Gray Television (GTN) AI Stock Analysis

• Market Cap: $514.59M
• Dividend Yield: 7.06%
• Average Volume (3M): 1.19M
• Price to Earnings (P/E): 1.9
• Beta (1Y): 0.54
• Revenue Growth: 9.08%
• EPS Growth: N/A
• Country: US
• Employees: 9,118
• Sector: Communication Services
• Sector Strength: 90
• Industry: Broadcasting
• EPS (TTM): -0.23
• Shares Outstanding: 92,207,010
• 10 Day Avg. Volume: 1,512,710
• 30 Day Avg. Volume: 1,189,093
• PEG Ratio: -0.24
• Price to Book (P/B): 0.80
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 20.59
• Enterprise Value/Market Cap: 14.58
• Enterprise Value/Revenue: 0.53
• Enterprise Value/Gross Profit: 4.40
• Enterprise Value/Ebitda: 1.74
• 1Y Price Target: $5.88
• Price Target Upside: 26.72% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

• Rating: 76 Outperform
• Price Target: $5.00 ▲(7.76%Upside)

Gray Television's overall stock score reflects strong technical momentum and attractive valuation, leading to a positive outlook. Financial performance shows strengths in operational metrics but is offset by leverage risks. Earnings call highlights strategic progress but also acknowledges challenges in revenue and EBITDA declines.

Positive Factors

Debt Management

The company is continuing to make progress on its debt load and save on interest expense, having reduced 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.

Profitability

Lower-than-expected expense levels supported profitability, with EBITDA of $160 million, well ahead of the estimate.

Negative Factors

Advertising Outlook

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

Challenging Trends

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

Leverage and Revenue

Leverage remains elevated due to slowing retransmission growth and an ad environment that has been choppy along with some disappointing political revenue results.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.60B	3.64B	3.28B	3.68B	2.41B	2.38B
Gross Profit	1.70B	1.24B	898.00M	1.43B	803.00M	989.00M
EBITDA	1.12B	1.25B	697.00M	1.33B	594.00M	936.00M
Net Income	278.00M	375.00M	-76.00M	455.00M	90.00M	410.00M
Balance Sheet
Total Assets	10.44B	10.68B	10.64B	11.15B	11.11B	7.64B
Cash, Cash Equivalents and Short-Term Investments	0.00	135.00M	21.00M	61.00M	189.00M	773.00M
Total Debt	73.00M	5.69B	6.24B	6.53B	6.83B	4.03B
Total Liabilities	8.18B	7.61B	8.02B	8.39B	8.70B	5.24B
Stockholders Equity	1.34B	2.93B	2.62B	2.77B	2.41B	2.40B
Cash Flow
Free Cash Flow	691.00M	608.00M	300.00M	393.00M	93.00M	542.00M
Operating Cash Flow	815.00M	751.00M	648.00M	829.00M	300.00M	652.00M
Investing Cash Flow	-123.00M	-28.00M	-291.00M	-503.00M	-3.53B	-211.00M
Financing Cash Flow	-616.00M	-609.00M	-397.00M	-454.00M	2.65B	120.00M

Gray Television Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.64
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 4.64 is above the 20-day moving average (MA) of 4.12, above the 50-day MA of 3.90, and above the 200-day MA of 4.06, indicating a bullish trend. The MACD of 0.20 indicates Negative momentum. The RSI at 66.81 is Neutral, neither overbought nor oversold. The STOCH value of 83.71 is Negative, 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	76 Outperform	$514.59M	1.95	9.92%	7.06%	9.08%	―
SGA	74 Outperform	$83.74M	23.32	2.06%	7.69%	-1.65%	-51.45%
SSP	72 Outperform	$267.52M	3.31	11.23%	―	6.28%	―
TGNA	70 Outperform	$2.72B	5.95	16.07%	2.98%	6.34%	-0.26%
Sector *	66 Neutral	£1.91B	10.33	-3.58%	3.23%	3.34%	-85.67%
EVC	57 Neutral	$211.97M	―	-82.15%	8.58%	-66.94%	-52.19%
CMLS	43 Neutral	$14.92M	―	-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.