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E. W. Scripps Company Class A (SSP)
NASDAQ:SSP
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E. W. Scripps Company Class A
(NASDAQ:SSP)
Rating:76Outperform
Price Target:
$4.00
▲(23.46%Upside)
Positive Factors
Financial Performance
E.W. Scripps managed to beat consensus across the board in 1Q and guided slightly ahead on EBITDA in 2Q, with flat distribution and Networks revenue growth and a double-digit decline in Networks expenses.
Regulatory Environment
The deregulation environment is seen as an opportunity for swaps and potential asset sales, which should lead to deleveraging.
Negative Factors
Debt Maturity
There is still a relatively large maturity wall in 2027, although management is addressing it with lenders.
Revenue Risk
ION is expected to account for almost 40% of total revenue, presenting incremental national risk that others do not have.
E. W. Scripps Company Class A (SSP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$311.37M
Dividend YieldN/A
Average Volume (3M)927.81K
Price to Earnings (P/E)3.8
Beta (1Y)0.28
Revenue Growth6.28%
EPS GrowthN/A
CountryUS
Employees5,000
SectorCommunication Services
Sector Strength85
IndustryBroadcasting
Share Statistics
EPS (TTM)-0.22
Shares Outstanding75,777,756
10 Day Avg. Volume945,212
30 Day Avg. Volume927,811
Financial Highlights & Ratios
PEG Ratio-0.31
Price to Book (P/B)0.23
Price to Sales (P/S)0.00
P/FCF Ratio1.16
Enterprise Value/Market Cap9.62
Enterprise Value/Revenue0.31
Enterprise Value/Gross Profit2.66
Enterprise Value/Ebitda2.13
Forecast
1Y Price Target
$7.33Price Target Upside126.23% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering4
E. W. Scripps Company Class A Business Overview & Revenue Model
Company DescriptionThe E.W. Scripps Company, Class A (SSP), is a prominent American media conglomerate with a rich history in journalism and broadcasting. The company primarily operates in the television broadcasting and national media sectors, providing news, information, and entertainment content to audiences across the United States. Its core products include a portfolio of local and national television stations, as well as digital media properties that cater to a variety of interests and demographics.
How the Company Makes MoneyThe E.W. Scripps Company generates revenue through several key streams. The primary source of income is advertising revenue from its local and national television stations, which attract advertisers seeking to reach a broad audience. The company also earns money through retransmission fees paid by cable and satellite providers for carrying its channels. Additionally, Scripps has a growing digital media presence, which contributes to its earnings through online advertising and subscription services. Strategic partnerships and acquisitions further enhance its revenue potential by expanding its content offerings and audience reach.
E. W. Scripps Company Class A Earnings Call Summary
Earnings Call Date:May 08, 2025
(Q1-2025)
| % Change Since: 25.10%|
Next Earnings Date:Aug 07, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted significant achievements in margin improvement and debt refinancing, complemented by strong growth in connected TV and recognition for content quality. However, these positives were partially offset by declines in local media revenue and distribution, along with a flat revenue outlook for Scripps Networks. The overall sentiment reflects both achievements and challenges faced by the company.Q1-2025 Updates
Positive Updates
Successful Completion of Retransmission Negotiations
Completed retransmission negotiations covering 25% of legacy PayTV households, indicating strong progress in operational goals.
Improved Margins in Scripps Networks
Delivered 870 basis points of margin improvement in the Scripps Networks division, surpassing the expected range of 400 to 600 basis points.
Strong Connected TV Revenue Growth
Connected TV revenue increased by 42%, fueled by effective sales strategies and the popularity of sports content like the National Women's Soccer League.
Debt Refinancing and Reduction
Closed refinancing transactions and retired or extended maturity of $1.5 billion in debt, reducing leverage ratio to 4.9 times.
Recognition for News Teams
Scripps news teams received multiple prestigious journalism awards, including eight national Emmy nominations, highlighting the company's strength in content creation.
Growth in Women's Sports Programming
New broadcast partnerships with the WNBA's Las Vegas Aces and the introduction of new sports properties like the SI Women's Games emphasize strong cultural connections and growth in sports programming.
Negative Updates
Decline in Local Media Revenue
Local Media division revenue decreased by 7.8% compared to the prior year, with core advertising revenue down by 3% due to economic uncertainty.
Decrease in Local Distribution Revenue
Local distribution revenue was down 5% year over year, indicating challenges in maintaining subscriber levels.
Flat Revenue Expectation for Scripps Networks
Despite strong CTV growth, Scripps Networks division revenue is expected to be flat in Q2, reflecting challenges in sustaining overall growth.
Loss in 'Other' Segment
Reported a loss of $6.4 million in the 'Other' segment, indicating ongoing challenges in non-core business areas.
EPS Loss for the Quarter
Reported an EPS loss of $0.22 for the quarter, partially impacted by a preferred stock dividend and a $4 million restructuring charge.
