SBGI

Sinclair Broadcast Group Inc.

TMT


Presented:04/28/2014
Price:$27.05
Cap:$2.65B
Current Price:$17.41
Cap:$1.16B

Presented

Date04/28/2014
Price$27.05
Market Cap$2.65B
Ent Value$5.41B
P/E Ratio12.46x
Book Value$4.48
Div Yield2.4%
Shares O/S97.82M
Ave Daily Vol2,100,000
Short Int13.53%

Current

Price$17.41
Market Cap$1.16B
Sinclair Broadcast Group, Inc., a television broadcasting company, owns or provides programming, operating, or sales services to television stations in the United States. It broadcasts free over-the-air programming, such as network provided programs, news produced locally, local sporting events, programming from program service arrangements, syndicated entertainment programs, and other locally produced programs. As of December 31, 2013, the company owned and provided programming and operating services pursuant to local marketing agreements, or provided sales services pursuant to outsourcing agreements to 149 television stations in 71 markets. It also offers sign design and fabrication services; security alarm monitoring and bulk acquisition services; invests in various real estate ventures, including developmental land, and operating commercial and multi-family residential real estate properties and apartments, as well as invests in private equity and structured debt/mezzanine financing investment funds; and manufactures and services television broadcast antennas and transmitters. The company was founded in 1952 and is headquartered in Hunt Valley, Maryland.

Highlights

The presenter is long shares of TV broadcasters Sinclair Broadcast Group (SBGI) and Gray Television (GTN). The latter is smaller (GTN has a ~$650 million market cap, vs. SBGI at $2.6 billion) and not quite as liquid, but both are trading attractive multiples to EBITDA (~8x), and 15-16% FCF yields. While these pure plays are more volatile than larger, more diversified media assets, their ownership of local affiliates in second and third tier markets could drive substantial upside for the businesses and shareholders. GTN, in particular, can be more aggressive with its FCF.

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