Loading...

We've got a brand new version of Simply Wall St! Try it out

ITV

LSE:ITV
Snowflake Description

Average dividend payer and fair value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
ITV
LSE
£6B
Market Cap
  1. Home
  2. GB
  3. Media
Company description

ITV plc, an integrated producer broadcaster, creates, owns, and distributes content on various platforms worldwide. The last earnings update was 142 days ago. More info.


Add to Portfolio Compare Print
ITV Share Price and Events
7 Day Returns
6.7%
LSE:ITV
2%
GB Media
1.7%
GB Market
1 Year Returns
17.5%
LSE:ITV
8.9%
GB Media
8.1%
GB Market
ITV Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
ITV (ITV) 6.7% 14.4% 20.8% 17.5% -22.1% -27.3%
GB Media 2% -2.2% -5.6% 8.9% -19.3% -10.3%
GB Market 1.7% 0.1% 0.6% 8.1% 4% 8%
1 Year Return vs Industry and Market
  • ITV outperformed the Media industry which returned 8.9% over the past year.
  • ITV outperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned 8.1% over the past year.
Price Volatility
ITV
Industry
5yr Volatility vs Market
Related Companies

Value

 Is ITV undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of ITV to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for ITV.

LSE:ITV Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 16 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 6.2%
Perpetual Growth Rate 10-Year GB Government Bond Rate 0.5%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for LSE:ITV
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year GB Govt Bond Rate 0.5%
Equity Risk Premium S&P Global 6.1%
Media Unlevered Beta Simply Wall St/ S&P Global 0.76
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.765 (1 + (1- 19%) (21.37%))
0.931
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.93
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.53% + (0.931 * 6.07%)
6.18%

Discounted Cash Flow Calculation for LSE:ITV using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for ITV is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

LSE:ITV DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (GBP, Millions) Source Present Value
Discounted (@ 6.18%)
2020 457.11 Analyst x7 430.50
2021 479.41 Analyst x6 425.22
2022 494.89 Est @ 3.23% 413.40
2023 506.86 Est @ 2.42% 398.75
2024 516.24 Est @ 1.85% 382.49
2025 523.76 Est @ 1.46% 365.47
2026 529.93 Est @ 1.18% 348.25
2027 535.14 Est @ 0.98% 331.20
2028 539.67 Est @ 0.85% 314.57
2029 543.73 Est @ 0.75% 298.48
Present value of next 10 years cash flows £3,708.00
LSE:ITV DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= £543.73 × (1 + 0.53%) ÷ (6.18% – 0.53%)
£9,673.03
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= £9,673.03 ÷ (1 + 6.18%)10
£5,310.05
LSE:ITV Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= £3,708.00 + £5,310.05
£9,018.05
Equity Value per Share
(GBP)
= Total value / Shares Outstanding
= £9,018.05 / 3,998.48
£2.26
LSE:ITV Discount to Share Price
Calculation Result
Value per share (GBP) From above. £2.26
Current discount Discount to share price of £1.53
= -1 x (£1.53 - £2.26) / £2.26
32.3%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price ITV is available for.
Intrinsic value
32%
Share price is £1.53 vs Future cash flow value of £2.26
Current Discount Checks
For ITV to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • ITV's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • ITV's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for ITV's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are ITV's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
LSE:ITV PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-06-30) in GBP £0.11
LSE:ITV Share Price ** LSE (2019-12-13) in GBP £1.53
United Kingdom of Great Britain and Northern Ireland Media Industry PE Ratio Median Figure of 27 Publicly-Listed Media Companies 22.65x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 751 Publicly-Listed Companies 17.26x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of ITV.

LSE:ITV PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= LSE:ITV Share Price ÷ EPS (both in GBP)

= 1.53 ÷ 0.11

13.72x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • ITV is good value based on earnings compared to the GB Media industry average.
  • ITV is good value based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.
Price based on expected Growth
Does ITV's expected growth come at a high price?
Raw Data
LSE:ITV PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 13.72x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 16 Analysts
8.4%per year
United Kingdom of Great Britain and Northern Ireland Media Industry PEG Ratio Median Figure of 21 Publicly-Listed Media Companies 1.62x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 560 Publicly-Listed Companies 1.48x

*Line of best fit is calculated by linear regression .

