Sinclair Broadcast (SBGI) AI Stock Analysis

• Market Cap: $1.03B
• Dividend Yield: 6.87%
• Average Volume (3M): 510.05K
• Price to Earnings (P/E): 7.5
• Beta (1Y): 0.90
• Revenue Growth: 11.62%
• EPS Growth: N/A
• Country: US
• Employees: 7,200
• Sector: Communication Services
• Sector Strength: 84
• Industry: Entertainment
• EPS (TTM): -2.30
• Shares Outstanding: 45,796,486
• 10 Day Avg. Volume: 667,331
• 30 Day Avg. Volume: 510,050
• PEG Ratio: >-0.01
• Price to Book (P/B): 1.47
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 1.58
• Enterprise Value/Market Cap: 4.52
• Enterprise Value/Revenue: 0.34
• Enterprise Value/Gross Profit: 2.79
• Enterprise Value/Ebitda: 2.11
• 1Y Price Target: $19.75
• Price Target Upside: 33.45% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 68 Neutral
• Price Target: $16.00 ▲(8.11%Upside)

Sinclair Broadcast's overall stock score reflects a balanced view of its financial performance, technical indicators, valuation, and earnings call insights. The company's attractive valuation and technical momentum are significant positives, but financial challenges such as high leverage and declining revenues weigh on the score. The earnings call provided a mixed outlook, with both strategic achievements and notable challenges. Improving profitability and reducing debt are crucial for enhancing financial stability.

Positive Factors

Expense Management

Lucy Rutishauser once again pulled the expense vanishing trick, setting the company up well for 2025 and beyond.

Revenue Growth

Net retrans grew at a mid-single-digit pace, remaining on track for Sinclair’s medium-term guidance.

Strategic Financial Management

Sinclair's potential commitment to both a buyback and debt paydown demonstrates strategic financial management.

Negative Factors

Automotive Market Challenges

Tougher automotive comparisons and a more uncertain national brand outlook may conspire to limit core growth, with auto potentially getting a double hit from interest rate uncertainty and muted incentive spend.

Revenue Visibility

Management did pull their full year media expense guidance, suggesting that the range of revenue outcomes is substantially wider than previously anticipated, and that visibility remains extremely limited.

Sinclair Broadcast Business Overview & Revenue Model

Company Description

Sinclair, 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 Money

Sinclair Broadcast Group generates revenue primarily through advertising sales and distribution fees. Advertising sales are derived from selling commercial airtime on its television stations and digital platforms, targeting both local and national advertisers. Distribution fees come from retransmission consent agreements, where cable, satellite, and telecommunications companies pay Sinclair to carry its broadcast signals. Additionally, Sinclair earns revenue from its regional sports networks through affiliate fees paid by distributors and advertising sales. The company's content production and licensing operations also contribute to its revenue, though to a lesser extent. Strategic partnerships with sports leagues and other media entities further enhance its revenue potential.

Sinclair Broadcast Financial Statement Overview

Summary

Sinclair Broadcast exhibits a mixed financial performance. The company shows efficient cost management and strong cash generation capabilities. However, challenges include declining revenues, high leverage, and low net profit margins. Improving profitability and reducing debt are crucial for enhancing 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.

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.

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.

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	1.67B	1.83B	1.47B	1.94B	1.84B	3.21B
EBITDA	806.00M	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	148.00M	14.00M	143.00M	694.00M	247.00M	1.39B
Operating Cash Flow	150.00M	98.00M	235.00M	799.00M	327.00M	1.55B
Investing Cash Flow	-98.00M	77.00M	52.00M	-381.00M	-246.00M	-159.00M
Financing Cash Flow	-116.00M	-140.00M	-509.00M	-353.00M	-524.00M	-1.46B

Sinclair Broadcast Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 14.80
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 14.8 is above the 20-day moving average (MA) of 13.52, above the 50-day MA of 14.10, and below the 200-day MA of 14.90, indicating a neutral trend. The MACD of 0.10 indicates Negative momentum. The RSI at 64.78 is Neutral, neither overbought nor oversold. The STOCH value of 90.95 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SBGI.

Sinclair Broadcast Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NXST	78 Outperform	$5.47B	8.91	28.46%	4.13%	8.00%	71.49%
SBGI	68 Neutral	$1.03B	7.49	34.07%	6.87%	11.62%	―
PARA	58 Neutral	$9.10B	―	-28.56%	1.56%	-4.50%	-898.86%
Sector *	58 Neutral	C$3.32B	6.33	-0.75%	6.13%	-2.19%	-11.60%
AMCX	57 Neutral	$275.40M	13.94	-25.83%	―	-8.14%	-258.98%

Sinclair Broadcast Corporate Events

Sinclair Broadcast Holds Annual Stockholders Meeting

On June 5, 2025, Sinclair, Inc. held its annual stockholders meeting where four key proposals were voted upon. The stockholders elected nine directors for a term expiring in 2026, ratified PricewaterhouseCoopers LLP as the independent auditors for 2025, approved executive compensation on a non-binding advisory basis, and amended the company’s Articles of Incorporation to expand the definition of ‘Permitted Transferees’ of Class B Common Stock.

The most recent analyst rating on (SBGI) stock is a Hold with a $17.00 price target. To see the full list of analyst forecasts on Sinclair Broadcast stock, see the SBGI Stock Forecast page.