Sinclair Broadcast (SBGI) AI Stock Analysis

• Market Cap: $1.04B
• Dividend Yield: 6.78%
• Average Volume (3M): 445.02K
• Price to Earnings (P/E): 18.7
• Beta (1Y): 0.90
• Revenue Growth: 8.11%
• EPS Growth: N/A
• Country: US
• Employees: 7,200
• Sector: Communication Services
• Sector Strength: 90
• Industry: Entertainment
• EPS (TTM): -0.91
• Shares Outstanding: 45,871,820
• 10 Day Avg. Volume: 621,952
• 30 Day Avg. Volume: 445,020
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 4.34
• Enterprise Value/Revenue: 1.28
• Enterprise Value/Gross Profit: 2.65
• Enterprise Value/Ebitda: 5.54
• 1Y Price Target: $18.20
• Price Target Upside: 23.39% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5

• Rating: 62 Neutral
• Price Target: $16.00 ▲(8.47% Upside)

Sinclair Broadcast's overall stock score reflects a mixed financial performance with strengths in cash generation and cost efficiency, but challenges with high leverage and declining revenues. The technical analysis indicates short-term stability but longer-term weakness. Valuation is supported by a reasonable P/E ratio and strong dividend yield. The earnings call highlights strategic achievements and future growth potential, balanced by current economic and subscriber challenges.

Positive Factors

Expense Management

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

Financial Performance

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

Strategic Management

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

Negative Factors

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 Broadcast Group, Inc. (SBGI) is a leading telecommunications conglomerate based in the United States, primarily engaged in the ownership and operation of television stations. The company operates numerous local television stations and provides content and advertising services across multiple platforms, including broadcast, cable, and digital media. Sinclair focuses on producing local news, sports, and entertainment programming while also managing various network affiliations, including major broadcast networks such as ABC, CBS, NBC, and FOX.

How the Company Makes Money

Sinclair 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 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.

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	1.71B	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

• Technical Analysis Sentiment: Positive
• Last Price: 14.75
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• 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 14.75 is above the 20-day moving average (MA) of 14.27, above the 50-day MA of 14.06, and below the 200-day MA of 14.82, indicating a neutral trend. The MACD of -0.19 indicates Positive momentum. The RSI at 54.50 is Neutral, neither overbought nor oversold. The STOCH value of 63.80 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
NXST	79 Outperform	$6.13B	10.18	27.64%	3.38%	6.57%	55.37%
PSKY	66 Neutral		―	-0.11%	1.33%	-1.75%	99.73%
SBGI	62 Neutral	$1.04B	18.74	14.27%	6.78%	8.11%	―
Sector *	60 Neutral	$43.99B	4.24	-10.43%	4.00%	2.31%	-34.39%
AMCX	50 Neutral	$307.30M	13.94	-17.26%	―	-7.25%	-395.48%

Sinclair Broadcast Corporate Events

Sinclair Broadcast Appoints New CFO Narinder Sahai

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.

The most recent analyst rating on (SBGI) stock is a Sell with a $14.00 price target. To see the full list of analyst forecasts on Sinclair Broadcast stock, see the SBGI Stock Forecast page.

Sinclair Broadcast Appoints New CFO Narinder Sahai

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.

The most recent analyst rating on (SBGI) stock is a Sell with a $14.00 price target. To see the full list of analyst forecasts on Sinclair Broadcast stock, see the SBGI Stock Forecast page.

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.