LSE:ITV PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 13.72x ÷ 8.4%

1.63x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • ITV is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on ITV's assets?
Raw Data
LSE:ITV PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-06-30) in GBP £0.17
LSE:ITV Share Price * LSE (2019-12-13) in GBP £1.53
United Kingdom of Great Britain and Northern Ireland Media Industry PB Ratio Median Figure of 42 Publicly-Listed Media Companies 1.34x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,311 Publicly-Listed Companies 1.52x
LSE:ITV PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= LSE:ITV Share Price ÷ Book Value per Share (both in GBP)

= 1.53 ÷ 0.17

8.78x

* Primary Listing of ITV.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • ITV is overvalued based on assets compared to the GB Media industry average.
X
Value checks
We assess ITV's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Media industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Media industry average (and greater than 0)? (1 check)
  5. ITV has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is ITV expected to perform in the next 1 to 3 years based on estimates from 16 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
8.4%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is ITV expected to grow at an attractive rate?
  • ITV's earnings growth is expected to exceed the low risk savings rate of 0.5%.
Growth vs Market Checks
  • ITV's earnings growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.
  • ITV's revenue growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.
Annual Growth Rates Comparison
Raw Data
LSE:ITV Future Growth Rates Data Sources
Data Point Source Value (per year)
LSE:ITV Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 16 Analysts 8.4%
LSE:ITV Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 16 Analysts 3.1%
United Kingdom of Great Britain and Northern Ireland Media Industry Earnings Growth Rate Market Cap Weighted Average 12.3%
United Kingdom of Great Britain and Northern Ireland Media Industry Revenue Growth Rate Market Cap Weighted Average 2.8%
United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate Market Cap Weighted Average 12.4%
United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate Market Cap Weighted Average 3.6%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
LSE:ITV Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (5 months ago) See Below
Future Estimates Average of up to 16 Analyst Estimates (S&P Global) See Below
All numbers in GBP Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
LSE:ITV Future Estimates Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 3,439 543 483 14
2020-12-31 3,329 513 430 16
2019-12-31 3,245 476 396 15
2019-12-13
LSE:ITV Past Financials Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income *
2019-06-30 3,094 437 445
2019-03-31 3,153 431 456
2018-12-31 3,211 424 466
2018-09-30 3,233 484 442
2018-06-30 3,254 543 418
2018-03-31 3,192 500 414
2017-12-31 3,130 456 409
2017-09-30 3,080 447 408
2017-06-30 3,030 438 406
2017-03-31 3,047 543 428
2016-12-31 3,064 647 449
2016-09-30 3,092 631 467

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • ITV's earnings are expected to grow by 8.4% yearly, however this is not considered high growth (20% yearly).
  • ITV's revenue is expected to grow by 3.1% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
LSE:ITV Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (5 months ago) See Below
Future Estimates Average of up to 16 Analyst Estimates (S&P Global) See Below

All data from ITV Company Filings, last reported 5 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:ITV Future Estimates Data
Date (Data in GBP Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 0.11 0.13 0.09 8.00
2020-12-31 0.10 0.12 0.08 9.00
2019-12-31 0.10 0.11 0.09 9.00
2019-12-13
LSE:ITV Past Financials Data
Date (Data in GBP Millions) EPS *
2019-06-30 0.11
2019-03-31 0.11
2018-12-31 0.12
2018-09-30 0.11
2018-06-30 0.10
2018-03-31 0.10
2017-12-31 0.10
2017-09-30 0.10
2017-06-30 0.10
2017-03-31 0.11
2016-12-31 0.11
2016-09-30 0.12

