STV Group plc (STVG) AI Stock Analysis

• Market Cap: £47.66M
• Dividend Yield: 9.87%
• Average Volume (3M): 174.00K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.97
• Revenue Growth: 2.23%
• EPS Growth: -25.75%
• Country: UK
• Employees: 643
• Sector: Communication Services
• Sector Strength: 97
• Industry: Broadcasting
• EPS (TTM): -0.11
• Shares Outstanding: 46,722,500
• 10 Day Avg. Volume: 91,985
• 30 Day Avg. Volume: 174,004
• PEG Ratio: 0.07
• Price to Book (P/B): -5.71
• Price to Sales (P/S): 0.27
• P/FCF Ratio: -242.65
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 0.14
• Revenue Forecast (FY): £170.80M

• Rating: 43 Neutral
• Price Target: 101.00 p ▼(-11.79% Downside)
• Action: Reiterated Date: 03/19/26
• Date: Action: Reiterated 03/19/26

The score is held down primarily by weakened financial performance (2025 loss, softer cash flow) and elevated balance-sheet risk from persistent negative equity and rising debt. Technicals are also unfavorable, with the price below key moving averages and negative MACD. Valuation is the main offset due to the very high dividend yield, though the negative P/E limits confidence in earnings-based valuation.

Positive Factors

Diversified revenue model

STV’s dual income streams — advertising for its broadcast/digital audience and commissioned content production plus rights exploitation — provide durable diversification. Over 2–6 months this supports revenue resilience as advertising cycles may offset production fee timing and rights generate secondary, recurring income.

Proven ability to generate profits

The group delivered sustained profitability across multiple years prior to 2025 and produced strong free cash flow in 2024, showing operational leverage in the model. That track record indicates management and the business can restore margins if revenue stabilises, rather than being structurally loss-making.

Established local market & production footprint

STV’s position as a recognized regional broadcaster combined with an active production arm gives it durable commercial relationships with UK broadcasters and streamers. Ownership/exploitation of content rights and format sales provide structural upside as demand for commissioned content remains robust internationally.

Negative Factors

Negative equity and rising debt

Persistent negative equity and a trend of increasing debt materially constrain financial flexibility. This structural capital weakness raises refinancing and covenant risk, limits ability to invest in content or absorb advertising downturns, and makes the company more vulnerable to shocks over the medium term.

Recent revenue decline and net loss

The drop in top-line and the swing to a 2025 net loss reflect weakening demand or pricing pressure that impaired operating leverage. Structurally, shrinking revenues and thinner margins reduce the company’s ability to monetize content rights, sustain dividends, and rebuild balance-sheet headroom without a durable recovery in sales.

Inconsistent cash generation

Volatile and recently weak operating and free cash flow undermine the firm’s capacity to deleverage, fund production slates, or smooth dividend payments. Cash conversion variability from project timing and ad cycles creates a persistent operational constraint on strategic investments and debt reduction.

STV Group plc Business Overview & Revenue Model

Company Description

STV Group plc, together with its subsidiaries, produces and broadcasts television programs in the United Kingdom. The company operates through Broadcast, Digital, Studios, and Other segments. It offers news, information, and entertainment programs. The company delivers its content on air, online, and on demand. It also provides internet services; and sells advertising airtime and space in its media. The company was incorporated in 2000 and is based in Glasgow, the United Kingdom.

How the Company Makes Money

STV Group makes money primarily through (1) advertising and (2) content production and distribution/rights. Advertising revenue is generated by selling commercial airtime and sponsorship/branding opportunities across its STV broadcast channel and related digital properties; revenues are influenced by audience reach/ratings, advertiser demand, and the broader advertising market in Scotland/UK. Its production business earns revenue by producing TV content for third parties (e.g., broadcasters and streaming services) under commissions/production contracts; depending on deal terms, it may also generate additional income from owning or sharing intellectual property rights, enabling secondary revenues such as international distribution/licensing and format sales. Other income streams (e.g., ancillary digital or commercial activities) are not available from the provided context and are therefore null.

STV Group plc Financial Statement Overview

Summary

Recent fundamentals weakened materially: revenue declined in 2024–2025 and profitability swung to a net loss in 2025 with thin margins. Cash generation also softened, with low operating cash flow and slightly negative free cash flow in 2025. The largest structural risk is a persistently stressed balance sheet with negative equity across all years and rising debt, which reduces financial flexibility despite prior-year profitability (2021–2024).

Income Statement

Revenue has been volatile, with a strong rebound in 2021–2023 followed by declines in 2024 and a further drop in 2025. Profitability deteriorated sharply: the company moved from solid net profits in 2021–2024 to a net loss in 2025, alongside very thin gross and operating margins in 2025 versus healthier levels in prior years. The main strength is the demonstrated ability to generate meaningful profits in several recent years, but the latest year shows a material earnings reset and weaker operating leverage.

Balance Sheet

The balance sheet is a clear pressure point: stockholders’ equity is negative across all shown years, which increases financial risk and limits flexibility. Total debt has trended higher since 2020, and the negative equity makes leverage indicators hard to interpret economically but directionally highlights an over-levered capital structure. Total assets are relatively stable, but the combination of rising debt and negative equity is the key weakness.

