CMCS.A - Embedded Expectations Analysis - 2019 06 26
Comcast Corporation (CMCS.A:USA) currently trades above recent averages relative to UAFRS-based (Uniform) Earnings, with a 21.6x Uniform P/E. Even at these levels, the market has somewhat bearish expectations for the firm, and management may be concerned about the Sky integration, their leadership and scale in broadband, and customer experience.Specifically, management may be concerned about the digitalization of customer interactions, their ability to integrate Sky and NBC, and programming deals with Sky. Also, they may lack confidence in their ability to sustain EBITDA and margin improvements, manage programming expenses, and generate growth in the Theme Parks segment. In addition, management may be exaggerating their leadership and scale in broadband and content generation, the value of their Flex service, and the benefits of price increases in the UK. Furthermore, they may be concerned about the cost of customer experience improvements, the NOW TV OTT platform ramp-up, and their ability to compete with free viewership services.
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.
In 2009, just as the dust was settling from the last major equity and credit market crises, we launched a boutique research firm with the intention of breaking Wall Street’s biases and broken incentives:
- GAAP and IFRS have failed to provide rules for reliable financial statement reporting
- Stock analyst recommendations are not grounded in disciplined financial analysis
- Credit agencies have been set up to grossly fail in their responsibilities to investors and the public markets
- Utter lack of willingness of major research firms to employ the the most advanced forensic analysis available
We sought to provide investors and company analysts with a source of information that changed all that.
Many years later, our business model remains because little has changed on Wall Street.
- Corporate credit ratings remain years behind the fundamental underpinnings of company performance
- Stock analysts continue to make recommendations with deeply inherent biases
- Research firms have failed to break down the walls between credit, equity, and macroeconomic research
- The governing accounting bodies have created more leeway for mis-estimates and mis-classifications as financials have become unwieldy and overwhelming
The integrity of Valens Research is founded in our disciplined processes and analytics. No “star” analysts. No corporate advisory relationships. No-nonsense opinions and recommendations.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.