GRAY MEDIA INC (GTN) Stock Fundamental Analysis
NYSE:GTN - New York Stock Exchange, Inc. - US3893751061 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to GTN. GTN was compared to 96 industry peers in the Media industry. While GTN has a great profitability rating, there are quite some concerns on its financial health. GTN scores decently on growth, while it is valued quite cheap. This could make an interesting combination. 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.
GTN had positive earnings in 4 of the past 5 years.
In the past 5 years GTN always reported a positive cash flow from operatings.
1.2 Ratios
GTN's Return On Assets of 3.06% is fine compared to the rest of the industry. GTN outperforms 79.17% of its industry peers.
GTN's Return On Equity of 11.01% is fine compared to the rest of the industry. GTN outperforms 79.17% of its industry peers.
GTN has a better Return On Invested Capital (6.63%) than 71.88% of its industry peers.
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 6.73%.
The 3 year average ROIC (5.68%) for GTN is below the current ROIC(6.63%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.06% | ||
| ROE | 11.01% | ||
| ROIC | 6.63% |
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
With an excellent Profit Margin value of 8.86%, GTN belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
GTN's Profit Margin has improved in the last couple of years.
GTN has a better Operating Margin (23.90%) than 95.83% of its industry peers.
In the last couple of years the Operating Margin of GTN has remained more or less at the same level.
GTN has a Gross Margin (34.14%) which is comparable to the rest of the industry.
GTN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.9% | ||
| PM (TTM) | 8.86% | ||
| GM | 34.14% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), GTN is creating some value.
The number of shares outstanding for GTN has been increased compared to 1 year ago.
Compared to 5 years ago, GTN has less shares outstanding
Compared to 1 year ago, GTN has an improved debt to assets ratio.
2.2 Solvency
GTN has an Altman-Z score of 0.83. This is a bad value and indicates that GTN is not financially healthy and even has some risk of bankruptcy.
GTN has a Altman-Z score (0.83) which is comparable to the rest of the industry.
The Debt to FCF ratio of GTN is 9.25, which is on the high side as it means it would take GTN, 9.25 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 9.25, GTN is in the better half of the industry, outperforming 61.46% of the companies in the same industry.
A Debt/Equity ratio of 1.91 is on the high side and indicates that GTN has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.91, GTN is doing worse than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.91 | ||
| Debt/FCF | 9.25 | ||
| Altman-Z | 0.83 |
ROIC/WACC1.15
WACC5.78%
2.3 Liquidity
GTN has a Current Ratio of 1.03. This is a normal value and indicates that GTN is financially healthy and should not expect problems in meeting its short term obligations.
GTN has a worse Current ratio (1.03) than 62.50% of its industry peers.
A Quick Ratio of 1.03 indicates that GTN should not have too much problems paying its short term obligations.
GTN has a worse Quick ratio (1.03) than 61.46% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.03 | ||
| Quick Ratio | 1.03 |
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.
GTN shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 21.70% yearly.
Looking at the last year, GTN shows a quite strong growth in Revenue. The Revenue has grown by 11.06% in the last year.
The Revenue has been growing by 11.42% on average over the past years. This is quite good.
EPS 1Y (TTM)2075%
EPS 3Y46.87%
EPS 5Y21.7%
EPS Q2Q%-129.11%
Revenue 1Y (TTM)11.06%
Revenue growth 3Y14.73%
Revenue growth 5Y11.42%
Sales Q2Q%-4.98%
3.2 Future
GTN is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -26.16% yearly.
GTN is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -3.67% yearly.
EPS Next Y-119.43%
EPS Next 2Y-11.78%
EPS Next 3Y-26.16%
EPS Next 5YN/A
Revenue Next Year-12.28%
Revenue Next 2Y0.37%
Revenue Next 3Y-3.67%
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.
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 1.59, the valuation of GTN can be described as very cheap.
GTN's Price/Earnings ratio is rather cheap when compared to the industry. GTN is cheaper than 98.96% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.03, GTN is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 1.43, the valuation of GTN can be described as very cheap.
GTN's Price/Forward Earnings ratio is rather cheap when compared to the industry. GTN is cheaper than 98.96% of the companies in the same industry.
GTN is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.94, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 1.59 | ||
| Fwd PE | 1.43 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GTN is valued cheaply inside the industry as 88.54% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, GTN is valued cheaply inside the industry as 98.96% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 0.63 | ||
| EV/EBITDA | 5.03 |
4.3 Compensation for Growth
GTN has a very decent profitability rating, which may justify a higher PE ratio.
