E. W. Scripps Company Class A (SSP) AI Stock Analysis

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E. W. Scripps Company Class A

(NASDAQ:SSP)

73Outperform

E.W. Scripps Company exhibits solid financial resilience with significant revenue growth and improved leverage. The stock is undervalued, providing potential for appreciation. However, technical indicators suggest potential short-term challenges, and volatility in net profitability and core advertising needs to be addressed for sustained growth.

Positive Factors

Refinancing

Shares rallied nearly 45% as a much-better-than-feared refinancing was announced.

Regulation

The FCC's potential deregulation could change the entire playing field for local broadcasters, benefiting Scripps.

Negative Factors

Advertising Market

The national ad market and CTV pricing remain pressured, impacting Networks revenue negatively.

Debt Maturity

There is still a relatively large maturity wall in 2027, although management is addressing it with lenders.

E. W. Scripps Company Class A (SSP) vs. S&P 500 (SPY)

Market Cap

$178.59M

Dividend YieldN/A

Average Volume (3M)2.11M

Price to Earnings (P/E)2.1

Beta (1Y)0.41

Revenue Growth9.46%

EPS GrowthN/A

CountryUS

Employees5,000

SectorCommunication Services

Sector Strength79

IndustryBroadcasting

Share Statistics

EPS (TTM)0.99

Shares Outstanding75,610,460

10 Day Avg. Volume1,096,767

30 Day Avg. Volume2,108,391

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)0.11

Price to Cash Flow (P/CF)0.50

P/FCF Ratio0.40

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$6.93

Price Target Upside239.71% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering3

E. W. Scripps Company Class A Business Overview & Revenue Model

Company DescriptionThe E. W. Scripps Company Class A (SSP) is a prominent American media enterprise primarily focused on television broadcasting, digital media, and national media brands. With a rich history dating back to its founding in 1878, the company operates an extensive portfolio of television stations across the United States, offering a mix of news, entertainment, and educational programming. Scripps also delves into digital media through various online platforms and apps, catering to a diverse audience with a range of content offerings.

How the Company Makes MoneyE. W. Scripps Company generates revenue through multiple streams primarily centered around its television broadcasting operations. The company earns significant income from advertising sales, which are driven by both national and local advertisers seeking to reach the broad audiences of Scripps' television stations. Additionally, Scripps benefits from retransmission consent fees, which are payments made by cable and satellite operators for the right to carry Scripps' broadcast signals. The company's digital media initiatives also contribute to its revenue, with monetization strategies including digital advertising and subscription-based services. Key partnerships with content creators and distributors further enhance Scripps' revenue potential by expanding its reach and content offerings.

E. W. Scripps Company Class A Financial Statement Overview

Summary

E. W. Scripps Company shows positive momentum with substantial revenue and free cash flow growth. The improved leverage position and strong cash flow generation enhance financial resilience. However, the volatility in net profitability requires careful monitoring to sustain growth and stability.

Income Statement

Positive

The company has shown significant revenue growth with a notable increase in total revenue from 2023 to 2024. The gross profit margin is strong, indicating efficient cost management. However, the net profit margin has fluctuated, reflecting volatility in profitability. Despite challenges, the return to positive EBIT in 2024 is a positive sign of recovery.

Balance Sheet

Positive

The debt-to-equity ratio has improved significantly from 2023 to 2024, suggesting better leverage management. However, the stockholders' equity has not grown proportionately with assets, affecting the equity ratio. The balance sheet reveals a reduction in total debt, which enhances financial stability.

Cash Flow

Positive

The company's cash flow statement shows strong free cash flow growth from 2023 to 2024, indicating improved cash generation. The operating cash flow to net income ratio is favorable, reflecting efficient conversion of earnings into cash. The increase in free cash flow supports future investment opportunities and debt reduction.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
2.51B	2.29B	2.45B	2.28B	1.86B
	Gross Profit
1.19B	1.01B	596.28M	582.20M	754.41M
	EBIT
412.49M	-753.24M	428.34M	400.75M	303.49M
	EBITDA
575.55M	-598.89M	598.90M	581.86M	425.59M
	Net Income Common Stockholders
146.22M	-947.78M	195.90M	122.71M	153.56M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
23.85M	35.32M	18.03M	66.22M	576.02M
	Total Assets
5.20B	5.41B	6.43B	6.66B	4.86B
	Total Debt
95.01M	3.05B	2.87B	3.15B	2.98B
	Net Debt
71.16M	3.01B	2.85B	3.08B	2.40B
	Total Liabilities
3.88B	4.25B	4.30B	4.69B	3.70B
	Stockholders Equity
1.32B	1.16B	2.13B	1.97B	1.16B
Cash Flow		Free Cash Flow
300.42M	51.98M	265.63M	175.83M	230.56M
	Operating Cash Flow
365.68M	111.60M	311.42M	237.00M	277.39M
	Investing Cash Flow
-26.54M	-60.61M	-66.39M	-2.46B	317.42M
	Financing Cash Flow
-350.61M	-33.71M	-327.48M	693.48M	998.18M

E. W. Scripps Company Class A Technical Analysis

Technical Analysis Sentiment

Negative

Last Price2.04

Price Trends

50DMA

2.20

Negative

100DMA

2.17

Negative

200DMA

2.37

Negative

Market Momentum

MACD

0.34

Negative

RSI

61.11

Neutral

STOCH

27.67

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SSP, the sentiment is Negative. The current price of 2.04 is below the 20-day moving average (MA) of 2.82, below the 50-day MA of 2.20, and below the 200-day MA of 2.37, indicating a bearish trend. The MACD of 0.34 indicates Negative momentum. The RSI at 61.11 is Neutral, neither overbought nor oversold. The STOCH value of 27.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SSP.

