CMCSA
Comcast Corp
TMT
02/24/2020
Presented
| Date | 02/20/2020 |
| Price | $46.02 |
| Market Cap | $209.53B |
| Ent Value | $314.45B |
| P/E Ratio | 16.25x |
| Book Value | $18.17 |
| Div Yield | 1.83% |
| Shares O/S | 4,553.03M |
| Ave Daily Vol | 20,890,915 |
| Short Int | 1.81% |
Current
| Price | $42.11 |
| Market Cap | $163.07B |
| Comcast Corp. is a media, entertainment, and communications company, which engages in the provision of video, Internet, and phone services. It operates through the following segments: Cable Communications, Cable Networks, Broadcast Television, Filmed Entertainment, Theme Parks and Sky. The Cable Communications segment provides video, Internet, voice, and security and automation services under the Xfinity brand. The Cable Networks segment consists of national cable networks, regional sports, news networks, international cable networks, and cable television studio production operations. The Broadcast Television segment includes NBC and Telemundo broadcast networks. The Filmed Entertainment segment involves in the production, acquisition, marketing, and distribution of filmed entertainment. The Theme Parks segment consists of Universal theme parks in Orlando, Florida; Hollywood, California; and Osaka, Japan. The Sky segment Consists of the operations of Sky, one of Europe's entertainment companies, which primarily includes a direct-to-consumer business, providing video, high-speed internet, voice and wireless phone services, and a content business, operating entertainment networks, the Sky News broadcast network and Sky Sports networks. The company was founded by Ralph J. Roberts in 1963 and is headquartered in Philadelphia, PA. |
Publicly traded companies mentioned herein: AT&T Inc (T), CenturyLink Inc (CTL), Charter Communications Inc (CHTR), Comcast Corp (CMCSA), Walt Disney Co/The (DIS), Frontier Communications Corp (FTR)
Highlights
The presenter is long shares of Comcast Corp (CMCSA) based on accelerating broadband subscription adds this year, upside to cable margins, and an attractive 15x earnings multiple. He models $4.00 FCF/share in 2022, once the losses associated with Peacock normalize. The stock currently trades around $45.00/share, and he notes that by applying an 11x EBITDA multiple (similar to what Charter receives) values the cable business at $44/share. This exercise assigns a negative value to the media assets, which will still have significant cash flow over the next five years. Over the next two years he thinks the stock should continue to compound and has a price target of $65/share or mid-20s% IRR.
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