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Sinclair Broadcast (SBGI)
NASDAQ:SBGI
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Sinclair Broadcast (SBGI) AI Stock Analysis

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SBGI

Sinclair Broadcast

(NASDAQ:SBGI)

Rating:66Neutral
Price Target:
$15.00
▲(8.38% Upside)
Sinclair Broadcast's overall stock score reflects a balanced view of its financial performance, technical stability, and valuation. The most significant factors include its strong dividend yield and positive earnings call sentiment, which are offset by financial leverage concerns and mixed technical indicators.
Positive Factors
Cost 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 Initiatives
Sinclair's potential commitment to both a buyback and debt paydown demonstrates strategic financial management.
Negative Factors
Economic Uncertainty
Analyst suggests consensus may actually be in a decent spot, despite mild estimate reductions and economic uncertainty.
Financial Guidance
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 (SBGI) vs. SPDR S&P 500 ETF (SPY)

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
67
Positive
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
55
Neutral
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
60
Neutral
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue3.53B3.55B3.13B3.93B6.13B5.94B
Gross Profit1.71B1.83B1.47B1.94B1.84B3.21B
EBITDA817.00M1.02B-45.00M4.65B3.15B-655.00M
Net Income131.00M310.00M-291.00M2.65B-326.00M-2.43B
Balance Sheet
Total Assets5.78B5.88B6.08B6.70B12.54B13.38B
Cash, Cash Equivalents and Short-Term Investments631.00M697.00M662.00M884.00M816.00M1.26B
Total Debt4.34B4.28B4.35B4.44B12.58B12.78B
Total Liabilities5.41B5.37B5.86B6.02B14.25B14.57B
Stockholders Equity436.00M583.00M285.00M748.00M-1.77B-1.27B
Cash Flow
Free Cash Flow28.00M14.00M143.00M694.00M247.00M1.39B
Operating Cash Flow107.00M98.00M235.00M799.00M327.00M1.55B
Investing Cash Flow-19.00M77.00M52.00M-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

Technical Analysis Sentiment
Negative
Last Price13.84
Price Trends
50DMA
14.11
Negative
100DMA
13.98
Positive
200DMA
14.44
Negative
Market Momentum
MACD
0.06
Negative
RSI
49.99
Neutral
STOCH
42.47
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SBGI, the sentiment is Negative. The current price of 13.84 is above the 20-day moving average (MA) of 13.77, below the 50-day MA of 14.11, and below the 200-day MA of 14.44, indicating a neutral trend. The MACD of 0.06 indicates Negative momentum. The RSI at 49.99 is Neutral, neither overbought nor oversold. The STOCH value of 42.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
$6.27B10.3727.64%3.52%6.57%55.37%
68
Neutral
$15.69B-0.11%1.36%-1.75%99.73%
66
Neutral
$975.06M17.6114.27%7.14%8.11%
60
Neutral
$46.28B4.13-13.12%4.13%1.85%-42.71%
51
Neutral
$319.30M13.94-17.26%-7.25%-395.48%
47
Neutral
-2.85%75.96%
42
Neutral
-2.85%75.96%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SBGI
Sinclair Broadcast
14.00
1.65
13.36%
AMCX
AMC Networks
7.56
-1.43
-15.91%
PSKY
Paramount Skydance
15.00
5.09
51.36%
NXST
Nexstar Media Group
206.66
51.83
33.48%
LGF.A
Lions Gate Entertainment Class A
8.59
1.05
13.93%
LGF.B
Lions Gate Entertainment Class B
7.69
1.02
15.29%

Sinclair Broadcast Corporate Events

Executive/Board ChangesBusiness Operations and Strategy
Sinclair Broadcast Appoints New CFO Narinder Sahai
Positive
Jul 7, 2025

On July 7, 2025, Sinclair, Inc. announced the appointment of Narinder Sahai as the Executive Vice President and Chief Financial Officer, succeeding Lucy Rutishauser who will continue as Executive Vice President to aid in the transition. This strategic leadership change is significant for Sinclair, as Mr. Sahai brings extensive financial expertise from his previous roles at Arcis Golf, RumbleOn, Inc., Amazon Web Services, Target Hospitality, and others. His appointment is accompanied by a comprehensive compensation package, including a base salary, bonuses, and stock units, indicating Sinclair’s commitment to strengthening its financial leadership and potentially enhancing its market positioning.

Executive/Board ChangesBusiness Operations and Strategy
Sinclair Broadcast Appoints New CFO Narinder Sahai
Positive
Jul 7, 2025

On July 7, 2025, Sinclair, Inc. announced the appointment of Narinder Sahai as the new Executive Vice President and Chief Financial Officer, succeeding Lucy Rutishauser, who will remain as Executive Vice President to aid in the transition. This strategic leadership change is expected to enhance Sinclair’s financial operations and market positioning, as Mr. Sahai brings extensive experience from his previous roles at Arcis Golf, RumbleOn, Inc., Amazon Web Services, and other companies. His compensation package includes a substantial base salary, performance bonuses, and stock incentives, indicating Sinclair’s commitment to aligning executive performance with shareholder value.

Shareholder Meetings
Sinclair Broadcast Holds Annual Stockholders Meeting
Neutral
Jun 6, 2025

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.

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.Date of analysis: Sep 05, 2025