Sinclair Broadcast Stock Analysis, Valuation (NASDAQ:SBGI)

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$36.65 $0.35 (0.96%) SBGI stock closing price Feb 20, 2018 (Closing)
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Sinclair Broadcast
Updated on : Feb 20, 2018
previous close
SBGI 36.7 (0%)
S&P 500 2716.3 (0%)
Closing Price On: Feb 20, 2018
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Broadcasting-Radio-TV
Sector :
Consumer Discretionary
5 Quarter Revenue
Revenue Growth
2017-Q3
$million
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
24.1%
Operating Profit
Operating Margin:
21.9%
Sector Average:
11%
5 Quarter Net Profit
Net Margins
2017-Q3
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
4.06B
Debt/Equity Ratio:
 3.66
Compared to the industry
Cash Flow
Operating cash flow:
$136.9M
Net Income:
$30.6M
Dividend Yield
SBGI dividend yield:
1.96%
PROS      CONS
Long Term Growth
Operating Margins
Net Margins
Cash Flow
ROIC
ROE
High Debt Burden
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
SBGI PS :
1.3
Industry PS :
1.6
Sector:   Consumer Discretionary.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
9.3%
Return on Equity:
29%
Free Cash Flow Margin:
17.1%
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Sinclair Broadcast Stock Analysis

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View the Sinclair Broadcast stock analysis video on Amigobulls. This is our analyst opinion covering the buy and sell arguments for SBGI stock.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

Sinclair Broadcast Group Inc Stock Rating 3.8/5

Amigobulls SBGI stock analysis takes into account various financial ratios like relative valuation, Sinclair Broadcast revenue, growth and return on equity based on latest quarter 2017 Q3 financial statements. We also check Sinclair Broadcast dividend performance. Sinclair Broadcast valuation forms a crucial part of our stock analysis. Our Sinclair Broadcast stock rating is based on company's fundamentals like balance sheet risk and cash flow position.

Should you buy SBGI stock?

  • Revenue growth has been tremendous with a compounded annual growth of 24.1% over the last 5 years.
  • Sinclair Broadcast's average operating margin of 21.9% was exceptional.
  • LTM Net margins were good at 9.1% for Sinclair Broadcast.
  • The operating cash flow looks good at 4.5 times the net income.
  • The price to earnings multiple of 15.5 is attractive when compared with the industry average PE ratio of 21.8.
  • SBGI stock is trading at a favorable price to sales multiple of 1.3 as against the Broadcasting-Radio-TV industry average multiple of 1.6.
  • Sinclair Broadcast has an attractive ROIC (Return on Invested Capital) of 9.3%
  • Return On Equity (ROE) which is a measure of the company's profitability, looks great for Sinclair Broadcast at 29%.
  • Sinclair Broadcast has a healthy FCF (Free Cash Flow) margin of 17.1%.

Should you sell SBGI stock?

  • Sinclair Broadcast has a debt/equity ratio of  3.66, which is worse than the average in the Consumer Discretionary sector.

Comments on this video and Sinclair Broadcast stock

Amigobulls Sinclair Broadcast stock analysis helps in evaluating the financial statements of a company to arrive at a conclusion about the fair value of SBGI stock. Company's fundamentals remain one of the key driver of SBGI stock and helps investors in making good buy and sell decision.

Sinclair Broadcast revenue growth is an indicator of the demand for a company's products while profit margin is indicative of company's pricing power and pricing strategy. Along with fundamentals, investors can utilize technical analysis to get a better idea about the price trend of Sinclair Broadcast stock.