ITV plc (ITV) AI Stock Analysis

• Market Cap: £2.96B
• Dividend Yield: 6.17%
• Average Volume (3M): 5.68M
• Price to Earnings (P/E): 14.0
• Beta (1Y): 0.82
• Revenue Growth: -3.07%
• EPS Growth: -54.90%
• Country: UK
• Employees: 6,133
• Sector: Communication Services
• Sector Strength: 97
• Industry: Broadcasting
• EPS (TTM): 0.05
• Shares Outstanding: 3,793,189,200
• 10 Day Avg. Volume: 6,431,599
• 30 Day Avg. Volume: 5,684,177
• PEG Ratio: -0.34
• Price to Book (P/B): 1.71
• Price to Sales (P/S): 0.88
• P/FCF Ratio: 17.48
• 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: £94.67
• Price Target Upside: 19.46% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): 0.09
• Revenue Forecast (FY): £3.62B

• Rating: 64 Neutral
• Price Target: 89.00 p ▲(12.30% Upside)
• Action: Downgraded Date: 03/14/26
• Date: Action: Downgraded 03/14/26

The score is driven primarily by uneven financial performance—strong revenue rebound but materially weaker margins and cash flow—partly offset by an improved leverage profile. Technically, the stock shows a modest uptrend with neutral momentum. Valuation is supportive via a mid-range P/E and high dividend yield. Earnings-call commentary is cautiously positive on Studios/digital growth and cost discipline, but tempered by continued linear advertising pressure, margin mix headwinds, softer cash conversion, and strategic uncertainty around the M&E discussions.

Positive Factors

Diversified Revenue Mix

A sustained shift to Studios and digital reduces dependence on cyclical linear advertising and smooths revenue through licensing, production fees and digital ad/subscription streams. This structural mix change supports more predictable long-term cashflows and strategic optionality over 2–6 months and beyond.

Studios Scale & Profitability

Growing Studios revenue and mid-teens EBITA margins reflect durable competitive strength in content production and international distribution. Scale with streaming partners and repeatable format/licensing economics supports margin resilience, recurring fee generation and long-term revenue visibility beyond advertising cycles.

Digital Growth & Cost Discipline

Sustained digital revenue growth combined with permanent cost savings strengthens operating leverage and improves structural profitability. Expansion of programmatic and streaming metrics (Zoo, ITVX) underpins scalable, higher-margin digital monetisation and makes earnings less exposed to linear ad declines over the medium term.

Negative Factors

Weakened Cash Generation

A large one-year fall in operating cash and FCF reduces financial flexibility for content investment, M&A or dividend support. If cash conversion remains below historical averages, it heightens execution risk on growth initiatives and makes the business more sensitive to advertising slowdowns and working-capital swings.

Ongoing Linear Advertising Decline

Persistent structural decline in linear ad volumes and pricing pressures reduce core revenue durability. Even with digital gains, a slower pivot to addressable inventory and advertiser pauses can compress margins and create recurring revenue volatility, challenging consistent earnings delivery over coming quarters.

Strategic & Execution Uncertainty (M&E talks)

Preliminary M&E sale discussions introduce strategic ambiguity that can delay investment decisions, distract management and complicate integration plans for studios/digital initiatives. Transaction uncertainty increases timing and execution risk for long-term strategic targets and may affect partner/advertiser relationships.

ITV plc Business Overview & Revenue Model

Company Description

ITV plc, an integrated producer broadcaster, creates, owns, and distributes content on various platforms worldwide. It operates through Media & Entertainment, and ITV Studios segments. The Media & Entertainment segment broadcasts various contents on its family of free-to-air channels, including ITV, ITV2, ITV3, ITV4, ITVBe, ITV Encore, CITV, ITV Breakfast, CITV Breakfast, and various related +1 and HD equivalents; and offers television advertising services. It also delivers content through linear television broadcasting, as well as on the ITV Hub, catch up services on pay platforms, and through direct content deals. In addition, this segment offers online advertising, HD digital channel on pay platform, and ITV Choice subscription services, as well as licenses DTT Multiplex A. The ITV Studios segment creates and produces programs and formats that include drama, entertainment, and factual entertainment for its own channels and other broadcasters. It also operates as an unscripted independent producer of content in the United States; and produces content for local broadcasters and international OTT platforms in Australia, Germany, France, Italy, the Netherlands, Sweden, Norway, Finland, and Denmark. In addition, this segment engages in formats and distribution ITV's finished programmes, and formats and third-party content internationally, as well as finances productions. The company also engages in the development of platform, broadband, transactional, and mobile services; operation of digital television channels; operation of Freeview Multiplex A; rights ownership and distribution of television programs and films; and scheduling and commissioning of television programs. ITV plc was founded in 1955 is based in London, the United Kingdom.