GTN's earnings are expected to decrease with -26.16% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.07
EPS Next 2Y-11.78%
EPS Next 3Y-26.16%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.79%, GTN is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.91, GTN pays a better dividend. On top of this GTN pays more dividend than 93.75% of the companies listed in the same industry.
GTN's Dividend Yield is rather good when compared to the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.79% |
5.2 History
The dividend of GTN is nicely growing with an annual growth rate of 15.86%!
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
26.01% of the earnings are spent on dividend by GTN. This is a low number and sustainable payout ratio.
DP26.01%
EPS Next 2Y-11.78%
EPS Next 3Y-26.16%
3.77
-0.06 (-1.57%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners73.72%
Inst Owner Change5.17%
Ins Owners4.85%
Ins Owner Change24.45%
Market Cap384.05M
Analysts74
Price Target5.51 (46.15%)
Short Float %4.59%
Short Ratio2.34
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.79% |
Yearly Dividend0.86
Dividend Growth(5Y)15.86%
DP26.01%
Div Incr Years0
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)11.26%
Min EPS beat(2)-7.38%
Max EPS beat(2)29.9%
EPS beat(4)2
Avg EPS beat(4)109.27%
Min EPS beat(4)-7.38%
Max EPS beat(4)421.45%
EPS beat(8)3
Avg EPS beat(8)34.28%
EPS beat(12)6
Avg EPS beat(12)24.36%
EPS beat(16)7
Avg EPS beat(16)18.92%
Revenue beat(2)0
Avg Revenue beat(2)-1.58%
Min Revenue beat(2)-2.79%
Max Revenue beat(2)-0.38%
Revenue beat(4)0
Avg Revenue beat(4)-1.63%
Min Revenue beat(4)-2.79%
Max Revenue beat(4)-0.38%
Revenue beat(8)2
Avg Revenue beat(8)-0.74%
Revenue beat(12)5
Avg Revenue beat(12)-0.61%
Revenue beat(16)8
Avg Revenue beat(16)0.09%
PT rev (1m)0%
PT rev (3m)-6.9%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-92.76%
EPS NY rev (1m)8.43%
EPS NY rev (3m)-3.16%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.15%
Revenue NY rev (1m)-0.65%
Revenue NY rev (3m)-1.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 1.59 | ||
| Fwd PE | 1.43 | ||
| P/S | 0.11 | ||
| P/FCF | 0.63 | ||
| P/OCF | 0.51 | ||
| P/B | 0.13 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.03 |
EPS(TTM)2.37
EY62.86%
EPS(NY)2.64
Fwd EY69.98%
FCF(TTM)5.97
FCFY158.31%
OCF(TTM)7.37
OCFY195.55%
SpS35.77
BVpS28.79
TBVpS-52.13
PEG (NY)N/A
PEG (5Y)0.07
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.06% | ||
| ROE | 11.01% | ||
| ROCE | 8.7% | ||
| ROIC | 6.63% | ||
| ROICexc | 6.72% | ||
| ROICexgc | 40.55% | ||
| OM | 23.9% | ||
| PM (TTM) | 8.86% | ||
| GM | 34.14% | ||
| FCFM | 16.68% |
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 | 1.91 | ||
| Debt/FCF | 9.25 | ||
| Debt/EBITDA | 4.8 | ||
| Cap/Depr | 48.15% | ||
| Cap/Sales | 3.92% | ||
| Interest Coverage | 2.21 | ||
| Cash Conversion | 64.3% | ||
| Profit Quality | 188.24% | ||
| Current Ratio | 1.03 | ||
| Quick Ratio | 1.03 | ||
| Altman-Z | 0.83 |
F-Score7
WACC5.78%
ROIC/WACC1.15
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-119.43%
EPS Next 2Y-11.78%
EPS Next 3Y-26.16%
EPS Next 5YN/A
Revenue 1Y (TTM)11.06%
Revenue growth 3Y14.73%
Revenue growth 5Y11.42%
Sales Q2Q%-4.98%
Revenue Next Year-12.28%
Revenue Next 2Y0.37%
Revenue Next 3Y-3.67%
Revenue Next 5YN/A
EBIT growth 1Y94.85%
EBIT growth 3Y27.22%
EBIT growth 5Y11.61%
EBIT Next Year-15.86%
EBIT Next 3Y-4.55%
EBIT Next 5YN/A
FCF growth 1Y102.67%
FCF growth 3Y86.99%
FCF growth 5Y17.2%
OCF growth 1Y15.9%
OCF growth 3Y35.78%
OCF growth 5Y14.3%