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TEGNA (TGNA)
NYSE:TGNA
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TEGNA (TGNA) AI Stock Analysis

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TGNA

TEGNA

(NYSE:TGNA)

Rating:73Outperform
Price Target:
$23.50
▲(10.85% Upside)
TEGNA's overall stock score reflects a stable financial foundation and strong technical momentum. The merger agreement with Nexstar Media is a significant positive, but challenges in revenue and cash flow growth, along with a challenging advertising market, temper the outlook.
Positive Factors
CEO Initiatives
There are real signs of underlying growth progress thanks to many of the initiatives put in place by still relatively new CEO Mike Steib.
Dividend Yield
The company's $0.50 dividend provides a 3.3% current yield.
Technology Investments
The company has invested in technology efforts to improve its ad revenue generation.
Negative Factors
Advertising Challenges
The advertising headaches seem likely to persist, affecting the company's performance.
M&A Inertia
Investors grew a little bit tired of the M&A inertia, even with incremental deregulation on the calendar likely next month.
Revenue Decline
Third quarter guidance calls for an 18-20% revenue decline driven mostly by comparison issues from political and the Olympics.

TEGNA (TGNA) vs. SPDR S&P 500 ETF (SPY)

TEGNA Business Overview & Revenue Model

Company DescriptionTEGNA Inc. is a media company based in the United States that operates a portfolio of television stations and digital media properties. The company focuses on delivering local news and entertainment content across its platforms, which include 62 television stations in 51 markets, along with various digital channels and services. TEGNA is committed to serving the public interest through journalism and community engagement, leveraging technology to enhance its content delivery.
How the Company Makes MoneyTEGNA generates revenue primarily through advertising sales, which account for a significant portion of its earnings. Local and national advertisers purchase airtime on its television stations to reach specific demographics, contributing to the company's advertising revenue. Additionally, TEGNA earns money through retransmission consent fees, where cable and satellite providers pay to carry the company's broadcast signals. The company also generates revenue from its digital platforms, including its websites and mobile applications, which attract both advertising and subscription-based revenue. Partnerships with various content providers and technology companies further enhance TEGNA's revenue streams, enabling it to expand its reach and innovate in content delivery.

TEGNA Earnings Call Summary

Earnings Call Date:Aug 07, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 05, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mix of achievements and challenges. While TEGNA showcased strong digital growth, cost efficiency, and favorable regulatory changes, these positives were counterbalanced by revenue declines, changes in reseller partnerships impacting AMS revenue, and flat distribution revenue. The expectations for Q3 also indicate significant challenges in the advertising market.
Q2-2025 Updates
Positive Updates
Operational Cost Efficiency
TEGNA achieved an 80% completion rate towards its target of $90 million to $100 million in annualized core non-programming savings by the end of 2025. They reported a 3% year-over-year decrease in non-GAAP expenses, driven by operational cost-cutting initiatives, primarily in compensation and outside services.
Strong Digital Growth
TEGNA reported strong double-digit growth year-over-year in its owned and operated digital products for the third consecutive quarter, highlighting the success of its digital strategy.
Positive Regulatory Developments
Significant progress is being made on the regulatory front, with the Eighth U.S. Circuit Court of Appeals vacating the FCC's top 4 prohibition rule. This development is seen as a step forward for TEGNA's strategic options in the broadcasting landscape.
Successful Capital Allocation
TEGNA remains committed to returning 40% to 60% of adjusted free cash flow to shareholders over 2024-2025. They executed a $250 million partial redemption of outstanding senior notes, which contributes to lowering interest expense guidance for 2025.
Negative Updates
Revenue Decline
Total company revenue for Q2 decreased by 5% year-over-year to $675 million, primarily due to lower political advertising revenue and softer advertising and marketing services (AMS).
Adverse Impact from Premion Changes
The exit of Gray Media from its equity position as a reseller partner of Premion resulted in a 200 basis points negative impact on AMS revenue comparisons, affecting both Q2 and future quarters.
Flat Distribution Revenue
Distribution revenue remained flat year-over-year at $370 million, attributed to subscriber declines partially offset by contractual rate increases.
Challenging Advertising Market
TEGNA expects a significant 18% to 20% decline in total company revenue year-over-year for Q3, impacted by cyclical factors such as the absence of political and Summer Olympic advertising and continued macroeconomic headwinds.
Company Guidance
In the Q2 2025 Earnings Conference Call, TEGNA Inc. provided guidance for the third quarter and discussed their ongoing strategic initiatives. For Q3, TEGNA expects total company revenue to decline 18% to 20% year-over-year, primarily due to the absence of political and Summer Olympic advertising compared to the previous year. They also anticipate non-GAAP operating expenses to decline 2% to 3% year-over-year. TEGNA reaffirmed its adjusted free cash flow guidance of $900 million to $1.1 billion over the 2024-2025 period and lowered its full-year 2025 interest expense guidance to $160 million to $165 million after redeeming $250 million of senior notes. The company is focused on leveraging technology, automation, and AI to improve operations and cut costs, with a goal of achieving $90 million to $100 million in annualized core non-programming savings by the end of 2025.