How the Company Makes Money

ITV primarily makes money through two major revenue streams aligned to its operating segments. (1) ITV Media & Entertainment: Revenue is driven largely by selling advertising across ITV’s broadcast channels and digital/streaming inventory (often referred to as advertising revenue), where advertisers pay for audience reach and targeted placements. ITV also generates direct-to-consumer revenue from its streaming service through subscription fees for its premium tier (where available) and may earn additional income from related digital services and platform activities. (2) ITV Studios: Revenue comes from producing television and other video content for broadcasters and streaming platforms and earning production fees, as well as from distributing and licensing rights to content in the UK and internationally. Distribution monetisation can include selling finished programmes, licensing formats and remake rights, and other content-rights exploitation over time. ITV’s earnings are influenced by the health of the advertising market (which affects pricing and demand for ad slots), audience delivery on linear and digital platforms (which affects the value of inventory), and the volume and success of commissioned and owned content within ITV Studios, including the ability to retain and exploit intellectual property rights across multiple territories and windows.

ITV plc Financial Statement Overview

Summary

Mixed fundamentals: 2025 revenue rebounded strongly (+30.9% YoY), but profitability weakened (gross margin ~13.2% vs ~16.7% in 2024; net margin ~6.3% vs ~11.7%). Balance sheet leverage is moderate and improved (debt-to-equity ~0.49; net debt noted as £566m, ~1x leverage), but cash flow deteriorated with 2025 free cash flow down ~50.5% YoY and lower operating cash flow.

Income Statement

Revenue rebounded strongly in 2025 (+30.9% YoY) after a largely flat-to-down 2022–2024 stretch, but profitability weakened materially in 2025: gross margin fell to ~13.2% (from ~16.7% in 2024) and net margin declined to ~6.3% (from ~11.7%). Earnings have been volatile across the period, with 2021–2022 showing stronger margins than 2023 and the 2025 step-down, suggesting less consistent operating leverage and a more cyclical/competitive profit profile.

Balance Sheet

Leverage looks manageable and improving versus earlier years: debt-to-equity is ~0.49 in 2025 (down from ~1.06 in 2020), supported by a relatively stable equity base (~£1.8B). Total debt has remained broadly steady (~£0.84–£0.96B since 2022), which helps risk control, though the business still carries meaningful debt and would be more exposed if profitability remains under pressure.

Cash Flow

Cash generation is positive but has weakened recently. Free cash flow dropped sharply in 2025 (down ~50.5% YoY to ~£176M) and operating cash flow also declined (~£202M vs ~£333M in 2024). Cash conversion remains decent (free cash flow at ~87% of net income in 2025), but the low operating cash flow relative to sales (coverage ~0.12 in 2025 vs ~0.25 in 2024) points to less resilient near-term cash production.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.51B	3.49B	3.62B	3.73B	3.45B
Gross Profit	464.00M	581.00M	311.00M	593.00M	690.00M
EBITDA	570.00M	734.00M	388.00M	722.00M	805.00M
Net Income	220.00M	408.00M	210.00M	428.00M	378.00M
Balance Sheet
Total Assets	4.29B	4.19B	4.19B	4.47B	4.24B
Cash, Cash Equivalents and Short-Term Investments	302.00M	427.00M	340.00M	348.00M	736.00M
Total Debt	876.00M	838.00M	878.00M	962.00M	1.11B
Total Liabilities	2.46B	2.35B	2.36B	2.60B	2.72B
Stockholders Equity	1.80B	1.81B	1.79B	1.82B	1.48B
Cash Flow
Free Cash Flow	176.00M	284.00M	315.00M	226.00M	126.00M
Operating Cash Flow	202.00M	333.00M	385.00M	304.00M	171.00M
Investing Cash Flow	-56.00M	246.00M	-97.00M	-221.00M	-76.00M
Financing Cash Flow	-266.00M	-489.00M	-287.00M	-483.00M	-24.00M

ITV plc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 79.25
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:ITV, the sentiment is Negative. The current price of 79.25 is below the 20-day moving average (MA) of 80.65, below the 50-day MA of 81.02, and above the 200-day MA of 79.19, indicating a neutral trend. The MACD of 0.24 indicates Positive momentum. The RSI at 43.97 is Neutral, neither overbought nor oversold. The STOCH value of 26.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:ITV.

