QRTEA

Qurate Retail Inc

Consumer


Presented:11/06/2018
Price:$24.07
Cap:$11.08B
Current Price:$0.60
Cap:$0.24B

Presented

Date11/06/2018
Price$24.07
Market Cap$11.08B
Ent Value$17.14B
P/E Ratio5.71x
Book Value$12.33
Div Yield0%
Shares O/S460.28M
Ave Daily Vol2,786,773
Short Int3.65%

Current

Price$0.60
Market Cap$0.24B
Qurate Retail, Inc. engages in the business of video and on-line commerce industries. The firm's principal businesses and assets include its significant consolidated subsidiaries: QVC, Inc., Backcountry.com, Inc., Bodybuilding.com LLC, CommerceHub and Evite, Inc and its equity affiliates Expedia, Inc., HSN, Inc., FTD Companies, Inc., Interval Leisure Group, Inc. and LendingTree, Inc. It operates through the following segments: Skyhook, Charter, Corporate, and Other. The Skyhook segment offers precision location solution and geospatial insights product. The Charter segment includes an equity method investment that is one of the providers of cable services in the United States, offering a variety of entertainment, information and communications solutions to residential and commercial customers. The company was founded on March 28, 1991 and is headquartered in Englewood, CO.

Publicly traded companies mentioned herein: Apple Inc (AAPL), Facebook Inc (FB), GCI Liberty (GLIBA), Qurate Retail Inc (QRTEA),

Highlights

The presenter is long shares of Qurate Retail (QRTEA), the combined entity of QVC Group, HSN Inc, and zulily. He sees the potential for synergies from the HSN acquisition to help drive meaningful FCF growth for the next several years, which will allow for significant buyback activity. Negative sentiment towards retailers, fears related to cord cutting, and poor analyst coverage have combined to create an attractive entry point. Currently trading at 7x $3 of FCF/share, he expects both multiple expansion to 12x and FCF to increase to $6 in 2022. This implies a stock price of ~$72 (~200% upside from current levels) could be achieved over the next 4 - 5 years. When discounted back to today, he values the company at $50, roughly double its current value.

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Idea Discussion

Commentor 1 - 2 weeks ago

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