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TGNA -- USA Stock  

USD 11.53  0.33  2.78%

TEGNA Inc is scheduled to announce its earnings today. The next earnings report is expected on the 5th of November 2020. TEGNA Average Assets are projected to decrease significantly based on the last few years of reporting. The past year's Average Assets were at 11.34 Billion. The current year Earnings Before Interest Taxes and Depreciation Amortization EBITDA is expected to grow to about 952.4 M, whereas Net Income Per Employee is forecasted to decline to about 36.2 K. While some of us are becoming more enthusiastic about communication services space, let's go over TEGNA Inc in greater detail to make a better estimate of its debt utilization. We will check if the company can maintain a respectable level of debt while minimizing operating losses.
Published over a month ago
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Will TEGNA (NYSE:TGNA) investors stop to trade in September?
TEGNA Inc currently holds 4.18 B in liabilities with Debt to Equity (D/E) ratio of 2.5, implying TEGNA greatly relies on financing operations through barrowing. The entity has a current ratio of 1.96, which is within standard range for the sector. Our advice tool can cross-verify current analyst consensus on TEGNA and to analyze the firm potential to grow for few more years.
TEGNA financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of TEGNA, including all of TEGNA's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of TEGNA assets, the company is considered highly leveraged. Understanding the composition and structure of overall TEGNA debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it. Please read more on our technical analysis page.

Understanding TEGNA Total Debt

TEGNA Inc liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. TEGNA Inc has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on TEGNA balance sheet include debt obligations and money owed to different TEGNA vendors, workers, and loan providers. Below is the chart of TEGNA main long-term debt accounts currently reported on its balance sheet.
You can use TEGNA Inc financial leverage analysis tool to get a better grip on understanding its financial position

How important is TEGNA's Liquidity

TEGNA financial leverage refers to using borrowed capital as a funding source to finance TEGNA Inc ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. TEGNA financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between TEGNA's total debt and its cash.

TEGNA exotic insider transaction detected

Legal trades by TEGNA insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
TEGNA Inc insider trading alert for general transaction of employee stock option (right to buy) by William Behan, Senior VPLabor Relations, on 14th of June 2020. This event was filed by the entity with SEC on 2010-03-02. Initial filing of beneficial ownership - SEC Form 3. William Behan is currently serves as senior vice president - labor relations of TEGNA Inc [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Breaking down TEGNA Indicators

The firm reported the previous year's revenue of 2.47 B. Net Income was 298.56 M with profit before overhead, payroll, taxes, and interest of 1.08 B.

Liabilities Breakdown

Tax Liabilities
5.1 B
Total Liabilities
Current Liabilities
Total Liabilities5.07 Billion
Current Liabilities370.66 Million
Long-Term Liabilities6.36 Billion
Tax Liabilities924.94 Million

Another setback for TEGNA investors

The downside deviation is down to 2.88 as of today. TEGNA Inc currently demonstrates below-verage downside deviation. It has Information Ratio of 0.0 and Jensen Alpha of 0.21. However, we do advice investors to further question TEGNA Inc expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk.

Our Conclusion on TEGNA

Whereas some other entities in the broadcasting industry are either recovering or due for a correction, TEGNA may not be as strong as the others in terms of longer-term growth potentials. On the whole, as of the 10th of August 2020, our analysis shows that TEGNA moves indifferently to market moves. The company is undervalued and projects below average probability of distress for the next 2 years. However, our ongoing 30 days advice on the company is Strong Sell.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of TEGNA Inc. Please refer to our Terms of Use for any information regarding our disclosure principles.

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