S

Sprint Corporation

TMT


Presented:01/20/2016
Price:$2.45
Cap:$9.72B
Current Price:$25.71
Cap:$8.16B

Presented

Date01/20/2016
Price$2.45
Market Cap$9.72B
Ent Value$47.13B
P/E RatioN/A
Book Value$5.33
Div Yield0%
Shares O/S3,969.00M
Ave Daily Vol18,225,676
Short Int33.31%

Current

Price$25.71
Market Cap$8.16B
Sprint Corp. operates as a communication company, which offers a comprehensive range of wireless and wire line communications products and services to consumers, businesses and government users. The company operates through two segments: Wireless and Wireline. The Wireless segment offers wireless services on a postpaid and prepaid payment basis to retail subscribers and also on a wholesale and affiliate basis, which includes the sale of wireless services. The Wireline segment provides a broad suite of wireline voice and data communications services to other communications companies and targeted business and consumer subscribers. In addition, it also provides voice, data and IP communication services to Wireless segment, and IP and other services to cable Multiple System Operators. Sprint was founded on October 5, 2012 and is headquartered in Overland Park, KS.

Publicly traded companies mentioned herein: Sprint Corp (S), T-Mobile (TMUS) and Comcast (CMCSA).

Highlights

Although Sprint’s mounting issues have been well understood by investors for some time now, the presenter believes the company’s equity is still not appropriately priced relative to the risks it continues to face. For his part, the presenter believes the company could well run out of liquidity in the first half of 2017; the bond/ CDS market appears to be agree, currently pricing in an approximate 66% implied probability of default. Yet Sprint still has a market cap of about $11 billion in an environment where overlevered companies that burn cash are generally no longer getting a pass.

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Idea Discussion

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