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RISK CONCERN
Investment Strategy, Risk Analysis, and Insights by Chartered Professionals
The E.W. Scripps Company (XNAS:SSP) In-Depth Stock/Fundamental/Options Analysis Today
Primary Facts
SSP
Name:
THE E.W. SCRIPPS COMPANY (XNAS:SSP)
Sector:
24.69M
Industry:
Broadcasting
CEO:
Mr. Adam Symson
Total Employees:
5,600
Our Technological Advancement Rating
Our Rating:
D
Technological advancement compared to industry is -263.98% lower
ANALYSIS OF ALL CRITICAL FACTORS & RISKS RELATED TO THE STOCK & FUNDAMENTAL/LONG-TERM ANALYSIS OF THE E.W. SCRIPPS COMPANY(SSP) AS PER DATA ANALYSIS OF LAST 3 YEARS AND COMPARISON WITH COMPETITORS/PEERS, AND BROADCASTING INDUSTRY. DATE: 07/09/2022
Primary Targets/Price Insights
Previous Close ($) :
14.63
One Month Price Target:
$14.77
Six Month Price Target :
$15.48
Likely Price in One Year's Time:
Ticker:
$16.33
Likely Trading Range Today Under (Normal Volatility)
$14.54
Price Upper limit ($) :
$14.75
Price Lower limit ($) :
Crash Risk Prep/Key Price Levels (High Volatility/Risk)
Price, as per data analysis, isn't likely to fall below:
Today:
$13.38
This week:
$11.83
This month :
$9.04
Other Primary facts
Market Cap:
1.16B
Market Cap Classification:
Small Cap
Number of Shares
IPO Date:
83.42M
Best/Worst Daily Performance (Last 3+ Years)
Highest Daily Appreciation:
35.14%
-15.21%
Worst Daily Decline:
Our Options Trading Entry Points
Iron Condor entry points for options expiring in 1 week's time
Low risk (<2%) entry points
Buy Call:
Sell Call:
Buy Put:
Sell Put:
$20.43
$17.77
$8.83
$11.49
Medium risk (<10%) entry points
Buy Call
Sell Call
$16.90
Buy Put:
Sell Put:
$16.33
$12.35
$12.93
These entry points can be used for other strategies, such as butterflies, straddles, etc.
Risk-Adjusted returns (Sharpe Ratio) of
SSP
Sharpe Ratio:
1.81%
Comparison:
SSP, is amongst the top 40% stocks with highest risk-adjusted returns
Sharpe ratio is 41.42% higher than the industry
& is -20.67% lower than the market/S&P 500 average
Average Returns/Yield of
SSP
Daily returns:
0.08%
Weekly returns:
0.42%
Monthly returns:
1.70%
Yearly returns:
11.39%
Comparison of returns:
Average annual returns/yield (last 3 years) is 78.75% above industry average
Classification:
SSP, is amongst the top 40% highest yielding stocks in terms of daily returns
Results of T-Test of Returns:
0.96
Statistical test of Returns:
SSP has not yielded statistically significant higher returns when compared to the market
Volatility (measured by Standard Deviation)
Daily Volatility:
4.20%
Weekly Volatility:
9.40%
Monthly Volatility:
18.80%
Yearly Volatility:
65.13%
Volitlilty of last five days (Measured by Standard Deviation)
Average Volatility of this Week:
1.33%
Volatility in last five trading days has been -68.30% below long-term volatility
Value at Risk Analysis (VaR)
Daily VaR:
-8.55%
Weekly VaR:
-19.12%
Monthly VaR:
-38.23%
How Much Can the price of
SSP
Decline in a Recession?
Likely price decline in a recession:
Base case (decline):
-33%
Worst case (decline):
>85%
This translates to price declining to:
$9.83
This translates to price declining to:
$2.19
Severe Crash Probability
Risk of crash in next 6/12 months: High (50-70%)
What is Value at Risk (VaR)?
