DISH - Embedded Expectations Analysis - 2019 07 09
Dish Network Corporation (DISH:USA) currently trades above recent averages relative to UAFRS-based (Uniform) Earnings, with a 29.2x Uniform P/E. However, even at these levels, the market has muted expectations for the firm, and management has concerns about their Sinclair and Univision agreements, customer churn, opportunities in 5G, and network development.Specifically, management may be concerned about agreements with Sinclair and Univision, the sustainability of price increases, and customer churn, particularly from channel removals. In addition, they may be exaggerating the power of 5G, the B2B opportunities of 5G, and breakthroughs in the development of 5G. Moreover, they may be concerned about infrastructure obsolescence, downlink connectivity, and their ability to develop a virtualized software network. Also, management may be exaggerating their progress on an IoT network, and their leadership in live OTT.
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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