Cash Flow

Cash generation is inconsistent. Operating cash flow has been positive in most years, but it was negative in 2022 and notably low in 2025, and free cash flow turned negative in 2022 and again slightly negative in 2025. While 2023–2024 showed improved cash conversion (including strong positive free cash flow in 2024), the most recent year reflects weaker cash support for earnings and reduced financial cushioning.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	176.90M	188.00M	168.40M	137.80M	144.50M
Gross Profit	3.80M	85.70M	42.90M	48.20M	47.90M
EBITDA	9.90M	22.80M	10.90M	28.70M	27.70M
Net Income	-5.00M	10.80M	4.50M	17.50M	19.40M
Balance Sheet
Total Assets	161.90M	169.70M	153.90M	154.50M	122.60M
Cash, Cash Equivalents and Short-Term Investments	12.30M	11.10M	13.90M	18.30M	14.70M
Total Debt	75.70M	67.20M	65.30M	53.00M	35.30M
Total Liabilities	180.00M	182.60M	166.50M	162.80M	148.50M
Stockholders Equity	-8.50M	-1.90M	-7.50M	-8.00M	-25.80M
Cash Flow
Free Cash Flow	-200.00K	7.30M	2.60M	-5.20M	19.70M
Operating Cash Flow	2.30M	8.70M	3.80M	-1.30M	22.60M
Investing Cash Flow	-4.30M	-6.90M	-13.90M	-7.20M	800.00K
Financing Cash Flow	3.20M	0.00	8.10M	5.10M	-13.90M

STV Group plc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 114.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:STVG, the sentiment is Negative. The current price of 114.5 is above the 20-day moving average (MA) of 108.17, above the 50-day MA of 111.67, and below the 200-day MA of 125.66, indicating a bearish trend. The MACD of -2.49 indicates Positive momentum. The RSI at 32.22 is Neutral, neither overbought nor oversold. The STOCH value of 27.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:STVG.

STV Group plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CAN	67 Neutral	£1.93B	22.18	-5.19%	0.65%	0.88%	-133.77%
ITV	64 Neutral	£2.85B	13.98	11.42%	6.17%	-3.07%	-54.90%
RCH	62 Neutral	£189.36M	-1.32	-21.91%	11.37%	-4.44%	19.95%
PEBB	62 Neutral	£71.81M	12.62	6.44%	4.25%	1.24%	7.54%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
CAU	56 Neutral	£56.52M	-8.25	-32.35%	4.09%	-13.72%	-361.92%
STVG	43 Neutral	£47.66M	-9.71	75.19%	9.87%	2.23%	-25.75%

STV Group plc Corporate Events

STV Group cuts dividend as profits slide but bets on streaming, audio and studios growth

STV Group reported 2025 results in line with guidance but showing pressure from weak UK advertising markets, as group revenue fell 6% to £176.9m and adjusted operating profit dropped 44% to £11.6m, with both its broadcasting and studios divisions seeing lower margins. The company swung to a £4m loss, net debt rose to £45.3m, and the board scrapped the final dividend to preserve cash, while implementing cost-saving measures expected to deliver £8m in annualised savings by the end of 2026.

Despite the tougher backdrop, STV strengthened its strategic position by launching an Audio division including STV Radio, growing STV Player viewing by 9% to a record 75m hours, and maintaining its status as the leading commercial TV and streaming destination in Scotland. STV Studios delivered resilient revenues with a strong slate of returning series and new commissions for BBC One, Channel 4, Sky, Netflix and Apple TV, and management highlighted upcoming advertiser product innovations, major drama deliveries and the 2026 FIFA Men’s World Cup as reasons for optimism in improving performance while maintaining tight cost discipline.

The group’s focus on cash and leverage management kept net debt within guidance, with leverage at 2.5 times and interest cover comfortably above covenant levels, and it secured flexibility on pension contributions. While near-term advertising conditions remain subdued, with first-quarter 2026 total advertising revenue expected to decline around 5%, growth in video-on-demand revenue, the ramp-up of STV Radio, and a £33m forward production orderbook suggest a platform for longer-term growth once market conditions stabilise.

The most recent analyst rating on (GB:STVG) stock is a Hold with a £121.00 price target. To see the full list of analyst forecasts on STV Group plc stock, see the GB:STVG Stock Forecast page.

STV Group Keeps 2025 Profits on Track Amid Advertising Slowdown and Cost Cuts

STV Group expects full-year 2025 revenue to come in towards the top of its £165m-£180m guidance range, with adjusted operating profit in line with market expectations at £11.4m, despite a roughly 10% decline in total advertising revenue for both the fourth quarter and the full year due to a tough macroeconomic environment. The company is tightening costs, with measures announced in September set to deliver £2.5m of savings in 2026 on top of a previously targeted £5m run-rate, while year-end net debt is forecast towards the lower end of the £45m-£50m range; its studios arm ended 2025 with a £33m order book amid subdued commissioning activity, and the newly launched STV Radio has received an encouraging early response as STV positions itself for a challenging advertising market and explores strategic options in a rapidly changing media landscape.

The most recent analyst rating on (GB:STVG) stock is a Hold with a £121.00 price target. To see the full list of analyst forecasts on STV Group plc stock, see the GB:STVG Stock Forecast page.