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

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Grupo Televisa, S.A.B.

(NYSE:TV)

Rating:57Neutral

Price Target:

$2.50

▲(20.19%Upside)

Grupo Televisa's overall score is primarily affected by its financial performance challenges, including declining revenue and high leverage. Technical analysis provides some positive signals, and operational efficiencies noted in the earnings call suggest potential for improvement. However, the valuation and persistent financial issues weigh heavily on the stock's attractiveness.

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.

Revenue Diversification

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

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. SPDR S&P 500 ETF (SPY)

Market Cap

$998.16M

Dividend Yield4.37%

Average Volume (3M)1.57M

Price to Earnings (P/E)―

Beta (1Y)0.83

Revenue Growth-21.75%

EPS Growth5.93%

CountryUS

Employees27,077

SectorCommunication Services

Sector Strength83

IndustryTelecommunications Services

Share Statistics

EPS (TTM)0.03

Shares Outstanding477,500,000

10 Day Avg. Volume991,544

30 Day Avg. Volume1,566,024

Financial Highlights & Ratios

PEG Ratio-2.13

Price to Book (P/B)0.21

Price to Sales (P/S)0.00

P/FCF Ratio1.47

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$2.27

Price Target Upside9.13% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering3

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

Company DescriptionGrupo Televisa, S.A.B. is a leading media and telecommunications company based in Mexico. It operates in various sectors including television production and broadcasting, cable and satellite services, and publishing. Televisa is renowned for its extensive content production capabilities, delivering a wide array of entertainment, news, and sports programming. The company also owns and operates multiple television networks and channels, making it a dominant player in the Spanish-speaking media market.

How the Company Makes MoneyGrupo Televisa makes money through multiple revenue streams. Its primary source of income is advertising sales from its television networks and digital platforms, which are bolstered by its high viewership and popular content. Additionally, Televisa generates revenue from subscription fees through its cable and satellite television services, offering a broad range of channels and premium content packages. The company also earns from content licensing and distribution agreements, where it sells rights to broadcast its programming to other networks and platforms globally. Furthermore, Televisa benefits from strategic partnerships and ventures, such as its collaboration with Univision in the United States, which expands its reach and monetization opportunities in the lucrative U.S. Hispanic market.

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

Earnings Call Date:Apr 29, 2025

(Q1-2025)

% Change Since: 8.33%|

Next Earnings Date:Jul 22, 2025

Earnings Call Sentiment Neutral

The earnings call presented a mixed performance with strong operational efficiencies and profitability improvements in some segments, but faced significant revenue declines and subscriber losses in others.

Q1-2025 Updates

Positive Updates

Improved Operating Margins

Consolidated operating segment income margin expanded by 100 basis points year-on-year, driven by an 8% reduction in OpEx.

DTC Profitability and Growth

TelevisaUnivision's DTC business, ViX, achieved profitability and showed double-digit growth in both AVOD and SVOD tiers.

Resilient EBITDA Growth

TelevisaUnivision's adjusted EBITDA increased by 5% year-on-year, with a 10% increase excluding FX impacts, despite an 11% revenue decline.

Debt Reduction and Leverage Improvement

Grupo Televisa reduced leverage ratio from 2.5x to 2.4x EBITDA, paying off $219 million in senior notes.

Negative Updates

Revenue Decline

TelevisaUnivision's first quarter revenue decreased by 11% year-on-year due to the absence of the Super Bowl broadcast and FX impacts.

Subscriber Losses in Sky and Cable

Sky lost 331,000 revenue-generating units, and Cable saw a 3% decrease in net revenue from residential operations.

Decline in Advertising Revenue

Consolidated advertising revenue decreased by 13% year-on-year, with a 6% decline in the U.S. excluding the Super Bowl.

Enterprise Revenue Decline

Net revenue from enterprise operations declined by 4.5% year-on-year, due to the conclusion of a significant government contract.