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • ITV is expected to make outstanding use of shareholders’ funds in the future (Return on Equity greater than 40%).
X
Future performance checks
We assess ITV's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
ITV has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has ITV performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare ITV's growth in the last year to its industry (Media).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • ITV's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.
  • ITV's 1-year earnings growth exceeds its 5-year average (6.5% vs -1.7%)
  • ITV's earnings growth has exceeded the GB Media industry average in the past year (6.5% vs 1%).
Earnings and Revenue History
ITV's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from ITV Company Filings, last reported 5 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:ITV Past Revenue, Cash Flow and Net Income Data
Date (Data in GBP Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-06-30 3,094.00 445.00 27.50
2019-03-31 3,152.50 455.50 27.50
2018-12-31 3,211.00 466.00 27.50
2018-09-30 3,232.50 442.00 23.45
2018-06-30 3,254.00 418.00 19.40
2018-03-31 3,192.00 413.50 20.90
2017-12-31 3,130.00 409.00 22.40
2017-09-30 3,080.00 407.50 22.55
2017-06-30 3,030.00 406.00 22.70
2017-03-31 3,047.00 427.50 21.70
2016-12-31 3,064.00 449.00 20.70
2016-09-30 3,091.50 466.50 9.65
2016-06-30 3,119.00 484.00 -1.40
2016-03-31 3,045.50 489.50 0.10
2015-12-31 2,972.00 495.00 1.60
2015-09-30 2,846.50 511.50 -0.40
2015-06-30 2,721.00 528.00 -2.40
2015-03-31 2,655.50 497.00 -0.40
2014-12-31 2,590.00 466.00 1.60
2014-09-30 2,530.00 426.50 11.05
2014-06-30 2,470.00 387.00 20.50
2014-03-31 2,429.50 356.50 21.00
2013-12-31 2,389.00 326.00 21.50
2013-09-30 2,299.50 298.50 32.45
2013-06-30 2,210.00 271.00 43.40
2013-03-31 2,203.00 263.50 42.40
2012-12-31 2,196.00 256.00 41.40

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Whilst ITV made outstanding use of shareholders’ funds last year (Return on Equity greater than 40%), this is metric is skewed due to its high level of debt.
  • ITV used its assets more efficiently than the GB Media industry average last year based on Return on Assets.
  • ITV's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess ITV's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Media industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
ITV has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is ITV's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up ITV's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • ITV's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • ITV's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of ITV's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 1.2x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from ITV Company Filings, last reported 5 months ago.

LSE:ITV Past Debt and Equity Data
Date (Data in GBP Millions) Total Equity Total Debt Cash & Short Term Investments
2019-06-30 720.00 1,191.00 85.00
2019-03-31 720.00 1,191.00 85.00
2018-12-31 849.00 1,047.00 95.00
2018-09-30 849.00 1,047.00 95.00
2018-06-30 827.00 1,149.00 95.00
2018-03-31 827.00 1,149.00 95.00
2017-12-31 732.00 1,058.00 126.00
2017-09-30 732.00 1,058.00 126.00
2017-06-30 477.00 1,206.00 123.00
2017-03-31 477.00 1,206.00 123.00
2016-12-31 755.00 1,202.00 561.00
2016-09-30 755.00 1,202.00 561.00
2016-06-30 914.00 974.00 187.00
2016-03-31 914.00 974.00 187.00
2015-12-31 1,147.00 609.00 294.00
2015-09-30 1,147.00 609.00 294.00
2015-06-30 909.00 741.00 204.00
2015-03-31 909.00 741.00 204.00
2014-12-31 1,064.00 259.00 308.00
2014-09-30 1,064.00 259.00 308.00
2014-06-30 790.00 467.00 268.00
2014-03-31 790.00 467.00 268.00
2013-12-31 889.00 375.00 550.00
2013-09-30 889.00 375.00 550.00
2013-06-30 717.00 478.00 440.00
2013-03-31 717.00 478.00 440.00
2012-12-31 832.00 643.00 690.00
  • ITV's level of debt (165.4%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (58.6% vs 165.4% today).
  • Debt is well covered by operating cash flow (36.7%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 19.5x coverage).
X
Financial health checks
We assess ITV's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. ITV has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is ITV's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
5.24%
Current annual income from ITV dividends. Estimated to be 5.31% next year.
If you bought £2,000 of ITV shares you are expected to receive £105 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • ITV's pays a higher dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (1.96%).
  • ITV's dividend is above the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.21%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
LSE:ITV Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 16 Analyst Estimates (S&P Global) See Below
United Kingdom of Great Britain and Northern Ireland Media Industry Average Dividend Yield Market Cap Weighted Average of 27 Stocks 5%
United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield Market Cap Weighted Average of 676 Stocks 4.5%
United Kingdom of Great Britain and Northern Ireland Minimum Threshold Dividend Yield 10th Percentile 1.1%
United Kingdom of Great Britain and Northern Ireland Bottom 25% Dividend Yield 25th Percentile 2%
United Kingdom of Great Britain and Northern Ireland Top 25% Dividend Yield 75th Percentile 5.2%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

