(SBGI) Sinclair Broadcast - Ratings and Ratios

Sinclair Broadcast Group Inc. (NASDAQ:SBGI) is a leading media conglomerate in the United States, operating through two primary segments: Local Media and Tennis. The Local Media segment encompasses a vast network of broadcast television stations, original networks, and content distribution platforms. It offers free over-the-air programming, live local sports, and distributes content to multi-channel video programming distributors. This segment also produces local and original news programs, including notable networks such as Comet, CHARGE!, and TBD. The Tennis segment focuses on niche sports programming through platforms like Tennis Channel and streaming services, catering to a dedicated audience.

Technically, SBGIs stock is trading above its 20-day SMA (14.19) at 15.33, indicating short-term bullish momentum. However, it remains below the 50-day (14.73) and 200-day (14.93) SMAs, suggesting an overall bearish trend. The Average True Range (ATR) of 0.75 reflects moderate volatility.

Fundamentally, SBGI boasts a market cap of $939.88M with a low P/E ratio of 3.01, indicating potential undervaluation. The forward P/E of 21.98 suggests high growth expectations. The companys price-to-book ratio is 1.61, and its price-to-sales ratio is 0.26, pointing to undervaluation relative to sales. The impressive return on equity (RoE) of 53.17 highlights efficient equity use.

Forecast: SBGIs stock shows short-term bullish momentum above its 20-day SMA, but the overall trend remains bearish below the 50 and 200-day SMAs. Strong fundamentals, including a low P/E and high RoE, position the company well for potential rebound. However, the high forward P/E underscores the need for cautious investor sentiment regarding growth expectations. Diversified revenue streams from media and non-media investments are positives, though reliance on advertising revenue poses risks in an economic downturn.