DISH - Embedded Expectations Analysis - 2020 10 19
DISH Network Corporation (DISH:USA) currently trades near historical lows relative to UAFRS-based (Uniform) assets, with a 1.0x Uniform P/B. At these levels, the market has expectations for profitability to remain muted, and management may be concerned about their cash generation ability, the Boost acquisition, and their core strategySpecifically, management may lack confidence in their ability to generate cash given its
current structure and deployment, maintain profitability, and grow EBITDA and cash flow. Moreover, they may be concerned about the potential of Boost and their huge investments in telecom and satellite video. Furthermore, they may lack confidence in their ability to sustain better core strategy, improve digital compression, and increase inbound activity from enterprise-focused or cloud-based companies. Finally, they may be exaggerating their ability to benefit from owner economics as they roll out their own network and may be concerned about their recent $1 billion debt raise
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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