ITV plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BT.A	69 Neutral	£21.20B	15.39	5.29%	4.42%	-2.53%	24.52%
CAN	67 Neutral	£1.87B	22.18	-5.19%	0.65%	0.88%	-133.77%
ITV	64 Neutral	£2.96B	13.98	11.42%	6.17%	-3.07%	-54.90%
RCH	62 Neutral	£187.78M	-1.32	-21.91%	11.37%	-4.44%	19.95%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
WPP	49 Neutral	£2.43B	-16.88	11.44%	9.68%	-4.54%	86.79%
STVG	43 Neutral	£48.12M	-9.71	75.19%	9.87%	2.23%	-25.75%

ITV plc Corporate Events

ITV lifts profit resilience on Studios and digital growth as ad market softens

ITV plc reported full-year 2025 results slightly ahead of market expectations, with group external revenue up 1% to £3.51bn and total revenue flat, as growth in ITV Studios and digital offset a drop in linear TV advertising. Adjusted EBITA slipped just 1% to £534m despite weaker advertising, helped by £63m of permanent cost savings, while adjusted EPS fell 11% and net debt rose to £566m, leaving leverage at a modest 1.0x.

ITV Studios delivered 10% growth in external revenues, driven by strong demand from global streamers and digital exploitation of its content library, though margins softened due to mix. The Media & Entertainment division saw digital viewing on ITVX rise 16% and digital ad revenues climb 12%, but total M&E revenue declined 5% on lower TV advertising, even as cost cuts limited the profit impact.

Management highlighted that two-thirds of group revenue now comes from ITV Studios and digital M&E, underscoring a strategic shift away from reliance on traditional broadcast advertising. The board proposed a full-year ordinary dividend of 5.0p per share, about £190m in total, and reaffirmed its “More Than TV” transformation programme aimed at building a leaner, more agile, and increasingly digital business.

ITV said it remains in talks with Sky over a potential sale of the M&E business, though there is no certainty a deal will occur, a move that could significantly reshape the group’s portfolio and earnings profile. Looking to 2026, the company expects further profitable revenue growth from ITV Studios and ITVX, additional permanent cost savings of £20m, content spend of roughly £1.225bn, and a strong advertising boost from expanded coverage of the Men’s Football World Cup and England rugby matches.

The most recent analyst rating on (GB:ITV) stock is a Hold with a £0.84 price target. To see the full list of analyst forecasts on ITV plc stock, see the GB:ITV Stock Forecast page.

ITV Refreshes Audit and Risk Committee Leadership

ITV plc has announced a leadership change within its governance structure, with Non-Executive Director Margaret Ewing stepping down as Chair of the Audit and Risk Committee on 5 March 2026 while remaining a committee member and retaining her other board responsibilities. She will be succeeded as Committee Chair by fellow Non-Executive Director Dawn Allen, a chartered accountant with more than three decades of financial experience and currently chief financial officer of Haleon plc, a move that underscores ITV’s emphasis on financial oversight and risk management expertise at board level, potentially reinforcing investor confidence in the company’s corporate governance.

The most recent analyst rating on (GB:ITV) stock is a Buy with a £92.00 price target. To see the full list of analyst forecasts on ITV plc stock, see the GB:ITV Stock Forecast page.

ITV Confirms Total Voting Rights at Year-End 2025

ITV plc has reported that as of 31 December 2025 its issued share capital comprised 3,858,668,496 ordinary shares of 10p each, of which 65,479,277 are held in treasury. This leaves a total of 3,793,189,219 voting rights in the company, a key reference figure for shareholders and investors when assessing disclosure obligations and tracking significant changes in ownership under UK financial transparency rules.

The most recent analyst rating on (GB:ITV) stock is a Buy with a £92.00 price target. To see the full list of analyst forecasts on ITV plc stock, see the GB:ITV Stock Forecast page.

ITV Transfers 35 Million Treasury Shares to Employee Benefit Trust

ITV plc has transferred 35 million ordinary shares from its treasury account to the ITV Employees Benefit Trust to satisfy awards under its Executive Share Plan and Sharesave scheme, with the transfer made for nil consideration. Following this move, ITV’s issued share capital stands at 3,858,668,496 shares, of which 65,479,277 are held in treasury, leaving 3,793,189,219 shares in issue with full voting rights, a key reference figure for shareholders assessing disclosure obligations under UK regulatory rules.

The most recent analyst rating on (GB:ITV) stock is a Buy with a £92.00 price target. To see the full list of analyst forecasts on ITV plc stock, see the GB:ITV Stock Forecast page.