Company Guidance
During the First Quarter 2025 E.W. Scripps Company Earnings Conference Call, the company provided several key metrics and guidance for the upcoming periods. In Q1, the Local Media division saw a 7.8% revenue decline from the previous year, with core advertising revenue down 3% and local distribution revenue down 5%. Despite these challenges, the company reported a Local Media segment profit of $35 million, although this was down from $66 million in the election year of 2024. Looking ahead to Q2, the company expects Local Media division revenue to decrease in the high single-digit range, with core revenue down in the low single-digit range. The Scripps Networks division reported a Q1 revenue of $198 million, down 5% from the previous year, but with a notable 42% increase in Connected TV revenue. The division achieved a 6% expense reduction, leading to a network segment profit of $64 million, up from $49.7 million in the year-ago quarter. For Q2, Scripps Networks expects revenue to remain flat and expenses to decrease in the low double-digit range. The company also completed a refinancing transaction in April, retiring or extending the maturity of up to $1.5 billion of debt, which increased the blended cost of debt by less than 1%, positioning the company well through mid-2027. The company remains focused on debt and leverage reduction as their highest capital allocation priority.E. W. Scripps Company Class A Financial Statement Overview
Summary
The company shows solid revenue growth and effective cash flow management, but profitability challenges persist with moderate margins. High leverage indicates financial risk, though improving return on equity is a positive sign.Income Statement
The company exhibits a strong gross profit margin with TTM at 45.5% and a consistent EBIT margin around 16%. Revenue growth is volatile but trending positively with a recent 7.8% increase from 2023. However, the net profit margin is modest at 5.7% TTM, highlighting some profitability constraints.68
Positive
Balance Sheet
The debt-to-equity ratio stands at approximately 2.05, indicating a significant reliance on debt. While the return on equity improved to 10.7% TTM, the equity ratio remains low at 25.8%, suggesting moderate financial leverage but potential risk due to high liabilities.62
Positive
Cash Flow
Free cash flow growth is healthy at 12.7% TTM, and operating cash flow to net income ratio is robust at 2.25, indicating strong cash generation capabilities. However, the free cash flow to net income ratio of 1.9 suggests efficient cash utilization, yet further improvement is needed.70
Positive
| Breakdown | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
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 |
| EBITDA | 575.55M | -598.89M | 598.90M | 581.86M | 425.59M |
| Net Income | 146.22M | -947.78M | 195.90M | 122.71M | 153.56M |
Balance Sheet | |||||
| Total Assets | 5.20B | 5.41B | 6.43B | 6.66B | 4.86B |
| Cash, Cash Equivalents and Short-Term Investments | 23.85M | 35.32M | 18.03M | 66.22M | 576.02M |
| Total Debt | 2.69B | 3.05B | 2.87B | 3.15B | 2.98B |
| 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
Neutral
3.24
Price Trends
2.76
Positive
2.53
Positive
2.38
Positive
Market Momentum
0.25
Positive
51.19
Neutral
28.25
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SSP, the sentiment is Neutral. The current price of 3.24 is below the 20-day moving average (MA) of 3.31, above the 50-day MA of 2.76, and above the 200-day MA of 2.38, indicating a neutral trend. The MACD of 0.25 indicates Positive momentum. The RSI at 51.19 is Neutral, neither overbought nor oversold. The STOCH value of 28.25 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $311.37M | 3.76 | 11.23% | ― | 6.28% | ― | |
74 Outperform | $84.58M | 23.72 | 2.06% | 7.62% | -1.65% | -51.45% | |
70 Outperform | $575.77M | 2.23 | 9.92% | 6.20% | 9.08% | ― | |
62 Neutral | $40.93B | -1.67 | -12.06% | 3.96% | 2.10% | -69.66% | |
57 Neutral | $224.71M | ― | -82.15% | 8.10% | -66.94% | -52.19% | |
41 Neutral | $14.75M | ― | -243.54% | ― | -2.92% | -165.37% |
* Communication Services Sector Average
Performance Comparison
SSP
E. W. Scripps Company Class A
3.24
0.01
0.31%
CMLS
Cumulus Media
0.12
-1.93
-94.15%
EVC
Entravision
2.41
0.57
30.98%
GTN
Gray Television
5.16
-0.07
-1.34%
SGA
Saga Communications
13.22
-0.73
-5.23%
E. W. Scripps Company Class A Corporate Events
M&A TransactionsBusiness Operations and Strategy
E. W. Scripps and Gray Media Station Swap Deal
Neutral
Jul 7, 2025
On July 7, 2025, The E.W. Scripps Company and Gray Media, Inc. entered into agreements to swap television stations across five markets, with Scripps acquiring stations in Colorado and Idaho, and Gray acquiring stations in Michigan and Louisiana. This strategic exchange, which involves no cash consideration, aims to enhance market scale and financial stability for both companies, allowing them to expand local news and sports programming. The transaction is expected to close in the fourth quarter of 2025, pending regulatory approvals.
The most recent analyst rating on (SSP) stock is a Buy with a $11.00 price target. To see the full list of analyst forecasts on E. W. Scripps Company Class A stock, see the SSP Stock Forecast page.
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.