CMCS.A - Embedded Expectations Analysis - 2019 02 25
Comcast Corporation (CMCS.A:USA) currently trades near recent averages relative to UAFRS-based (Uniform) Earnings, with a 16.4x Uniform P/E, implying stable expectations for the firm. However, management may have concerns about broadband and EBITDA growth, Sky's operating efficiencies, and Xfinity mobileSpecifically, management may lack confidence in their ability to sustain EBITDA growth and broadband customer additions, and may be overstating the value of their streaming service. Furthermore, management may be concerned about their ability to balance their investments across video and broadband, and may be exaggerating the demand for digital advertising. Moreover, management may lack confidence in their ability to improve operating efficiency at Sky, and may be concerned about the customer acquisition costs following Sky's Italian product launch. Finally, management may be exaggerating the contributions to NBC Universal profit from theme parks and film, their product innovations, and the margin impact of Xfinity mobile on their financials
Comcast is a media and technology company. The company's segments are: Cable Communications, which provides internet, video, voice, and security and automation services in the United States individually and as bundled services at a discounted rate over its cable distribution system to residential and business customers; NBCUniversal, which includes a portfolio of national cable networks that provide a variety of entertainment, news and information, and sports content, regional sports and news networks, international cable networks, and cable television studio production operations; and Sky, which owns a portfolio of pay television channels that provide entertainment, news, sports and movies.
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