ITV plc (ITV) AI Stock Analysis

• Market Cap: £2.52B
• Dividend Yield: 6.08%
• Average Volume (3M): 5.68M
• Price to Earnings (P/E): 13.8
• Beta (1Y): 1.33
• Revenue Growth: -3.07%
• EPS Growth: -54.90%
• Country: UK
• Employees: 6,133
• Sector: Communication Services
• Sector Strength: 97
• Industry: Broadcasting
• EPS (TTM): 0.02
• Shares Outstanding: 3,758,189,200
• 10 Day Avg. Volume: 6,431,599
• 30 Day Avg. Volume: 5,684,177
• PEG Ratio: 0.08
• Price to Book (P/B): 1.60
• Price to Sales (P/S): 0.83
• P/FCF Ratio: 10.20
• 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: £79.75
• Price Target Upside: -3.04% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: 85.00p ▲(3.34% Upside)

ITV plc's stock score is primarily influenced by its financial performance and valuation. The company's strong cost management and operational efficiency are offset by challenges in revenue growth and cash flow. The valuation is supported by a reasonable P/E ratio and an attractive dividend yield. Technical analysis indicates a bearish trend, which slightly dampens the overall score.

Positive Factors

Operational Efficiency

ITV's strong cost management and operational efficiency suggest a well-run operation that can sustain profitability even in challenging revenue environments.

Balance Sheet Stability

A stable balance sheet with moderate leverage provides ITV with financial flexibility to invest in growth opportunities and weather economic fluctuations.

Profitability

Strong return on equity indicates effective use of shareholder funds, enhancing investor confidence and supporting long-term value creation.

Negative Factors

Revenue Decline

The decline in revenue suggests challenges in maintaining market share or pricing power, which could impact long-term growth prospects if not addressed.

Free Cash Flow Decline

A decline in free cash flow may limit ITV's ability to invest in new projects, pay down debt, or return capital to shareholders, affecting future financial flexibility.

Earnings Decline

A significant decline in earnings per share reflects challenges in profitability, potentially affecting investor sentiment and the company's ability to fund growth initiatives.

ITV plc Business Overview & Revenue Model

Company Description

ITV plc is a leading British media company primarily engaged in the television broadcasting sector. Established in 1955, ITV operates a portfolio of channels, including its flagship ITV channel, ITV2, ITV3, ITV4, and ITVBe, along with a range of digital platforms and production companies. The company produces a wide array of content, including dramas, reality shows, and entertainment programs, and also offers streaming services through ITV Hub. ITV is involved in both the creation and distribution of content, catering to diverse audiences across the UK and internationally.

How the Company Makes Money

ITV generates revenue through multiple streams, primarily from advertising sales, which accounts for a significant portion of its earnings. The company's advertising revenue is driven by its viewership ratings and the popularity of its programming. Additionally, ITV earns money from the licensing and distribution of its content to other broadcasters and streaming services, both domestically and internationally. Subscription revenues from ITV Hub and partnerships with third-party platforms also contribute to its financial performance. Strategic partnerships with brands for product placements and sponsorships further enhance its income. Furthermore, ITV Studios, the company's production arm, creates and sells original content, adding another layer to its revenue model.

ITV plc Financial Statement Overview

Summary

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.68B	3.49B	3.62B	3.73B	3.45B	2.78B
Gross Profit	440.00M	581.00M	311.00M	593.00M	690.00M	486.00M
EBITDA	327.00M	734.00M	388.00M	722.00M	805.00M	489.00M
Net Income	164.00M	408.00M	210.00M	428.00M	378.00M	285.00M
Balance Sheet
Total Assets	4.06B	4.19B	4.19B	4.47B	4.24B	3.95B
Cash, Cash Equivalents and Short-Term Investments	274.00M	427.00M	340.00M	348.00M	736.00M	668.00M
Total Debt	871.00M	838.00M	878.00M	962.00M	1.11B	1.19B
Total Liabilities	2.36B	2.35B	2.36B	2.60B	2.72B	2.80B
Stockholders Equity	1.67B	1.81B	1.79B	1.82B	1.48B	1.12B
Cash Flow
Free Cash Flow	355.50M	284.00M	315.00M	226.00M	126.00M	459.00M
Operating Cash Flow	365.50M	333.00M	385.00M	304.00M	171.00M	525.00M
Investing Cash Flow	-49.00M	246.00M	-97.00M	-221.00M	-76.00M	-74.00M
Financing Cash Flow	-407.00M	-489.00M	-287.00M	-483.00M	-24.00M	-26.00M

ITV plc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 82.25
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 82.25 is above the 20-day moving average (MA) of 77.23, above the 50-day MA of 75.40, and above the 200-day MA of 76.06, indicating a bullish trend. The MACD of 1.94 indicates Negative momentum. The RSI at 67.21 is Neutral, neither overbought nor oversold. The STOCH value of 94.90 is Negative, 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
ITV	66 Neutral	£2.52B	13.81	10.46%	6.08%	-3.07%	-54.90%
RCH	65 Neutral	£178.94M	3.59	7.38%	10.56%	-4.44%	19.95%
STVG	61 Neutral	£52.80M	10.13	―	10.18%	2.23%	-25.75%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
FUTR	60 Neutral	£583.12M	7.92	7.77%	0.54%	-0.08%	-0.72%
SAA	60 Neutral	£147.88M	19.30	18.23%	1.17%	-21.19%	-29.54%
BBB	38 Underperform	£8.28M	-2.69	―	―	―	―

ITV plc Corporate Events

ITV plc in Talks to Sell M&E Business to Sky

ITV plc has confirmed that it is in preliminary discussions with Sky regarding a potential sale of its Media & Entertainment business for an estimated enterprise value of £1.6 billion. While the terms of the potential sale are not yet finalized, this move could significantly impact ITV’s operational focus and market positioning, with further announcements expected as discussions progress.

The most recent analyst rating on (GB:ITV) stock is a Hold with a £72.00 price target. To see the full list of analyst forecasts on ITV plc stock, see the GB:ITV Stock Forecast page.

ITV plc Reports Strong Q3 Performance Amid Challenging Market Conditions

ITV plc reported a better-than-expected performance for the first nine months of 2025, driven by strong growth in ITV Studios and digital advertising, despite a challenging advertising market. The company anticipates a decline in total advertising revenue in Q4 due to economic uncertainties in the UK, but has identified £35 million in temporary savings to offset this impact. ITV remains confident in achieving its full-year revenue growth targets, supported by strategic cost management and a robust programming slate for the upcoming quarters.

The most recent analyst rating on (GB:ITV) stock is a Hold with a £72.00 price target. To see the full list of analyst forecasts on ITV plc stock, see the GB:ITV Stock Forecast page.