One-glance verdict
Within fair range
$5.32 our estimate vs market $4.38
Wall Street consensus: $6.50 (22.2% higher than our fair-value estimate)
18% below our estimate
Fundamentals snapshot
Gray Media, Inc.
GTN · NYQ · Communication Services · Broadcasting
Current price
$4.38
52-week range
$3.55 - $6.44
Market cap
$451.07M
Balance sheet
Distressed
0.87x Concerning
Net debt $5.71B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
3 Risks
3 rewards · 3 risks
- Reward Revenue grew 1.7% last year.
- Reward Free cash flow was positive in 10/10 years.
- Risk Insider ownership is only 7.1% (peer median: 18.3%).
- Risk Operating margin compressed from 26.9% to 18.6% over 3 years.
What this company does
Gray Media, Inc.
Gray Media owns and operates local TV stations across the United States. The company makes most of its money by selling commercial airtime to businesses and collecting fees from cable providers that carry its stations. Because a lot of this advertising comes from political campaigns, its revenue (the total money brought in from sales) often gets a large boost during election years.
How the company got here
Gray Media started in 1891 as a local newspaper in Albany, Georgia. Over many decades, it moved into radio and then television, buying up local TV stations. A series of major acquisitions, especially after 2019, transformed it from a regional player into one of the largest owners of local television stations in the United States. To reflect that it was more than just a traditional television company, it changed its name from Gray Television to Gray Media.
What it actually does
Gray Media owns and operates local television stations across the country. You might watch their channels for local news, weather, and sports, as well as for shows from major networks like CBS, NBC, and ABC. The company makes money primarily by selling advertising time to local and national businesses that want to reach viewers in those communities. They also charge cable and satellite companies fees to carry their stations.
Broadcasting
This is Gray's main business and generates most of its revenue (the money a company brings in from sales). It involves running local TV stations in 113 markets across the U.S. Businesses pay Gray to air commercials during news broadcasts and other shows. Gray also collects retransmission fees (payments from cable and satellite providers who want to include Gray's local channels in their TV packages). This segment also includes digital advertising on the stations' websites and apps.
Production Companies
This is a smaller but growing part of Gray's business. It includes video production companies that create content, such as sports programming and other shows. This segment also owns studio facilities, like Assembly Atlanta, which can be rented out to other companies to film movies and TV shows. This provides Gray with a way to make money beyond traditional television advertising.
What management is betting on now
The company's leadership is focused on paying down its debt to strengthen its financial position. They are also working to increase the recurring fees they get from cable and satellite distributors. Another key priority is expanding into local sports broadcasting, acquiring the rights to air games for local professional teams. Finally, management is investing in its digital products and looking for new ways to use its broadcast signal, such as for data delivery.
Price history
How the share price has moved
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Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$257.00M
FY2024 Q4
$328.00M
FY2025 Q1
$117.00M
FY2025 Q2
$6.00M
FY2025 Q3
$-11.00M
FY2025 Q4
$69.00M
FY2026 Q1
$-18.00M
FY2026 Q2
$106.00M
Revenue
$839.00M
Net income
$14.00M
Diluted EPS
0.21
Operating cash flow
$123.00M
Free cash flow
$106.00M
Fetching…
Sources
Revenue
$768.00M
Net income
$-20.00M
Diluted EPS
-0.34
Operating cash flow
$1.00M
Free cash flow
$-18.00M
Fetching…
Sources
Revenue
$792.00M
Net income
$-10.00M
Diluted EPS
-0.23
Operating cash flow
$112.00M
Free cash flow
$69.00M
Fetching…
Sources
Revenue
$749.00M
Net income
$-10.00M
Diluted EPS
-0.24
Operating cash flow
$14.00M
Free cash flow
$-11.00M
Fetching…
Sources
Revenue
$772.00M
Net income
$-56.00M
Diluted EPS
-0.71
Operating cash flow
$31.00M
Free cash flow
$6.00M
Fetching…
Sources
Revenue
$782.00M
Net income
$-9.00M
Diluted EPS
-0.23
Operating cash flow
$132.00M
Free cash flow
$117.00M
Fetching…
Sources
Revenue
$1.04B
Net income
$169.00M
Diluted EPS
1.62
Operating cash flow
$368.00M
Free cash flow
$328.00M
Fetching…
Sources
Revenue
$950.00M
Net income
$96.00M
Diluted EPS
0.86
Operating cash flow
$297.00M
Free cash flow
$257.00M
Fetching…
Sources
Is it cheap or expensive?
Fair value $5.32 vs current price $4.38
Wall Street consensus is the average analyst price target: $6.50 (22.2% higher than our fair-value estimate).
Our most-likely fair value is $5.32 a share — about 21.4% away from today's price of $4.38, so the stock currently looks fairly priced.
Is it drowning in debt?
Distressed
Net debt $5.7B. Interest coverage 0.9x.
Net debt
$5.71B
Interest coverage
0.87x
Gray Media, Inc.'s profit covers its interest bill about 0.9 times over. which is stronger than most peers shown here and 3 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Distressed
Worse cushion
Baseline
Better cushion
GTN
BASELINE
Gray Media, Inc.
Total debt $5.89B Interest coverage 0.87x This is the baseline the peer rows are being compared against.
Total debt $12.09B Interest coverage 2.28x +163% vs GTN Carries about 2.6x more debt cushion than GTN.
Total debt $4.19B Interest coverage 0.39x -55% vs GTN Carries about 2.2x less debt cushion than GTN.
Total debt $2.62B Interest coverage 0.73x -15% vs GTN Carries about 1.2x less debt cushion than GTN.
Total debt $206.27M Interest coverage 0.04x -96% vs GTN Carries about 24.2x less debt cushion than GTN.
What you should know
The case for and against GTN
3 Rewards
3 Risks
Rewards
-
Revenue grew 1.7% last year.
-
Free cash flow was positive in 10/10 years.
-
Dividend yield is 7.3% with 25-year payout history.
Risks
-
Insider ownership is only 7.1% (peer median: 18.3%).
-
Operating margin compressed from 26.9% to 18.6% over 3 years.
-
Return on equity was -0.9% last year — the company lost money on shareholders' equity.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
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Forward P/E
-6.26x
P/B
0.20x
P/S
0.14x
EV/EBITDA
9.80x
PEG ratio
0.12x
Profitability
How much profit each dollar creates
Gross margin
26.0%
Operating margin
18.6%
Net margin
-0.8%
ROE
-0.9%
ROA
2.7%
Health
Liquidity and balance-sheet strength
Debt / equity
2.16x
Current ratio
0.95x
Quick ratio
0.72x
Total debt
$5.89B
Total cash
$176.00M
Growth
How the business has been compounding
Revenue TTM
$3.15B
Revenue 5Y CAGR
6.4%
EPS TTM
-0.58
EPS 5Y CAGR
—
Cash flow
How much cash the business throws off
Operating CF TTM
$250.00M
Free CF TTM
$181.00M
FCF margin
5.7%
Dividend
Shareholder payout
Yield
7.3%
Payout ratio
74.4%
Last ex-div date
2026-09-15