NYSE:GTN

Stock Analysis Report

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Executive Summary

Gray Television, Inc., a television broadcast company, owns and operates television stations and digital assets in the United States.


Snowflake Analysis

Very undervalued with acceptable track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

24.0%

GTN

5.5%

US Media

3.8%

US Market


1 Year Return

5.0%

GTN

3.3%

US Media

9.7%

US Market

Return vs Industry: GTN exceeded the US Media industry which returned 1.8% over the past year.

Return vs Market: GTN underperformed the US Market which returned 8.9% over the past year.


Shareholder returns

GTNIndustryMarket
7 Day24.0%5.5%3.8%
30 Day38.2%16.1%11.4%
90 Day14.8%5.1%6.8%
1 Year5.0%5.0%4.8%3.3%12.1%9.7%
3 Year33.0%33.0%7.1%2.8%36.2%27.2%
5 Year13.0%13.0%33.4%23.6%63.7%45.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GTN ($17.29) is trading below our estimate of fair value ($42.75)

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


Price To Earnings Ratio

PE vs Industry: GTN is good value based on its PE Ratio (8.6x) compared to the Media industry average (11.2x).

PE vs Market: GTN is good value based on its PE Ratio (8.6x) compared to the US market (16.4x).


Price to Earnings Growth Ratio

PEG Ratio: GTN is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: GTN is good value based on its PB Ratio (1.1x) compared to the US Media industry average (1.5x).


Next Steps

Future Growth

How is Gray Television forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

15.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GTN's forecast earnings growth (15.7% per year) is above the savings rate (2.2%).

Earnings vs Market: GTN's earnings (15.7% per year) are forecast to grow slower than the US market (22.3% per year).

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

Revenue vs Market: GTN's revenue (5.3% per year) is forecast to grow slower than the US market (8.8% per year).

High Growth Revenue: GTN's revenue (5.3% 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 GTN's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Gray Television performed over the past 5 years?

27.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GTN has high quality earnings.

Growing Profit Margin: GTN's current net profit margins (9.3%) are lower than last year (11.6%).


Past Earnings Growth Analysis

Earnings Trend: GTN's earnings have grown significantly by 27.8% per year over the past 5 years.

Accelerating Growth: GTN's earnings growth over the past year (23.8%) is below its 5-year average (27.8% per year).

Earnings vs Industry: GTN earnings growth over the past year (23.8%) exceeded the Media industry 6.8%.


Return on Equity

High ROE: GTN's Return on Equity (11.6%) is considered low.


Next Steps

Financial Health

How is Gray Television's financial position?


Financial Position Analysis

Short Term Liabilities: GTN's short term assets ($721.0M) exceed its short term liabilities ($243.0M).

Long Term Liabilities: GTN's short term assets ($721.0M) do not cover its long term liabilities ($4.6B).


Debt to Equity History and Analysis

Debt Level: GTN's debt to equity ratio (171.9%) is considered high.

Reducing Debt: GTN's debt to equity ratio has reduced from 317.2% to 171.9% over the past 5 years.

Debt Coverage: GTN's debt is not well covered by operating cash flow (13.3%).

Interest Coverage: GTN's interest payments on its debt are not well covered by EBIT (2.7x coverage).


Balance Sheet


Next Steps

Dividend

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


Dividend Yield vs Market

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

High Dividend: Unable to evaluate GTN'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 GTN's dividends per share have been stable in the past.

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


Current Payout to Shareholders

Dividend Coverage: GTN is not paying a notable dividend for the US market.


Future Payout to Shareholders

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


Next Steps

Management

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

1.9yrs

Average management tenure


CEO

Hilton Howell (57yo)

1.42yrs

Tenure

US$8,888,509

Compensation

Mr. Hilton Hatchett Howell, Jr. has been the Chief Executive Officer of Gray Television, Inc. since August 20, 2008 and also served its President since June 2013 until January 03, 2019. Mr. Howell has been ...


CEO Compensation Analysis

Compensation vs Market: Hilton's total compensation ($USD8.89M) is above average for companies of similar size in the US market ($USD4.72M).

