Grupo Televisa, S.A.B. (TV) AI Stock Analysis

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Grupo Televisa, S.A.B.

(NYSE:TV)

48Neutral

Grupo Televisa's financial health is under pressure due to declining revenues, high leverage, and liquidity concerns. Despite strategic improvements noted in the earnings call, such as the profitability of the ViX platform and successful restructuring, the stock remains under technical pressure with a bearish trend. Valuation metrics also suggest caution with a negative P/E ratio and high dividend yield.

Positive Factors

Cost Management

A weaker peso by itself would benefit margins given the mismatch between U.S. advertising and distribution revenues vs. peso programming costs.

International Revenue Exposure

Peso revenue exposure from a U.S. investor perspective is alleviated by having a significant portion of TelevisaUnivision revenues and advertising attributable to the U.S. market rather than Mexico.

Negative Factors

Economic Slowdown Risk

Any economic slowdown dampening consumer product, financial services, automotive, and entertainment categories with high Hispanic market appeal would be most significant to TelevisaUnivision.

Tariff Impact

The new 25% tariff implementations are admittedly a major impediment to remedying Televisa’s chronic stock undervaluation.

Grupo Televisa, S.A.B. (TV) vs. S&P 500 (SPY)

Market Cap

$789.57M

Dividend Yield5.45%

Average Volume (3M)2.52M

Price to Earnings (P/E)―

Beta (1Y)0.97

Revenue Growth-17.83%

EPS Growth44.72%

CountryUS

Employees29,373

SectorCommunication Services

Sector Strength77

IndustryTelecommunications Services

Share Statistics

EPS (TTM)-0.70

Shares Outstanding477,500,000

10 Day Avg. Volume2,174,062

30 Day Avg. Volume2,517,184

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)0.99

Price to Cash Flow (P/CF)N/A

P/FCF Ratio0.00

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$7.00

Price Target Upside311.76% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering1

Grupo Televisa, S.A.B. Business Overview & Revenue Model

Company DescriptionGrupo Televisa, S.A.B. (TV) is a leading Mexican multimedia company with a significant presence in the Spanish-speaking world. It operates through various segments, including content production and distribution, broadcasting, cable television, satellite pay television, and publishing. Televisa is renowned for its production of television programs, telenovelas, sports, news, and entertainment content, which it distributes through its extensive network of television channels, digital platforms, and third-party networks.

How the Company Makes MoneyGrupo Televisa makes money primarily through advertising, subscriptions, and content licensing. Advertising revenue is generated from selling commercial airtime on its television channels and digital platforms. Subscription fees are collected through its cable and satellite television services, offering customers a range of channels and on-demand content. Additionally, Televisa earns from licensing its content to third-party broadcasters and streaming platforms worldwide. Partnerships with other media companies and joint ventures also contribute to its revenue, as does its publishing business, which includes the sale of magazines and other print media.

Grupo Televisa, S.A.B. Financial Statement Overview

Summary

Grupo Televisa is facing significant financial challenges, including declining revenue, persistent net losses, and high leverage. The recent absence of operating and free cash flow raises liquidity concerns, despite a large cash cushion.

Income Statement

Negative

Grupo Televisa's income statement shows declining revenue and net income over the years, with a significant drop in revenue from 2023 to 2024 and persistent net losses. The gross profit margin remains stable but low, and the EBIT is negative in the most recent year, indicating operational challenges. Revenue growth is negative, reflecting declining sales performance.

Balance Sheet

Neutral

The balance sheet indicates a high debt-to-equity ratio, suggesting substantial leverage, which could pose risks if revenue continues to decline. Stockholders' equity has decreased, impacting the equity ratio negatively. Despite these challenges, the company maintains significant cash reserves, which provide some cushion against financial instability.

Cash Flow

Negative

The cash flow statement shows a concerning trend with zero reported operating and free cash flows in the latest year, which raises liquidity concerns. Historically, free cash flow has been volatile and mostly negative, which aligns with the ongoing financial challenges and operational losses.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
62.26B	73.77B	75.53B	103.52B	97.36B
	Gross Profit
21.14B	24.87B	26.72B	43.96B	40.37B
	EBIT
-2.84B	2.66B	4.42B	22.18B	17.53B
	EBITDA
16.35B	22.99B	18.53B	32.97B	27.69B
	Net Income Common Stockholders
-8.25B	-8.42B	44.71B	6.06B	-1.25B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
47.49B	32.84B	51.14B	25.79B	29.06B
	Total Assets
251.48B	262.67B	299.11B	292.90B	271.25B
	Total Debt
108.34B	95.83B	113.61B	135.47B	131.85B
	Net Debt
62.14B	63.24B	62.48B	109.88B	102.79B
	Total Liabilities
139.82B	128.00B	154.98B	197.11B	183.31B
	Stockholders Equity
102.42B	119.28B	128.31B	80.49B	73.44B
Cash Flow		Free Cash Flow
0.00	-1.38B	-6.65B	4.23B	11.79B
	Operating Cash Flow
0.00	15.20B	12.47B	29.40B	33.16B
	Investing Cash Flow
0.00	-15.76B	42.70B	-19.04B	-15.35B
	Financing Cash Flow
0.00	-17.75B	-29.77B	-13.84B	-16.20B

Grupo Televisa, S.A.B. Technical Analysis

Technical Analysis Sentiment

Negative

Last Price1.70

Price Trends

50DMA

1.89

Negative

100DMA

1.89

Negative

200DMA

2.08

Negative

Market Momentum

MACD

-0.05

Negative

RSI

43.84

Neutral

STOCH

41.67

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TV, the sentiment is Negative. The current price of 1.7 is below the 20-day moving average (MA) of 1.73, below the 50-day MA of 1.89, and below the 200-day MA of 2.08, indicating a bearish trend. The MACD of -0.05 indicates Negative momentum. The RSI at 43.84 is Neutral, neither overbought nor oversold. The STOCH value of 41.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TV.

