DISH - Embedded Expectations Analysis - 2018 07 31
Dish Network Corporation (DISH:USA) currently trades below recent averages relative to UAFRS-based (Uniform) Earnings, with a 22.9x Uniform P/E. However, even at these levels, the market has bullish expectations for the firm, while management has concerns about upcoming debt maturities, leverage levels and the impact of Q1 price increasesSpecifically, management may be exaggerating their focus on maintaining their roots in rural areas, and concerned about their ability to sustain growth in paying TV subscriptions. Management also appears concerned about the impact of their price increase in Q1 and their ability to sustain low subscriber acquisition costs. Furthermore, they appear to have concerns about their free cash flow outlook, and may have concerns about headwinds related to consistent annual debt maturities. They also appear uncertain about the ruling of the AT&T and Time Warner merger, and may be concerned about their ability to benefit from trends in autonomous vehicles, artificial intelligence, and virtual reality markets
DISH Network is a holding company. Through its subsidiaries, the company operates two business segments: Pay-TV and Wireless. The company provides pay-TV services under: the DISH? brand, which consists of, among other things, Federal Communications Commission licenses authorizing the company to use direct broadcast satellite and Fixed Satellite Service spectrum, the company's owned and leased satellites, and certain other assets utilized in the company's operations; and the Sling? brand, which consists of, among other things, live-linear streaming over-the-top Internet-based domestic, international and Latino video programming services. In addition, the company invests to acquire certain wireless spectrum licenses and related assets.
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