Company Guidance

In the first quarter of 2025, Grupo Televisa and TelevisaUnivision demonstrated notable progress across various financial metrics. Grupo Televisa focused on operational efficiencies, with an OpEx reduction of around 8% year-on-year, contributing to an expansion of the consolidated operating segment income margin by approximately 100 basis points. The company also reported a 5.7% year-on-year decline in segment revenue to MXN15.1 billion, while operating segment income fell by 3.1% to MXN5.7 billion. Meanwhile, TelevisaUnivision achieved a 5% increase in adjusted EBITDA despite an 11% drop in revenue, due to proactive cost optimization measures. The company's leverage ratio improved slightly from 5.9x to 5.8x EBITDA, while Grupo Televisa's leverage ratio decreased from 2.5x to 2.4x EBITDA, supported by a free cash flow generation of around MXN2.2 billion. Both entities continue to focus on strategic integrations and cost efficiencies to drive future profitability and shareholder value.

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

Summary

Grupo Televisa is experiencing significant financial challenges with declining revenues, persistent net losses, and high leverage. While the company has a large cash reserve providing some liquidity, the absence of operating and free cash flows raises serious concerns about future financial stability.

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.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
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
EBITDA	16.35B	22.99B	18.53B	32.97B	27.69B
Net Income	-8.25B	-8.42B	44.71B	6.06B	-1.25B
Balance Sheet
Total Assets	251.48B	262.67B	299.11B	292.90B	271.25B
Cash, Cash Equivalents and Short-Term Investments	47.49B	32.84B	51.14B	25.79B	29.06B
Total Debt	108.34B	95.83B	113.61B	135.47B	131.85B
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	21.95B	-1.38B	-6.65B	4.23B	11.79B
Operating Cash Flow	32.42B	15.20B	12.47B	29.40B	33.16B
Investing Cash Flow	-9.68B	-15.76B	42.70B	-19.04B	-15.35B
Financing Cash Flow	-9.28B	-17.75B	-29.77B	-13.84B	-16.20B

Grupo Televisa, S.A.B. Technical Analysis

Technical Analysis Sentiment

Neutral

Last Price2.08

Price Trends

50DMA

2.08

Negative

100DMA

1.91

Positive

200DMA

1.96

Positive

Market Momentum

MACD

>-0.01

Positive

RSI

42.03

Neutral

STOCH

12.84

Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TV, the sentiment is Neutral. The current price of 2.08 is below the 20-day moving average (MA) of 2.25, below the 50-day MA of 2.08, and above the 200-day MA of 1.96, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 42.03 is Neutral, neither overbought nor oversold. The STOCH value of 12.84 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 1 New Risks

We are subject to a variety of global laws, regulations, and rules related to privacy and personal data protection, which are evolving, and increased public scrutiny of privacy and security issues could result in increased government regulation, industry standards, and other legal obligations that could adversely affect our business. Q4, 2022

Grupo Televisa, S.A.B. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (62)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VIV	77 Outperform	$18.01B	17.75	7.95%	4.47%	-5.69%	-0.05%
TKC	77 Outperform	$5.11B	11.89	6.74%	9.46%	14.09%	-11.43%
AMX	71 Outperform	$52.32B	31.31	8.54%	4.58%	0.19%	-49.68%
Sector *	62 Neutral	$41.14B	-1.94	-12.05%	4.72%	2.10%	-69.66%
TEF	59 Neutral	$29.53B	―	-0.55%	8.86%	-2.29%	-182.68%
TEO	58 Neutral	$3.97B	19.28	3.99%	―	-12.77%	40.80%
TV	57 Neutral	$998.16M	―	-7.49%	4.37%	-21.75%	5.93%

* Communication Services Sector Average

Performance Comparison

Grupo Televisa, S.A.B.

2.08

-0.23

-9.96%

AMX

America Movil

17.11

0.03

0.18%

TEO

Telecom Argentina

9.06

2.56

39.38%

VIV

Telefonica Brasil

11.05

2.69

32.18%

TEF

Telefonica

5.18

0.88

20.47%

TKC

Turkcell Iletisim

5.77

-2.11

-26.78%

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: Jul 01, 2025