SBGI

Sinclair Broadcast Group Inc

TMT


Presented:03/05/2018
Price:$34.05
Cap:$3.49B
Current Price:$17.41
Cap:$1.16B

Presented

Date03/05/2018
Price$34.05
Market Cap$3.49B
Ent Value$6.90B
P/E Ratio6.02x
Book Value$15.42
Div Yield1.83%
Shares O/S102.62M
Ave Daily Vol1,502,624
Short Int19.26%

Current

Price$17.41
Market Cap$1.16B
Sinclair Broadcast Group, Inc. engages in the provision of television broadcasting operations. It offers content creation, programming, radio and cable stations, and advertising platforms. The company was founded by Julian Sinclair Smith in 1986 and is headquartered in Hunt Valley, MD.

Publicly traded companies mentioned herein: Alphabet Inc (GOOGL), CBS Corp (CBS), Comcast Corp (CMCSA), Sinclair Broadcast Group Inc (SBGI), Twenty-First Century Fox Inc (FOX), Walt Disney Co/The (DIS)

Highlights

The presenter is long shares of Sinclair Broadcast Group (SBGI), the largest local broadcaster in the US, on the belief that market conditions for local broadcasting have become more favorable. He sees stable consumer engagement in local news and a strong position for SBGI in the world of OTT, streaming, and skinny bundles. Additionally, the acquisition of Tribune has strengthened SBGI’s portfolio. The current administration appears amenable to deregulation, which could boost SBGI’s presence in many markets across the US. Longer-term, SBGI has upside from the next generation of technology via its development of, and patents in, ATSC 3.0 standards. The presenter sees the pro forma company generating over $7 of FCF per share annually, which could lead to de-leveraging and EBITDA multiple expansion from a low base.

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Idea Discussion

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