ZAYO

Zayo Group Holdings Inc

TMT


Presented:10/24/2018
Price:$30.46
Cap:$7.51B
Current Price:$34.99
Cap:$8.29B

Presented

Date10/24/2018
Price$30.46
Market Cap$7.51B
Ent Value$14.57B
P/E Ratio74.29x
Book Value$6.04
Div Yield0%
Shares O/S246.47M
Ave Daily Vol2,769,358
Short Int6.23%

Current

Price$34.99
Market Cap$8.29B
Zayo Group Holdings, Inc. engages in the provision of bandwidth infrastructure services in the U.S. and Europe. It operates through the following segments: Fiber Solutions, Transport, Enterprise Networks, Colocation, Allstream, and Other. The Fiber Solutions segment include dark fiber and mobile infrastructure solutions. The Transport segment comprises Ethernet, wavelength, wholesale IP, and SONET solutions. The Enterprise Networks segment provides private lines, dedicated Internet, and cloud-based computing and storage products. The Colocation segment offers colocation space and power and interconnection offerings. The Allstream segment consists Cloud VoIP and data solutions. The Other segment focuses in the Zayo Professional Services. The company 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: Cogent Communications Holdings Inc (CCOI), Crown Castle International (CCI), GTT Communications Inc (GTT), Zayo Group Holdings Inc (ZAYO)

Highlights

The presenter sees the rollout of 5G resulting in increased consumer demand for data. Fiber assets are both the backbone of the system and scarce. In his opinion, Zayo Group (ZAYO) has some of the best fiber assets, and is the best run company among very few publicly traded options. Additionally, ZAYO is in conversations with the IRS and filed a PLR in July (2018) to become a REIT. From a valuation perspective, the risk/reward appears to be attractive with the stock at ~$30, which is just ~8x - 9x AFFO (versus slower or no-growth REITs trading at ≥15x).

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Idea Discussion

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