Risk Fundamentals
SSP is a 169.85% riskier investment compared to the market/S&P 500 & is 131.18% riskier than Nasdaq (IXIC)
Risk (measured by volatility) is 39.28% above industry average
Overall, it is amongst the top 50% most risky stocks
Beta Examination of
SSP
Beta in relation to market/S&P 500--1.73
Expected beta in 1 year's time:
1.071
Expected beta in 3 year's time:
1.515
Unlevered (debt free) Beta:
0.829
Beta in relation to Nasdaq (XNAS):
1.039
Beta in relation to all global stocks::
1.227
Beta Comparison & Analysis
Beta of competitors/peers::
1.031
Beta is 67.29% higher than peers
Average Industry Beta:
1.203
Beta is 43.39% above industry average
Sustainable Growth Rate Analysis
Sustainable growth rate for this stock/firm:
19.40%
Sustainable growth rate is 23.49% above industry average
Alpha provided | Alpha Analysis
Alpha provided:
0.054
Alpha is 184362.39% above industry average alpha yield
Alpha is 344% higher than market/& is unsustainably high
Analysis of Cost of Capital of
SSP
Equity cost of capital:
0.150
Equity cost of capital is 31.39% above industry mean WACC
Unlevered (without debt) cost of capital:
7.19%
Before-tax cost of debt:
4.92%
After-tax cost of debt:
3.88%
Overall debt rating:
Lower BB medium grade (Fifth highest grade)
Weighted average cost of capital (WACC):
3.88%
WACC is 28.89% above industry mean WACC
Key Per-Share Metrics & Analysis
Revenue per share:
$27.67
Revenue growth rate per share of (3Y):
0.62
Annual revenue growth rate is 164.78% above the industry average
EPS:
$0.97
Expected Annual growth rate of EPS (3Y):
0.00%
-
Free cash flow (FCF) per share:
$1.83
Balance sheet equity growth per share: 171.17%
Equity growth rate per share is 140.86% higher than the industry
Debt per share
$38.24
EBITDA per share
$6.29
Valuation Analysis Today of
SSP
P/E Ratio:
10.61
P/E Ratio of Competitors/Peers:
52.06
P/E ratio is -79.62% lower than main peers & is -20.97% lower than the industry
Stock price/value with industry average P/E ratio: $13.02
SSP is 12.34% overvalued if valued using industry average P/E ratio
Share value as per dividend discount (DDM) model: $12.94
Present value of the expected future dividends only: $1.34
P/S (Price to Sales ratio):
0.53
Price to sales ratio is -77.61% below the industry mean
P/B (Price to book value ratio):
0.62
Price to free cash flow: 8.01
Price to free cash flow ratio is -42.67% lower than the industry
Net income growth rate (3Y):
493.97%
Net income growth rate is 6277.91% higher than the average industry net income growth rate
Dividend Analysis
Dividend payout rate: 8.60%
Dividend yeild: 1.37%
Previous Dividend: $0.05
Previous adjusted dividend: $0.05
Previous Dividend: $0.20
-
-
Average dividend payment (long-term): $0.05
Average dividend increase/decrease (growth rate) % per period: 0.00%
-
-
-
Previous dividend payment date: 24/12/2020
Previous dividend record date: 15/12/2020
Previous dividend declaration date: 11/04/2020
Dividend History:
2020-12-14--$0.05
2020-06-12--$0.05
2019-12-12--$0.05
2020-09-14--$0.05
2020-03-13--$0.05
--$0.00
-
In-depth Debt & Leverage Analysis
Debt to equity ratio:
160.78%
Net debt to equity ratio:
159.95%
Debt to assets ratio:
48.76%
Net debt to assets ratio:
48.51%
Debt-to-asset ratio is -28.94% below industry average
Ability to repay debt:
Interest coverage ratio:
3.33
Interest coverage ratio is -23.59% less than industry average
Looking forward:
Debt growth rate:
11.18%
Annual debt growth is -34% lower than industry average debt growth rate
Debt repayment rate in last quarter: 3.75%
Analysis of Key Statistics
Correlation of price movement with the market:
0.556
Statistical significance of correlation:
SSP has a statistically significant correlation with the market
Average Correlation of the industry with the market:
0.52
Stock price is 6.99% more correlated with the market, compared to the industry average correlation
R Squared (percentage of price movement explained by movement of the market):
0.52
Correlation of price movement with Nasdaq (^IXIC):
0.011
Covariance of price movement with the market:
0.027
Kurtosis
11.661
Returns have a significant fat-tails (leptokurtic), i.e., returns considerably higher or lower than the mean returns are more probable, compared to assets with normally distributed returns
Skewness of returns:
1.357
Returns are right (positive) skewed; mean returns are greater than median and mode returns
Fundamental Analysis & Dupont Analysis of
SSP
Gross Profit Margin Ratio:
202%
Operating Profit Margin Ratio:
17.97%
Operating profit margin is 219.01% higher than the industry
