Gray Television (GTN) AI Stock Analysis

• Market Cap: $547.55M
• Dividend Yield: 6.45%
• Average Volume (3M): 1.21M
• Price to Earnings (P/E): 12.0
• Beta (1Y): 0.26
• 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: 1,584,231
• 30 Day Avg. Volume: 1,211,283
• 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: 12.25
• Enterprise Value/Revenue: 2.00
• Enterprise Value/Gross Profit: 4.41
• Enterprise Value/Ebitda: 7.88
• 1Y Price Target: $7.25
• Price Target Upside: 46.17% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): -1.4
• Revenue Forecast (FY): $3.09B

• Rating: 67 Neutral
• Price Target: $5.50 ▲(10.89% Upside)

Gray Television's overall stock score reflects a balance of strong operational efficiency and strategic initiatives against challenges like high leverage and declining revenue growth. The stock's reasonable valuation and attractive dividend yield are positive, while technical indicators suggest short-term bullish momentum. However, financial stability concerns and uncertain impacts from external challenges temper the outlook.

Positive Factors

Strategic Acquisitions

Entering new markets through acquisitions enhances market presence and diversifies revenue streams, supporting long-term growth.

Debt Management

Proactive debt management by extending maturities reduces refinancing risk and strengthens financial stability over the long term.

New Partnerships

Partnerships with tech giants like Google enhance digital content delivery, expanding audience reach and future-proofing revenue streams.

Negative Factors

High Leverage

High leverage can strain financial flexibility and increase vulnerability to economic downturns, impacting long-term financial health.

Declining Revenue Growth

Declining revenue growth suggests challenges in maintaining market share and could pressure profitability if trends persist.

Cash Flow Concerns

Reduced free cash flow growth limits the company's ability to invest in growth opportunities and manage debt obligations effectively.

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: Positive
• Last Price: 4.96
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GTN, the sentiment is Positive. The current price of 4.96 is above the 20-day moving average (MA) of 4.93, above the 50-day MA of 4.76, and above the 200-day MA of 4.59, indicating a bullish trend. The MACD of 0.07 indicates Positive momentum. The RSI at 51.14 is Neutral, neither overbought nor oversold. The STOCH value of 22.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GTN.

Gray Television Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GTN	67 Neutral	$547.55M	11.97	3.36%	6.45%	-3.32%	-69.63%
SSP	64 Neutral	$360.54M	-9.30	1.81%	―	-3.27%	86.01%
SGA	63 Neutral	$72.77M	229.29	0.18%	8.81%	-0.77%	-93.46%
TGNA	62 Neutral	$3.12B	9.14	11.50%	2.58%	-2.73%	-25.06%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
EVC	53 Neutral	$275.66M	-2.36	-81.68%	6.56%	-45.95%	-75.87%
BBGI	46 Neutral	$9.31M	-1.05	-5.90%	―	-7.78%	-369.53%

Gray Television Corporate Events

Gray Television Announces Redemption of 2026 Senior Notes

On December 18, 2025, Gray Media, Inc. announced that it had issued a notice of redemption to holders of its 5.875% senior notes due 2026, stating that it intends to redeem all of these notes on January 20, 2026. The 2026 notes will be redeemed at par value, equal to 100% of their principal amount, plus any accrued and unpaid interest to the redemption date, signaling a step in the company’s ongoing management of its debt obligations and capital structure.

Gray Television Completes $250M Note Issuance

On December 12, 2025, Gray Media, Inc. completed the issuance of $250 million in additional 9.625% Senior Secured Second Lien Notes due 2032. These notes are part of the same issuance as the $900 million notes issued earlier in July 2025. The proceeds from this issuance are intended to redeem a portion of the company’s 10.500% Senior Secured First Lien Notes due 2029, cover fees and expenses related to the offering, and support general corporate purposes. The issuance of these notes strengthens Gray’s financial positioning by refinancing existing debt and providing capital for corporate activities.

Gray Television Announces $250M Note Sale Agreement

On December 5, 2025, Gray Media, Inc. entered into purchase agreements with accredited investors to sell $250 million of 9.625% Senior Secured Second Lien Notes due 2032 in a private placement. These Additional Notes will be part of the same issuance as the existing $900 million notes issued in July 2025. The proceeds from this offering will be used to redeem a portion of the company’s 10.500% Senior Secured First Lien Notes due 2029, cover fees and expenses related to the offering, and for general corporate purposes. The offering is expected to close on December 12, 2025, and is conducted under an exemption from registration requirements.