ZAYO
Zayo Group Holdings Inc
TMT
11/13/2017
Presented
| Date | 11/08/2017 |
| Price | $34.38 |
| Market Cap | $8.53B |
| Ent Value | $13.89B |
| P/E Ratio | 92.92x |
| Book Value | $5.98 |
| Div Yield | 0% |
| Shares O/S | 248.00M |
| Ave Daily Vol | 2,171,888 |
| Short Int | 5.63% |
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. The company operates through the following segments: Fiber Solutions, Transport, Enterprise Networks, Zayo Colocation, Allstream and Other. The Fiber Solutions segment provides raw bandwidth infrastructure to customers that require more control of their internal networks. The Transport segment provides lit bandwidth infrastructure solutions over metro, regional, and long-haul fiber networks. The Enterprise Networks segment provides communication solutions to medium and large enterprises. The Zayo Colocation segment provides data center infrastructure solutions to a broad range of enterprise, carrier, cloud, and content customers. The Allstream segment provides Voice, SIP Trunking, Unified Communications and scalable data services using a variety of technologies for businesses. The Other segment is primarily comprised of Zayo Professional Services (ZPS). ZPS provides network and technical resources to customers who wish to leverage its expertise in designing, acquiring and maintaining networks. Zayo Group Holdings was founded by John Louis Scarano and Daniel P. Caruso on November 13, 2007 and is headquartered in Boulder, CO. |
Publicly traded companies mentioned herein: CenturyLink Inc (CTL), Crown Castle International Corp (CCI), Frontier Communications Corp (FTR), Zayo Group Holdings Inc (ZAYO)
Highlights
Zayo Group Holdings (ZAYO) is presently trading at an attractive level, in the presenter’s opinion. He is long at $34, and sees upside to at least $47/share if management follows through on becoming a REIT, as has been discussed multiple times during recent earnings calls and at conferences throughout 2017. Zayo presently trades at 10.5x Street EBITDA estimates for 2018, and 9.5x 2019; however, Crown Castle (CCI) paid $7.1bn for privately held Lightower Fiber Networks (16x EBITDA). While Lightower’s assets are higher quality than Zayo’s, and Zayo has reported a couple of “choppy” quarters in a row, the valuation disparity is too great.
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