Net Profit Margin Ratio:
202%
Effective Tax Rate:
32.73%
Effective tax rate is -72.50% lower than the industry
Dupont Method
Net Profit Margin
Return on Equity Ratio (ROE):
×
ROA
=
×
7.03%
Return on equity (ROE) is 132.02% higher than the industry
Financial Leverage
Asset Turnover Ratio (ROA):
2.13%
Return on assets (ROA) is -34.70% lower than the industry
Financial Leverage:
2.0x
Current Ratio:
1.37
Current ratio is -17.46% below industry average
Cash Conversion Cycle (days):
67.4
Cash conversion cycle is 96.55% above industry average
The remaining useful life of property plant & equipment is: 0.0 years
Stock based compensation to net income ratio:
7.51%
In-depth Efficiency Analysis
Revenue generated per employee:
412.2K
Each employee generates -55% less revenue than industry average revenue per employee
EBITDA generated per employee:
93.8K
Each employee generates -64% less EBITDA than industry average revenue per employee
Profit generated per employee:
24.9K
Each employee generates -72% less net income/profit than industry average revenue per employee
Free cash flow (FCF) generated per employee:
4.4K
Each employee generates -76% less free cash flow than industry average revenue per employee
Assets/Capital per employee
1.1M
Each employee generates -76% less free cash flow than industry average revenue per employee
Research & Development (R&D) Analysis
-
-
Competitors/Peer firms of
SSP
AMC NETWORKS INC. (XNAS:AMCX)
TABOOLA.COM LTD (XNAS:TBLA)
Scor SE (XPAR:SCR)
PARTNER COMMUNICATIONS COMPANY LTD. (XNAS:PTNR)
Cimpress plc (XNAS:CMPR)
SCHOLASTIC CORPORATION (XNAS:SCHL)
LIBERTY MEDIA CORPORATION (XNAS:BATRA)
LIBERTY MEDIA CORPORATION (XNAS:BATRK)
RADIUS GLOBAL INFRASTRUCTURE, INC. (XNAS:RADI)
Current Analyst Ratings
Strong buy�0%
Buy�13%
Hold�17%
Sell�0%
Strong sell�0%
Overall analyst sentiment is: Hold
Income Statement
Period:
TTM
Date:
3/31/22
Revenue:
2.31B
Cost of Revenue:
Gross Profit:
R&D Expense
General & Admin Expenses:
Selling, General & Admin Expenses
Sales and Marketing Expenses
Other Expenses :
Operating Expenses :
Cost & Expenses :
Interest Income:
Interest Expenses:
Depreciation & Amortization:
EBITDA:
Operating Income:
Other Income Expenses:
Income Before Tax:
Income Tax Expense:
Net Income:
Balance Sheet
Date:
Calendar Year:
Period:
Cash & Cash Equivalents:
Short Term Investments:
Cash & Short Term Investments:
Net Receivables:
Inventory:
Other Current Assets:
Total Current Assets:
PP&E:
Goodwill:
Intangible Assets:
Long Term Investments:
Tax Assets:
Other Non-Current Assets:
Total Non-Current Assets:
Other Assets:
Total Assets:
Accounts Payable:
Short Term Debt:
Tax Payables:
Deferred Revenue:
Other Current Liabilities:
Total Current Liabilities:
Long Term Debt:
Other Non-Current Liabilities:
Total Non Current Liabilities:
Other Liabilities:
Total Liabilities:
Common Stock:
Retained Earnings:
Accumulated Other Comprehensive Loss:
Other Total Stockholders' Equity:
Total Stockholders' Equity:
Total Liabilities and Stockholders' Equity:
Total Investments:
Total Debt:
Net Debt:
1.14B
1.17B
-
152.73M
603.81M
-
162.16M
765.97M
-
157.78M
162.16M
525.01M
414.80M
139.51M
200.32M
65.56M
139.51M
Statement of Cash Flow
Date:
Period:
39.75M
Differed Income Tax :
11.91M
Stock Based Compensation :
10.48M
Change in Working Capital :
- 33761.00K
Accounts Receivables:
9.36M
Other Working Capital:
- 26732.00K
Other Non-Cash Items:
- 13357.00K
Net Cash Provided by Operating Activities:
37.38M
Investments in PP&E:
- 12685.00K
Net Acquisitions:
- 13797.00K
Purchases of Investments:
- 5117.00K
Sales/Maturities of Investments:
Other Investing Activities:
Net Cash Used for Investing Activities:
Debt Repayment:
Common Stock Issued:
Common Stock Repurchased:
Dividend Paid:
Other Financing Activities:
Net Cash Used Provided by Financing Activities:
Effect of FOREX on Changes in Cash:
Net Changes in Cash:
Cash at End of Period:
Cash at Beginning of Period:
Operating Cash Flow:
Capital Expenditure:
Free Cash Flow (FCF):
3/31/22
2022
Q1
35.03M
-
35.03M
564.05M
-
28.67M
627.74M
570.62M
2.92B
1.89B
26.70M
-
503.20M
5.91B
-
6.54B
90.58M
18.61M
-
19.38M
328.77M
457.34M
3.19B
492.01M
4.10B
-
4.56B
833.00K
214.91M
- 73079.0K
1.43B
March 31, 2022 at 6:00:00 AM
1.91B
1.98B
6.54B
-
3.21B
3.2B
-
- 1255.00K
- 32854.00K
- 124197.00K
-
-
- 12000.00K
66.22M
- 69979.00K
-
- 65454.00K
35.03M
100.48M
37.38M
- 12685.00K
24.69M
Our Proprietary Portfolio Rating
Our Rating:
D
Price Forecast/Expected Price in Next 5 Years of
SSP
2023
2024
2025
2026
2027
$16.41
$28.35
$31.63
$35.30
$39.39