ITV plc (ITV) AI Stock Analysis

• Market Cap: £2.97B
• Dividend Yield: 6.35%
• Average Volume (3M): 5.64M
• Price to Earnings (P/E): 16.2
• Beta (1Y): 1.48
• Revenue Growth: -3.07%
• EPS Growth: -54.90%
• Country: UK
• Employees: 6,133
• Sector: Communication Services
• Sector Strength: 97
• Industry: Broadcasting
• EPS (TTM): 0.02
• Shares Outstanding: 3,758,189,200
• 10 Day Avg. Volume: 5,706,028
• 30 Day Avg. Volume: 5,638,874
• PEG Ratio: 0.08
• Price to Book (P/B): 1.60
• Price to Sales (P/S): 0.83
• P/FCF Ratio: 10.20
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £84.25
• Price Target Upside: 6.04% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 8

• Rating: 64 Neutral
• Price Target: 86.00p ▲(8.24% Upside)

ITV plc's overall stock score is driven by a balanced financial performance with strong cost management but challenges in revenue growth. The valuation is attractive due to a reasonable P/E ratio and high dividend yield. However, technical analysis indicates a lack of bullish momentum, which tempers the overall score.

ITV plc Business Overview & Revenue Model

Company Description

ITV plc, an integrated producer broadcaster, creates, owns, and distributes content on various platforms worldwide. It operates through Media & Entertainment, and ITV Studios segments. The Media & Entertainment segment broadcasts various contents on its family of free-to-air channels, including ITV, ITV2, ITV3, ITV4, ITVBe, ITV Encore, CITV, ITV Breakfast, CITV Breakfast, and various related +1 and HD equivalents; and offers television advertising services. It also delivers content through linear television broadcasting, as well as on the ITV Hub, catch up services on pay platforms, and through direct content deals. In addition, this segment offers online advertising, HD digital channel on pay platform, and ITV Choice subscription services, as well as licenses DTT Multiplex A. The ITV Studios segment creates and produces programs and formats that include drama, entertainment, and factual entertainment for its own channels and other broadcasters. It also operates as an unscripted independent producer of content in the United States; and produces content for local broadcasters and international OTT platforms in Australia, Germany, France, Italy, the Netherlands, Sweden, Norway, Finland, and Denmark. In addition, this segment engages in formats and distribution ITV's finished programmes, and formats and third-party content internationally, as well as finances productions. The company also engages in the development of platform, broadband, transactional, and mobile services; operation of digital television channels; operation of Freeview Multiplex A; rights ownership and distribution of television programs and films; and scheduling and commissioning of television programs. ITV plc was founded in 1955 is based in London, the United Kingdom.

How the Company Makes Money

ITV generates revenue through several key streams. The primary source is advertising revenue from its television channels, where advertisers pay to promote their products during commercial breaks. Additionally, ITV Studios contributes significantly to the company's earnings by producing content for both internal channels and external clients, which includes selling formats and distribution rights internationally. The company also benefits from subscription services, particularly through its streaming platform, ITV Hub, which offers ad-free viewing options. Partnerships with other media companies and content distributors enhance ITV's reach and revenue potential, while sponsorship and product placement within its shows further contribute to its earnings.

ITV plc Financial Statement Overview

Summary

ITV plc presents a mixed financial picture. The company demonstrates strong cost management and operational efficiency, but faces challenges in revenue growth and declining free cash flow. The balance sheet is stable with moderate leverage and solid profitability. Attention to revenue generation and cash flow management could enhance financial performance.

Income Statement

The company's income statement shows some strengths and weaknesses. Gross profit margin is high due to the removal of COGS, indicating effective cost management. However, net profit margin is moderate at 11.7%, showing room for improvement. Revenue has declined by 3.8% year-over-year, indicating a potential issue with sales growth. EBIT and EBITDA margins are reasonable, reflecting satisfactory operational efficiency.

Balance Sheet

ITV plc's balance sheet is relatively stable with a debt-to-equity ratio of 0.46, indicating moderate leverage. The return on equity is solid at 22.6%, showcasing strong profitability. However, the equity ratio is at 43.2%, which suggests moderate reliance on liabilities to finance assets. Overall, the balance sheet reflects a balanced financial position with manageable risks.

