 3Y29.97%
ROICexc growth 5Y2.69%
OM growth 3Y10.89%
OM growth 5Y0.17%
PM growth 3Y77.88%
PM growth 5Y8.17%
GM growth 3Y0.85%
GM growth 5Y-1.16%
F-Score7
Asset Turnover0.35
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.92 | ||
| Debt/FCF | 8.12 | ||
| Debt/EBITDA | 4.95 | ||
| Cap/Depr | 42.47% | ||
| Cap/Sales | 3.44% | ||
| Interest Coverage | 1.9 | ||
| Cash Conversion | 72.19% | ||
| Profit Quality | 305.75% | ||
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.91 | ||
| Altman-Z | 0.82 |
F-Score7
WACC5.95%
ROIC/WACC1.08
Cap/Depr(3y)84.75%
Cap/Depr(5y)76.04%
Cap/Sales(3y)8.8%
Cap/Sales(5y)7.92%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)2075%
EPS 3Y46.87%
EPS 5Y21.7%
EPS Q2Q%-129.11%
EPS Next Y-122.11%
EPS Next 2Y-13.35%
EPS Next 3Y-27.52%
EPS Next 5YN/A
Revenue 1Y (TTM)9.08%
Revenue growth 3Y14.73%
Revenue growth 5Y11.42%
Sales Q2Q%-4.98%
Revenue Next Year-12.79%
Revenue Next 2Y0.07%
Revenue Next 3Y-3.68%
Revenue Next 5YN/A
EBIT growth 1Y69.43%
EBIT growth 3Y27.22%
EBIT growth 5Y11.61%
EBIT Next Year-19.22%
EBIT Next 3Y-5.26%
EBIT Next 5YN/A
FCF growth 1Y14.98%
FCF growth 3Y86.99%
FCF growth 5Y17.2%
OCF growth 1Y-25.91%
OCF growth 3Y35.78%
OCF growth 5Y14.3%