LSE:ITV Future Dividends Estimate Data
Date (Data in £) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 0.08 15.00
2020-12-31 0.08 18.00
2019-12-31 0.08 18.00
2019-12-13
LSE:ITV Past Annualized Dividends Data
Date (Data in £) Dividend per share (annual) Avg. Yield (%)
2019-03-18 0.080 6.576
2018-02-28 0.078 5.199
2017-07-26 0.123 7.455
2017-03-23 0.122 6.300
2016-07-27 0.165 8.614
2016-03-17 0.160 7.626
2016-03-02 0.160 6.784
2015-03-04 0.110 4.225
2014-07-30 0.078 3.676
2014-02-26 0.075 4.022
2013-07-30 0.029 1.567
2013-02-27 0.026 1.945
2012-04-02 0.016 1.802
2012-02-29 0.016 1.836
2011-07-27 0.008 1.240
2010-03-03 0.000 0.000
2009-08-06 0.000 0.000
2009-03-04 0.000 0.000

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • ITV has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).
  • Dividend payments have increased, but ITV only paid a dividend in the past 8 years.
Current Payout to shareholders
What portion of ITV's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.4x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.7x coverage).
X
Income/ dividend checks
We assess ITV's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can ITV afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. ITV has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of ITV's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Carolyn McCall
COMPENSATION £3,712,740
AGE 58
TENURE AS CEO 1.9 years
CEO Bio

Ms. Carolyn J. McCall, DBE, is Chief Executive of ITV plc since January 2018. Prior to ITV, she was the Chief Executive Officer of easyJet plc since July 1, 2010. She served as the Chief Executive of Guardian Media Group PLC from August 2006 to 2010. She served as the Chief Executive of GMG's National Newspaper Division (Guardian News and Media) of Guardian Newspapers Limited from 2000 to 2006. She served as the Managing Director of Guardian & Observer Newspapers and has wealth of marketing and media experience. She held various positions at Guardian Media Group from 1986 to 1995. She served as the Managing Director and Chief Executive of National Newspaper Division of Guardian Media Group Plc. She joined Guardian in 1986 and served a number of different roles including Advertising Director, Commercial Director of Guardian Newspapers from 1995 to 2000 and Deputy Managing Director. She has extensive experience in business with a wealth of understanding of the transportation and media industries. She served as the President of Women in Advertising and Communications London of New Look. She served as the Chair of Opportunity Now. She served as an Executive Director at Guardian Media Group PLC since 2000. She has been an Executive Director at easyJet plc since February 17, 2011. She has been a Non Executive Director at Burberry Group plc since September 1, 2014. She served as a Director for HBOS plc since January 2009. She served as a Director of Bank Of Scotland Plc from January 16, 2009 to December 31, 2009. She served as a Director of Lloyds Bank plc (alternate name, Lloyds Banking Group Plc) and Lloyds TSB Bank Plc from October 1, 2008 to December 31, 2009. She served as a Director of Guardian Newspapers Limited, a subsidiary of Guardian Media Group plc since 1995 and Top Right Group Limited until June 30, 2010. She has been Non-Executive Director of Department for Business, Energy and Industrial Strategy since January 2017. She served as a Non-Executive Director of New Look plc, Tesco Plc from March 1, 2005 to April 10, 2008 and New Look Group Limited from March 14, 2000 to August 2010. She serves as a Trustee of Tools for Schools (a business/education initiative Co-Founded by Guardian). In January 2014, she was appointed as UK Business Ambassador by Prime Minister. in 2013, She was awarded the Airline Business 'Airline Strategy Award for Low Cost leadership', City AM's Personality of the Year award and the Gold Medal Award from the Chartered Management Institute for her work in management. In 2014, she was the winner of the Business Achievement Award at the British Travel Industry Hall of Fame Awards. she was awarded a Damehood in the 2016 New Year Honours list. She as awarded the OBE for services to women in business in June 2008 and a Damehood for services to the aviation industry in January 2016. She was educated at the University of Kent in Canterbury where she studied History and Politics and at the University of London where she achieved an MA in politics.

