LSE:ITV

Stock Analysis Report

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Executive Summary

ITV plc, an integrated producer broadcaster, creates, owns, and distributes content on various platforms worldwide. More Details


Snowflake Analysis

Undervalued with reasonable growth potential.


Similar Companies

Share Price & News

How has ITV's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ITV's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-10.2%

ITV

-7.1%

GB Media

-3.9%

GB Market


1 Year Return

-52.0%

ITV

-40.2%

GB Media

-16.0%

GB Market

Return vs Industry: ITV underperformed the UK Media industry which returned -40.8% over the past year.

Return vs Market: ITV underperformed the UK Market which returned -16.3% over the past year.


Shareholder returns

ITVIndustryMarket
7 Day-10.2%-7.1%-3.9%
30 Day-1.2%-5.4%-3.9%
90 Day-16.5%-6.3%-3.1%
1 Year-51.1%-52.0%-38.1%-40.2%-12.6%-16.0%
3 Year-59.7%-64.5%-38.8%-47.7%-7.6%-18.9%
5 Year-68.6%-75.7%-38.5%-52.0%19.7%-7.2%

Price Volatility Vs. Market

How volatile is ITV's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is ITV undervalued compared to its fair value and its price relative to the market?

44.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ITV (£0.6) is trading below our estimate of fair value (£1.08)

Significantly Below Fair Value: ITV is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: ITV is good value based on its PE Ratio (8x) compared to the GB Media industry average (14x).

PE vs Market: ITV is good value based on its PE Ratio (8x) compared to the UK market (17.4x).


Price to Earnings Growth Ratio

PEG Ratio: ITV is good value based on its PEG Ratio (0.3x)


Price to Book Ratio

PB vs Industry: ITV is overvalued based on its PB Ratio (2.6x) compared to the GB Media industry average (0.8x).


Next Steps

Future Growth

How is ITV forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

26.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ITV's forecast earnings growth (26.3% per year) is above the savings rate (1.2%).

Earnings vs Market: ITV's earnings (26.3% per year) are forecast to grow faster than the UK market (23.6% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: ITV's revenue (5.1% per year) is forecast to grow slower than the UK market (6.3% per year).

High Growth Revenue: ITV's revenue (5.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ITV's Return on Equity is forecast to be high in 3 years time (36.3%)


Next Steps

Past Performance

How has ITV performed over the past 5 years?

-4.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ITV has high quality earnings.

Growing Profit Margin: ITV's current net profit margins (9.9%) are lower than last year (14.4%).


Past Earnings Growth Analysis

Earnings Trend: ITV's earnings have declined by 4.6% per year over the past 5 years.

Accelerating Growth: ITV's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: ITV had negative earnings growth (-32.4%) over the past year, making it difficult to compare to the Media industry average (-3.5%).


Return on Equity

High ROE: Whilst ITV's Return on Equity (31.43%) is high, this metric is skewed due to their high level of debt.


Next Steps

Financial Health

How is ITV's financial position?


Financial Position Analysis

Short Term Liabilities: ITV's short term assets (£1.6B) exceed its short term liabilities (£1.4B).

Long Term Liabilities: ITV's short term assets (£1.6B) exceed its long term liabilities (£1.4B).


Debt to Equity History and Analysis

Debt Level: ITV's debt to equity ratio (115.1%) is considered high.

Reducing Debt: ITV's debt to equity ratio has increased from 80.7% to 115.1% over the past 5 years.

Debt Coverage: ITV's debt is well covered by operating cash flow (49.5%).

Interest Coverage: ITV's interest payments on its debt are well covered by EBIT (18.6x coverage).


Balance Sheet


Next Steps

Dividend

What is ITV current dividend yield, its reliability and sustainability?

7.56%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate ITV's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate ITV's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if ITV's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if ITV's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: ITV is not paying a notable dividend for the UK market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of ITV's dividend in 3 years as they are not forecast to pay a notable one for the UK market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.0yrs

Average management tenure


CEO

Dame Carolyn McCall (59 yo)

2.67yrs

Tenure

UK£3,839,000

Compensation

Ms. Dame Carolyn J. McCall, DBE, has been Chief Executive and Director of ITV plc since joining on January 8, 2018 and also has been its Member of Management Board since January 2018. Prior to ITV, she was ...


