Investment Thesis
E.W. Scripps faces severe financial distress with collapsing profitability (net margin -0.3%), declining revenue (-14.3% YoY), and critical debt service risk (interest coverage 0.5x indicating inability to cover interest from operations). Minimal free cash flow ($350K) combined with high leverage (Debt/Equity 2.05x) and negative returns on equity create unsustainable capital structure requiring urgent deleveraging or restructuring.
Strengths
- Positive operating income of $24.8M provides thin buffer
- Adequate liquidity ratios (Current 1.58x, Quick 1.56x) for near-term obligations
- Established broadcasting asset base with $4.9B in total assets
Risks
- Interest coverage ratio of 0.5x indicates operating income cannot service debt obligations
- Revenue declining sharply (-14.3%) in secular decline industry
- Free cash flow of $350K insufficient to support $2.5B long-term debt burden
- Negative net income and negative ROE/ROA indicate value destruction
- High leverage (2.05x Debt/Equity) with limited cash ($83.7M) creates refinancing risk
Key Metrics to Watch
- Interest coverage trend and debt service covenant compliance
- Revenue stabilization and cable/broadcast subscriber trends
- Free cash flow generation and capital structure actions
- Operating margin sustainability and cost rationalization
Financial Metrics
Revenue
516.9M
Net Income
-1.8M
EPS (Diluted)
$-0.20
Free Cash Flow
350.0K
Total Assets
4.9B
Cash
83.7M
Profitability Ratios
Gross Margin
N/A
Operating Margin
4.8%
Net Margin
-0.3%
ROE
-0.1%
ROA
0.0%
FCF Margin
0.1%
Balance Sheet & Liquidity
Current Ratio
1.58x
Quick Ratio
1.56x
Debt/Equity
2.05x
Debt/Assets
0.0%
Interest Coverage
0.45x
Long-term Debt
2.5B
Disclaimer: This analysis is generated by AI based on publicly available SEC EDGAR filings.
It does not include stock price data and should not be considered financial advice.
All fundamental data is sourced from SEC public domain filings.
Always conduct your own research before making investment decisions.
Data Source: SEC EDGAR |
Analysis Date: 2026-05-09T13:14:19.997416 |
Data as of: 2026-03-31 |
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