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ITV plc (GB:ITV)
LSE:ITV
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ITV plc (ITV) AI Stock Analysis

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GB:ITV

ITV plc

(LSE:ITV)

Rating:66Neutral
Price Target:
89.00p
▲(7.88% Upside)
ITV plc's overall stock score is driven by a balanced financial performance with strong cost management but challenges in revenue growth. The valuation is supported by a reasonable P/E ratio and high dividend yield. Technical analysis indicates a neutral trend with limited bullish momentum.

ITV plc (ITV) vs. iShares MSCI United Kingdom ETF (EWC)

ITV plc Business Overview & Revenue Model

Company DescriptionITV plc is a British media company primarily engaged in the production and broadcasting of television content. It operates through various segments, including ITV Studios, which produces a wide range of programming, and ITV Broadcasting, which encompasses its television channels. ITV offers a diverse portfolio of entertainment, news, and sports programming, and it serves a broad audience across the UK and internationally.
How the Company Makes MoneyITV generates revenue through several key streams. The primary source is advertising revenue from its television channels, where advertisers pay to promote their products during commercial breaks. Additionally, ITV Studios contributes significantly to the company's earnings by producing content for both internal channels and external clients, which includes selling formats and distribution rights internationally. The company also benefits from subscription services, particularly through its streaming platform, ITV Hub, which offers ad-free viewing options. Partnerships with other media companies and content distributors enhance ITV's reach and revenue potential, while sponsorship and product placement within its shows further contribute to its earnings.

ITV plc Financial Statement Overview

Summary
ITV plc demonstrates strong cost management and operational efficiency. However, challenges in revenue growth and declining free cash flow require attention. The balance sheet is stable with moderate leverage and solid profitability.
Income Statement
65
Positive
The company's income statement shows some strengths and weaknesses. Gross profit margin is high due to the removal of COGS, indicating effective cost management. However, net profit margin is moderate at 11.7%, showing room for improvement. Revenue has declined by 3.8% year-over-year, indicating a potential issue with sales growth. EBIT and EBITDA margins are reasonable, reflecting satisfactory operational efficiency.
Balance Sheet
70
Positive
ITV plc's balance sheet is relatively stable with a debt-to-equity ratio of 0.46, indicating moderate leverage. The return on equity is solid at 22.6%, showcasing strong profitability. However, the equity ratio is at 43.2%, which suggests moderate reliance on liabilities to finance assets. Overall, the balance sheet reflects a balanced financial position with manageable risks.
Cash Flow
60
Neutral
The cash flow analysis shows mixed results. Free cash flow declined by 9.8%, indicating potential pressure on liquidity. The operating cash flow to net income ratio is solid, suggesting good cash conversion efficiency. Free cash flow to net income ratio is also healthy, but the decline in free cash flow needs attention.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue3.49B3.62B3.73B3.45B2.78B
Gross Profit581.00M311.00M593.00M690.00M486.00M
EBITDA734.00M388.00M722.00M805.00M489.00M
Net Income408.00M210.00M428.00M378.00M285.00M
Balance Sheet
Total Assets4.19B4.19B4.47B4.24B3.95B
Cash, Cash Equivalents and Short-Term Investments427.00M340.00M348.00M736.00M668.00M
Total Debt838.00M878.00M962.00M1.11B1.19B
Total Liabilities2.35B2.36B2.60B2.72B2.80B
Stockholders Equity1.81B1.79B1.82B1.48B1.12B
Cash Flow
Free Cash Flow284.00M315.00M226.00M126.00M459.00M
Operating Cash Flow333.00M385.00M304.00M171.00M525.00M
Investing Cash Flow246.00M-97.00M-221.00M-76.00M-74.00M
Financing Cash Flow-489.00M-287.00M-483.00M-24.00M-26.00M

ITV plc Technical Analysis

Technical Analysis Sentiment
Positive
Last Price82.50
Price Trends
50DMA
81.54
Positive
100DMA
80.24
Positive
200DMA
75.01
Positive
Market Momentum
MACD
0.05
Positive
RSI
53.55
Neutral
STOCH
66.22
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:ITV, the sentiment is Positive. The current price of 82.5 is above the 20-day moving average (MA) of 81.75, above the 50-day MA of 81.54, and above the 200-day MA of 75.01, indicating a bullish trend. The MACD of 0.05 indicates Positive momentum. The RSI at 53.55 is Neutral, neither overbought nor oversold. The STOCH value of 66.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:ITV.

