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Communication Services Sector Report

Media & Entertainment Industry Report

Market Cap: $1.2T
Stocks: 77
Median P/E: 14.5x
Median ROIC: 5.2%

Data sourced from SEC EDGAR filings. Report refreshed weekly.

Part of the Communication Services sector.

Performance Dashboard

PeriodSector (MCW)Sector (Median)
1 Day-5.1%0.0%
1 Week-7.1%+3.7%
1 Month
3 Months
6 Months
YTD-7.8%+0.7%
1 Year+43.0%-0.6%
3 Years+18.3%-27.3%
5 Years-18.9%-45.8%

Today's Breadth: 21 advancing · 22 declining · 5 flat

Valuation Summary

MetricMedianP25P75vs 5Y Avg
P/E14.5x6.3x27.4x-6%
P/B0.9x0.3x2.6x-41%
P/S0.6x0.2x1.4x
P/FCF9.2x4.0x14.5x
EV/EBITDA8.6x6.0x15.6x
EV/EBIT15.0x10.0x23.5x
Earnings Yield
5.2%
FCF Yield
8.6%
Below Fair Value
44% of stocks

Profitability Profile

Margins

MetricMedian5Y AvgP25P75
Gross Margin50.4%48.9%35.9%58.3%
Operating Margin5.5%-5.1%13.1%
Net Margin1.7%0.3%-7.6%9.4%
FCF Margin7.1%1.7%15.4%

Returns on Capital

MetricMedian5Y AvgP25P75
ROE3.5%-7.6%10.5%
ROA-0.1%-7.0%4.3%
ROIC5.2%4.9%-10.8%12.1%

Growth Metrics

Metric1Y3Y CAGR5Y CAGR
Revenue+0.5%+0.3%+1.1%
EPS+47.4%+11.7%+12.7%
Free Cash Flow+15.9%-14.8%-6.7%

All values represent sector median growth rates.

Balance Sheet Health

Debt / Equity
0.6x
Net Debt / EBITDA
2.2x
Interest Coverage
1.1x
Current Ratio
1.0x

Altman Z-Score

Safe (>3): 10 (14%)
Gray (1.8–3): 14 (20%)
Distress (<1.8): 45 (65%)

Piotroski F-Score

Strong (7–9): 11 (14%)
Moderate (4–6): 48 (62%)
Weak (0–3): 18 (23%)

Top Companies

Symbol#Mkt CapP/EEV/EBITDAROICNet MgnRev Gr.Div YldYTDQual.
TV1$697.1B-7.5%-13.4%-6.0%0.3%-11.7%2/9
SPOT2$103.8B55.6x45.9x37.9%12.8%+14.9%+3.1%4/9
REN-AS3$52.0B31.6x23.5x25.5%21.5%+4.9%1.8%4/9
REL-L4$46.0B27.6x20.8x25.8%21.5%+4.9%2.1%7/9
FOXA5$28.8B11.5x780.1x12.6%13.9%+16.6%1.1%+1.4%4/9
FOX6$25.9B10.6x721.6x12.6%13.9%+16.6%1.1%+1.1%4/9
SFOR-L7$25.6B-0.7x5.1x-25.8%-36.2%-14.1%2/9
FWONK8$23.2B44.8x28.8x6.0%12.4%+22.7%+3.1%1/9
FWONA9$21.3B40.8x26.5x6.0%12.4%+22.7%+2.9%1/9
PUB-PA10$18.4B15.2x8.6x14.5%10.4%+7.8%3.4%4/9
HAVAS-AS11$16.5B88.7x35.3x14.3%6.0%-0.8%1.6%1/9
INF-L12$10.5B35.3x24.3x4.8%8.4%+14.2%1000000.0%4/9
SSL-MI13$9.0B-510.6x402.1x-16.3%0/9
SIRI14$8.6B9.2x4.2x5.2%9.4%-1.6%4.9%+1.4%4/9
PSO15$8.4B19.2x15.0x7.3%9.4%+3.9%2.5%+0.4%2/9
PSKY16$7.1B-24.8%-21.2%0.0%-5.8%0/9
PSON-L17$6.8B19.9x17.5x8.4%12.2%-0.9%1.8%3/9
TME18$6.7B8.1x13.8%25.0%+0.7%2.6%+3.8%2/9
NXST19$5.7B67.8x10.1x6.0%1.9%-8.5%3.7%+1.8%3/9
DEC-PA20$4.2B-304.6x120.5x0.9%-0.6%+23.4%0.2%0/9

Industry Composition

IndustryStocksMarket Cap%
Television Broadcasting Stations13$815.4B69.7%
Radio Broadcasting Stations14$120.7B10.3%
Publishing8$116.0B9.9%
Advertising Agencies11$69.4B5.9%
Books: Publishing Or Publishing & Printing4$13.7B1.2%
Entertainment4$12.6B1.1%
Services-Motion Picture & Video Tape Production7$7.5B0.6%
Broadcasting5$5.6B0.5%
Services-Motion Picture Theaters5$5.5B0.5%
Commercial Printing3$2.6B0.2%
Internet Content & Information1$954M0.1%
Services-Allied To Motion Picture Production2$1M0.0%

Quality Distribution

0
1
2
3
4
5
6
7
8
9

Quality Score (0-9)

High Quality (7+)
3%
Median Piotroski F
5/9
Profitable Years
4 of 10

Dividends & Shareholder Returns

Paying Dividends
51%
Median Div Yield
2.9%
Median Buyback Yield
0.4%
Shareholder Yield
3.0%
Payout Ratio
47.6%
Div Growth (3Y)
8.5%
Div Growth (5Y)
5.9%

Strengths & Weaknesses

Strengths

  • +[Profitability]High pricing power with a median gross margin of 50.4%, reflecting differentiated products or strong brand moats.

Weaknesses

  • [Cash Flow]Deteriorating cash flow with a median 5-year FCF CAGR of -6.7%, raising sustainability concerns for capital allocation.
  • [Financial Health]65.2% of companies fall in the Altman Z-Score distress zone (<1.8), indicating elevated bankruptcy risk within the sector.
  • [Growth]Sluggish top-line growth with a median 5-year revenue CAGR of 1.1%, barely keeping pace with inflation.
  • [Leverage]Tight interest coverage at 1.1x, leaving limited cushion for debt servicing if earnings decline.

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