Gray Television (GTN) AI Stock Analysis

• Market Cap: $523.80M
• Dividend Yield: 6.96%
• Average Volume (3M): 1.08M
• Price to Earnings (P/E): 11.4
• Beta (1Y): 0.31
• Revenue Growth: -3.32%
• EPS Growth: -69.63%
• Country: US
• Employees: 9,118
• Sector: Communication Services
• Sector Strength: 97
• Industry: Broadcasting
• EPS (TTM): -0.24
• Shares Outstanding: 92,500,244
• 10 Day Avg. Volume: 1,065,167
• 30 Day Avg. Volume: 1,083,388
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.10
• Price to Sales (P/S): 0.08
• P/FCF Ratio: 0.49
• Enterprise Value/Market Cap: 12.81
• Enterprise Value/Revenue: 2.00
• Enterprise Value/Gross Profit: 4.41
• Enterprise Value/Ebitda: 7.88
• 1Y Price Target: $7.25
• Price Target Upside: 56.59% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): -1.37
• Revenue Forecast (FY): $3.10B

• Rating: 64 Neutral
• Price Target: $5.50 ▲(18.79% Upside)

Gray Television's overall stock score reflects a balance of strong strategic initiatives and financial management against challenges in revenue growth and leverage. The earnings call provided positive insights into future growth through acquisitions and partnerships, but the net loss and political advertising challenges weigh on the outlook. The stock's valuation is attractive, supported by a high dividend yield, but technical indicators suggest caution in the short term.

Positive Factors

Strategic Acquisitions

Entering new markets through acquisitions enhances Gray Television's market presence and diversifies revenue sources, strengthening its competitive position.

Cost Management

Effective cost management improves profitability and operational efficiency, allowing the company to maintain healthy margins despite revenue challenges.

Partnerships and Content Expansion

Expanding digital content offerings through partnerships enhances audience reach and aligns with industry trends towards streaming, supporting long-term growth.

Negative Factors

High Leverage

Significant leverage poses financial risks, especially in volatile markets, potentially impacting the company's ability to invest in growth opportunities.

Declining Revenue Growth

A declining revenue growth trend suggests challenges in market conditions or competitive pressures, which could hinder long-term financial performance.

Net Loss

The net loss indicates financial strain, which may limit the company's ability to fund new initiatives or manage debt effectively, affecting future stability.

Gray Television Business Overview & Revenue Model

Company Description

Gray Media, Inc., a television broadcasting company, owns and/or operates television stations and digital assets in the United States. It also broadcasts secondary digital channels affiliated to ABC, CBS, NBC, and FOX, as well as various other networks and program services, including CW Plus Network, MY Network, the MeTV Network, Justice, This TV Network, Antenna TV, Telemundo, Cozi, Heroes and Icons, and MOVIES! Network; and local news/weather channels in various markets. In addition, the company offers video program production services. It owns and operates television stations and digital assets that serve 113 television markets in the United States. The company was formerly known as Gray Communications Systems, Inc. and changed its name to Gray Television, Inc. in August 2002. Gray Television, Inc. was founded in 1891 and is headquartered in Atlanta, Georgia.

How the Company Makes Money

Gray Television generates revenue primarily through advertising sales on its television stations. Local and national advertisers pay for commercial slots during the broadcasts, which contribute significantly to the company's earnings. Additionally, GTN earns revenue from retransmission consent fees, where cable and satellite operators pay to carry its content. The company also benefits from digital revenue streams, including online advertising and streaming services on its digital platforms. Strategic partnerships with content providers and local businesses enhance its advertising reach and revenue potential. Furthermore, acquisitions of additional television stations and media properties allow GTN to expand its market presence and diversify its revenue sources.

Gray Television Financial Statement Overview

Summary

Gray Television demonstrates operational efficiency with strong profit margins, but faces challenges with declining revenue growth and high leverage. The balance sheet reflects significant debt, which could be a risk in a fluctuating market. Cash flow concerns are evident with declining free cash flow growth, although cash generation remains adequate. The company needs to focus on improving revenue growth and managing leverage to enhance financial stability.

