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1. Company Snapshot

1.a. Company Description

Sinclair Broadcast Group, Inc.operates as a media company in the United States.The company operates in two segments, Broadcast and Local Sports.


The Broadcast segment broadcasts free over-the-air programming, such as network provided programs, locally-produced news, local sporting events, programming from program service arrangements, syndicated entertainment programs, and programming to television viewing audiences in the communities through its local television stations.As of December 31, 2021, the segment owned, operated, and provided services to 185 stations and 634 channels in 86 markets.The Local Sports segment operates regional sports networks.


This segment broadcasts professional sports games and produce content.In addition, this segment owns regional sports network, which has the rights to air games of 45 professional sports teams and other sporting events.The company also owns and operates Tennis Channel, a cable network, which includes coverage of various tennis' top tournaments and original professional sports and tennis lifestyle shows; the Tennis Channel International streaming service; Tennis Magazine, the sport's print publication; and Tennis.com, an online tennis platform.


Further, it owns and operates various networks carried on distribution platforms, including Comet, a science fiction network; CHARGE!, an adventure and action-based network; TBD, a multiscreen TV network; Stadium, a professional sports highlights and college games network; STIRR, an ad-supported DTC streaming app; and NewsON, an ad-supported app that provides access to live or on-demand local news broadcasts, including non-Sinclair affiliate partners.Additionally, the company provides technical services to the broadcast industry; and owns various non-media related investments, such as private equity, mezzanine financing, and real estate investments.Sinclair Broadcast Group, Inc.


was founded in 1986 and is headquartered in Hunt Valley, Maryland.

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1.b. Last Insights on SBGI

Recent drivers behind Sinclair Broadcast Group's performance include: * Q3 earnings beat, with $1.28 per share surpassing estimates of $0.89 per share, driven by strong revenue growth. * Declaration of a quarterly cash dividend of $0.25 per share, indicating a commitment to returning value to shareholders. * Entry into an agreement with creditors on a liquidity-enhancing transaction, which may alleviate concerns about the company's financial health. * Appointment of Lucy Rutishauser, EVP and CFO, to the Business Advisory Council of the ATSC Board, potentially expanding the company's influence in broadcast standards. * Naming of Matthew Goldman as Vice President, Strategic and Technical Initiatives, to lead the implementation of advanced operational technologies, including HDR and ATSC 3.0 NextGen Broadcasting.

1.c. Company Highlights

2. Sinclair Broadcast Group's Strong Q3 2025 Earnings: A Closer Look

Sinclair Broadcast Group reported a robust third quarter 2025, with total revenue reaching $773 million and adjusted EBITDA of $100 million, exceeding the high end of guidance. The company's core revenues grew 7% year-over-year, driven by momentum across most categories. The earnings per share (EPS) came in at -$0.02, significantly better than the estimated -$0.65. The company's financial performance was highlighted by a consolidated adjusted EBITDA margin of 22% above the midpoint of guidance.

Publication Date: Nov -30

📋 Highlights
  • Revenue Growth: Total revenue reached $773 million, with core revenues up 7% year-over-year and adjusted EBITDA of $100 million exceeding guidance by 22%.
  • Portfolio Optimization: 11 partner station acquisitions closed, 12 pending FCC approval, and 10 filed with SEC, expected to generate $30 million in incremental annualized adjusted EBITDA.
  • Political Advertising Outlook: 2026 midterm political ad revenue projected to match 2022’s record of $333 million, driven by increased demand.
  • Operational Efficiency: Distribution revenue improved with better subscriber retention, and cost management efforts contributed to consolidated adjusted EBITDA of $100 million.
  • Consolidation Potential: Regulatory changes enabling Big Four ownership are creating M&A opportunities, with separation of ventures and broadcast businesses targeting over $1 billion in value unlock.

Revenue Growth and EBITDA Margin

The company's revenue growth was driven by a 7% year-over-year increase in core revenues, with total advertising revenue close to the high end of guidance. Distribution revenue also tracked toward the high end of guidance, with improving subscriber churn. The adjusted EBITDA of $100 million was 22% above the midpoint of guidance, demonstrating the company's ability to manage costs and investments effectively.

Outlook and Guidance

Sinclair provided preliminary thoughts on its full-year 2026 outlook, expecting political advertising revenue to be at least comparable to the 2022 record of $333 million. Core advertising revenue is expected to deliver flat to low single-digit growth, while distribution revenue is expected to be relatively flat. The company expects 2026 capital expenditures to remain consistent with 2025 levels, reflecting maturing cloud infrastructure investments and operational efficiencies. Analysts estimate next year's revenue growth at 11.0%.

Valuation Metrics

To understand what's priced into Sinclair's stock, we can look at various valuation metrics. The company's P/E Ratio stands at -24.4, while the P/S Ratio is 0.33. The EV/EBITDA ratio is 7.36, indicating a relatively reasonable valuation. Additionally, the Dividend Yield is 6.35%, providing a relatively attractive return for income investors. With a ROE of -10.42% and ROIC of 4.61%, the company's profitability metrics are mixed.

Strategic Review and Consolidation

Sinclair's strategic review of its broadcast business and separation of Ventures are ongoing, with a focus on creating value for stakeholders through consolidation. The company is optimistic about the opportunities ahead, with a strong business model, improving trends in core advertising, and substantial free cash flow generation. Christopher Ripley mentioned that the separation of local and ventures businesses could unlock over $1 billion of value, and a simultaneous merge and spin is the ideal process.