CEO Compensation
  • Insufficient data for Carolyn to compare compensation growth.
  • Carolyn's remuneration is higher than average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.
Management Team Tenure

Average tenure and age of the ITV management team in years:

3.8
Average Tenure
57.5
Average Age
  • The tenure for the ITV management team is about average.
Management Team

Carolyn McCall

TITLE
Chief Executive
COMPENSATION
£4M
AGE
58
TENURE
1.9 yrs

Chris Kennedy

TITLE
Group CFO
AGE
55
TENURE
0.8 yrs

Kyla Mullins

TITLE
General Counsel

Kevin Lygo

TITLE
Director of Television & Member of Management Board
AGE
61
TENURE
9.3 yrs

Kelly Williams

TITLE
MD of Commercial & Member of Management Board
TENURE
5 yrs

Rufus Radcliffe

TITLE
Group Marketing & Research Director and Member of Management Board
TENURE
2.7 yrs

David Osborn

TITLE
Human Resources Director & Member of Management Board
TENURE
5.2 yrs

Julian Bellamy

TITLE
MD of ITV Studios & Member of Management Board
TENURE
3.8 yrs

Paul Moore

TITLE
Group Communications
AGE
57

Mark Smith

TITLE
Group Chief Technology Officer & Member of Management Board
Board of Directors Tenure

Average tenure and age of the ITV board of directors in years:

2
Average Tenure
58
Average Age
  • The average tenure for the ITV board of directors is less than 3 years, this suggests a new board.
Board of Directors

Baz Bazalgette

TITLE
Chairman
COMPENSATION
£453K
AGE
65
TENURE
3.6 yrs

Carolyn McCall

TITLE
Chief Executive
COMPENSATION
£4M
AGE
58
TENURE
1.9 yrs

Chris Kennedy

TITLE
Group CFO
AGE
55
TENURE
0.8 yrs

Mary Harris

TITLE
Senior Lead Independent Director
COMPENSATION
£105K
AGE
53
TENURE
1.6 yrs

Margaret Ewing

TITLE
Non-Executive Director
COMPENSATION
£81K
AGE
64
TENURE
2.2 yrs

Edward H. Carter

TITLE
Senior Independent Non-Executive Director
COMPENSATION
£20K
AGE
58
TENURE
1.2 yrs

Roger Faxon

TITLE
Non-Executive Director
COMPENSATION
£76K
AGE
70
TENURE
7.2 yrs

Anna Manz

TITLE
Non-Executive Director
COMPENSATION
£76K
AGE
46
TENURE
3.8 yrs

Salman Amin

TITLE
Non-Executive Director
COMPENSATION
£76K
AGE
59
TENURE
2.9 yrs

Duncan Painter

TITLE
Non-Executive Director
COMPENSATION
£43K
AGE
49
TENURE
1.6 yrs
Who owns this company?
Recent Insider Trading
  • ITV individual insiders have sold more shares than they have bought in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (£) Value (£)
05. Dec 19 Sell Kevin Lygo Individual 04. Dec 19 04. Dec 19 -408,584 £1.39 £-569,362
21. Oct 19 Buy Salman Amin Individual 18. Oct 19 18. Oct 19 8,079 £1.36 £11,014
30. Sep 19 Buy Mary Harris Individual 30. Sep 19 30. Sep 19 2,672 £1.26 £3,353
19. Sep 19 Buy Salman Amin Individual 18. Sep 19 18. Sep 19 12,800 £1.25 £16,012
01. Jul 19 Buy Mary Harris Individual 28. Jun 19 28. Jun 19 3,113 £1.08 £3,353
28. May 19 Buy Mark Smith Individual 23. May 19 24. May 19 5,218 £1.10 £5,717
15. May 19 Buy Peter Bazalgette Individual 14. May 19 14. May 19 43,748 £1.14 £49,873
05. Apr 19 Buy Salman Amin Individual 03. Apr 19 03. Apr 19 15,000 £1.33 £19,950
01. Apr 19 Buy Mary Harris Individual 29. Mar 19 29. Mar 19 2,649 £1.27 £3,354
03. Jan 19 Buy Mary Harris Individual 31. Dec 18 31. Dec 18 2,766 £1.25 £3,468
X
Management checks
We assess ITV's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. ITV has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Is There An Opportunity With ITV plc's (LON:ITV) 43% Undervaluation?

