NasdaqGS:SSP

Stock Analysis Report

Executive Summary

The E.W. Scripps Company, together with its subsidiaries, operates as a media enterprise through a portfolio of local and national media brands.

Rewards

Earnings are forecast to grow 46.21% per year

Risk Analysis

Interest payments are not well covered by earnings

Large one-off items impacting financial results

Profit margins (0.5%) are lower than last year (3%)



Snowflake Analysis

Reasonable growth potential and overvalued.


Similar Companies

Share Price & News

How has E.W. Scripps's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SSP has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

5.1%

SSP

0.6%

US Media

0.5%

US Market


1 Year Return

-29.5%

SSP

19.9%

US Media

20.3%

US Market

Return vs Industry: SSP underperformed the US Media industry which returned 19.9% over the past year.

Return vs Market: SSP underperformed the US Market which returned 20.3% over the past year.


Shareholder returns

SSPIndustryMarket
7 Day5.1%0.6%0.5%
30 Day-10.6%0.8%2.0%
90 Day-4.7%6.2%9.4%
1 Year-28.6%-29.5%21.5%19.9%22.8%20.3%
3 Year-32.4%-34.1%18.7%13.8%50.1%40.4%
5 Year-30.4%-39.8%35.8%25.0%73.1%54.1%

Price Volatility Vs. Market

How volatile is E.W. Scripps's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is E.W. Scripps undervalued compared to its fair value and its price relative to the market?

179.3x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SSP ($13.93) is trading above our estimate of fair value ($7.34)

Significantly Below Fair Value: SSP is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: SSP is poor value based on its PE Ratio (179.3x) compared to the Media industry average (14.4x).

PE vs Market: SSP is poor value based on its PE Ratio (179.3x) compared to the US market (18.3x).


Price to Earnings Growth Ratio

PEG Ratio: SSP is poor value based on its PEG Ratio (3.9x)


Price to Book Ratio

PB vs Industry: SSP is good value based on its PB Ratio (1.3x) compared to the US Media industry average (1.4x).


Next Steps

Future Growth

How is E.W. Scripps forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

46.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SSP's forecast earnings growth (46.2% per year) is above the savings rate (1.7%).

Earnings vs Market: SSP's earnings (46.2% per year) are forecast to grow faster than the US market (14.2% per year).

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

Revenue vs Market: SSP's revenue (17.1% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: SSP's revenue (17.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if SSP's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has E.W. Scripps performed over the past 5 years?

37.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SSP has a large one-off loss of $52.7M impacting its September 30 2019 financial results.

Growing Profit Margin: SSP's current net profit margins (0.5%) are lower than last year (3%).


Past Earnings Growth Analysis

Earnings Trend: SSP's earnings have grown significantly by 37% per year over the past 5 years.

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

Earnings vs Industry: SSP had negative earnings growth (-81.2%) over the past year, making it difficult to compare to the Media industry average (2.4%).


Return on Equity

High ROE: SSP's Return on Equity (0.8%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is E.W. Scripps's financial position?


Financial Position Analysis

Short Term Liabilities: SSP's short term assets ($534.2M) exceed its short term liabilities ($244.2M).

Long Term Liabilities: SSP's short term assets ($534.2M) do not cover its long term liabilities ($2.4B).


Debt to Equity History and Analysis

Debt Level: SSP's debt to equity ratio (216.6%) is considered high.

Reducing Debt: SSP's debt to equity ratio has increased from 37.1% to 216.6% over the past 5 years.

Debt Coverage: SSP's debt is not well covered by operating cash flow (4%).

Interest Coverage: SSP's interest payments on its debt are not well covered by EBIT (2x coverage).


Balance Sheet

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

Debt Coverage by Assets: SSP's debt is not covered by short term assets (assets are 0.3x debt).


Next Steps

Dividend

What is E.W. Scripps's current dividend yield, its reliability and sustainability?

1.44%

Current Dividend Yield


Dividend Yield vs Market

company1.4%marketbottom25%1.4%markettop25%3.7%industryaverage2.1%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: SSP's dividend (1.44%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: SSP's dividend (1.44%) is low compared to the top 25% of dividend payers in the US market (3.73%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, SSP has been paying a dividend for less than 10 years.

Growing Dividend: SSP has only been paying a dividend for 2 years, and since then payments have not increased.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (257.4%), SSP's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

8.9yrs

Average management tenure


CEO

Adam Symson (44yo)

2.5yrs

Tenure

US$3,384,554

Compensation

Mr. Adam P. Symson has been Chief Executive Officer and President of The E. W. Scripps Company since August 8, 2017. Mr. Symson served as Chief Operating Officer of The E. W. Scripps Company from November  ...