E. W. Scripps Company Class A Risk Analysis

E. W. Scripps Company Class A disclosed 18 risk factors in its most recent earnings report. E. W. Scripps Company Class A 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

E. W. Scripps Company Class A Peers Comparison

Overall Rating

UnderperformOutperform

Sector (58)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NXST	79 Outperform	$4.64B	7.10	31.65%	4.56%	9.61%	128.67%
CMCSA	77 Outperform	$127.50B	8.14	19.24%	3.68%	1.78%	11.62%
TGNA	74 Outperform	$2.55B	4.49	21.01%	3.24%	6.56%	57.12%
SSP	73 Outperform	$178.59M	2.06	11.68%	―	9.46%	―
GTN	71 Outperform	$377.32M	1.00	13.50%	9.55%	11.06%	―
Sector *	58 Neutral	$26.33B	3.17	-10.68%	4.33%	2.16%	-43.07%
SBGI	56 Neutral	$876.73M	2.81	71.43%	7.31%	13.21%	―

* Communication Services Sector Average

Performance Comparison

SSP

E. W. Scripps Company Class A

2.04

-1.09

-34.82%

CMCSA

Comcast

33.72

-4.43

-11.61%

GTN

Gray Television

3.35

-1.91

-36.31%

NXST

Nexstar Media Group

151.99

-1.16

-0.76%

SBGI

Sinclair Broadcast

13.68

2.64

23.91%

TGNA

TEGNA

15.42

2.45

18.89%

E. W. Scripps Company Class A Earnings Call Summary

Earnings Call Date: Mar 11, 2025 | % Change Since: 42.66% | Next Earnings Date: May 2, 2025

Earnings Call Sentiment Neutral

The earnings call presented a balanced view with significant achievements in debt refinancing and political advertising revenue. However, challenges in core advertising and local media distribution revenue were noted. The company's proactive measures in margin improvement and strategic sports investments are positive indicators for future growth.

Highlights

Debt Refinancing Achievements

Successfully refinanced the revolving credit facility and 2026 and 2028 term loans, significantly improving the debt structure and reducing leverage to 4.8 times by year-end, nearly a full turn below the end of 2023.

Record Political Advertising Revenue

Achieved a record political advertising revenue, almost 30% higher than the 2020 presidential election year revenue, with more than 80% of these dollars coming from only six states.

Scripps Networks Margin Improvement

Improved Scripps Networks division margin by 400 to 600 basis points, with a reported fourth-quarter margin of 28% despite a one-time charge.

Connected TV Revenue Growth

Connected TV revenue was up 16% in the fourth quarter, with expectations of more than 30% growth in Q1 2025.

Lowlights

Core Advertising Revenue Decline

Core advertising for the fourth quarter came in about 11% below Q4 of 2023 at $147 million, affected by political advertising displacement.

Local Media Distribution Revenue Decline

Local Media distribution revenue was down 5% year-over-year due to no pay TV contract renewals in the quarter.

Uncertainty in Core Advertising Categories

Economic uncertainty led to consumer hesitation and delayed spending decisions, impacting automotive, retail, services, and home improvement categories.

Company Guidance

In the E.W. Scripps Company's Fourth Quarter 2024 earnings call, several metrics were highlighted, reflecting the company's financial health and strategic direction. The company reported a reduction in its year-end leverage ratio to 4.8 times, a significant improvement from the previous year. The Scripps Networks division improved its margin by 400 to 600 basis points, with a reported fourth-quarter margin of 28%. The Local Media division achieved record political advertising revenue, up nearly 30% compared to the 2020 presidential election year. Scripps also announced successful debt refinancing efforts, which included a two-year extension on the 2026 term loan and a one-year extension on the 2028 term loan, alongside an advantageous accounts receivable securitization facility. The company's blended cost of debt increased by less than 1%. Additionally, Scripps completed $20 million in property sales and reached an agreement for another $50 million. Overall, the company is focused on reducing its debt, improving operating performance, and capitalizing on potential regulatory changes that could present new opportunities for consolidation and growth.

E. W. Scripps Company Class A Corporate Events

Private Placements and FinancingBusiness Operations and Strategy

E.W. Scripps Completes Refinancing for Financial Flexibility

Positive

Apr 11, 2025

On April 10, 2025, The E.W. Scripps Company completed a series of refinancing transactions to enhance its financial flexibility and extend debt maturities. The company refinanced its existing term loans and revolving credit facilities, establishing new credit agreements and a $450 million accounts receivable securitization facility. These transactions eliminate previous debt obligations and provide Scripps with a stronger balance sheet, allowing it to continue executing strategic initiatives.

Spark’s Take on SSP Stock

According to Spark, TipRanks’ AI Analyst, SSP is a Outperform.

E. W. Scripps Company demonstrates strong financial resilience with substantial revenue growth and improved leverage. The stock is technically strong with bullish momentum, and it appears undervalued, providing potential for appreciation. While challenges exist in core advertising, strategic initiatives in refinancing and margin improvement are promising for future growth.

To see Spark’s full report on SSP stock, click here.

Private Placements and FinancingBusiness Operations and Strategy

E.W. Scripps Announces Financial Transactions for Refinancing

Positive

Mar 11, 2025

On March 10, 2025, The E.W. Scripps Company announced a series of financial transactions aimed at refinancing its existing term loans and extending its revolving credit facility. These transactions, supported by a significant portion of its lenders, include the exchange and repayment of term loans, establishment of a new accounts receivable securitization facility, and a new revolving credit facility. The initiative is designed to provide Scripps with the liquidity needed to continue its strategic initiatives and improve its financial position, with the transactions expected to be completed by April 2025.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.