FOXA
Twenty - First Century Fox Inc.
TMT
04/21/2014
Presented
| Date | 04/16/2014 |
| Price | $32.28 |
| Market Cap | $72.90B |
| Ent Value | $87.69B |
| P/E Ratio | 8.19x |
| Book Value | $9.29 |
| Div Yield | 0.9% |
| Shares O/S | 2,281.81M |
| Ave Daily Vol | 13,710,000 |
| Short Int | 2.11% |
Current
| Price | $41.83 |
| Market Cap | $19.17B |
| Twenty-First Century Fox, Inc. operates as a diversified media and entertainment company worldwide. The company’s Cable Network Programming segment produces and licenses news, business news, sports, general entertainment, and movie programming for distribution through cable television systems, direct broadcast satellite operators, and telecommunications companies primarily in the United States, Latin America, Europe, and Asia. Its Television segment is involved in the broadcasting of network programming in the United States; and the operation of 28 broadcast television stations, including 10 duopolies in the United States, which consist of 18 stations affiliated with the FOX Broadcasting Company and 10 stations affiliated with Master Distribution Service, Inc. The company’s Filmed Entertainment segment produces and acquires live-action and animated motion pictures for distribution and licensing in various formats and entertainment media, as well as produces and licenses television programming worldwide. Its Direct Broadcast Satellite Television segment distributes basic, premium, and pay-per-view programming services via satellite, cable, and broadband directly to subscribers in Italy, Germany, and Austria. The company was formerly known as News Corporation. Twenty-First Century Fox, Inc. is headquartered in New York, New York. |
Highlights
Twenty-First Century Fox (FOX) has underperformed its peers over the past year (and year-to-date), but management recently guided to a $9 billion EBITDA target for fiscal 2016 (which implies 20%+ EBITDA growth per-year) and the presenter believes this is an achievable goal. He is long shares of FOX and sees the potential for the company to put up $2.70/ share of earnings for calendar 2016 (and $3 of FCF/ share). By mid-2016, it is possible that as much as 75% of the media conglomerate’s revenues could be based on affiliate fees/ recurring revenue business, which would be capable of mid-teens (%) growth thereafter. Shares have recently pulled back to the low $30s from ~$34, providing for an attractive risk/ reward and entry point. He “thinks about FOX as a 17x FCF business,” suggesting shares could be worth as much as $50 in two years.
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