ITV plc (ITV) AI Stock Analysis

• Market Cap: £3.10B
• Dividend Yield: 7.94%
• Average Volume (3M): 9.95M
• Price to Earnings (P/E): 8.0
• Beta (1Y): 1.33
• Revenue Growth: -3.75%
• EPS Growth: 98.08%
• Country: UK
• Employees: 6,133
• Sector: Communication Services
• Sector Strength: 92
• Industry: Broadcasting
• EPS (TTM): 0.06
• Shares Outstanding: 3,758,189,200
• 10 Day Avg. Volume: 8,670,337
• 30 Day Avg. Volume: 9,948,624
• PEG Ratio: 0.43
• Price to Book (P/B): 1.65
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 13.34
• 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: £83.60
• Price Target Upside: 0.54% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5

• Rating: 68 Neutral
• Price Target: 86.00p ▲(3.43%Upside)

ITV plc's overall stock score reflects a balanced outlook. The company exhibits strengths in cost management, operational efficiency, and valuation with its attractive P/E ratio and dividend yield. However, challenges in revenue growth and declining free cash flow are concerns. Recent corporate events such as share buybacks and strategic growth initiatives offer a positive outlook for the future.

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 plc generates revenue through multiple streams. The primary source of income is advertising sales on its television channels, with airtime sold to advertisers seeking to reach ITV's significant UK audience. Additionally, ITVX, the company's streaming service, offers both ad-supported and subscription models, contributing to digital revenue growth. ITV Studios is another key revenue driver, producing and selling programming to broadcasters and streaming platforms worldwide. Licensing and merchandising related to its content also add to the company's earnings. Strategic partnerships and joint ventures help expand ITV's distribution network and content library, further enhancing its revenue potential.

ITV plc Financial Statement Overview

Summary

Overall, ITV plc presents a mixed financial picture. The company demonstrates strong cost management and operational efficiency, but faces challenges in revenue growth and declining free cash flow. The balance sheet is stable with moderate leverage and solid profitability. Attention to revenue generation and cash flow management could enhance financial performance.

Income Statement

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

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

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.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.49B	3.62B	3.73B	3.45B	2.78B
Gross Profit	581.00M	311.00M	593.00M	690.00M	486.00M
EBITDA	734.00M	388.00M	722.00M	805.00M	489.00M
Net Income	408.00M	210.00M	428.00M	378.00M	285.00M
Balance Sheet
Total Assets	4.19B	4.19B	4.47B	4.24B	3.95B
Cash, Cash Equivalents and Short-Term Investments	427.00M	340.00M	348.00M	736.00M	668.00M
Total Debt	838.00M	878.00M	962.00M	1.11B	1.19B
Total Liabilities	2.35B	2.36B	2.60B	2.72B	2.80B
Stockholders Equity	1.81B	1.79B	1.82B	1.48B	1.12B
Cash Flow
Free Cash Flow	284.00M	315.00M	226.00M	126.00M	459.00M
Operating Cash Flow	333.00M	385.00M	304.00M	171.00M	525.00M
Investing Cash Flow	246.00M	-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 Price: 83.15
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 Positive. The current price of 83.15 is above the 20-day moving average (MA) of 80.31, above the 50-day MA of 79.18, and above the 200-day MA of 72.30, indicating a bullish trend. The MACD of 1.11 indicates Negative momentum. The RSI at 61.79 is Neutral, neither overbought nor oversold. The STOCH value of 49.63 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FUTR	77 Outperform	£775.60M	9.82	7.77%	0.45%	-0.08%	-0.72%
RCH	74 Outperform	£226.28M	4.22	8.15%	9.22%	-5.28%	148.54%
ITV	68 Neutral	£3.10B	8.02	22.70%	7.94%	-3.75%	98.08%
SAA	67 Neutral	£229.09M	18.17	33.95%	0.76%	-12.89%	―
Sector *	66 Neutral	¥370.54B	13.79	2.32%	2.56%	5.41%	-19.09%
BBB		£9.59M	―	-9.16%	―	―	―
STVG	61 Neutral	£80.83M	7.35		8.55%	11.64%	139.33%

ITV plc Corporate Events

ITV plc Reports Stable Q1 2025 Performance with Strong Digital Growth

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.

ITV plc Passes All Resolutions at 2025 AGM

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.

ITV Announces Updated Voting Rights and Capital Structure

ITV plc has announced its total voting rights and capital as of May 1, 2025. The company has an issued share capital consisting of 3,858,668,496 ordinary shares, with 100,479,277 shares held in treasury, resulting in a total of 3,758,189,219 voting rights. This information is crucial for shareholders to determine their notification requirements under the FCA’s Disclosure and Transparency Rules.

ITV plc Director Acquires Shares, Signaling Confidence

ITV plc announced that Sharmila Nebhrajani, a Non-executive Director, has acquired 11,930 ordinary shares of the company at a price of 66.686 pence per share. This transaction, conducted on the London Stock Exchange, is reported in compliance with the UK Market Abuse Regulation, indicating a potential increase in confidence from the company’s leadership in its market position.

ITV plc Appoints Helen Ashton as Non-executive Director

ITV plc has announced the appointment of Helen Ashton as an independent Non-executive Director to its Board, effective 13 May 2025. With over 30 years of experience in finance and digital transformation, including roles at ASOS, ASDA, and Lloyds Banking Group, Ashton is expected to enhance the Board’s expertise. Her appointment comes as ITV continues its strategic transformation to maintain its leadership in the media industry.

ITV plc Announces Share Awards Release for Key Executives

ITV plc announced the release of share awards under its Long Term Incentive Plan for key executives, including Group CFO and COO Chris Kennedy and Chief Executive Carolyn McCall. These transactions, conducted on the London Stock Exchange, involved the acquisition and subsequent sale of shares to cover tax liabilities, reflecting the company’s commitment to aligning management incentives with shareholder interests.

ITV Completes Share Buyback Program

ITV plc has completed a share buyback program, purchasing over 3 million ordinary shares at an average price of 71.96 pence per share. This move is part of a broader strategy to manage its capital structure and enhance shareholder value, with the purchased shares set to be canceled, affecting the total number of voting rights and shares in issue.

ITV plc Releases Executive Share Awards

ITV plc has announced the release of share awards to its key managerial personnel under the ITV plc Executive Share Award Plan and the ITV plc Deferred Share Award Plan. These transactions, conducted on the London Stock Exchange, involve the vesting of shares and subsequent sales to cover tax liabilities, reflecting the company’s ongoing commitment to aligning executive incentives with shareholder interests.

ITV plc Announces Total Voting Rights and Capital Update

ITV plc has announced its total voting rights and capital as of April 1, 2025, with an issued share capital consisting of 3,861,727,782 ordinary shares, of which 120,479,277 are held in Treasury. This results in a total of 3,741,248,505 voting rights, which shareholders can use as a reference for notifying changes in their interests under the FCA’s Disclosure and Transparency Rules.

ITV plc Announces Executive Share Awards for 2025

ITV plc has announced the details of share awards under its Executive Share Plan (ESP) and Deferred Share Award Plan (DSA) made on March 28, 2025. These awards are part of the company’s remuneration strategy, aimed at aligning the interests of its executives with those of shareholders. The awards, which are based on performance targets, will vest in 2028, with a further holding period for executive directors. This move reflects ITV’s commitment to incentivizing its leadership team and could impact the company’s operational focus and market positioning by motivating key executives to drive performance.