E.W. SCRIPPS Co (NASDAQ: SSP)

Sector: Communication Services Industry: Broadcasting CIK: 0000832428
Market Cap 809.31 Mn
P/B 0.64
P/E -7.98
P/S 0.35
ROIC (Qtr) 6.51
Div Yield % 0.00
Rev 1y % (Qtr) -18.64
Total Debt (Qtr) 2.74 Bn
Debt/Equity (Qtr) 2.17
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About

The E.W. Scripps Company, commonly known as Scripps, is a media powerhouse that operates a diverse range of television stations, networks, and digital media platforms. Established in 1878, the company has its headquarters in Cincinnati, Ohio, and is a leading player in the free, ad-supported television segment with a strong presence in the local media market. Scripps' main business activities revolve around operating over 60 local television stations across the United States, reaching approximately 25% of the nation's television households. The...

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Investment thesis

Bull case

  • Healthy cash reserves of 54.66M provide 6.17x coverage of short-term debt 8.85M, demonstrating strong liquidity position and minimal refinancing risk.
  • Tangible assets of 1.58B provide exceptional 71.56x coverage of deferred revenue 22.05M, showing strong service capability backing.
  • Operating cash flow of 161.26M provides strong 7.31x coverage of deferred revenue 22.05M, indicating service delivery capability.
  • Robust tangible asset base of 1.58B provides 5.90x coverage of working capital 267.37M, indicating strong operational backing.
  • Tangible assets of 1.58B provide robust 4.36x coverage of other current liabilities 362.22M, indicating strong asset backing.

Bear case

  • Free cash flow of 183.76M provides weak coverage of capital expenditures of (22.50M), with a -8.17 ratio suggesting additional external financing needs for growth initiatives.
  • Operating earnings of 202.73M show weak coverage of depreciation charges of 152.08M, with a 1.33 ratio indicating high capital intensity and potential reinvestment needs.
  • Free cash flow of 183.76M represents just -1.20x of debt issuance (152.97M), suggesting concerning reliance on leverage rather than internal cash generation for growth.
  • High depreciation of 152.08M relative to operating cash flow of 161.26M, which is 0.94x suggests significant maintenance capital requirements affecting free cash flow.
  • Operating cash flow of 161.26M barely covers operating expenses of 174.42M with a 0.92 ratio, suggesting thin operational efficiency margins and limited flexibility.

Segments Breakdown of Revenue (2024)

Product and Service 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 0.68 0.87
EV to Cash from Ops. EV/CFO 21.57 -0.15
EV to Debt EV to Debt 1.27 6.39
EV to EBIT EV/EBIT 17.16 3.66
EV to EBITDA EV/EBITDA 8.01 3.24
EV to Free Cash Flow [EV/FCF] EV/FCF 18.93 7.40
EV to Market Cap EV to Market Cap 4.30 6.46
EV to Revenue EV/Rev 1.50 1.70
Price to Book Value [P/B] P/B 0.64 614.59
Price to Earnings [P/E] P/E -7.98 -1.43
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) -1.63 -21.94
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 114.41
Dividend per Basic Share Div per Share (Qtr) 0.00 0.74
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 23.53
Interest Coverage Int. cover (Qtr) 0.96 -1.29
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 130.45 19.60
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 57.80 18.99
Dividend Growth (1y) % Div 1y % (Qtr) 0.00 17.54
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 4,569.83 546.44
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 147.64 -17.28
EBIT Growth (1y) % EBIT 1y % (Qtr) 1,070.17 266.27
EBT Growth (1y) % EBT 1y % (Qtr) 96.74 -496.56
EPS Growth (1y) % EPS 1y % (Qtr) 86.13 -40.46
FCF Growth (1y) % FCF 1y % (Qtr) -8.56 25.60
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -5.36 3.01
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.46 0.48
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.20
Cash Ratio Cash Ratio (Qtr) 0.12 0.41
Current Ratio Curr Ratio (Qtr) 1.61 1.64
Debt to Equity Ratio Debt/Equity (Qtr) 2.17 2.17
Interest Cover Ratio Int Coverage (Qtr) 0.96 -1.29
Times Interest Earned Times Interest Earned (Qtr) 0.96 -1.29
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 15.30 -11.99
EBIT Margin % EBIT Margin % (Qtr) 8.74 -20.47
EBT Margin % EBT Margin % (Qtr) -0.33 -27.40
Gross Margin % Gross Margin % (Qtr) 44.40 34.96
Net Profit Margin % Net Margin % (Qtr) -4.40 -28.49