TEGNA Financial Statement Overview

Summary
TEGNA's financial performance is stable with strong profitability and operational efficiency. However, declining revenue and free cash flow growth rates are concerns that could impact future performance.
Income Statement
70
Positive
TEGNA's income statement shows a mixed performance. The company has maintained a healthy gross profit margin and net profit margin, indicating good cost management and profitability. However, the revenue growth rate has been negative in recent periods, which is a concern. The EBIT and EBITDA margins remain strong, suggesting operational efficiency, but the declining revenue trend could pose risks if not addressed.
Balance Sheet
65
Positive
The balance sheet reflects a stable financial position with a manageable debt-to-equity ratio, indicating balanced leverage. The return on equity is solid, showcasing effective use of equity to generate profits. However, the equity ratio suggests moderate reliance on debt financing, which could be a risk if market conditions change unfavorably.
Cash Flow
60
Neutral
Cash flow analysis reveals some challenges. The free cash flow growth rate has been negative recently, which could impact future investments and debt servicing. The operating cash flow to net income ratio is reasonable, indicating decent cash generation from operations. However, the declining free cash flow growth is a concern that needs monitoring.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue3.03B3.10B2.91B3.28B2.99B2.94B
Gross Profit1.28B1.35B1.19B1.59B1.39B1.43B
EBITDA855.27M1.06B892.69M1.13B940.57M1.00B
Net Income453.15M599.82M476.72M629.91M477.00M481.83M
Balance Sheet
Total Assets7.31B7.33B7.00B7.33B6.92B6.85B
Cash, Cash Equivalents and Short-Term Investments756.54M693.21M361.04M551.68M56.99M40.97M
Total Debt3.13B3.14B3.16B3.15B3.32B3.65B
Total Liabilities4.21B4.30B4.28B4.24B4.38B4.78B
Stockholders Equity3.09B3.00B2.70B3.07B2.52B2.06B
Cash Flow
Free Cash Flow567.97M632.53M532.55M760.82M438.54M759.64M
Operating Cash Flow619.30M684.97M587.25M812.15M501.61M805.14M
Investing Cash Flow-54.13M31.77M-27.99M-51.23M-69.26M-59.52M
Financing Cash Flow-254.35M-384.56M-749.90M-266.23M-416.33M-734.05M

TEGNA Technical Analysis

Technical Analysis Sentiment
Positive
Last Price21.20
Price Trends
50DMA
17.98
Positive
100DMA
17.21
Positive
200DMA
17.56
Positive
Market Momentum
MACD
1.09
Negative
RSI
69.34
Neutral
STOCH
74.75
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TGNA, the sentiment is Positive. The current price of 21.2 is above the 20-day moving average (MA) of 19.60, above the 50-day MA of 17.98, and above the 200-day MA of 17.56, indicating a bullish trend. The MACD of 1.09 indicates Negative momentum. The RSI at 69.34 is Neutral, neither overbought nor oversold. The STOCH value of 74.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TGNA.

TEGNA Risk Analysis

TEGNA disclosed 30 risk factors in its most recent earnings report. TEGNA 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

TEGNA Peers Comparison

Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
$3.41B7.6315.43%2.36%5.89%14.89%
66
Neutral
$667.06M4.077.23%5.22%7.03%1727.49%
61
Neutral
$264.12M6.158.30%5.25%
60
Neutral
$44.01B4.39-12.81%4.08%1.86%-42.71%
58
Neutral
$297.13M86.54%3.18%62.89%
52
Neutral
$1.21B14.1225.83%6.65%
48
Neutral
$1.83B
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TGNA
TEGNA
21.20
7.62
56.11%
SSP
E. W. Scripps Company Class A
2.99
1.12
59.89%
GTN
Gray Television
6.13
1.53
33.26%
IHRT
iHeartMedia
2.13
0.63
42.00%
FUBO
fuboTV
3.53
1.88
113.94%
NMAX
Newsmax Inc. Class B
14.19
-218.81
-93.91%

TEGNA Corporate Events

Executive/Board Changes
TEGNA Alters By-laws, Adjusts Director Retirement Age
Neutral
Aug 29, 2025

On August 26, 2025, TEGNA Inc.’s Board of Directors approved amendments to the company’s By-laws, which are effective immediately. The changes eliminate the mandatory retirement age of seventy-three for both Non-Executive Directors and those who have served as CEO. Instead, directors reaching the age of seventy-five must offer to resign, with the Governance Committee advising the Board on whether to accept or reject the resignation. If rejected, directors must continue to offer their resignation annually.

M&A TransactionsBusiness Operations and Strategy
TEGNA Enters Merger Agreement with Nexstar Media
Positive
Aug 19, 2025

On August 18, 2025, TEGNA Inc. entered into a merger agreement with Nexstar Media Group, where Nexstar will acquire all outstanding shares of TEGNA for $22.00 per share in a transaction valued at $6.2 billion. This merger is expected to enhance Nexstar’s position as a leading local media company, increase its operational and geographic diversity, and drive increased profitability and returns for its shareholders. The transaction, approved by TEGNA’s board, aims to preserve local journalism and strengthen the company’s ability to compete with larger media and tech companies. The merger is subject to customary closing conditions, including regulatory and shareholder approvals, and is expected to close by the second half of 2026.

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: Aug 22, 2025