Grupo Televisa, S.A.B. Risk Analysis

Grupo Televisa, S.A.B. disclosed 39 risk factors in its most recent earnings report. Grupo Televisa, S.A.B. 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

Grupo Televisa, S.A.B. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (58)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VIV	77 Outperform	$13.95B	13.78	7.95%	2.86%	-0.47%	1.69%
TKC	75 Outperform	$5.15B	11.96	6.76%	2.51%	8.78%	-21.85%
AMX	67 Neutral	$42.45B	27.89	7.78%	3.62%	3.15%	-63.12%
TEF	64 Neutral	$24.82B	―	<0.01%	5.32%	1.18%	―
TEO	63 Neutral	$5.66B	4.72	23.27%	―	-26.74%	―
Sector *	58 Neutral	$25.97B	3.12	-10.67%	4.37%	2.16%	-43.01%
TV	48 Neutral	$789.57M	―	-6.74%	5.45%	-17.83%	44.72%

* Communication Services Sector Average

Performance Comparison

Grupo Televisa, S.A.B.

1.70

-1.43

-45.69%

AMX

America Movil

14.19

-3.32

-18.96%

TEO

Telecom Argentina

11.07

3.70

50.20%

VIV

Telefonica Brasil

8.58

-0.45

-4.98%

TEF

Telefonica

4.55

0.61

15.48%

TKC

Turkcell Iletisim

6.08

0.72

13.43%

Grupo Televisa, S.A.B. Earnings Call Summary

Earnings Call Date: Feb 20, 2025 | % Change Since: -17.87% | Next Earnings Date: Apr 29, 2025

Earnings Call Sentiment Neutral

The earnings call reflects a mix of achievements and challenges. Highlights include successful restructuring and integration efforts, profitable growth in the direct-to-consumer segment, and strong free cash flow generation. However, these achievements are tempered by declines in overall revenue and subscriber losses in key segments. Despite these challenges, the company has shown resilience and potential for future growth.

Highlights

Successful Corporate Restructuring

Grupo Televisa implemented a corporate restructuring process at its Cable segment, improving profitability by over 300 basis points to 39% in 2024 compared to the third quarter of 2023.

Integration of Sky and Cable Segment

Sky was integrated with the Cable segment, leading to a 10% year-on-year reduction in OpEx and a 44% decline in CapEx deployment, resulting in a 3% increase in operating cash flow.

Spin-off of Non-Core Businesses

The spin-off of Ollamani was completed, streamlining operations and unlocking shareholder value with a market cap of $270 million.

Profitable Direct-to-Consumer Business

TelevisaUnivision's ViX streaming platform became a $1 billion business and turned profitable in Q3 2024, with user and subscriber growth over 20%.

Strong Free Cash Flow Generation

Grupo Televisa generated over MXN10.1 billion in free cash flow in 2024, representing a 43% yield for consolidated operations.

TelevisaUnivision Revenue Growth

TelevisaUnivision's full-year revenue increased by 3% to $5.1 billion, marking its fourth consecutive year of top-line growth.

Lowlights

Decline in Consolidated Revenue

Grupo Televisa's consolidated revenue declined by 6% year-on-year to MXN62.3 billion, mainly due to lower revenue at Sky.

Subscriber Losses in Cable and Sky

The company lost 85,900 broadband subscribers, 95,000 video subscribers in the Cable segment, and 270,000 revenue-generating units at Sky in Q4 2024.

Decrease in Operating Segment Income

Operating segment income decreased by 7.5% year-on-year to MXN23.2 billion, primarily driven by lower revenue at Sky.

Company Guidance

In the fourth quarter of 2024, Grupo Televisa reported several key metrics demonstrating significant progress in their strategic goals and financial performance. The company successfully streamlined its Cable segment, achieving an increase in profitability by over 300 basis points to 39% compared to the third quarter of 2023. Cable investments were optimized by 37% to nearly $400 million, with a CapEx to sales ratio of 15.6%, down by 740 basis points from 2023. Operating cash flow for the Cable segment reached over MXN11 billion, growing by almost 38% year-on-year and accounting for more than 23% of sales. The integration of Sky with the Cable segment resulted in a 10% reduction in OpEx, while Sky's operating cash flow increased by 3% year-on-year, accounting for almost 21% of sales. Grupo Televisa's consolidated operating cash flow grew by over 28% year-on-year to MXN14.3 billion, representing nearly 23% of sales, with a consolidated operating cash flow margin increase of 600 basis points. The spin-off of non-core businesses resulted in a newly listed company with a market cap of approximately $270 million. Additionally, TelevisaUnivision's DTC business, ViX, achieved profitability and generated $1 billion in revenue, with a 20% increase in users and subscribers. The company also executed a significant optimization program, reducing its workforce by 8% to save over $400 million in operating expenses for 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.