Today, we will estimate the stock's intrinsic value by taking the expected future cash flows and discounting them to today's value. … A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we need to discount the sum of these future cash flows to arrive at a present value estimate: 10-year free cash flow (FCF) forecast 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Levered FCF (£, Millions) £469.7m £490.3m £506.8m £520.6m £532.5m £543.0m £552.4m £561.2m £569.5m £577.5m Growth Rate Estimate Source Analyst x6 Analyst x5 Est @ 3.37% Est @ 2.73% Est @ 2.28% Est @ 1.96% Est @ 1.74% Est @ 1.59% Est @ 1.48% Est @ 1.4% Present Value (£, Millions) Discounted @ 7.54% £436.7 £423.9 £407.5 £389.2 £370.2 £351.0 £332.0 £313.6 £295.9 £279.1 ("Est" = FCF growth rate estimated by Simply Wall St) Present Value of 10-year Cash Flow (PVCF)= £3.6b After calculating the present value of future cash flows in the intial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. … Terminal Value (TV) = FCF2029 × (1 + g) ÷ (r – g) = UK£577m × (1 + 1.2%) ÷ (7.5% – 1.2%) = UK£9.3b Present Value of Terminal Value (PVTV) = TV / (1 + r)10 = £UK£9.3b ÷ ( 1 + 7.5%)10 = £4.47b The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is £8.07b.

Simply Wall St -

A Closer Look At ITV plc's (LON:ITV) Impressive ROE

The formula for ROE is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for ITV: 62% = UK£445m ÷ UK£720m (Based on the trailing twelve months to June 2019.) Most know that net profit is the total earnings after all expenses, but the concept of shareholders' equity is a little more complicated. … In Summary Return on equity is a useful indicator of the ability of a business to generate profits and return them to shareholders. … In my book the highest quality companies have high return on equity, despite low debt.

Simply Wall St -

Why ITV plc (LON:ITV) Could Have A Place In Your Portfolio

In the case of ITV, it is a highly-regarded dividend payer that has been a rockstar for income investors, currently trading at an attractive share price. … Established dividend payer and good value ITV is currently trading below its true value, which means the market is undervaluing the company's expected cash flow going forward. … LSE:ITV Intrinsic value, August 5th 2019 ITV’s reputation for being one of the best dividend payers in the market is supported by the fact that it has been steadily growing its dividend payments over the past ten years and currently is one of the top yielding companies on the markets, at 7.5%.

Simply Wall St -

ITV plc (LON:ITV): Are Analysts Right About The Drop In Earnings?

Based on ITV plc's (LON:ITV) earnings update in December 2018, analyst consensus outlook appear pessimistic, as a 15% fall in profits is expected in the upcoming year relative to the past 5-year average growth rate of 0.8%. … Currently with a trailing-twelve-month profit of UK£466m, the consensus growth rate suggests that earnings will drop to UK£395m by 2020. … LSE:ITV Past and Future Earnings, July 23rd 2019 By 2022, ITV's earnings should reach UK£475m, from current levels of UK£466m, resulting in an annual growth rate of 1.2%.

Simply Wall St -

Here's Why ITV (LON:ITV) Can Manage Its Debt Responsibly

When we think about a company's use of debt, we first look at cash and debt together. … LSE:ITV Historical Debt, July 4th 2019 A Look At ITV's Liabilities Zooming in on the latest balance sheet data, we can see that ITV had liabilities of UK£1.26b due within 12 months and liabilities of UK£1.30b due beyond that. … Because it carries more debt than cash, we think it's worth watching ITV's balance sheet over time.

Simply Wall St -

What Should Investors Know About ITV plc's (LON:ITV) Earnings Trajectory?

Today I want to provide a brief commentary on how market analysts predict ITV's earnings growth trajectory over the next couple of years and whether the future looks even brighter than the past. … See our latest analysis for ITV Market analysts' consensus outlook for next year seems pessimistic, with earnings declining by a double-digit -14%. … LSE:ITV Past and Future Earnings, June 25th 2019 Although it is informative understanding the rate of growth year by year relative to today’s level, it may be more insightful gauging the rate at which the business is rising or falling every year, on average.

Simply Wall St -

Did You Manage To Avoid ITV's (LON:ITV) 40% Share Price Drop?

One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS). … Because of the sharp contrast between the EPS growth rate and the share price growth, we're inclined to look to other metrics to understand the changing market sentiment around the stock. … It is important to consider the total shareholder return, as well as the share price return, for any given stock.

