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Sinclair Broadcast (SBGI)
NASDAQ:SBGI
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Sinclair Broadcast
(NASDAQ:SBGI)
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Rating:64Neutral
Price Target:
$15.00
▲(2.67% Upside)
Sinclair Broadcast's overall score reflects a mix of strengths and challenges. The most significant factors include strong cash flow generation and attractive valuation metrics, offset by high leverage and declining revenues. Positive earnings call sentiment and strategic initiatives provide some optimism, but technical indicators suggest caution.
Positive Factors
Cash Generation
Strong cash generation indicates Sinclair's ability to fund operations and investments, enhancing financial flexibility and stability.
Regulatory Developments
This regulatory change allows Sinclair to expand its market presence, potentially increasing revenue and competitive positioning.
Strategic Acquisitions
The acquisition enhances Sinclair's digital capabilities, diversifying revenue streams and strengthening its market position.
Negative Factors
High Leverage
High leverage can limit financial flexibility and increase risk, potentially impacting long-term financial health and growth prospects.
Declining Revenue
Declining revenue suggests challenges in maintaining market share and growth, potentially affecting profitability and competitive edge.
Core Advertising Revenue Decline
A decline in core advertising revenue indicates potential challenges in the advertising market, impacting Sinclair's primary revenue stream.
Sinclair Broadcast (SBGI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.01B
Dividend Yield6.87%
Average Volume (3M)577.22K
Price to Earnings (P/E)18.4
Beta (1Y)0.96
Revenue Growth8.11%
EPS GrowthN/A
CountryUS
Employees7,200
SectorCommunication Services
Sector Strength97
IndustryEntertainment
Share Statistics
EPS (TTM)-0.91
Shares Outstanding45,871,820
10 Day Avg. Volume563,285
30 Day Avg. Volume577,222
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap4.47
Enterprise Value/Revenue1.28
Enterprise Value/Gross Profit2.65
Enterprise Value/Ebitda5.54
Forecast
1Y Price Target
$20.67Price Target Upside41.48% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
Sinclair Broadcast Business Overview & Revenue Model
Company DescriptionSinclair, Inc. owns and operates as a broadcast television company. The Company engages consumers on multiple platforms with relevant and compelling news, entertainment, and sports content, as well as provides advertisers and businesses efficient means and value to connect with our mass audiences.
How the Company Makes MoneySinclair Broadcast Group generates revenue through several key streams, primarily from advertising sales, retransmission consent fees, and subscription services. The company sells advertising slots during its local broadcasts and on digital platforms, capitalizing on its extensive reach to local audiences. Additionally, Sinclair negotiates retransmission consent agreements with cable and satellite providers, allowing these companies to carry its channels in exchange for fees, which significantly contributes to its revenue. The company also earns income from its production and distribution of programming, including local news shows and sports events, and has partnerships with various networks and content providers that enhance its programming offerings and revenue potential. Furthermore, Sinclair's ventures into digital media, including streaming services and online advertising, provide additional growth opportunities and revenue diversification.
Sinclair Broadcast Earnings Call Summary
Earnings Call Date:Aug 06, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Oct 29, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mix of positive developments and challenges. Key highlights included growth in core advertising revenue and multicast networks, strategic acquisitions, and favorable regulatory developments. However, there were challenges in distribution revenue and continued pressures on core advertising revenue. The sentiment is somewhat balanced but tilting slightly towards positive due to strategic growth initiatives and regulatory tailwinds.Q2-2025 Updates
Positive Updates
Core Advertising Revenue Increase
Core advertising revenue grew by $13 million year-over-year on an as-reported basis.
Record Growth in Multicast Networks
CHARGE!, Comet, ROAR show year-over-year growth of 21%, 17% and 40%, respectively, among total viewers in top 10 DMAs.
Digital Remedy Acquisition and Growth
Acquired the remaining 75% stake in Digital Remedy for approximately $30 million, now rebranded as Digital Remedy. It recorded $38 million of revenue and $7 million of adjusted EBITDA in Q2.
Strong Liquidity and Debt Management
Ended the quarter with a fully undrawn $650 million revolver and consolidated cash of over $616 million. Opportunistically repurchased approximately $81 million in face value of STG's 2027 notes for $77 million.
Positive Regulatory Developments
Eighth Circuit Court of Appeals vacated the SEC prohibition of owning 2 top 4 ranked TV stations in a local market, opening up more opportunities for growth.
Negative Updates
Distribution Revenue Below Expectations
Distribution revenues were below expectations due to slower growth from larger virtual MVPDs, despite being up year-over-year in the first half.
Core Advertising Revenue Decline
Core advertising revenue was down by 4.7% year-over-year on an as-reported basis due to macroeconomic and tariff-related pressures.
Soft Advertising Trends in Tennis Channel
Tennis Channel delivered total revenue of $68 million, up 1% versus the prior year quarter but below guidance due to softer advertising trends.
