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Sinclair Broadcast Group (SBGI)
NASDAQ:SBGI
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Sinclair Broadcast
(NASDAQ:SBGI)
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Rating:53Neutral
Price Target:
$16.50
▲(8.20% 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 (SBGI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.06B
Dividend Yield6.52%
Average Volume (3M)359.49K
Price to Earnings (P/E)―
Beta (1Y)0.37
Revenue Growth-0.98%
EPS Growth82.16%
CountryUS
Employees7,200
SectorCommunication Services
Sector Strength97
IndustryEntertainment
Share Statistics
EPS (TTM)-0.02
Shares Outstanding45,908,530
10 Day Avg. Volume326,162
30 Day Avg. Volume359,486
Financial Highlights & Ratios
PEG Ratio-0.02
Price to Book (P/B)1.82
Price to Sales (P/S)0.30
P/FCF Ratio75.84
Enterprise Value/Market Cap4.42
Enterprise Value/Revenue1.41
Enterprise Value/Gross Profit2.90
Enterprise Value/Ebitda6.99
Forecast
1Y Price Target
$19.20Price Target Upside25.90% Upside
Rating ConsensusHold
Number of Analyst Covering5
EPS Forecast (FY)1
Revenue Forecast (FY)$3.51B
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 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 Earnings Call Summary
Earnings Call Date:Nov 05, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Mar 04, 2026
Earnings Call Sentiment Positive
The earnings call highlighted strong financial performance with Sinclair exceeding guidance across key metrics, significant progress in station acquisitions, and a positive outlook for political advertising revenue. While there were some challenges in distribution revenue and regulatory issues, the overall sentiment remains positive due to robust growth and strategic opportunities in the broadcast sector.Q3-2025 Updates
Positive Updates
Exceeding Guidance Across Key Metrics
Total revenue of $773 million came in higher than the high end of the guidance range. Core revenues increased by 7% year-over-year. Adjusted EBITDA of $100 million exceeded the high end of the guidance range, reflecting operational discipline and cost management.
Station Portfolio Optimization
Significant progress on station portfolio optimization in the Broadcast segment. 11 partner station acquisitions have closed, and 12 have received FCC approval. The company expects $30 million in incremental annualized adjusted EBITDA from these acquisitions by the second half of 2026.
Constructive M&A Environment
Recent FCC and court rulings have created a more constructive M&A environment for broadcasters. The potential elimination of the 39% nationwide ownership cap could further enable value-creating transactions.
Record-Breaking Political Advertising Revenue Outlook
For 2026, political advertising revenue is expected to be at least equal to the 2022 record of $333 million, driven by competitive races and strong station footprint in key districts.
Strong Financial Position
The company ended the quarter with $526 million in consolidated cash and redeemed the final $89 million of 2027 senior notes, leaving no material debt maturities until December 2029.
Positive Core Advertising Trends
Core advertising revenue is expected to increase by more than 10% year-over-year in the fourth quarter, supported by improving trends in advertising categories and strong sports ratings.
Negative Updates
Challenges in Distribution Revenue
Despite improving subscriber churn, distribution revenue faced challenges due to the light renewal cycle in 2025, with rate escalators not fully offsetting MVPD subscriber losses.
Regulatory and Antitrust Challenges
The company and many broadcasters expressed concerns about hurtful network affiliation practices, particularly regarding content distribution through virtual MVPDs like YouTube TV.
Company Guidance
During Sinclair Broadcast Group's Third Quarter 2025 Earnings Conference Call, the company reported exceeding guidance across key metrics, with total revenue of $773 million and adjusted EBITDA of $100 million, both surpassing the high end of their guidance range. Core revenues increased by 7% year-over-year. Sinclair announced significant progress in its station portfolio optimization, expecting to generate at least $30 million in incremental annualized adjusted EBITDA from partner station acquisitions by the second half of 2026. The company also provided an early outlook for 2026, projecting political advertising revenue to match or exceed the $333 million record from 2022. Sinclair anticipates a strong advertising environment due to competitive political races and major sporting events. Additionally, the regulatory landscape is seen as favorable, potentially allowing for transformational industry consolidation, which could unlock $600 million to $900 million in annual synergies. Sinclair is actively exploring strategic opportunities to maximize value for stakeholders under these new conditions.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.45
Neutral
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.30
Negative
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.50
Neutral
| 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
Positive
15.25
Price Trends
15.48
Negative
14.56
Positive
14.14
Positive
Market Momentum
-0.09
Positive
50.50
Neutral
68.78
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 15.25 is above the 20-day moving average (MA) of 15.22, below the 50-day MA of 15.48, and above the 200-day MA of 14.14, indicating a neutral trend. The MACD of -0.09 indicates Positive momentum. The RSI at 50.50 is Neutral, neither overbought nor oversold. The STOCH value of 68.78 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
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $30.41B | 16.20 | 17.33% | 0.75% | 14.91% | 9.30% | |
76 Outperform | $30.41B | 14.72 | 17.33% | 0.85% | 14.91% | 9.30% | |
75 Outperform | $198.52B | 16.24 | 11.78% | 1.10% | 3.61% | 152.34% | |
69 Neutral | $6.56B | 13.33 | 22.38% | 3.66% | -1.42% | -8.99% | |
68 Neutral | $70.83B | 152.35 | 1.36% | ― | -4.29% | ― | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
53 Neutral | $1.06B | -24.26 | -11.81% | 6.52% | -0.98% | 82.16% |
* Communication Services Sector Average
SBGI
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15.25
1.47
10.69%
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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.