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

4.7%

ITV

-0.04%

GB Media

1.1%

GB Market


1 Year Return

-19.8%

ITV

21.7%

GB Media

2.7%

GB Market

Return vs Industry: ITV underperformed the UK Media industry which returned 21.7% over the past year.

Return vs Market: ITV underperformed the UK Market which returned 2.7% over the past year.


Shareholder returns

ITVIndustryMarket
7 Day4.7%-0.04%1.1%
30 Day1.5%-1.0%-1.7%
90 Day15.2%3.6%-2.7%
1 Year-15.0%-19.8%26.0%21.7%7.8%2.7%
3 Year-12.6%-26.2%16.1%3.2%19.3%4.7%
5 Year-14.7%-35.7%47.5%20.3%38.0%8.1%

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?

33.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: ITV (£1.28) is trading below our estimate of fair value (£1.93)

Significantly Undervalued: ITV is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: ITV is good value based on its PE Ratio (11.5x) compared to the Media industry average (21.2x).

PE vs Market: ITV is good value based on its PE Ratio (11.5x) compared to the UK market (16.4x).


Price to Earnings Growth Ratio

Low PEG Ratio: ITV is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: ITV is overvalued based on its PB Ratio (7.4x) compared to the GB Media industry average (1.6x).


Next Steps

Future Growth

How is ITV forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

9.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ITV's forecast earnings growth (9% per year) is above the savings rate (1.2%).

Earnings vs Market: ITV's earnings (9% per year) are forecast to grow slower than the UK market (12.3% per year).

High Growth Earnings: ITV's earnings are forecast to grow, but not significantly.

Revenue vs Market: ITV's revenue (3.3% per year) is forecast to grow slower than the UK market (3.8% per year).

High Growth Revenue: ITV's revenue (3.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: ITV's Return on Equity is forecast to be very high in 3 years time (47.4%).


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

Earnings Trend: ITV's earnings have declined by -1.7% per year over the past 5 years.

Accelerating Growth: ITV's earnings growth over the past year (6.5%) exceeds its 5-year average (-1.7% per year).

Earnings vs Industry: ITV earnings growth over the past year (6.5%) exceeded the Media industry 2.8%.


Return on Equity

High ROE: Whilst ITV's Return on Equity (62.08%) is outstanding, this metric is skewed due to their high level of debt.


Return on Assets

ROA vs Industry: ITV has a higher Return on Assets than the Media industry average last year.


Return on Capital Employed

ROCE Improving: ITV's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is ITV's financial position?


Financial Position Analysis

Short Term Liabilities: ITV's short term assets (£1.4B) do not cover its short term liabilities (£1.4B)

Long Term Liabilities: ITV's short term assets (1.4B) exceeds its long term liabilities (1.4B)


Debt to Equity History and Analysis

Debt Level: ITV's debt to equity ratio (165.4%) is considered high

Reducing Debt: ITV's debt to equity ratio has increased from 58.6% to 165.4% over the past 5 years.

Debt Coverage: ITV's debt is well covered by operating cash flow (36.7%).

Interest Coverage: ITV's interest payments on its debt are well covered by EBIT (19.5x coverage).


Balance Sheet

Inventory Level: ITV has a low level of unsold assets or inventory.

Debt Coverage by Assets: ITV's debt is covered by short term assets (assets are 1.165400x debt).


Next Steps

Dividend

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

6.24%

Current Dividend Yield


Upcoming Dividend Payment

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


Dividend Yield vs Market

company6.2%marketbottom25%2.0%markettop25%5.4%industryaverage2.7%forecastin3Years6.3%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: ITV's dividend (6.24%) is higher than the bottom 25% of dividend payers in the UK market (2.01%).

High Dividend: ITV's dividend (6.24%) is in the top 25% of dividend payers in the UK market (5.44%)

Stable Dividend: ITV has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: ITV's dividend payments have increased, but the company has only paid a dividend for 8 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (71.9%), ITV's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ITV's dividends in 3 years are forecast to be covered by earnings (59.8% payout ratio).


Next Steps

Management

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

3.7yrs

Average management tenure


CEO

Carolyn McCall (58yo)

1.8yrs

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

Compensation vs. Market: Carolyn has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the UK market.

Compensation vs Earnings: Insufficient data to compare Carolyn's compensation with company performance.


Management Age and Tenure

3.7yrs

Average Tenure

57.5yo

Average Age

Experienced Management: ITV's management team is considered experienced (3.7 years average tenure).


Board Age and Tenure

1.9yrs

Average Tenure

58yo

Average Age

Experienced Board: ITV's board of directors are not considered experienced ( 1.9 years average tenure), which suggests a new board.


Insider Trading

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


Recent Insider Transactions

BuyUK£3,35330 Sep 19
Mary Harris
EntityIndividual
Role
Lead Director
Senior Lead Independent Director
Shares2,672
Max PriceUK£1.26
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

Ownership Breakdown


Management Team

  • Carolyn McCall (58yo)

    Chief Executive

    • Tenure: 1.8yrs
    • Compensation: UK£3.71m
  • Kyla Mullins

    General Counsel

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

    Group CFO

    • Tenure: 0.7yrs
  • Kevin Lygo (61yo)

    Director of Television & Member of Management Board

    • Tenure: 9.2yrs
  • Rufus Radcliffe

    Group Marketing & Research Director and Member of Management Board

    • Tenure: 2.5yrs
  • Julian Bellamy

    MD of ITV Studios & Member of Management Board

    • Tenure: 3.7yrs
  • 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: 5yrs
  • Mark Smith

    Group Chief Technology Officer & Member of Management Board

    • Tenure: 0yrs

Board Members

  • Duncan Painter (49yo)

    Non-Executive Director

    • Tenure: 1.4yrs
    • Compensation: UK£43.00k
  • Roger Faxon (70yo)

    Non-Executive Director

    • Tenure: 7yrs
    • Compensation: UK£76.00k
  • Margaret Ewing (64yo)

    Non-Executive Director

    • Tenure: 2yrs
    • Compensation: UK£81.00k
  • Edward H. Carter (58yo)

    Senior Independent Non-Executive Director

    • Tenure: 1yrs
    • Compensation: UK£20.00k
  • Carolyn McCall (58yo)

    Chief Executive

    • Tenure: 1.8yrs
    • Compensation: UK£3.71m
  • Baz Bazalgette (65yo)

    Chairman

    • Tenure: 3.4yrs
    • Compensation: UK£453.00k
  • Chris Kennedy (55yo)

    Group CFO

    • Tenure: 0.7yrs
  • Mary Harris (53yo)

    Senior Lead Independent Director

    • Tenure: 1.4yrs
    • Compensation: UK£105.00k
  • Anna Manz (46yo)

    Non-Executive Director

    • Tenure: 3.7yrs
    • Compensation: UK£76.00k
  • Salman Amin (59yo)

    Non-Executive Director

    • Tenure: 2.8yrs
    • 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£5.128b
  • 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 Analysis2019/10/14 20:36
End of Day Share Price2019/10/14 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.