CEO Compensation Analysis

Compensation vs Market: Adam's total compensation ($USD3.38M) is above average for companies of similar size in the US market ($USD2.50M).

Compensation vs Earnings: Adam's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Adam Symson
President2.5yrsUS$3.38m0.10% $1.2m
Lisa Knutson
Executive VP & CFO2.3yrsUS$1.49m0.025% $282.7k
William Appleton
Executive VP & General Counsel11.6yrsUS$1.31m0.15% $1.7m
Brian Lawlor
President of Local Media11.1yrsUS$1.59m0.12% $1.3m
Douglas Lyons
Senior VP4.8yrsUS$799.82k0.042% $476.4k
Bryan Dunbar
VP & Chief Technology Officer0yrsno datano data
Robert Carson
VP & Chief Information Officer12.1yrsno data0.069% $782.9k
Carolyn Micheli
Senior Vice President of Corporate Communications & Investor Relations7.1yrsno data0.018% $198.2k
Mark Koors
Vice President of Audit & Compliance10yrsno data0.055% $621.7k
Jessica Rappaport
Vice President of Marketing8.9yrsno datano data

8.9yrs

Average Tenure

54yo

Average Age

Experienced Management: SSP's management team is seasoned and experienced (8.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Adam Symson
President2.5yrsUS$3.38m0.10% $1.2m
Richard Boehne
Non-Executive Chairman6.8yrsUS$258.86k0.51% $5.7m
Kelly Conlin
Independent Director6.8yrsUS$146.11k0.030% $339.9k
Roger Ogden
Independent Director11.6yrsUS$158.11k0.14% $1.6m
John Hayden
Independent Director11.6yrsUS$163.11k0.088% $996.2k
Kim Williams
Lead Director2.1yrsUS$187.53k0.18% $2.1m
Wonya Lucas
Director0.8yrsno datano data
Anne La Dow
Independent Director7.5yrsUS$145.11k0.083% $935.3k
R. Scagliotti
Independent Director2.8yrsUS$145.11k0.34% $3.9m
Charles Barmonde
Independent Director4.8yrsUS$146.11k0.81% $9.1m

5.8yrs

Average Tenure

59.5yo

Average Age

Experienced Board: SSP's board of directors are considered experienced (5.8 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if 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

The E.W. Scripps Company's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: The E.W. Scripps Company
  • Ticker: SSP
  • Exchange: NasdaqGS
  • Founded: 1878
  • Industry: Broadcasting
  • Sector: Media
  • Market Cap: US$1.127b
  • Shares outstanding: 80.91m
  • Website: https://www.scripps.com

Number of Employees


Location

  • The E.W. Scripps Company
  • Scripps Center
  • Suite 2800
  • Cincinnati
  • Ohio
  • 45202
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SSPNasdaqGS (Nasdaq Global Select)YesClass A Common StockUSUSDJun 1988
SQ6BDB (Deutsche Boerse AG)YesClass A Common StockDEEURJun 1988

Biography

The E.W. Scripps Company, together with its subsidiaries, operates as a media enterprise through a portfolio of local and national media brands. The company operates through Local Media, National Media, and Other segments. The Local Media segment operates broadcast television stations, which produce news, information, and entertainment content, as well as its related digital operations. This segment also runs network, syndicated, and original programming. The National Media segment offers content services through apps on Internet-connected devices, such as set-top boxes, smartphones, smart televisions, and tablets. This segment also operates Katz, which broadcasts content through over-the-air on local broadcasters' digital sub-channels, and cable and satellite; Newsy, a national news network, which provides politics, entertainment, science, and technology news; and Triton that offers digital audio technology and measurement services for digital audio marketplace. In addition, this segment operates Stitcher that create original podcasts, a digital audio recording of a themed series; provides a mobile application where consumers can stream the latest news, sports, talk, and entertainment on demand; offers podcast agency services; and operates Midroll Media advertising network. The company also operates Cracked, a multi-platform humor and satire brand, which informs and entertains audiences with a Website, social media, and podcast; and Scripps National Spelling Bee, an investigative reporting newsroom in Washington, D.C. It serves audiences and businesses. The company operates through a network of 36 television stations. The company was formerly known as Scripps Howard, Inc. The E.W. Scripps Company was founded in 1878 and is headquartered in Cincinnati, Ohio. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/20 00:39
End of Day Share Price2020/02/19 00:00
Earnings2019/09/30
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.