ITV plc
ITV plc Fundamental Analysis
ITV plc (ITVPF) shows moderate financial fundamentals with a PE ratio of 13.07, profit margin of 6.27%, and ROE of 12.69%. The company generates $3.5B in annual revenue with weak year-over-year growth of -3.75%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 35.0/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze ITVPF's fundamental strength across five key dimensions:
Efficiency Score
WeakITVPF struggles to generate sufficient returns from assets.
Valuation Score
ExcellentITVPF trades at attractive valuation levels.
Growth Score
ModerateITVPF shows steady but slowing expansion.
Financial Health Score
ExcellentITVPF maintains a strong and stable balance sheet.
Profitability Score
WeakITVPF struggles to sustain strong margins.
Key Financial Metrics
Is ITVPF Expensive or Cheap?
P/E Ratio
ITVPF trades at 13.07 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, ITVPF's PEG of 0.64 indicates potential undervaluation.
Price to Book
The market values ITV plc at 1.60 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 4.06 times EBITDA. This is generally considered low.
How Well Does ITVPF Make Money?
Net Profit Margin
For every $100 in sales, ITV plc keeps $6.27 as profit after all expenses.
Operating Margin
Core operations generate 12.84 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $12.69 in profit for every $100 of shareholder equity.
ROA
ITV plc generates $5.13 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
ITV plc generates limited operating cash flow of $200.43M, signaling weaker underlying cash strength.
Free Cash Flow
ITV plc produces free cash flow of $174.63M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.05 in free cash annually.
FCF Yield
ITVPF converts 6.21% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
13.07
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.64
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.60
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.81
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.49
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.23
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.13
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.17
vs 25 benchmark
How ITVPF Stacks Against Its Sector Peers
| Metric | ITVPF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 13.07 | 22.85 | Better (Cheaper) |
| ROE | 12.69% | 996.00% | Weak |
| Net Margin | 6.27% | -61392.00% (disorted) | Weak |
| Debt/Equity | 0.49 | 1.12 | Strong (Low Leverage) |
| Current Ratio | 1.23 | 1.65 | Neutral |
| ROA | 5.13% | -583086.00% (disorted) | Weak |
ITVPF outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews ITV plc's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
7.18%
Industry Style: Growth, Technology, Streaming
GrowingEPS CAGR
-12.32%
Industry Style: Growth, Technology, Streaming
DecliningFCF CAGR
-28.44%
Industry Style: Growth, Technology, Streaming
Declining