Company Overview
The E.W. Scripps Company operates as a comprehensive media enterprise that utilizes a strategic portfolio of local television stations alongside national news and entertainment networks within the United States. This business model functions primarily within the Communication Services sector, specifically targeting the Broadcasting industry, which positions the firm to capture advertising revenue and subscription fees across traditional linear and digital platforms. The entity maintains a substantial operational scale employing approximately 4,600 individuals, with a total market capitalization of $323.59M and trailing twelve-month revenue of $2.15B. These valuation figures and revenue totals indicate that while the company possesses a significant operational footprint and workforce, its market capitalization suggests a smaller market cap relative to the revenue generated, highlighting a specific valuation compression within the broader media landscape.
Financial Health
The company reported revenue of $2.15B over the trailing twelve months, yet it recorded a net income of $-164,460,000, while simultaneously generating an EBITDA of $311.78M. The substantial gap between the positive EBITDA of $311.78M and the negative net income of $-164,460,000 reveals a cost structure characterized by significant non-operating expenses, interest obligations, or other below-the-line charges that erode bottom-line profitability despite strong operational earnings. Free cash flow stands at $-50,106,624, which indicates a consumption of cash that limits the company's financial flexibility regarding capital expenditures, debt repayment, or organic growth investments without external financing. The gross margin is recorded at 40.7%, reflecting the company's ability to retain a significant portion of revenue after direct production costs, while the operating margin of 8.0% demonstrates effective control over operating expenses relative to sales. However, the profit margin of -4.7% signals that the company is currently unprofitable on a net basis, meaning every dollar of revenue results in a small net loss after all expenses including interest and taxes. In terms of liquidity and leverage, the company holds $27.92M in cash against total debt of $2.73B, resulting in a debt-to-equity ratio of 219.14, which indicates a highly leveraged balance sheet where debt obligations significantly exceed equity capitalization. The current ratio is 1.65, suggesting that the company possesses sufficient current assets to cover its current liabilities, though the high leverage complicates the interpretation of short-term liquidity safety. Return on equity is -7.9% and return on assets is 2.0%, revealing that management is currently generating negative returns on shareholder equity while achieving a modest positive return on the total asset base, highlighting a divergence between asset utilization and shareholder value creation.
Valuation Assessment
The trailing P/E ratio is listed as N/A due to the negative net income, whereas the forward P/E is -4.48, a metric that requires careful interpretation as it is based on anticipated future earnings that may still be negative or volatile. The price-to-book ratio is 0.38, which indicates that the market is valuing the company at less than one-third of its book value, suggesting a significant discount to the net asset value recorded on the balance sheet. The price-to-sales ratio is 0.15, and the enterprise value to EBITDA stands at 11.02, providing alternative valuation perspectives that suggest the market is pricing the stock at a very low multiple of both sales and cash earnings, reflecting investor caution regarding the path to profitability. The 52-week high is $4.98 and the 52-week low is $1.44, meaning the current price sits within this trading range but the wide spread indicates high volatility and potential uncertainty regarding future price direction. The beta is 0.54, which implies that the stock exhibits lower price volatility relative to the broader market, moving less aggressively than the overall market index during periods of rising or falling equity prices.
Growth & Income
Revenue growth year-over-year is -23.1%, while earnings growth year-over-year is N/A due to the negative earnings history, indicating that the company is currently contracting in terms of top-line sales without a clear positive earnings trajectory to offset this decline. The inability to demonstrate positive earnings growth alongside negative revenue growth implies that the company faces significant headwinds in generating profit from its shrinking revenue base. As a non-dividend payer, the company does not distribute a dividend yield or maintain a payout ratio, as evidenced by the 0.0% payout ratio figure, meaning the company reinvests all available cash flows and retained earnings into its operations rather than distributing income to shareholders. Consequently, the overall growth and income profile is defined by a contraction in revenue, a lack of current profitability, and the absence of dividend income, relying entirely on potential future operational improvements to restore earnings and cash flow generation.