TEGNA INC (TGNA) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TGNA - US87901J1051 - Common Stock
18.92 USD
-0.04 (-0.21%)
18.92 USD
0 (0%)
Overall TGNA gets a fundamental rating of 7 out of 10. We evaluated TGNA against 92 industry peers in the Media industry. TGNA gets an excellent profitability rating and is at the same time showing great financial health properties. TGNA is cheap, but on the other hand it scores bad on growth. TGNA also has an excellent dividend rating. These ratings could make TGNA a good candidate for value and dividend investing.
1. Profitability
1.1 Basic Checks
- In the past year TGNA was profitable.
- TGNA had a positive operating cash flow in the past year.
- TGNA had positive earnings in each of the past 5 years.
- Each year in the past 5 years TGNA had a positive operating cash flow.
1.2 Ratios
- TGNA has a Return On Assets of 5.04%. This is amongst the best in the industry. TGNA outperforms 84.78% of its industry peers.
- TGNA has a better Return On Equity (11.01%) than 79.35% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 7.32%, TGNA belongs to the top of the industry, outperforming 84.78% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for TGNA is above the industry average of 7.07%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.04% | ||
| ROE | 11.01% | ||
| ROIC | 7.32% |
ROA(3y)7.85%
ROA(5y)7.49%
ROE(3y)19.32%
ROE(5y)20.06%
ROIC(3y)9.16%
ROIC(5y)9.46%
1.3 Margins
- Looking at the Profit Margin, with a value of 11.92%, TGNA belongs to the top of the industry, outperforming 85.87% of the companies in the same industry.
- In the last couple of years the Profit Margin of TGNA has grown nicely.
- Looking at the Operating Margin, with a value of 20.88%, TGNA belongs to the top of the industry, outperforming 96.74% of the companies in the same industry.
- TGNA's Operating Margin has been stable in the last couple of years.
- TGNA has a Gross Margin of 39.45%. This is comparable to the rest of the industry: TGNA outperforms 51.09% of its industry peers.
- TGNA's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.88% | ||
| PM (TTM) | 11.92% | ||
| GM | 39.45% |
OM growth 3Y-0.6%
OM growth 5Y0.24%
PM growth 3Y6.5%
PM growth 5Y9.13%
GM growth 3Y-2.32%
GM growth 5Y-1.41%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so TGNA is still creating some value.
- The number of shares outstanding for TGNA has been reduced compared to 1 year ago.
- The number of shares outstanding for TGNA has been reduced compared to 5 years ago.
- The debt/assets ratio for TGNA has been reduced compared to a year ago.
2.2 Solvency
- TGNA has an Altman-Z score of 3.06. This indicates that TGNA is financially healthy and has little risk of bankruptcy at the moment.
- TGNA's Altman-Z score of 3.06 is amongst the best of the industry. TGNA outperforms 83.70% of its industry peers.
- The Debt to FCF ratio of TGNA is 5.89, which is a neutral value as it means it would take TGNA, 5.89 years of fcf income to pay off all of its debts.
- TGNA has a Debt to FCF ratio of 5.89. This is in the better half of the industry: TGNA outperforms 75.00% of its industry peers.
- A Debt/Equity ratio of 0.81 indicates that TGNA is somewhat dependend on debt financing.
- TGNA's Debt to Equity ratio of 0.81 is in line compared to the rest of the industry. TGNA outperforms 53.26% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.81 | ||
| Debt/FCF | 5.89 | ||
| Altman-Z | 3.06 |
ROIC/WACC1.01
WACC7.23%
2.3 Liquidity
- TGNA has a Current Ratio of 2.22. This indicates that TGNA is financially healthy and has no problem in meeting its short term obligations.
- TGNA's Current ratio of 2.22 is amongst the best of the industry. TGNA outperforms 82.61% of its industry peers.
- A Quick Ratio of 2.22 indicates that TGNA has no problem at all paying its short term obligations.