ITV plc Peers Comparison

Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
£219.34M4.337.38%8.58%-4.44%19.95%
71
Outperform
£745.02M9.777.77%0.46%-0.08%-0.72%
70
Neutral
£198.78M15.7733.95%0.89%-12.89%
66
Neutral
£3.09B16.9710.46%6.06%-3.07%-54.90%
61
Neutral
£55.83M5.01
9.58%11.64%139.33%
60
Neutral
$46.29B4.07-13.11%4.12%1.85%-42.71%
41
Neutral
£9.16M-9.16%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:ITV
ITV plc
82.50
9.39
12.84%
GB:FUTR
Future plc
764.00
-281.10
-26.90%
GB:SAA
M&C Saatchi plc
165.00
-39.45
-19.30%
GB:BBB
Bigblu Broadband plc
20.50
-12.50
-37.88%
GB:STVG
STV Group plc
115.00
-129.99
-53.06%
GB:RCH
Reach plc
72.10
-16.76
-18.86%

ITV plc Corporate Events

Business Operations and StrategyFinancial Disclosures
ITV plc Reports Strong H1 2025 Performance Amid Strategic Shifts
Neutral
Jul 24, 2025

ITV plc reported its half-year results for 2025, highlighting a performance ahead of market expectations despite a 3% decline in total revenue and a 31% drop in group adjusted EBITA compared to the previous year. The company attributed these declines to a strong advertising period in 2024 due to the Men’s Euros. ITVX showed a 12% increase in digital advertising revenue, and ITV Studios is expected to achieve good revenue growth for the full year. ITV announced additional cost savings and a reduction in content spend, which are expected to improve the full-year outlook. The company continues to focus on digital growth, cost management, and leveraging its strong market position to drive future success.

The most recent analyst rating on (GB:ITV) stock is a Hold with a £87.00 price target. To see the full list of analyst forecasts on ITV plc stock, see the GB:ITV Stock Forecast page.

Executive/Board ChangesBusiness Operations and Strategy
ITV Chair Andrew Cosslett to Lead Johnson Matthey
Neutral
Jul 17, 2025

ITV plc has announced a significant leadership change as Andrew Cosslett, the current Chair of ITV, will also assume the role of Chair at Johnson Matthey plc following their Annual General Meeting on 17 July 2025. This appointment highlights Cosslett’s leadership capabilities and may influence ITV’s strategic direction and stakeholder relations, given his expanded responsibilities across two major companies.

The most recent analyst rating on (GB:ITV) stock is a Hold with a £87.00 price target. To see the full list of analyst forecasts on ITV plc stock, see the GB:ITV Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
ITV plc Reports Stable Q1 2025 Performance with Strong Digital Growth
Positive
May 15, 2025

ITV plc’s Q1 2025 trading update indicates a stable performance in line with expectations, showcasing successful strategic implementation. ITV Studios saw a 1% revenue increase, driven by strong external demand, while ITVX digital advertising revenue grew by 15%, surpassing market trends. Despite a slight decline in total group revenue, ITV remains on track to achieve significant cost savings and anticipates continued growth in digital revenues. The company is confident in navigating the uncertain macroeconomic environment, aiming to deliver long-term shareholder value through diversified revenue streams and strategic initiatives.

The most recent analyst rating on (GB:ITV) stock is a Hold with a £80.00 price target. To see the full list of analyst forecasts on ITV plc stock, see the GB:ITV Stock Forecast page.

Executive/Board ChangesShareholder MeetingsDividends
ITV plc Passes All Resolutions at 2025 AGM
Positive
May 13, 2025

At the Annual General Meeting held on May 13, 2025, ITV plc successfully passed all proposed resolutions with significant majorities. Key resolutions included the approval of the Report and Accounts, the declaration of a final dividend, and the re-election of several board members. The meeting also saw the reappointment of PricewaterhouseCoopers LLP as auditors and the approval of various special resolutions, reflecting strong shareholder support for the company’s strategic direction.

The most recent analyst rating on (GB:ITV) stock is a Hold with a £87.00 price target. To see the full list of analyst forecasts on ITV plc stock, see the GB:ITV Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Sep 05, 2025