ZAYO

Zayo Group Holdings Inc

TMT


Presented:09/29/2016
Price:$29.80
Cap:$7.23B
Current Price:$34.99
Cap:$8.29B

Presented

Date09/29/2016
Price$29.80
Market Cap$7.23B
Ent Value$10.74B
P/E RatioN/A
Book Value$5.03
Div Yield0%
Shares O/S242.65M
Ave Daily Vol2,596,144
Short Int6.31%

Current

Price$34.99
Market Cap$8.29B
Zayo Group Holdings, Inc. provides bandwidth infrastructure services in the U.S. and Europe. Its products and services enable mission critical, high-bandwidth applications, such as cloud-based computing, video, mobile, social media, machine-to-machine connectivity, and other bandwidth-intensive applications. Its reporting units are comprised of its strategic product groups. The company operates in following segments: Physical Infrastructure, Cloud and Connectivity and Others. The Physical Infrastructure segment provides dark fiber, mobile infrastructure and colocation services. The Cloud and Connectivity segment provides bandwidth infrastructure solutions over the metro, regional, and long-haul fiber networks. The Other segment is primarily comprised of zayo professional services. Zayo Group Holdings was founded by John Louis Scarano and Daniel P. Caruso on November 13, 2007 and is headquartered in Boulder, CO.

Public companies mentioned herein: Zayo Group Holdings Inc (ZAYO), Level 3 Communications and Comcast (CMCSA).

Highlights

A management-led story, shares of Zayo could see 40% upside over the next 24 months. Co-founder and CEO Daniel Caruso was previously one of the founders of Level 3 (LVLT). He left LVLT in 2004 to become CEO of ICG Communications, which he subsequently sold to LVLT for a 25x return. Since founding Zayo in 2007, Caruso has generated an approximate 6x return for shareholders. All told, management owns about $250 million in stock. A solid business with high barriers to entry, the presenter believes Zayo could ultimately be targeted for acquisition.

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Idea Discussion

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