Gray Television (GTN) AI Stock Analysis

• Market Cap: $428.00M
• Dividend Yield: 8.4%
• Average Volume (3M): 1.33M
• Price to Earnings (P/E): 1.6
• Beta (1Y): 0.52
• Revenue Growth: 9.08%
• EPS Growth: N/A
• Country: US
• Employees: 9,118
• Sector: Communication Services
• Sector Strength: 86
• Industry: Broadcasting
• EPS (TTM): -0.23
• Shares Outstanding: 92,207,010
• 10 Day Avg. Volume: 952,047
• 30 Day Avg. Volume: 1,330,982
• PEG Ratio: 0.01
• Price to Book (P/B): 0.14
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.76
• Enterprise Value/Market Cap: 14.07
• Enterprise Value/Revenue: 0.44
• Enterprise Value/Gross Profit: 3.46
• Enterprise Value/Ebitda: 1.48
• 1Y Price Target: $5.88
• Price Target Upside: 48.48% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

• Rating: 68 Neutral
• Price Target: $4.50 ▲(13.64%Upside)

Gray Television's overall stock score reflects strong valuation metrics, with a low P/E ratio and high dividend yield supporting investment appeal. Despite solid financial performance with improving margins and cash flow, the company's high leverage poses risks. Mixed technical signals and challenges noted in the earnings call, such as declining revenue and macroeconomic uncertainties, moderate the overall outlook.

Positive Factors

Debt Management

The company is continuing to make progress on its debt load, reducing debt outstanding by $520 million in 2024.

Financial Performance

First quarter revenues of $782 million were ahead of the $772 million estimate, with political advertising providing less of a headwind than expected.

Market Position

Gray is a high-quality TV broadcaster whose dominance in its local markets and excellent cost controls position it well within its sector.

Negative Factors

Advertising Environment

The company’s guidance reflects the uncertain outlook, with expectations of a mid-single-digit advertising decline.

Guidance and Profitability

The softness in the company’s guidance was more substantial than expected, suggesting a lower level of profitability in the first quarter.

Revenue and Cost Challenges

Several challenging trends include continuing linear churn, a slowing pace of progress in retransmission revenue generation, and still-high programming costs obligations.

Gray Television Business Overview & Revenue Model

Company Description

Gray Television, Inc. is a media company primarily involved in broadcasting television stations across the United States. It operates in the media and entertainment sector, providing local news and information in various markets. Gray Television owns and operates television stations that collectively broadcast channels affiliated with major networks such as NBC, CBS, ABC, and FOX. The company focuses on delivering high-quality content that serves the communities in which it operates.

How the Company Makes Money

Gray Television generates revenue primarily through advertising sales, retransmission consent fees, and broadcast rights. Advertising sales constitute the largest portion of its revenue, with local, national, and political advertising campaigns contributing to its earnings. The company also earns money from retransmission consent fees, which are payments from cable and satellite operators to carry its broadcast signals. Additionally, Gray Television gains revenue from licensing its content and programming to other media platforms and networks. Key partnerships with major networks and local businesses further bolster its revenue streams.

Gray Television Financial Statement Overview

Summary

Gray Television demonstrates strong operational performance with improving profit margins and revenue growth. However, its high leverage and capital allocation risks warrant caution. Strong free cash flow growth and cash conversion rates are positive indicators of financial health, yet careful management of debt levels and strategic investments are crucial for sustained performance.

Income Statement

Gray Television shows a strong gross profit margin of 96.56% in 2024, indicating efficient cost management. However, net profit margin improved to 10.29% from a negative margin in 2023, reflecting a recovery in profitability. Revenue growth rate from 2023 to 2024 was 11.07%, which is positive but somewhat volatile given past fluctuations. EBIT and EBITDA margins in 2024 are robust at 23.36%, showing strong core operational performance.

Balance Sheet

The company has a high debt-to-equity ratio of 0.04 in 2024, indicating significant leverage which may pose financial risk. Return on equity for 2024 stands at 16.42%, which is a healthy return for shareholders. However, the unavailability of total assets data limits the analysis of equity ratio, which could provide further insight into financial stability.