Compensation vs Earnings: Hilton's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Hilton Howell
Executive Chairman & CEO1.42yrsUS$8.89m3.82% $64.6m
Donald LaPlatney
President1.42yrsUS$3.92m0.37% $6.2m
James Ryan
Executive VP & CFO21.67yrsUS$4.50m0.43% $7.2m
Robert Smith
Executive VP & COO of Local Media1.92yrsUS$3.39m0.20% $3.3m
Kevin Latek
Executive VP4.33yrsUS$4.57m0.46% $7.8m
Jackson Cowart
Senior VP & Chief Accounting Officerno datano data0.026% $445.2k
David Burke
Senior VP & Chief Technology Officer1.42yrsno datano data
Charlie Effinger
Vice President of Corporate Development6.92yrsno datano data
Karen Youger
Senior Vice President of Sales Operations4.75yrsno datano data
Meg Little
Group Director of Marketing & Client Services1.42yrsno datano data

1.9yrs

Average Tenure

57yo

Average Age

Experienced Management: GTN's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Hilton Howell
Executive Chairman & CEO1.42yrsUS$8.89m3.82% $64.6m
Donald LaPlatney
President1.42yrsUS$3.92m0.37% $6.2m
Harriett Robinson
Director Emeritus3.08yrsUS$36.50k3.41% $57.6m
Richard Boger
Independent Director29.42yrsUS$235.00k0.055% $936.0k
Howell Newton
Lead Independent Director4.17yrsUS$246.25k0.088% $1.5m
Paul McTear
Independent Director1.42yrsUS$207.50k0.050% $850.3k
Robin Howell
Director8.08yrsUS$193.75k0.13% $2.2m
T. Elder
Independent Director17.42yrsUS$205.00k0.065% $1.1m
Richard Hare
Independent Director3.75yrsUS$220.00k0.031% $531.0k
Luis Garcia
Independent Director4yrsUS$205.00k0.028% $475.4k

4.1yrs

Average Tenure

64.5yo

Average Age

Experienced Board: GTN's board of directors are considered experienced (4.1 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: GTN 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

Gray Television, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Gray Television, Inc.
  • Ticker: GTN
  • Exchange: NYSE
  • Founded: 1897
  • Industry: Broadcasting
  • Sector: Media
  • Market Cap: US$1.690b
  • Shares outstanding: 98.02m
  • Website: https://www.gray.tv

Number of Employees


Location

  • Gray Television, Inc.
  • 4370 Peachtree Road, NE
  • Suite 400
  • Atlanta
  • Georgia
  • 30319
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GTN.ANYSE (New York Stock Exchange)Class A Common StockUSUSDJan 1980
GTNNYSE (New York Stock Exchange)YesCommon StockUSUSDSep 1996
GCZBDB (Deutsche Boerse AG)YesCommon StockDEEURSep 1996

Biography

Gray Television, Inc., a television broadcast company, owns and operates television stations and digital assets in the United States. As of February 28, 2019, it owned and operated television stations in 91 television markets broadcasting approximately 400 program streams, including approximately 150 channels affiliated with the CBS Network, the NBC Network, the ABC Network, and the FOX Network. The company also broadcasts secondary digital channels affiliated to ABC, CBS, and FOX, as well as channels affiliated with various other networks and program services, including CW Plus Network, MY Network, the MeTV Network, This TV Network, Antenna TV, Telemundo, Cozi, Heroes and Icons, and MOVIES! Network; and local news/weather channels in various markets. In addition, it is also involved in the video program production, marketing, and digital businesses including Raycom Sports, Tupelo-Raycom, and RTM Studios; and production of PowerNation programs and content. The company was formerly known as Gray Communications Systems, Inc. and changed its name to Gray Television, Inc. in August 2002. Gray Television, Inc. was founded in 1897 and is headquartered in Atlanta, Georgia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/06 02:31
End of Day Share Price2020/06/05 00:00
Earnings2020/03/31
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.