- Looking at the Quick ratio, with a value of 2.22, TGNA belongs to the top of the industry, outperforming 83.70% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.22 | ||
| Quick Ratio | 2.22 |
3. Growth
3.1 Past
- The Earnings Per Share has been growing slightly by 1.29% over the past year.
- TGNA shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 17.57% yearly.
- The Revenue has decreased by -2.73% in the past year.
- The Revenue has been growing slightly by 6.17% on average over the past years.
EPS 1Y (TTM)1.29%
EPS 3Y13.15%
EPS 5Y17.57%
EPS Q2Q%-64.89%
Revenue 1Y (TTM)-2.73%
Revenue growth 3Y1.22%
Revenue growth 5Y6.17%
Sales Q2Q%-19.34%
3.2 Future
- The Earnings Per Share is expected to decrease by -1.91% on average over the next years.
- The Revenue is expected to decrease by -0.78% on average over the next years.
EPS Next Y-47.55%
EPS Next 2Y-0.32%
EPS Next 3Y-14.72%
EPS Next 5Y-1.91%
Revenue Next Year-12.61%
Revenue Next 2Y-1.46%
Revenue Next 3Y-3.88%
Revenue Next 5Y-0.78%
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 8.05, the valuation of TGNA can be described as very reasonable.
- TGNA's Price/Earnings ratio is rather cheap when compared to the industry. TGNA is cheaper than 88.04% of the companies in the same industry.
- TGNA's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.25.
- Based on the Price/Forward Earnings ratio of 6.14, the valuation of TGNA can be described as very cheap.
- 84.78% of the companies in the same industry are more expensive than TGNA, based on the Price/Forward Earnings ratio.
- TGNA's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.05 | ||
| Fwd PE | 6.14 |
4.2 Price Multiples
- 77.17% of the companies in the same industry are more expensive than TGNA, based on the Enterprise Value to EBITDA ratio.
- Based on the Price/Free Cash Flow ratio, TGNA is valued cheaper than 80.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.1 | ||
| EV/EBITDA | 7.63 |
4.3 Compensation for Growth
- TGNA has an outstanding profitability rating, which may justify a higher PE ratio.
- A cheap valuation may be justified as TGNA's earnings are expected to decrease with -14.72% in the coming years.
PEG (NY)N/A
PEG (5Y)0.46
EPS Next 2Y-0.32%
EPS Next 3Y-14.72%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.64%, TGNA has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 1.22, TGNA pays a better dividend. On top of this TGNA pays more dividend than 81.52% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, TGNA pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.64% |
5.2 History
- The dividend of TGNA is nicely growing with an annual growth rate of 11.34%!
- TGNA has paid a dividend for at least 10 years, which is a reliable track record.
- As TGNA did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)11.34%
Div Incr Years4
Div Non Decr Years8
5.3 Sustainability
- TGNA pays out 23.42% of its income as dividend. This is a sustainable payout ratio.
DP23.42%
EPS Next 2Y-0.32%
EPS Next 3Y-14.72%
TEGNA INC / TGNA FAQ
Can you provide the ChartMill fundamental rating for TEGNA INC?
ChartMill assigns a fundamental rating of 7 / 10 to TGNA.
What is the valuation status of TEGNA INC (TGNA) stock?
ChartMill assigns a valuation rating of 8 / 10 to TEGNA INC (TGNA). This can be considered as Undervalued.
What is the profitability of TGNA stock?
TEGNA INC (TGNA) has a profitability rating of 8 / 10.
Can you provide the PE and PB ratios for TGNA stock?
The Price/Earnings (PE) ratio for TEGNA INC (TGNA) is 8.05 and the Price/Book (PB) ratio is 0.98.
Can you provide the expected EPS growth for TGNA stock?
The Earnings per Share (EPS) of TEGNA INC (TGNA) is expected to decline by -47.55% in the next year.