Cash Flow

Gray Television's free cash flow exhibited strong growth of 102.67% in 2024, enhancing financial flexibility. The operating cash flow to net income ratio is 2.00, showing strong cash generation relative to reported earnings. Free cash flow to net income ratio is high at 1.62, indicating efficient conversion of earnings into cash. However, high investing and financing cash flow outflows highlight potential risks in capital allocation.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
3.64B	3.28B	3.68B	2.41B	2.38B
	Gross Profit
1.24B	898.00M	1.43B	803.00M	989.00M
	EBIT
851.00M	383.00M	990.00M	381.00M	752.00M
	EBITDA
1.25B	697.00M	1.33B	594.00M	936.00M
	Net Income Common Stockholders
375.00M	-76.00M	455.00M	90.00M	410.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
135.00M	21.00M	61.00M	189.00M	773.00M
	Total Assets
10.68B	10.64B	11.15B	11.11B	7.64B
	Total Debt
5.69B	6.24B	6.53B	6.83B	4.03B
	Net Debt
5.56B	6.22B	6.47B	6.64B	3.26B
	Total Liabilities
7.61B	8.02B	8.39B	8.70B	5.24B
	Stockholders Equity
2.93B	2.62B	2.77B	2.41B	2.40B
Cash Flow		Free Cash Flow
608.00M	300.00M	393.00M	93.00M	542.00M
	Operating Cash Flow
751.00M	648.00M	829.00M	300.00M	652.00M
	Investing Cash Flow
-28.00M	-291.00M	-503.00M	-3.53B	-211.00M
	Financing Cash Flow
-609.00M	-397.00M	-454.00M	2.65B	120.00M

Gray Television Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.96
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• 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 3.96 is below the 20-day moving average (MA) of 4.01, above the 50-day MA of 3.79, and below the 200-day MA of 4.17, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 51.75 is Neutral, neither overbought nor oversold. The STOCH value of 33.39 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
SGA	70 Outperform	$82.78M	23.05	2.06%	7.78%	-1.65%	-51.45%
TGNA	70 Outperform	$2.64B	5.77	16.07%	3.04%	6.34%	-0.26%
SSP	68 Neutral	$189.45M	2.34	11.23%	―	6.28%	―
GTN	68 Neutral	$428.00M	1.65	9.92%	8.40%	9.08%	―
Sector *	61 Neutral	$14.60B	5.88	-4.32%	3.68%	2.75%	-30.55%
EVC	54 Neutral	$189.23M	―	-82.15%	9.62%	-66.94%	-52.19%
CMLS	35 Underperform	$14.89M	―	-243.54%	―	-2.92%	-165.37%

Gray Television Corporate Events

Gray Television Renews CBS Affiliations, Plans Atlanta Shift

On June 2, 2025, Gray Media announced the renewal of 52 out of its 53 CBS network affiliations in an agreement with CBS, a subsidiary of Paramount Global. Effective August 16, 2025, Gray’s Atlanta station WANF will discontinue its CBS affiliation to become an independent station focusing on the Atlanta market. This strategic move may impact Gray’s operations by allowing it to tailor content specifically for the Atlanta audience, potentially strengthening its market position in the region.

The most recent analyst rating on (GTN) stock is a Buy with a $9.00 price target. To see the full list of analyst forecasts on Gray Television stock, see the GTN Stock Forecast page.

Gray Television Approves Equity Plan Amendments at Shareholder Meeting

On May 7, 2025, Gray Television, Inc. held its Annual Meeting of Shareholders, where the amendment and restatement of the 2022 Equity and Incentive Compensation Plan were approved. This decision increases the number of shares reserved for issuance and extends the plan’s termination date, potentially impacting the company’s equity structure and stakeholder interests. Additionally, the meeting included the election of directors and the ratification of RSM US LLP as the independent registered public accounting firm for 2025.