Simply Wall St -

What Does ITV plc's (LON:ITV) Share Price Indicate?

Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. … If you believe the share price should eventually reach its true value, a low beta could suggest it is unlikely to rapidly do so anytime soon, and once it’s there, it may be hard to fall back down into an attractive buying range. … Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations.

Simply Wall St -

Why ITV plc’s (LON:ITV) Return On Capital Employed Is Impressive

Specifically, we're going to calculate its Return On Capital Employed (ROCE), in the hopes of getting some insight into the business. … The formula for calculating the return on capital employed is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for ITV: 0.31 = UK£676m ÷ (UK£3.4b - UK£1.3b) (Based on the trailing twelve months to December 2018.) So, ITV has an ROCE of 31%. … Due to the way ROCE is calculated, a high level of current liabilities makes a company look as though it has less capital employed, and thus can (sometimes unfairly) boost the ROCE.

Simply Wall St -

Does ITV plc's (LON:ITV) P/E Ratio Signal A Buying Opportunity?

The formula for price to earnings is: Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS) Or for ITV: P/E of 9.78 = £1.14 ÷ £0.12 (Based on the trailing twelve months to December 2018.) Is A High P/E Ratio Good? … All else being equal, it's better to pay a low price -- but as Warren Buffett said, 'It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price.' How Growth Rates Impact P/E Ratios When earnings fall, the 'E' decreases, over time. … If the reality for a company is not as bad as the P/E ratio indicates, then the share price should increase as the market realizes this.

Simply Wall St -

Company Info

Description

ITV plc, an integrated producer broadcaster, creates, owns, and distributes content on various platforms worldwide. It operates through Broadcast & Online, and ITV Studios segments. The Broadcast & Online segment broadcasts various contents on its family of free-to-air channels, including ITV, ITV2, ITV3, ITV4, ITVBe, ITV Encore, CITV, ITV Breakfast, CITV Breakfast, and various related +1 and HD equivalents; and offers television advertising services. It also delivers content through linear television broadcasting; ITV Hub, an over-the-top service on 28 platforms, including itv.com Website; and pay providers, such as Virgin and Sky, as well as through direct content deals with services comprising Amazon, Apple, and Netflix. In addition, this segment offers online advertising, HD digital channel on pay platform, and ITV Choice subscription services, as well as licenses DTT Multiplex A. The ITV Studios segment creates and produces programs and formats that include drama, entertainment, and factual entertainment for its own channels and other broadcasters, such as the BBC, Channel 4, Channel 5, and Sky. It also operates as an unscripted independent producer of content in the United States; and produces content for local broadcasters in Australia, Germany, France, Italy, the Netherlands, Sweden, Norway, Finland, and Denmark. In addition, this segment’s distribution business licenses finished programs and formats, and third-party content internationally, as well as finances productions. The company also engages in the development of platform, broadband, transactional, and mobile services; operation of Freeview Multiplex A; rights ownership and distribution of television programs and films; and scheduling and commissioning of television programs. ITV plc was founded in 1955 is headquartered in London, the United Kingdom.

Details
Name: ITV plc
ITV
Exchange: LSE
Founded: 1955
£6,101,676,910
3,998,477,661
Website: http://www.itv.com
Address: ITV plc
2 Waterhouse Square,
140 Holborn,
London,
Greater London, EC1N 2AE,
United Kingdom
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
LSE ITV Ordinary Shares London Stock Exchange GB GBP 27. Jul 2000
OTCPK ITVP.F Ordinary Shares Pink Sheets LLC US USD 27. Jul 2000
DB IJ7 Ordinary Shares Deutsche Boerse AG DE EUR 27. Jul 2000
BATS-CHIXE ITVL Ordinary Shares BATS 'Chi-X Europe' GB GBP 27. Jul 2000
OTCPK ITVP.Y ADR Pink Sheets LLC US USD 21. Oct 2008
Number of employees
Current staff
Staff numbers
6,281
ITV employees.
Industry
Broadcasting
Media
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/12/13 20:41
End of day share price update: 2019/12/13 00:00
Last estimates confirmation: 2019/12/12
Last earnings filing: 2019/07/24
Last earnings reported: 2019/06/30
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.