One-glance verdict
Within fair range
$-3.65 our estimate vs market $4.95
Wall Street consensus: $6.50 (-277.9% lower than our fair-value estimate)
236% below our estimate
Fundamentals snapshot
Gray Media, Inc.
GTN · NYQ · Communication Services · Broadcasting
Current price
$4.95
52-week range
$3.55 - $6.44
Market cap
$509.77M
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: 18.0%).
- 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 television stations and their websites all over the country. The company makes most of its money by selling advertising time to businesses and political campaigns that want to reach local viewers. This means its success is closely tied to how much advertisers are willing to spend, which can change with the economy and during election cycles.
How the company got here
Gray Media started in 1891 with a local newspaper in Albany, Georgia. It entered the television business in the 1950s by launching its first TV station. For many years, it was a small, regional broadcaster, but it grew significantly by buying up other television stations and media companies over several decades. A major turning point was the 2019 acquisition of Raycom Media, which transformed it into a large, national media company. To reflect that it was no longer just a traditional television company, it officially changed its name from Gray Television, Inc. to Gray Media, Inc.
What it actually does
Gray Media owns and operates local television stations across the United States. You might watch their channels for local news, weather, and sports, as well as for shows from major networks like NBC, ABC, and CBS. Besides what you see on TV, the company also runs websites and mobile apps for its stations and provides digital advertising services to other businesses. It also owns production studios where TV shows and movies can be filmed.
Broadcasting
This is Gray's largest and main business, making up most of its revenue (the money a company brings in from selling its products and services). It makes money in two primary ways: selling advertising time on its 180 local TV stations and through retransmission consent fees (payments from cable and satellite companies who want to carry Gray's station signals). This segment includes the local news programs you watch, which attract viewers and, in turn, advertisers who want to reach that local audience. Gray is the largest owner of top-rated local television stations in the country.
Production Companies
This is a smaller but growing part of the company. It includes video production companies like Raycom Sports and Tupelo Media Group, which create and produce sporting events and other entertainment content. Gray also owns large studio facilities, such as Assembly Atlanta and Third Rail Studios, which it rents out to other companies for filming movies and TV shows. This part of the business makes money by charging fees for producing content and for the use of its studio space and equipment.
What management is betting on now
The company's leadership is focused on several key areas for the future. A top priority is paying down its debt to make the company financially stronger. They are also working on growing their digital businesses and finding new ways to make money from online content and advertising. Another major bet is on local sports, making deals to broadcast the games of professional teams for free on their local channels. Finally, management is investing in its large production studios, aiming to make them a major source of cash flow (the total amount of money being transferred into and out of a business) by attracting more film and television projects.
Price history
How the share price has moved
—
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 $-3.65 vs current price $4.95
Wall Street consensus is the average analyst price target: $6.50 (-277.9% lower than our fair-value estimate).
Our most-likely fair value is $-3.65 a share — about 173.8% away from today's price of $4.95, 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 6.4% with 25-year payout history.
Risks
-
Insider ownership is only 7.1% (peer median: 18.0%).
-
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)
—
Forward P/E
-7.07x
P/B
0.23x
P/S
0.16x
EV/EBITDA
9.88x
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
6.4%
Payout ratio
74.4%
Last ex-div date
2026-09-15