LSE:ITV

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Average dividend payer and fair value.


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


Market Performance


7 Day Return

1.6%

ITV

-0.5%

GB Media

-0.2%

GB Market


1 Year Return

-15.2%

ITV

21.3%

GB Media

-1.9%

GB Market

ITV underperformed the Media industry which returned 22.1% over the past year.

ITV underperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned -0.9% over the past year.


Share holder returns

ITVIndustryMarket
7 Day1.6%-0.5%-0.2%
30 Day16.0%6.1%3.5%
90 Day19.4%9.5%0.6%
1 Year-10.2%-15.2%25.5%21.3%2.9%-1.9%
3 Year-18.6%-31.3%19.3%5.3%20.7%6.2%
5 Year-18.3%-38.4%44.9%18.5%33.6%5.4%

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

1 month ago | Simply Wall St

A Closer Look At ITV plc's (LON:ITV) Impressive ROE

Valuation

Is ITV undervalued based on future cash flows and its price relative to the stock market?

33%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

ITV's share price is below the future cash flow value, and at a moderate discount (> 20%).

ITV's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

ITV is good value based on earnings compared to the GB Media industry average.

ITV is good value based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.


Price Based on Expected Growth

ITV is poor value based on expected growth next year.


Price Based on Value of Assets

ITV is overvalued based on assets compared to the GB Media industry average.


Next Steps

Future Growth

How is ITV expected to perform in the next 1 to 3 years based on estimates from 17 analysts?

9.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

ITV's revenue is expected to grow by 3.3% yearly, however this is not considered high growth (20% yearly).

ITV's earnings are expected to grow by 9% yearly, however this is not considered high growth (20% yearly).

ITV's revenue growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.

ITV's earnings growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.

ITV's earnings growth is expected to exceed the low risk savings rate of 1.2%.


Earnings per Share Growth Estimates


Future Return on Equity

ITV is expected to make outstanding use of shareholders’ funds in the future (Return on Equity greater than 40%).


Next Steps

Past Performance

How has ITV performed over the past 5 years?

-1.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

ITV's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.

ITV's 1-year earnings growth exceeds its 5-year average (6.5% vs -1.7%)

ITV's earnings growth has not exceeded the GB Media industry average in the past year (6.5% vs 7.2%).


Return on Equity

Whilst ITV made outstanding use of shareholders’ funds last year (Return on Equity greater than 40%), this is metric is skewed due to its high level of debt.


Return on Assets

ITV used its assets more efficiently than the GB Media industry average last year based on Return on Assets.


Return on Capital Employed

ITV's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is ITV's financial position?


Financial Position Analysis

ITV's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

ITV's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

ITV's level of debt (165.4%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (58.6% vs 165.4% today).

Debt is well covered by operating cash flow (36.7%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 19.5x coverage).


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 1.2x debt.


Next Steps

Dividend

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

6.32%

Expected Dividend Yield


Upcoming Dividend Payment

Purchase ITV before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield and Payments Analysis

ITV's pays a higher dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (2.02%).

ITV's dividend is above the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.44%).

ITV has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).

Dividend payments have increased, but ITV only paid a dividend in the past 8 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.4x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (1.7x coverage).


Next Steps

Management

What is the CEO of ITV's salary, the management and board of directors tenure and is there insider trading?

3.6yrs

Average management tenure


CEO

Carolyn McCall (58yo)

1.7yrs

Tenure

UK£3,712,740

Compensation

Ms. Carolyn J. McCall, DBE, is Chief Executive of ITV plc since January 2018. Prior to ITV, she was the Chief Executive Officer of easyJet plc since July 1, 2010. She served as the Chief Executive of Guard ...


CEO Compensation Analysis

Carolyn's remuneration is higher than average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.

Insufficient data for Carolyn to compare compensation growth.


Management Age and Tenure

3.6yrs

Average Tenure

57.5yo

Average Age

The tenure for the ITV management team is about average.


Board Age and Tenure

1.8yrs

Average Tenure

58yo

Average Age

The average tenure for the ITV board of directors is less than 3 years, this suggests a new board.


Insider Trading

More shares have been bought than sold by ITV individual insiders in the past 3 months, but not in substantial volumes.


