NYSE:TGNA
TEGNA INC
A premier US-based local advertising platform leveraging a robust portfolio of TV, radio, and digital media to drive high-yield direct-response marketing for brands.
Key Metrics
Investment Thesis
Bull Case
Investors may view TEGNA as an attractive value play given its normalized earnings power, strong free cash flow conversion, and significant capital return program that supports shareholder yield. The company's dominant local advertising inventory provides a defensive moat against digital disruption while offering growth opportunities through its expanding direct-response marketing services.
Bear Case
The stock faces valuation pressure due to high leverage levels with long-term debt of $3.08B and accumulated retained earnings deficits, which could limit flexibility during economic downturns or rising interest rate environments. Additionally, the reliance on local advertising markets makes revenue vulnerable to regional economic slowdowns and continued fragmentation in consumer attention spans.
About TEGNA INC
TEGNA Inc. is a leading local advertising platform and media company operating across the United States, specializing in television stations, radio networks, digital content, and live events. Serving advertisers and consumers nationwide, TEGNA delivers targeted local news, entertainment programming, and direct-response marketing solutions through its diverse portfolio of broadcast properties.
Analysis
Management Discussion
TEGNA reported strong financial recovery in 2024 with net income surging to $599.0M from $476.3M the prior year, effectively reversing the revenue decline seen in 2023 to reach $3.10B. The company demonstrated robust cash generation with operating cash flow of $685.0M and returned substantial capital to shareholders through $274.8M in share repurchases and $81.4M in dividends, while maintaining a healthy ending cash position of $693.2M.
Industry Overview
The US media industry is undergoing a structural transition where traditional broadcast revenue faces pressure from streaming services, yet direct-response and local news content remain resilient due to their effectiveness in driving sales for local retailers. Companies with diversified portfolios like TEGNA that integrate digital targeting with broadcast reach are better positioned to capture advertiser demand than pure-play linear networks.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Revenue | $3.28B | $2.91B | $3.10B |
| Cost of Revenue | $1.69B | $1.72B | $1.76B |
| Gross Profit | $1.59B | $1.19B | $1.35B |
| Operating Expenses | $595.4M | $458.5M | $561.1M |
| Operating Income | $990.6M | $733.5M | $784.8M |
| G&A | $60.1M | $65.9M | $51.9M |
| Stock-Based Comp | $30.5M | $24.5M | $38.5M |
| Depreciation | $61.2M | $59.8M | $59.9M |
| Amortization | $59.9M | $53.5M | $53.6M |
| Other OpEx | $535.3M | $392.6M | $509.2M |
| Non-Operating Income | $0 | $0 | $0 |
| Interest Expense | $174.0M | $172.9M | — |
| Interest Income | — | $29.3M | $27.0M |
| Pre-Tax Income | $990.6M | $733.5M | $784.8M |
| Income Tax | $202.4M | $130.2M | $173.9M |
| Continuing Ops | $788.3M | $603.3M | $610.8M |
| Discontinued Ops | $0 | $0 | $0 |
| Net Income | $631.2M | $476.3M | $599.0M |
| Minority Interest | $729.0K | $-377.0K | $-775.0K |
| Net to Common | $630.5M | $476.7M | $599.8M |
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Current Assets | $1.30B | $1.05B | $1.36B |
| Cash & Equivalents | $551.7M | $361.0M | $693.2M |
| Accounts Receivable | $658.3M | $624.4M | $604.3M |
| Prepaid Expenses | $36.2M | $24.0M | $23.0M |
| Other Current Assets | $57.6M | $40.8M | $39.8M |
| Long-Term Assets | $6.03B | $5.95B | $5.97B |
| PP&E (Net) | $457.1M | $452.2M | $444.3M |
| Intangibles | $2.38B | $2.33B | $2.31B |
| Goodwill | $2.98B | $2.98B | $3.02B |
| Operating Leases | $78.4M | $73.5M | $63.5M |
| Other LT Assets | $109.5M | $97.3M | $116.3M |
| Total Assets | $7.33B | $7.00B | $7.33B |
| Current Liabilities | $391.0M | $423.4M | $466.3M |
| Accounts Payable | $76.2M | $115.0M | $87.3M |
| Current Leases | $11.5M | $11.9M | $10.5M |
| Taxes Payable | $23.0M | $6.0M | $51.3M |
| Other Current Liab | $280.3M | $290.5M | $317.1M |
| Long-Term Liabilities | $3.85B | $3.85B | $3.84B |
| Long-Term Debt | $3.07B | $3.07B | $3.08B |
| LT Operating Leases | $79.5M | $73.7M | $63.4M |
| Other LT Liab | $699.9M | $706.5M | $695.3M |
| Total Liabilities | $4.24B | $4.28B | $4.30B |
| Shareholders' Equity | $3.09B | $2.72B | $3.03B |
| Retained Earnings | $7.90B | $8.09B | $8.55B |
| AOCI | $-125.5M | $-119.6M | $-106.6M |
| Total L&E | $7.33B | $7.00B | $7.33B |
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Net Income (CFO) | $631.2M | $476.3M | $599.0M |
| Non-Cash Adjustments | $167.2M | $125.9M | $159.5M |
| Working Capital Changes | $13.8M | $-15.0M | $-73.6M |
| Cash from Operations | $812.2M | $587.2M | $685.0M |
| Capital Expenditures | $51.3M | $54.7M | $52.4M |
| Cash from Investing | $-51.2M | $-28.0M | $31.8M |
| Debt Repayments | $0 | $0 | — |
| Share Buybacks | — | $652.9M | $274.8M |
| Dividends Paid | $84.8M | $83.5M | $81.4M |
| Cash from Financing | $-266.2M | $-749.9M | $-384.6M |
| FX Effect | $0 | $0 | $0 |
| Net Change in Cash | $494.7M | $-190.6M | $332.2M |
| Beginning Cash | $57.0M | $551.7M | $361.0M |
| Ending Cash | $551.7M | $361.0M | $693.2M |
Frequently Asked Questions
How does TEGNA INC make money?
The company's revenue is primarily driven by its Broadcast Television segment providing localized news and programming, the Radio segment offering targeted audio advertising, and its Digital Media & Events vertical which includes streaming content, live concerts, and specialized digital platforms like Bally Sports.
What are the main risks for TGNA?
Significant debt load relative to equity creating refinancing and interest rate sensitivity, regulatory headwinds from the FCC regarding media ownership consolidation limits, potential erosion of linear TV advertising revenue due to shifting consumer habits toward streaming, and operational risks associated with large-scale event cancellations or rights disputes.
What is TGNA's competitive advantage?
TEGNA possesses a dominant local market footprint with unrivaled inventory for hyper-local targeting, a diversified revenue mix across traditional broadcast and high-growth digital channels, and a proprietary data infrastructure that enables precise direct-response marketing measurement and optimization.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.