ITV plc (ITV) AI Stock Analysis

• Market Cap: £2.52B
• Dividend Yield: 6.33%
• 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: £91.67
• Price Target Upside: 16.11% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 60 Neutral
• Price Target: 72.00p ▼(-8.80% Downside)

The overall stock score reflects a mixed financial performance with strong cost management but challenges in revenue growth and cash flow. Technical analysis indicates bearish momentum, while valuation suggests the stock may be undervalued with a high dividend yield.

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 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, but faces challenges in revenue growth and declining free cash flow. The balance sheet is stable with moderate leverage and solid profitability.

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: 78.95
• 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 78.95 is above the 20-day moving average (MA) of 71.53, above the 50-day MA of 75.37, and above the 200-day MA of 75.26, indicating a bullish trend. The MACD of -1.26 indicates Negative momentum. The RSI at 65.76 is Neutral, neither overbought nor oversold. The STOCH value of 47.77 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
STVG	61 Neutral	£52.80M	10.13	―	10.27%	2.23%	-25.75%
RCH	61 Neutral	£178.94M	3.59	7.38%	11.65%	-4.44%	19.95%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
ITV	60 Neutral	£2.52B	13.81	10.46%	6.33%	-3.07%	-54.90%
FUTR	60 Neutral	£583.12M	7.92	7.77%	0.57%	-0.08%	-0.72%
SAA	57 Neutral	£160.00M	20.89	18.23%	1.12%	-21.19%	-29.54%
BBB	42 Neutral	£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.