Recent Insider Transactions

BuyUK£16,01219 Sep 19
Salman Amin
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares12,800
Max PriceUK£1.25
BuyUK£3,35301 Jul 19
Mary Harris
EntityIndividual
Role
Lead Director
Senior Lead Independent Director
Shares3,113
Max PriceUK£1.08
BuyUK£5,71728 May 19
Mark Smith
EntityIndividual
Role
Member of Management Board
Group Chief Technology Officer & Member of Management Board
Shares5,218
Max PriceUK£1.10
BuyUK£49,87315 May 19
Peter Bazalgette
EntityIndividual
Role
Chairman of the Board
Chairman
Shares43,748
Max PriceUK£1.14
BuyUK£19,95005 Apr 19
Salman Amin
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares15,000
Max PriceUK£1.33
BuyUK£3,35401 Apr 19
Mary Harris
EntityIndividual
Role
Lead Director
Senior Lead Independent Director
Shares2,649
Max PriceUK£1.27
BuyUK£3,46803 Jan 19
Mary Harris
EntityIndividual
Role
Lead Director
Senior Lead Independent Director
Shares2,766
Max PriceUK£1.25
BuyUK£12,00009 Nov 18
Salman Amin
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares7,960
Max PriceUK£1.51
BuyUK£4,28728 Sep 18
Mary Harris
EntityIndividual
Role
Lead Director
Senior Lead Independent Director
Shares2,727
Max PriceUK£1.57

Ownership Breakdown


Management Team

  • Carolyn McCall (58yo)

    Chief Executive

    • Tenure: 1.7yrs
    • Compensation: UK£3.71m
  • Kyla Mullins

    General Counsel

    • Tenure: 0yrs
  • Chris Kennedy (55yo)

    Group CFO

    • Tenure: 0.6yrs
  • Kevin Lygo (61yo)

    Director of Television & Member of Management Board

    • Tenure: 9.1yrs
  • Rufus Radcliffe

    Group Marketing & Research Director and Member of Management Board

    • Tenure: 2.4yrs
  • Julian Bellamy

    MD of ITV Studios & Member of Management Board

    • Tenure: 3.6yrs
  • Kelly Williams

    MD of Commercial & Member of Management Board

    • Tenure: 4.8yrs
  • Paul Moore (57yo)

    Group Communications

    • Tenure: 0yrs
  • David Osborn

    Human Resources Director & Member of Management Board

    • Tenure: 4.9yrs
  • Mark Smith

    Group Chief Technology Officer & Member of Management Board

    • Tenure: 0yrs

Board Members

  • Duncan Painter (49yo)

    Non-Executive Director

    • Tenure: 1.3yrs
    • Compensation: UK£43.00k
  • Roger Faxon (70yo)

    Non-Executive Director

    • Tenure: 6.9yrs
    • Compensation: UK£76.00k
  • Margaret Ewing (64yo)

    Non-Executive Director

    • Tenure: 1.9yrs
    • Compensation: UK£81.00k
  • Edward H. Carter (58yo)

    Senior Independent Non-Executive Director

    • Tenure: 0.9yrs
    • Compensation: UK£20.00k
  • Carolyn McCall (58yo)

    Chief Executive

    • Tenure: 1.7yrs
    • Compensation: UK£3.71m
  • Baz Bazalgette (65yo)

    Chairman

    • Tenure: 3.3yrs
    • Compensation: UK£453.00k
  • Chris Kennedy (55yo)

    Group CFO

    • Tenure: 0.6yrs
  • Mary Harris (53yo)

    Senior Lead Independent Director

    • Tenure: 1.3yrs
    • Compensation: UK£105.00k
  • Anna Manz (46yo)

    Non-Executive Director

    • Tenure: 3.6yrs
    • Compensation: UK£76.00k
  • Salman Amin (59yo)

    Non-Executive Director

    • Tenure: 2.7yrs
    • Compensation: UK£76.00k

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£5.130b
  • Shares outstanding: 4.00b
  • Website: https://www.itv.com

Number of Employees


Location

  • ITV plc
  • The London Television Centre
  • Upper Ground
  • London
  • Greater London
  • SE1 9LT
  • 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 Analysis2019/09/20 20:38
End of Day Share Price2019/09/20 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.