DISCA:NSD-Discovery, Inc (USD)

COMMON STOCK | Entertainment | NSD

Last Closing Price

USD 20.22

Change

-0.15 (-0.71)%

Market Cap

USD 9.66B

Volume

4.26M

Average Target Price

USD 28.12 (+39.09%)
Average Analyst Rating

Verdict

Fundamental Analysis

Verdict

About

Discovery, Inc. operates as a media company in the United States and internationally. The company operates in two segments, U.S. Networks and International Networks. The company owns and operates various television networks under the Discovery Channel, TLC, Animal Planet, Investigation Discovery, Science Channel, MotorTrend, Food Network, HGTV, Travel Channel, TVN, DIY Network, Cooking Channel, Discovery Family Channel, American Heroes Channel, Destination America, Discovery Life, Discovery en Espanol, Discovery Familia, Great American Country, ID, the Oprah Winfrey Network, Eurosport, Discovery Kids, DMAX, and Discovery Home & Health brands, as well as other regional television networks. Its content spans genres, including survival, exploration, sports, lifestyle, general entertainment, home, food and travel, heroes, adventure, crime and investigation, health, and kids. The company also operates production studios that develop and produce content; and digital products and Websites. It provides content through various distribution platforms comprising pay-television, free-to-air and broadcast television, authenticated GO applications, digital distribution arrangements, and content licensing agreements, as well as various platforms that include brand-aligned Websites, online streaming, mobile devices, video on demand, and broadband channels. As of February 27, 2020, the company delivered approximately 8,000 hours of original programming each year in approximately 50 languages worldwide. Discovery, Inc. was founded in 1985 and is headquartered in Silver Spring, Maryland.

Technical Indicators

Unadjusted Closing Price

Adjusted Closing Price

Share Volume

Relative Performance (Total Returns)

Compare
Relative Returns (From:    To: 2020-07-08 )

Largest Industry Peers for Entertainment

Symbol Name Price(Change) Market Cap Price / Earning Ratio EV/EBITDA
NFLX Netflix, Inc

+9.62 (+1.95%)

USD220.78B 96.54 17.11
CMCSA Comcast Corporation

-0.33 (-0.82%)

USD180.95B 15.58 8.38
CHTR Charter Communications, Inc

+0.29 (+0.05%)

USD109.01B 63.13 11.34
LBRDA Liberty Broadband Corporation

-0.65 (-0.52%)

USD23.30B 181.74 122.92
LBRDK Liberty Broadband Corporation

-0.44 (-0.34%)

USD23.30B 184.54 122.92
DISH DISH Network Corporation

-0.71 (-2.17%)

USD17.13B 15.89 12.30
ROKU Roku, Inc

+3.34 (+2.56%)

USD15.74B 4.60 N/A
LBTYB Liberty Global plc

+1.44 (+6.24%)

USD14.61B 1.04 6.69
LBTYK Liberty Global plc

+0.05 (+0.22%)

USD13.78B 0.93 6.69
LBTYA Liberty Global plc

-0.05 (-0.22%)

USD13.75B 0.98 6.69

ETFs Containing DISCA

Symbol Name Weight Mer Price(Change) Market Cap
MOGLC Gabelli Media Mogul NextS.. 7.70 % 0.91 %

N/A

USD0.04B
PEJ Invesco Dynamic Leisure a.. 4.96 % 0.63 %

+0.31 (+1.06%)

USD0.24B

Market Performance

  Market Performance vs.
Industry/Classification (Entertainment)
Market Performance vs. Exchange
  Value Sector Median Percentile Rank Grade Market Median Percentile Rank Grade
YTD  
Capital Gain -38.26% 27% F 18% F
Dividend Return N/A N/A N/A N/A N/A
Total Return -38.26% 27% F 18% F
Trailing 12 Months  
Capital Gain -36.09% 25% F 24% F
Dividend Return N/A N/A N/A N/A N/A
Total Return -36.09% 25% F 22% F
Trailing 5 Years  
Capital Gain -37.86% 50% F 31% F
Dividend Return N/A N/A N/A N/A N/A
Total Return -37.86% 50% F 28% F
Average Annual (5 Year Horizon)  
Capital Gain 1.22% 44% F 43% F
Dividend Return N/A N/A N/A N/A N/A
Total Return 1.22% 44% F 37% F
Risk Return Profile  
Volatility (Standard Deviation) 23.57% 63% D 59% F
Risk Adjusted Return 5.16% 41% F 35% F
Market Capitalization 9.66B 58% F 93% A
Letter Grade Percentage Letter Grade Percentage Letter Grade Percentage
A+ 97%-100% A 93%-96% A- 90%-92%
B+ 97%-89% B 83%-86% B- 80%-82%
C+ 77%-79% C 73%-76% C- 70%-72%
D+ 67%-69% D 63%-66% D- 60%-62%
F 0%-59%

Key Financial Ratios

  Ratio vs. Industry/Classification
(Entertainment)
Ratio vs. Market
  Value Sector Median Percentile Rank Grade Market Median Percentile Rank Grade
Market Value  
Price / Earning Ratio 7.17 68% D+ 79% C+
Price/Book Ratio 1.11 78% C+ 69% D+
Price / Cash Flow Ratio 2.84 65% D 51% F
EV/EBITDA 3.45 100% A+ 86% B
Management Effectiveness  
Return on Equity 19.89% 88% B+ 90% A-
Return on Invested Capital 12.25% 88% B+ 84% B
Return on Assets 6.25% 92% A- 88% B+
Debt to Equity Ratio 149.73% 36% F 15% F
Technical Ratios  
Short Ratio 7.97 12% F 13% F
Short Percent 30.88% 4% F 7% F
Beta 1.51 42% F 30% F
Letter Grade Percentage Letter Grade Percentage Letter Grade Percentage
A+ 97%-100% A 93%-96% A- 90%-92%
B+ 97%-89% B 83%-86% B- 80%-82%
C+ 77%-79% C 73%-76% C- 70%-72%
D+ 67%-69% D 63%-66% D- 60%-62%
F 0%-59%

Annual Financials (USD)

Quarterly Financials (USD)

Analyst Rating

Target Price Action Rating Action Analyst Rating Price Date

Fundamental Analysis Breakdown

This is a composite scorecard based on the application of evaluation criteria deemed most important by analysts. This is not a buy or sell recommendation.

What to like:
Underpriced compared to book value

The stock is trading low compared to its peers on a price to book value basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Superior return on equity

The company management has delivered better return on equity in the most recent 4 quarters then its peers, placing it in the top quartile.

Superior capital utilization

The company management has delivered better return on invested capital in the most recent 4 quarters than its peers, placing it in the top quartile.

Superior return on assets

The company management has delivered better return on assets in the most recent 4 quarters than its peers, placing it in the top quartile.

Positive cash flow

The company had positive total cash flow in the most recent four quarters.

Positive free cash flow

The company had positive total free cash flow in the most recent four quarters.

Underpriced on free cash flow basis

The stock is trading low compared to its peers on a price to free cash flow basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

What to not like:
Poor risk adjusted returns

This company is delivering below median risk adjusted returns in its peers. Even if it is outperforming on returns , the returns are unpredictable. Proceed with caution.

Below median dividend returns

The company’s average income yield over the past 5 years has been low compared to its peers. However, it is not a problem if you are not looking for income.

Higly leveraged

The company is in the bottom half compared to its sector peers on debt to equity and is highly leveraged. However, do check the news and look at its sector and management statements. Sometimes this is high because the company is trying to grow aggressively.