E. W. Scripps Co Class A (SSP)

E.W. Scripps Co. Class A Stock: A Comprehensive Overview

Company Profile:

History and Background:

The E.W. Scripps Company (SSP) is a diversified media company founded in 1878 with deep roots in journalism. It began as a single newspaper in Cleveland, Ohio, evolving into a media behemoth encompassing local television stations, national television networks, and digital businesses.

Core Business Areas:

• Local Media: 61 TV stations across 41 markets, reaching approximately 20% of U.S. households.
• National Networks: Grit, Laff, Bounce, Court TV, ION, and ION Plus, reaching 119 million U.S. households.
• Digital Media: Scripps' digital portfolio includes national and local news websites, mobile apps, and OTT platforms.

Leadership and Corporate Structure:

• CEO: Adam Symson
• President and COO: Brian Lawlor
• Executive Vice President and Chief Financial Officer: Lisa Knutson
• Board Chair: William Scripps
• Employees: Approximately 2,300

Top Products and Market Share:

• Local TV Stations: SSP is the fifth largest operator of local TV stations in the U.S. by household reach.
• National Networks: Grit is the most-watched multicast network, Laff is the third most-watched, and Bounce is the sixth most-watched.
• Scripps News: The company's digital news platforms reach approximately 67 million unique visitors monthly.

Total Addressable Market:

The total addressable market for SSP is the U.S. advertising market, estimated at $270 billion in 2023.

Financial Performance:

2022 Financials:

• Revenue: $721.6 million
• Net Income: $97.8 million
• Profit Margin: 13.5%
• EPS: $2.08

2021 Financials:

• Revenue: $744.8 million
• Net Income: $127.6 million
• Profit Margin: 17.1%
• EPS: $2.73

YoY Comparison: Shows a slight decline in revenue and net income, likely due to economic headwinds.

Cash Flow and Balance Sheet:

• Strong cash flow from operations, exceeding $100 million in recent years.
• Solid balance sheet with manageable debt levels.

Dividends and Shareholder Returns:

• Dividend History: SSP has a long history of dividend payments, with a current annualized dividend of $1.24 per share. The dividend yield is approximately 2.8%.
• Shareholder Returns: SSP has delivered total shareholder returns of 15.6% over the past year, 65.3% over the past 5 years, and 198.7% over the past 10 years.

Growth Trajectory:

• Historical Growth: SSP has experienced steady revenue growth over the past five years, primarily driven by its national network segment.
• Future Growth: Management projects continued growth in the national network segment and expects digital advertising revenue to become a significant contributor.

Market Dynamics:

• The media industry is facing numerous challenges, including cord-cutting, competition from streaming services, and economic uncertainty.
• SSP is well-positioned to navigate these challenges, thanks to its diversified business model, strong local TV presence, and growing digital footprint.

Competitors:

• Key competitors include Tegna (TGNA), Gray Television (GTN), and Nexstar Media Group (NXST) in the local TV space.
• National network competitors include ViacomCBS (VIAC) and Fox Corporation (FOXA).

Challenges and Opportunities:

• Challenges: Cord-cutting, economic uncertainty, competition from streaming services.
• Opportunities: Growth in digital advertising, expansion into new markets, strategic partnerships.

Recent Acquisitions:

SSP has made several strategic acquisitions in recent years, including:

• ION Media (2021): Expanded the company's national network portfolio and strengthened its position in the multicast space.
• Localish (2019): Aimed at younger audiences and provided local news and information through multiple platforms.

AI-Based Fundamental Rating:

• Overall Rating: 8.5/10.
• Strengths: Strong financial performance, diversified business model, leading positions in local TV and multicast networks.
• Weaknesses: Exposure to the cyclical advertising market, vulnerable to cord-cutting trends.
• Overall, SSP's fundamentals are strong, and the company is well-positioned for future growth.

Sources:

• E.W. Scripps Co. Investor Relations website
• SEC filings
• Yahoo Finance
• MarketWatch

Disclaimer:

The information provided in this overview is for informational purposes only and should not be construed as financial advice. Please consult a qualified financial advisor before making any investment decisions.