CEO Compensation Analysis

Compensation vs Market: Dame Carolyn's total compensation ($USD4.89M) is above average for companies of similar size in the UK market ($USD2.30M).

Compensation vs Earnings: Dame Carolyn's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Dame Carolyn McCall
Chief Executive2.67yrsUK£3.84m0.0064%
£ 152.6k
Chris Kennedy
Group CFO1.58yrsUK£2.34m0.0022%
£ 52.7k
Kyla Mullins
General Counsel1.67yrsno datano data
Kevin Lygo
Director of Television & Member of Management Board10.08yrsno data0.037%
£ 876.7k
Kelly Williams
MD of Commercial & Member of Management Board5.75yrsno data0.011%
£ 265.5k
Rufus Radcliffe
Chief Marketing Officer3.42yrsno data0.0044%
£ 106.4k
David Osborn
Group HR Director & Member of Management Board5.92yrsno data0.0052%
£ 125.5k
Julian Bellamy
MD of ITV Studios & Member of Management Board4.58yrsno data0.0093%
£ 223.8k
Paul Moore
Group Communications2.67yrsno datano data
Mark Smith
Group Chief Technology Officer & Member of Management Board2.67yrsno data0.0042%
£ 99.9k
Pippa Foulds
Director of Investor Relationsno datano datano data
Simon Daglish
Deputy Managing Director of Commercialno datano datano data

3.0yrs

Average Tenure

58.5yo

Average Age

Experienced Management: ITV's management team is considered experienced (3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Dame Carolyn McCall
Chief Executive2.67yrsUK£3.84m0.0064%
£ 152.6k
Chris Kennedy
Group CFO1.58yrsUK£2.34m0.0022%
£ 52.7k
Duncan Painter
Independent Non-Executive Director2.33yrsUK£71.00kno data
Roger Faxon
Independent Non-Executive Director7.92yrsUK£74.00k0.0010%
£ 24.4k
Margaret Ewing
Independent Non-Executive Director2.92yrsUK£86.00k0.00094%
£ 22.5k
Edward H. Carter
Senior Independent Non-Executive Director1.92yrsUK£96.00kno data
Peter Bazalgette
Chairman4.33yrsUK£453.00k0.0089%
£ 214.0k
Mary Harris
Independent Non-Executive Director6.17yrsUK£94.00k0.0013%
£ 31.6k
Graham Cooke
Independent Non-Executive Director0.33yrno datano data
Anna Manz
Independent Non-Executive Director4.58yrsUK£77.00k0.00084%
£ 20.1k
Salman Amin
Independent Non-Executive Director3.67yrsUK£71.00k0.0013%
£ 30.4k

2.9yrs

Average Tenure

59yo

Average Age

Experienced Board: ITV's board of directors are not considered experienced ( 2.9 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: ITV insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

ITV plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: ITV plc
  • Ticker: ITV
  • Exchange: LSE
  • Founded: 1955
  • Industry: Broadcasting
  • Sector: Media
  • Market Cap: UK£2.396b
  • Shares outstanding: 4.00b
  • Website: https://www.itv.com

Number of Employees


Location

  • ITV plc
  • 2 Waterhouse Square
  • 140 Holborn
  • London
  • Greater London
  • EC1N 2AE
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ITVP.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJul 2000
IJ7DB (Deutsche Boerse AG)YesOrdinary SharesDEEURJul 2000
ITVLSE (London Stock Exchange)YesOrdinary SharesGBGBPJul 2000
ITVLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPJul 2000
ITVP.YOTCPK (Pink Sheets LLC)ADRUSUSDOct 2008

Biography

ITV plc, an integrated producer broadcaster, creates, owns, and distributes content on various platforms worldwide. It operates through Broadcast & Online, and ITV Studios segments. The Broadcast & Online ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/24 04:07
End of Day Share Price2020/09/23 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.