Sinclair Broadcast (SBGI) AI Stock Analysis

• Market Cap: $1.07B
• Dividend Yield: 6.52%
• Average Volume (3M): 446.35K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.38
• Revenue Growth: -0.98%
• EPS Growth: 82.16%
• Country: US
• Employees: 7,200
• Sector: Communication Services
• Sector Strength: 97
• Industry: Entertainment
• EPS (TTM): -0.02
• Shares Outstanding: 45,908,530
• 10 Day Avg. Volume: 517,580
• 30 Day Avg. Volume: 446,354
• PEG Ratio: -0.02
• Price to Book (P/B): 1.82
• Price to Sales (P/S): 0.30
• P/FCF Ratio: 75.84
• Enterprise Value/Market Cap: 4.39
• Enterprise Value/Revenue: 1.41
• Enterprise Value/Gross Profit: 2.90
• Enterprise Value/Ebitda: 6.99
• 1Y Price Target: $19.20
• Price Target Upside: 25.16% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5
• EPS Forecast (FY): -3.28
• Revenue Forecast (FY): $3.17B

• Rating: 53 Neutral
• Price Target: $16.50 ▲(7.56% Upside)

Sinclair Broadcast's overall stock score is driven by significant financial challenges, including high leverage and declining profitability. However, the positive earnings call and strategic outlook provide a counterbalance, suggesting potential for future growth. Technical indicators show bullish momentum, but caution is advised due to overbought signals.

Positive Factors

Revenue Growth

The 7% increase in core revenues indicates strong market demand and effective business strategies, suggesting potential for sustained growth.

Station Portfolio Optimization

The acquisition and optimization of partner stations can enhance Sinclair's market presence and operational efficiency, leading to increased EBITDA.

Favorable Regulatory Environment

A favorable regulatory environment may enable strategic mergers and acquisitions, potentially unlocking significant synergies and growth opportunities.

Negative Factors

High Leverage

The high leverage poses financial risk, potentially limiting Sinclair's ability to invest in growth opportunities and affecting long-term financial stability.

Declining Profitability

Ongoing losses and declining profitability can strain resources and hinder Sinclair's ability to invest in strategic initiatives or weather economic downturns.

Challenges in Distribution Revenue

Challenges in distribution revenue can impact Sinclair's overall revenue streams, affecting its ability to maintain or grow its market position.

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, which is a substantial portion of its earnings. Local and national advertisers purchase airtime on Sinclair's television stations to promote their products and services, creating a consistent revenue stream. Additionally, the company earns money from affiliate fees paid by the major networks for broadcasting their content. Sinclair also generates revenue through retransmission consent fees, which cable and satellite providers pay for the rights to carry its television stations. Recent expansions into digital platforms and partnerships with streaming services further enhance its revenue opportunities. Furthermore, Sinclair's investment in original content production and syndication adds to its revenue base, allowing the company to monetize its programming across various channels.

Sinclair Broadcast Financial Statement Overview

Summary

Sinclair Broadcast faces significant financial challenges with declining revenues and profitability, high leverage, and financial risk. Despite efficient cash flow conversion, negative growth trends and high debt levels pose substantial risks.

Income Statement

Sinclair Broadcast's income statement shows a challenging environment with declining revenue and profitability. The TTM data indicates a negative net profit margin of -1.35%, reflecting ongoing losses. Revenue has decreased by 4.14% compared to the previous period, and the gross profit margin has also declined. These factors suggest pressure on the company's ability to generate profit from its operations.

Balance Sheet

The balance sheet reveals significant leverage with a high debt-to-equity ratio of 12.23 in the TTM period, indicating financial risk. The return on equity is negative, highlighting the company's struggle to generate returns for shareholders. The equity ratio is low, suggesting limited financial stability and a heavy reliance on debt financing.

