CMCSA

Comcast Corp

TMT


Presented:07/26/2018
Price:$34.75
Cap:$159.91B
Current Price:$42.11
Cap:$163.07B

Presented

Date07/26/2018
Price$34.75
Market Cap$159.91B
Ent Value$223.98B
P/E Ratio7.09x
Book Value$15.05
Div Yield2.19%
Shares O/S4,601.64M
Ave Daily Vol27,399,777
Short Int1.51%

Current

Price$42.11
Market Cap$163.07B
Comcast Corp. is a media, entertainment, and communications company, which engages in the provision of video, Internet, and phone services. It operates through the following segments: Cable Communications, Cable Networks, Broadcast Television, Filmed Entertainment, Theme Parks, and Corporate and Other. The Cable Communications segment provides video, Internet, voice, and security and automation services under the Xfinity brand. The Cable Networks segment consists of national cable networks, regional sports, news networks, international cable networks, and cable television studio production operations. The Broadcast Television segment includes NBC and Telemundo broadcast networks. The Filmed Entertainment segment involves in the production, acquisition, marketing, and distribution of filmed entertainment. The Theme Parks segment consists of Universal theme parks in Orlando, Florida; Hollywood, California; and Osaka, Japan. The Corporate and Other segment includes operations of other business interests, primarily of Comcast Spectacor. The company was founded by Ralph J. Roberts in 1963 and is headquartered in Philadelphia, PA.

Publicly traded companies mentioned herein: Altice USA Inc (ATUS), Comcast Corp (CMCSA), Sky PLC (SKY LN), Twenty-First Century Fox Inc (FOX, FOXA), Verizon Communications Inc (VZ), Walt Disney Co/The (DIS)

Highlights

The presenter said that he has been reducing exposure to TMT overall and rotating to more defensive and cyclical names. This has led him to look at cable companies again, including Comcast (CMCSA), which has seen its shares drop by ~16% YTD. The risk/reward on a long position appears to be favorable, as a bottom may be “in” in the low $30s. With the company having reported earnings the morning of this presentation, it seems as though the stock has been “overly punished” relative to where it should be trading because of M&A risk; however, FCF, EBITDA, and earnings growth are healthy, and at a reasonable 16x multiple to the presenter’s FCF estimate the fair value of the stock is in the $40s (for 20%+ upside)

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Idea Discussion

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