TGNA - Embedded Expectations Analysis - 2020 10 29
TEGNA Inc. (TGNA:USA) currently trades below corporate averages relative to UAFRS-based (Uniform) earnings, with a 12.1x Uniform P/E. Even at these levels, the market has bullish expectations for the firm, and management is confident about overall TV viewership, the importance of their content, and their ability to sustain liquiditySpecifically, management is confident their VERIFY franchise has the ability to sift facts from a sea of misinformation, that their coverage is a welcome change from most national news, and that their overall TV viewership will continue to rise. Moreover, they are confident they have taken steps to create a strong balance sheet, and in their ability to pay down debt. Management is also confident in their ability to make proactive capital allocation decisions. Furthermore, they are confident in the importance of their local content operations to the communities they serve and that comScore rankings have them in the top 50 digital U.S. properties. In addition, they are confident in the competitiveness of the thirty House races currently in their markets, and that their political footprint will perform better as political races take shape in H2 2020
TEGNA is a media company. The company's business provides television programming and digital content. Each television station also has a digital presence across online, mobile and social platforms. The company provides advertising and marketing services, which include local and national non-political television advertising, digital marketing services, and advertising on stations' websites and tablet and mobile products; subscription by satellite, cable, Over the Top and telecommunications providers; political advertising; and other services, such as production of programming and advertising material. The company's portfolio of Big 4 NBC, CBS, ABC and FOX stations operate under long-term affiliation agreements.
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- GAAP and IFRS have failed to provide rules for reliable financial statement reporting
- Stock analyst recommendations are not grounded in disciplined financial analysis
- Credit agencies have been set up to grossly fail in their responsibilities to investors and the public markets
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