Cash Flow

Cash flow analysis shows a mixed picture. The free cash flow growth rate is negative, indicating a decline in cash generation. However, the operating cash flow to net income ratio is 0.43, suggesting some ability to convert earnings into cash. The free cash flow to net income ratio is relatively high at 0.92, indicating efficient cash conversion despite net losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.34B	3.55B	3.13B	3.93B	6.13B	5.94B
Gross Profit	1.62B	1.83B	1.47B	1.85B	1.69B	3.03B
EBITDA	672.00M	949.00M	-61.00M	944.00M	714.00M	2.27B
Net Income	-45.00M	310.00M	-291.00M	2.65B	-414.00M	-2.41B
Balance Sheet
Total Assets	5.57B	5.88B	6.08B	6.70B	12.54B	13.38B
Cash, Cash Equivalents and Short-Term Investments	526.00M	697.00M	662.00M	884.00M	816.00M	1.26B
Total Debt	4.24B	4.28B	4.35B	4.44B	12.58B	12.78B
Total Liabilities	5.29B	5.37B	5.86B	6.02B	14.25B	14.57B
Stockholders Equity	347.00M	583.00M	285.00M	748.00M	-1.77B	-1.27B
Cash Flow
Free Cash Flow	211.00M	14.00M	143.00M	694.00M	247.00M	1.39B
Operating Cash Flow	289.00M	98.00M	235.00M	799.00M	327.00M	1.55B
Investing Cash Flow	-102.00M	77.00M	52.00M	-381.00M	-246.00M	-159.00M
Financing Cash Flow	-197.00M	-140.00M	-509.00M	-353.00M	-524.00M	-1.46B

Sinclair Broadcast Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 15.34
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 15.34 is below the 20-day moving average (MA) of 15.56, above the 50-day MA of 14.81, and above the 200-day MA of 14.13, indicating a neutral trend. The MACD of 0.18 indicates Positive momentum. The RSI at 48.63 is Neutral, neither overbought nor oversold. The STOCH value of 22.94 is Neutral, 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
FOXA	77 Outperform	$30.55B	16.59	17.33%	0.75%	14.91%	9.30%
FOX	76 Outperform	$30.55B	14.52	17.33%	0.85%	14.91%	9.30%
DIS	75 Outperform	$202.13B	16.53	11.78%	1.10%	3.61%	152.34%
NXST	69 Neutral	$6.17B	12.53	22.38%	3.66%	-1.42%	-8.99%
WBD	68 Neutral	$72.25B	155.38	1.36%	―	-4.29%	―
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
SBGI	53 Neutral	$1.07B	-24.40	-11.81%	6.52%	-0.98%	82.16%

Sinclair Broadcast Corporate Events

Sinclair Broadcast Announces CFO Transition

On July 7, 2025, Sinclair, Inc. announced a transition in its Chief Financial Officer position, with Lucy Rutishauser stepping down and Narinder Sahai taking over the role. Effective October 1, 2025, Rutishauser retired but entered into a consulting agreement with Sinclair to provide strategic consulting services for up to two years. The agreement includes a compensation of $593.75 per hour with a minimum of eight hours per week and provisions for health insurance coverage under COBRA. The agreement also extends the exercise period of Rutishauser’s stock appreciation rights and includes non-competition, non-solicitation, and confidentiality clauses.

Sinclair Broadcast CFO Transition on October 1, 2025

On July 7, 2025, Sinclair, Inc. announced the transition of its Chief Financial Officer role, with Lucy Rutishauser stepping down and Narinder Sahai taking over. Ms. Rutishauser retired on October 1, 2025, but will continue to provide strategic consulting services to Sinclair under a new agreement, which includes specific compensation and health insurance arrangements. The agreement also amends the terms of her stock appreciation rights, extending the exercise period under certain conditions.

Sinclair Broadcast Amends COO’s Employment Agreement

On September 19, 2025, Sinclair Television Group, Inc. amended the employment agreement with Robert Weisbord, its Chief Operating Officer and President of Broadcast, retroactively effective from January 1, 2025. The amendment outlines a reduction in Weisbord’s annual base salary to $1,000,000 and details various bonus structures and stock grants, including a special longevity bonus of $5,000,000, payable under specific conditions, potentially impacting the company’s financial commitments and executive retention strategies.

Sinclair Broadcast Extends COO’s Employment Agreement

On September 19, 2025, Sinclair Television Group, a subsidiary of Sinclair, Inc., announced an amendment to the employment agreement with Robert Weisbord, Chief Operating Officer and President of Broadcast. The amendment, effective retroactively from January 1, 2025, extends Mr. Weisbord’s employment term until December 31, 2027, with options for further extension. His annual base salary is set at $1,000,000, with eligibility for various bonuses and stock grants. A notable feature is a one-time special longevity bonus of $5,000,000, payable in 2027, contingent on his continued employment or termination without cause. This amendment reflects Sinclair’s commitment to retaining key leadership and could have implications for its operational stability and strategic direction.