3. NewsRoom

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Market Today: Deal Talks, Retail Wins, AI Chips, and Crypto Volatility

Dec -02

Source: gurufocus.com

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Broadcast station owners want to consolidate. They're struggling to get deals to the finish line

Dec -02

Source: cnbc.com

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Sinclair, Inc. (NASDAQ:SBGI) Given Consensus Recommendation of “Hold” by Brokerages

Nov -29

Source: defenseworld.net

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Sinclair (SBGI) Just Flashed Golden Cross Signal: Do You Buy?

Nov -25

Source: zacks.com

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Market Today: Alphabet rallies, Amazon's $50B AI push

Nov -24

Source: gurufocus.com

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Sinclair offers to buy E.W. Scripps in bid to expand broadcast TV reach

Nov -24

Source: reuters.com

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Trump pours cold water on proposed FCC rule change that would allow Nexstar and Sinclair acquisitions

Nov -24

Source: marketwatch.com

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Scripps Confirms Unsolicited Sinclair Bid

Nov -24

Source: wsj.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (2.89%)

6. Segments

Local Media

Expected Growth: 3%

Sinclair Broadcast Group's Local Media segment growth is driven by increasing demand for targeted advertising, expansion of its broadcast network, and strategic acquisitions. Additionally, the rise of over-the-top (OTT) services and connected TV devices has led to higher ad revenue. Furthermore, the company's focus on digital transformation and investments in data analytics capabilities have enhanced its advertising offerings, contributing to the 3% growth.

Tennis

Expected Growth: 2%

Tennis growth driven by increasing popularity, particularly among younger demographics, and Sinclair's strategic partnerships with tennis governing bodies. Additionally, the rise of online streaming and social media platforms has increased tennis viewership, leading to higher advertising revenue and sponsorship opportunities.

Other and Corporate

Expected Growth: 2%

Sinclair Broadcast Group's 'Other' and 'Corporate' segments exhibit 2% growth driven by increased demand for digital marketing services, expansion of its sports betting business, and cost savings initiatives. Additionally, the company's focus on diversifying its revenue streams through investments in digital media and technology also contributes to this growth.

Eliminations

Expected Growth: 0%

Sinclair Broadcast Group, Inc. has zero growth due to eliminations, indicating a lack of synergies or consolidation benefits. This may be attributed to the absence of M&A activities, divestitures, or internal restructuring, resulting in no eliminations to report.

7. Detailed Products

Television Broadcasting

Sinclair Broadcast Group owns and operates a diverse group of television stations, including ABC, CBS, FOX, NBC, and CW affiliates, as well as MyNetworkTV and independent stations.

Digital Media

Sinclair's digital media segment includes websites, mobile apps, and social media platforms that provide news, sports, and entertainment content to online audiences.

Sports Programming

Sinclair owns and operates the Tennis Channel, as well as Ring of Honor Wrestling, and produces sports programming for various networks.

Original Content

Sinclair produces original content, including news, sports, and entertainment programming, for broadcast and digital platforms.

Advertising and Marketing Services

Sinclair offers a range of advertising and marketing services, including targeted advertising, sponsored content, and event marketing.

Digital Marketing Solutions

Sinclair's digital marketing solutions include website design, search engine optimization, and social media management.

8. Sinclair Broadcast Group, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Sinclair Broadcast Group, Inc. is medium. While there are some substitutes available, such as online streaming services, they are not yet a significant threat to the company's traditional broadcasting business.

Bargaining Power Of Customers

The bargaining power of customers for Sinclair Broadcast Group, Inc. is low. The company has a diverse customer base, and no single customer has significant bargaining power.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Sinclair Broadcast Group, Inc. is medium. While the company relies on a few key suppliers for broadcasting equipment and services, it has some flexibility to negotiate prices and terms.

Threat Of New Entrants

The threat of new entrants for Sinclair Broadcast Group, Inc. is high. The broadcasting industry is highly competitive, and new entrants can easily enter the market with new technologies and business models.

Intensity Of Rivalry

The intensity of rivalry for Sinclair Broadcast Group, Inc. is high. The broadcasting industry is highly competitive, with many players competing for market share and advertising revenue.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 93.61%
Debt Cost 10.75%
Equity Weight 6.39%
Equity Cost 10.75%
WACC 10.75%
Leverage 1464.91%

11. Quality Control: Sinclair Broadcast Group, Inc. passed 0 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Sinclair Broadcast Group

A-Score: 5.4/10

Value: 7.2

Growth: 4.4

Quality: 4.5

Yield: 10.0

Momentum: 3.0

Volatility: 3.3

1-Year Total Return ->

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Stock-Card
Marcus

A-Score: 4.8/10

Value: 7.4

Growth: 4.0

Quality: 4.6

Yield: 3.0

Momentum: 4.0

Volatility: 6.0

1-Year Total Return ->

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Stock-Card
Cinemark

A-Score: 4.6/10

Value: 6.0

Growth: 5.2

Quality: 5.2

Yield: 1.0

Momentum: 4.5

Volatility: 6.0

1-Year Total Return ->

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Stock-Card
AMC Networks

A-Score: 4.5/10

Value: 9.8

Growth: 3.1

Quality: 4.9

Yield: 0.0

Momentum: 6.0

Volatility: 3.3

1-Year Total Return ->

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Stock-Card
Gaia

A-Score: 3.8/10

Value: 5.7

Growth: 4.0

Quality: 4.7

Yield: 0.0

Momentum: 6.0

Volatility: 2.7

1-Year Total Return ->

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Stock-Card
Dave & Buster's

A-Score: 3.1/10

Value: 6.3

Growth: 5.9

Quality: 3.3

Yield: 0.0

Momentum: 1.0

Volatility: 2.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

14.34$

Current Price

14.35$

Potential

-0.00%

Expected Cash-Flows