Company Guidance
During Sinclair's Second Quarter 2025 Earnings Call, the company provided key financial guidance metrics and updates on their strategic initiatives. They reported a solid quarter despite macroeconomic challenges, with total advertising revenue falling within their guidance range and core advertising revenue increasing year-over-year. Distribution revenues were slightly below expectations due to slower growth from larger virtual MVPDs but remained flat compared to the previous year. Media expenses were lower than expected, resulting in adjusted EBITDA surpassing the midpoint of their guidance range. Sinclair's Ventures portfolio saw cash distributions of $6 million and investments of $11 million, with a cash balance of $393 million at quarter end. The company also highlighted their acquisition of Digital Remedy, which contributed $38 million in revenue and $7 million in adjusted EBITDA for the quarter. Looking ahead, Sinclair provided guidance for the third quarter, projecting consolidated media revenue between $744 million to $768 million and adjusted EBITDA ranging from $71 million to $93 million. They also revised their full-year cash tax expense guidance down to $46 million at the midpoint, reflecting a $74 million improvement from the previous quarter's guidance.Sinclair Broadcast Financial Statement Overview
Summary
Sinclair Broadcast exhibits a mixed financial performance. While cost efficiency and cash generation are strengths, the company faces challenges with declining revenues and high leverage. Profit margins and equity position suggest potential risks, but cash flow metrics show some resilience. Overall, the company needs to improve profitability and reduce debt to enhance financial stability.Income Statement
Sinclair Broadcast's TTM figures show some challenges with revenue slightly declining by 0.62% compared to the previous annual period. Gross profit margin in the TTM stands at 47.28%, indicating efficient cost management. However, the net profit margin is relatively low at 3.72%, suggesting potential profitability issues. EBIT and EBITDA margins are at 14.89% and 22.87%, respectively, showing reasonable operational efficiency despite competitive pressures.67
Positive
Balance Sheet
The balance sheet reflects high leverage with a debt-to-equity ratio of 9.95 in the TTM, indicating significant reliance on debt financing. The equity ratio is low at 7.54%, which could pose a risk in terms of financial stability. Return on equity is moderate at 30.05%, suggesting decent profitability relative to equity despite high debt levels.55
Neutral
Cash Flow
The cash flow statement indicates some positive aspects with a free cash flow growth rate of 957.14% in the TTM, highlighting strong cash generation capabilities. However, the operating cash flow to net income ratio is 1.15, showing that operational cash generation is slightly ahead of net income. The free cash flow to net income ratio is 1.13, indicating adequate conversion of net income into free cash flow.60
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.53B | 3.55B | 3.13B | 3.93B | 6.13B | 5.94B |
| Gross Profit | 1.71B | 1.83B | 1.47B | 1.94B | 1.84B | 3.21B |
| EBITDA | 817.00M | 1.02B | -45.00M | 4.65B | 3.15B | -655.00M |
| Net Income | 131.00M | 310.00M | -291.00M | 2.65B | -326.00M | -2.43B |
Balance Sheet | ||||||
| Total Assets | 5.78B | 5.88B | 6.08B | 6.70B | 12.54B | 13.38B |
| Cash, Cash Equivalents and Short-Term Investments | 631.00M | 697.00M | 662.00M | 884.00M | 816.00M | 1.26B |
| Total Debt | 4.34B | 4.28B | 4.35B | 4.44B | 12.58B | 12.78B |
| Total Liabilities | 5.41B | 5.37B | 5.86B | 6.02B | 14.25B | 14.57B |
| Stockholders Equity | 436.00M | 583.00M | 285.00M | 748.00M | -1.77B | -1.27B |
Cash Flow | ||||||
| Free Cash Flow | 28.00M | 14.00M | 143.00M | 694.00M | 247.00M | 1.39B |
| Operating Cash Flow | 107.00M | 98.00M | 235.00M | 799.00M | 327.00M | 1.55B |
| Investing Cash Flow | -19.00M | 77.00M | 52.00M | -381.00M | -246.00M | -159.00M |
| Financing Cash Flow | -112.00M | -140.00M | -509.00M | -353.00M | -524.00M | -1.46B |
Sinclair Broadcast Technical Analysis
Positive
14.61
Price Trends
14.04
Positive
14.00
Positive
14.29
Positive
Market Momentum
0.13
Negative
57.54
Neutral
60.38
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SBGI, the sentiment is Positive. The current price of 14.61 is above the 20-day moving average (MA) of 14.11, above the 50-day MA of 14.04, and above the 200-day MA of 14.29, indicating a bullish trend. The MACD of 0.13 indicates Negative momentum. The RSI at 57.54 is Neutral, neither overbought nor oversold. The STOCH value of 60.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SBGI.
Sinclair Broadcast Risk Analysis
Sinclair Broadcast disclosed 35 risk factors in its most recent earnings report. Sinclair Broadcast reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Sinclair Broadcast Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | 6.04B | 10.05 | 31.99% | 3.67% | 6.57% | 55.37% | |
68 Neutral | 20.36B | -748.22 | -0.08% | 1.06% | -1.75% | 99.73% | |
64 Neutral | $1.01B | 18.42 | 14.27% | 6.87% | 8.11% | ― | |
51 Neutral | 350.54M | -1.85 | -17.99% | ― | -7.25% | -395.48% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% |
* Communication Services Sector Average
Performance Comparison
SBGI
Sinclair Broadcast
14.61
0.32
2.24%
AMCX
AMC Networks
8.08
-0.09
-1.10%
PSKY
Paramount Skydance
18.93
8.31
78.25%
NXST
Nexstar Media Group
198.10
38.54
24.15%
LGF.A
Lions Gate Entertainment Class A
8.59
0.57
7.11%
LGF.B
Lions Gate Entertainment Class B
7.69
0.60
8.46%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.