Sinclair, Inc. (NASDAQ: SBGI)

Sector: Communication Services Industry: Broadcasting CIK: 0001971213
Market Cap 1.07 Bn
P/B 1.40
P/E 0.49
P/S 0.18
ROIC (Qtr) 3.90
Div Yield % 7.36
Rev 1y % (Qtr) -15.70
Total Debt (Qtr) 4.24 Bn
Debt/Equity (Qtr) 12.23
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About

Investment thesis

Bull case

  • Healthy cash reserves of 526M provide 10.73x coverage of short-term debt 49M, demonstrating strong liquidity position and minimal refinancing risk.
  • Operating cash flow of 289M provides exceptional 32.11x coverage of minority interest expenses 9M, showing strong core operations.
  • Strong operating cash flow of 289M provides 1.67x coverage of SG&A expenses 173M, showing efficient operational cost management.
  • Robust free cash flow of 211M exceeds capital expenditure of 78M by 2.71x, indicating strong organic growth funding capability.
  • Robust tangible asset base of 2.76B provides 4.10x coverage of working capital 673M, indicating strong operational backing.

Bear case

  • Operating cash flow of 289M barely covers its investment activities of (102M), with a coverage ratio of -2.83, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 289M provides thin coverage of dividend payments of (69M) with a -4.19 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Cash reserves of 526M provide limited coverage of acquisition spending of (25M), which is -21.04x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Operating cash flow of 289M provides minimal -19.27x coverage of tax expenses of (15M), suggesting potential tax planning inefficiencies or unsustainable tax positions.
  • Free cash flow of 211M represents just -1.94x of debt issuance (109M), suggesting concerning reliance on leverage rather than internal cash generation for growth.

Counterparty Name Breakdown of Revenue (2024)

Segments Breakdown of Revenue (2024)

Peer comparison

Companies in the Broadcasting
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 NXST Nexstar Media Group, Inc. 8.26 Bn 23.87 1.67 6.40 Bn
2 TGNA Tegna Inc 4.06 Bn 7.22 1.41 2.59 Bn
3 SBGI Sinclair, Inc. 1.07 Bn 0.49 0.18 4.24 Bn
4 SSP E.W. SCRIPPS Co 0.81 Bn -7.98 0.35 2.74 Bn
5 IHRT iHeartMedia, Inc. 0.53 Bn -1.32 0.14 5.87 Bn
6 FUBO FuboTV Inc. 0.46 Bn 2.96 0.17 0.41 Bn
7 GTN Gray Media, Inc 0.23 Bn -7.34 0.80 5.68 Bn
8 NMAX Newsmax Inc. 0.20 Bn -2.81 1.18 0.01 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 2.30 0.87
EV to Cash from Ops. EV/CFO 21.28 -0.15
EV to Debt EV to Debt 3.02 6.39
EV to EBIT EV/EBIT 3.90 3.66
EV to EBITDA EV/EBITDA 5.13 3.24
EV to Free Cash Flow [EV/FCF] EV/FCF 25.77 7.40
EV to Market Cap EV to Market Cap 11.98 6.46
EV to Revenue EV/Rev 2.17 1.70
Price to Book Value [P/B] P/B 1.40 614.59
Price to Earnings [P/E] P/E 0.49 -1.43
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) -0.65 -21.94
Dividend Payout Ratio % Div Payout % (Qtr) -175.40 114.41
Dividend per Basic Share Div per Share (Qtr) 1.00 0.74
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 33.01 23.53
Interest Coverage Int. cover (Qtr) 0.84 -1.29
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 6.02 19.60
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -1.87 18.99
Dividend Growth (1y) % Div 1y % (Qtr) 0.00 17.54
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 3,812.04 546.44
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 0.00 -17.28
EBIT Growth (1y) % EBIT 1y % (Qtr) 3,511.11 266.27
EBT Growth (1y) % EBT 1y % (Qtr) 79.93 -496.56
EPS Growth (1y) % EPS 1y % (Qtr) 81.96 -40.46
FCF Growth (1y) % FCF 1y % (Qtr) 331.87 25.60
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -7.42 3.01
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.60 0.48
Cash Payout Ratio Cash Payout (Qtr) 0.19 0.20
Cash Ratio Cash Ratio (Qtr) 0.79 0.41
Current Ratio Curr Ratio (Qtr) 2.01 1.64
Debt to Equity Ratio Debt/Equity (Qtr) 12.23 2.17
Interest Cover Ratio Int Coverage (Qtr) 0.84 -1.29
Times Interest Earned Times Interest Earned (Qtr) 0.84 -1.29
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 12.70 -11.99
EBIT Margin % EBIT Margin % (Qtr) 9.74 -20.47
EBT Margin % EBT Margin % (Qtr) -1.80 -27.40
Gross Margin % Gross Margin % (Qtr) 24.70 34.96
Net Profit Margin % Net Margin % (Qtr) -1.30 -28.49