SBGI - Embedded Expectations Analysis - 2020 01 10
Sinclair Broadcast Group, Inc. (SBGI:USA) is currently trading well below corporate averages relative to UAFRS-based (Uniform) Earnings, with a 9.4x Uniform P/E. At these levels, the market has bearish expectations for the firm, and while management appears concerned about streaming wars, distribution, and margins, the firm's strong execution and position in its space suggest longer-term upside remains warrantedSpecifically, management may be concerned about their focus on local sports and news, the impact of streaming wars, and the proportion of their revenue derived from distribution. Moreover, they may lack confidence in their ability to sustain legacy business performance, meet EBITDA guidance, and achieve low double-digit distribution revenue growth
That said, even with near-term headwinds suggested by management concerns, longterm outperformance remains warranted at current valuations
Sinclair Broadcast Group is a television broadcasting company with using the company's spectrum to bring together content providers, advertisers, and consumers on various platforms. The content, distributed through the company's broadcast platform, consists of programming provided by third-party networks and syndicators, local news, the company's own networks, and other original programming produced by the company The company also distributes its original programming, and owned and operated network, on other third-party platforms. The company operates technical services companies focused on supply and maintenance of broadcast transmission systems as well as research and development for the development of broadcast technology.
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