Discovery Communications (Class A) Stock Analysis, Valuation (NASDAQ:DISCA)

Add to My Stocks
$27.17 $1.67 (6.55%) DISCA stock closing price Jun 15, 2018 (Closing)

Take a look at Amigobulls Discovery Communications stock analysis video. Our analyst opinion covering the buy and sell arguments for DISCA stock is shown in the video.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

Discovery Communications Inc. Stock Rating 2.7/5

Amigobulls DISCA stock analysis uses latest quarter 2018 Q1 financial data like Discovery Communications revenue growth, profit margins and cash flows. We also use relative valuation metrics like PE ratio and price to sales ratio for Discovery Communications valuation analysis. Based on a company's historical fundamentals we arrive at Discovery Communications stock rating which is indicative of the company's financial performance.

Should you buy DISCA stock?

  • The Year Over Year (YoY) revenue growth for Discovery Communications (Class A) was 43% in 2018-03.
  • Long term revenue growth has been strong with a 5 year compounded annual growth of 10.6.
  • The Discovery Communications (Class A) stock currently trades at a price to earnings ratio of 11.6, compared to the sector average of 21.9. We rate this as a positive.
  • When compared with the Consumer Discretionary sector average PS ratio of 1.6, the price-to-sales ratio of 1.4 for DISCA stock is attractive.

Should you sell DISCA stock?

  • Discovery Communications (Class A)'s TTM operating margin of 5.68 was rather poor.
  • Over the last 12 months, Discovery Communications (Class A) had an average Net loss of -7.4%.
  • With a debt/equity ratio of 2.02, Discovery Communications (Class A) is highly leveraged in comparison to -sectordesc- peers.
  • Discovery Communications (Class A) has a poor return on invested capital of 1.7.
  • A negative ROE of -9.1 indicates that the company is not able to generate profits with the money shareholders have invested.

Comments on this video and Discovery Communications (Class A) stock

Amigobulls Discovery Communications stock analysis helps investors in understanding how the company's fundamentals have performed in the last few quarters. The fundamentals of a company are vital to identify long-term investment opportunities.

Among the financials of the company, Discovery Communications revenue growth along with the profit or net income give a clear picture of the financial health. One can also combine technical analysis and fundamental analysis to get a holistic picture about DISCA stock.