Sinclair, Inc. (SBGI) stock analysis

P/E above its 5-year median

Sinclair's P/E of 10.9 is above its own 5-year median of 7.0.

P/E below the industry

Sinclair's P/E of 10.9 is below the Communications median of 14.4.

EV/EBITDA above its 5-year median

Sinclair's EV/EBITDA of 7.9 is above its 5-year median of 7.5.

P/B above the industry

Sinclair's price-to-book of 2.65 is above the Communications median of 1.59.

Trading below fair value

The share price of $15.00 is below our fair value estimate of $16.55.

Margin of safety under 20%

The price is 9.4% below fair value, less than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew -6.9% a year over the last three fiscal years, short of the 10% we look for.

EPS growth over 3 years

Needs positive EPS three years ago and today.

Earnings acceleration

Needs positive net income now, a year ago and five years ago.

Growing slower than the industry

Revenue grew 1.2% over the last twelve months; the Communications median is 1.2%.

Guidance lowered

Sinclair lowered its twelve months ending December 31, 2026 Political Advertising Revenue outlook on Aug 5, 2026.

Gross margin trend

This company does not report gross profit.

Return on equity over 15%

Return on equity was 25.4% over the last twelve months and averaged 87.0% over five years.

Return on capital under 10%

Return on invested capital was 7.6%, below the 10% that usually covers the cost of capital.

Return on equity above the industry

Sinclair's return on equity of 25.4% is above the Communications median of 5.2%.

Earnings over 5 years

Needs positive net income five years ago and in the latest year.

Net margin below its 5-year average

Net margin was 2.8% over the last twelve months, against a 5-year average of 11.3%.

Net margin above the industry

Sinclair's net margin of 2.8% is above the Communications median of -4.4%.

High debt

Debt is 984% of shareholders' equity, above the 40% we consider low.

Debt trend

Needs a balance sheet from five years ago with positive equity.

Debt not well covered by cash flow

Operating cash flow over the last twelve months equals 8.3% of total debt; we look for at least 20%.

Interest not well covered

Operating income covers interest expense 0.9 times; we look for at least 5.

Short-term assets cover short-term debts

Current assets are 1.97 times current liabilities.

Elevated bankruptcy risk

The Altman Z-score is 1.01; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Sinclair paid dividends worth 6.7% of the share price over the last twelve months.

Yield above Treasuries

The 6.7% yield is above the 4.4% on a 1-year Treasury.

Yield in the top quarter

The top quarter of US dividend payers yield 3.8% or more; Sinclair yields 6.7%.

Dividend stability

Fewer than five years of dividend history.

Covered by earnings

Dividends take 75.0% of net income.

Covered by free cash flow

Dividends take 27.5% of free cash flow.