DISH - Embedded Expectations Analysis - 2021 01 12
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 ability to maintain free cash flow, sustain ARPU improvements, and enhance their retail wireless networkSpecifically, management may lack confidence in their ability to maintain current free cash flow levels and sustain Pay-TV ARPU improvements utilizing DISH and Sling price increases. Moreover, they may have concerns about their streaming platform partnerships and their decision to pursue a less aggressive acquisition strategy. Finally, management may lack confidence in their ability to build a less expensive, high-quality next-gen wireless network, overcome execution challenges to deploy into major markets, and fulfill timely Fujitsu radio deliveries
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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