Income Statement

Gray Television's income statement shows a mixed performance. The TTM data indicates a decline in revenue growth rate by 5.66%, reflecting a challenging market environment. However, the company maintains a healthy gross profit margin of 48.10% and a net profit margin of 5.64%, indicating effective cost management. The EBIT and EBITDA margins are strong at 21.75% and 29.36%, respectively, showcasing operational efficiency. Despite the revenue decline, the company remains profitable, but the negative growth trajectory is a concern.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 2.0, indicating significant leverage, which could pose risks in a volatile market. The return on equity (ROE) is moderate at 6.99%, suggesting reasonable profitability relative to shareholder equity. The equity ratio stands at 27.21%, reflecting a balanced capital structure but with room for improvement in reducing leverage.

Cash Flow

Cash flow analysis shows a decline in free cash flow growth by 37.85% in the TTM period, indicating potential liquidity challenges. The operating cash flow to net income ratio is 1.51, suggesting adequate cash generation relative to net income. However, the free cash flow to net income ratio of 0.86 indicates that a significant portion of earnings is not translating into free cash flow, which could impact future investments and debt servicing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.35B	3.64B	3.28B	3.68B	2.41B	2.38B
Gross Profit	1.52B	1.24B	898.00M	1.43B	803.00M	989.00M
EBITDA	852.00M	1.25B	697.00M	1.33B	594.00M	936.00M
Net Income	94.00M	375.00M	-76.00M	455.00M	90.00M	410.00M
Balance Sheet
Total Assets	10.32B	10.54B	10.64B	11.15B	11.11B	7.64B
Cash, Cash Equivalents and Short-Term Investments	182.00M	135.00M	21.00M	61.00M	189.00M	773.00M
Total Debt	6.42B	5.69B	6.24B	6.53B	6.83B	4.03B
Total Liabilities	7.51B	7.61B	8.02B	8.39B	8.70B	5.24B
Stockholders Equity	2.81B	2.93B	2.62B	2.77B	2.41B	2.40B
Cash Flow
Free Cash Flow	440.00M	608.00M	300.00M	393.00M	93.00M	542.00M
Operating Cash Flow	545.00M	751.00M	648.00M	829.00M	300.00M	652.00M
Investing Cash Flow	-72.00M	-28.00M	-291.00M	-503.00M	-3.53B	-211.00M
Financing Cash Flow	-360.00M	-609.00M	-397.00M	-454.00M	2.65B	120.00M

Gray Television Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4.63
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GTN, the sentiment is Negative. The current price of 4.63 is below the 20-day moving average (MA) of 4.77, below the 50-day MA of 4.98, and above the 200-day MA of 4.55, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 47.22 is Neutral, neither overbought nor oversold. The STOCH value of 61.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GTN.

Gray Television Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TGNA	65 Neutral	$3.12B	9.16	11.50%	2.51%	-2.73%	-25.06%
GTN	64 Neutral	$523.80M	11.42	3.36%	6.96%	-3.32%	-69.63%
SSP	64 Neutral	$393.39M	―	1.81%	―	-3.27%	86.01%
SGA	63 Neutral	$77.28M	35.99	0.18%	8.42%	-0.77%	-93.46%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
EVC	53 Neutral	$256.55M	―	-81.68%	10.10%	-45.95%	-75.87%
BBGI	40 Underperform	$8.95M	-0.97	-5.90%	―	-7.78%	-369.53%

Gray Television Corporate Events

Gray Television’s Earnings Call: Growth Amid Challenges

Gray Television’s recent earnings call painted a picture of a company navigating a complex landscape with a blend of strong financial performance and strategic initiatives, tempered by challenges such as a net loss and concerns over political advertising revenue and carriage disputes.

Gray Television Exceeds Q3 Guidance with Strategic Moves

Gray Television, a leading multimedia company based in Atlanta, Georgia, operates the largest portfolio of top-rated local television stations and digital assets across the United States, reaching approximately 37% of US television households. In its latest earnings report for the third quarter of 2025, Gray Television announced that it exceeded its financial guidance, with total revenue reaching $749 million, and expenses coming in below expectations. The company also highlighted strategic moves, including a historic station swap, planned acquisitions, and the renewal of its FOX network affiliation agreements.