Cash Flow

The cash flow analysis shows mixed results. Free cash flow declined by 9.8%, indicating potential pressure on liquidity. The operating cash flow to net income ratio is solid, suggesting good cash conversion efficiency. Free cash flow to net income ratio is also healthy, but the decline in free cash flow needs attention.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.68B	3.49B	3.62B	3.73B	3.45B	2.78B
Gross Profit	440.00M	581.00M	311.00M	593.00M	690.00M	486.00M
EBITDA	327.00M	734.00M	388.00M	722.00M	805.00M	489.00M
Net Income	164.00M	408.00M	210.00M	428.00M	378.00M	285.00M
Balance Sheet
Total Assets	4.06B	4.19B	4.19B	4.47B	4.24B	3.95B
Cash, Cash Equivalents and Short-Term Investments	274.00M	427.00M	340.00M	348.00M	736.00M	668.00M
Total Debt	871.00M	838.00M	878.00M	962.00M	1.11B	1.19B
Total Liabilities	2.36B	2.35B	2.36B	2.60B	2.72B	2.80B
Stockholders Equity	1.67B	1.81B	1.79B	1.82B	1.48B	1.12B
Cash Flow
Free Cash Flow	355.50M	284.00M	315.00M	226.00M	126.00M	459.00M
Operating Cash Flow	365.50M	333.00M	385.00M	304.00M	171.00M	525.00M
Investing Cash Flow	-49.00M	246.00M	-97.00M	-221.00M	-76.00M	-74.00M
Financing Cash Flow	-407.00M	-489.00M	-287.00M	-483.00M	-24.00M	-26.00M

ITV plc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 79.45
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:ITV, the sentiment is Negative. The current price of 79.45 is below the 20-day moving average (MA) of 81.28, below the 50-day MA of 81.36, and above the 200-day MA of 75.84, indicating a neutral trend. The MACD of -0.40 indicates Positive momentum. The RSI at 42.46 is Neutral, neither overbought nor oversold. The STOCH value of 43.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:ITV.

ITV plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RCH	66 Neutral	207.98M	4.22	7.90%	9.39%	-4.44%	19.95%
ITV	64 Neutral	£2.97B	16.23	10.46%	6.35%	-3.07%	-54.90%
STVG	61 Neutral	54.67M	4.55	0.00%	9.66%	11.64%	139.33%
SAA	59 Neutral	181.81M	23.89	36.80%	0.95%	-21.19%	-29.54%
FUTR	58 Neutral	693.67M	9.09	7.23%	0.49%	-0.08%	-0.72%
BBB	41 Neutral	8.94M	-2.90	-133.33%	―	0.00%	0.00%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%

ITV plc Corporate Events

ITV plc Reports Strong H1 2025 Performance Amid Strategic Shifts

ITV plc reported its half-year results for 2025, highlighting a performance ahead of market expectations despite a 3% decline in total revenue and a 31% drop in group adjusted EBITA compared to the previous year. The company attributed these declines to a strong advertising period in 2024 due to the Men’s Euros. ITVX showed a 12% increase in digital advertising revenue, and ITV Studios is expected to achieve good revenue growth for the full year. ITV announced additional cost savings and a reduction in content spend, which are expected to improve the full-year outlook. The company continues to focus on digital growth, cost management, and leveraging its strong market position to drive future success.

The most recent analyst rating on (GB:ITV) stock is a Hold with a £87.00 price target. To see the full list of analyst forecasts on ITV plc stock, see the GB:ITV Stock Forecast page.

ITV Chair Andrew Cosslett to Lead Johnson Matthey

ITV plc has announced a significant leadership change as Andrew Cosslett, the current Chair of ITV, will also assume the role of Chair at Johnson Matthey plc following their Annual General Meeting on 17 July 2025. This appointment highlights Cosslett’s leadership capabilities and may influence ITV’s strategic direction and stakeholder relations, given his expanded responsibilities across two major companies.

The most recent analyst rating on (GB:ITV) stock is a Hold with a £87.00 price target. To see the full list of analyst forecasts on ITV plc stock, see the GB:ITV Stock Forecast page.