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

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$21.35 $0.09 (0.42%) DISCA stock closing price Sep 21, 2017 (Closing)
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Discovery Communications (Class A)
Updated on : Sep 21, 2017
previous close
DISCA 21.4 (0%)
S&P 500 2500.6 (0%)
Closing Price On: Sep 21, 2017
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Broadcasting-Radio-TV
Sector :
Consumer Discretionary
5 Quarter Revenue
Revenue Growth
2017-Q2
$billion
%
YOY GROWTH
Compared to the industry
Operating Profit
Operating Margin:
31.9%
Sector Average:
11.3%
5 Quarter Net Profit
Net Margins
2017-Q2
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
8.26B
Debt/Equity Ratio:
 1.5
Compared to the industry
Cash Flow
Operating cash flow:
$188M
Net Income:
$374M
PROS      CONS
Operating Margins
Net Margins
ROIC
ROE
PE Valuation
PS Valuation
High Debt Burden
Cash Flow
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
DISCA PS :
1.2
Industry PS :
1.6
Sector:   Consumer Discretionary.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
11.3%
Return on Equity:
20.9%
Free Cash Flow Margin:
9%
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DISCA Stock Analysis

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View Discovery Communications (Class A) stock analysis video. This is our analyst opinion covering the buy and sell arguments for DISCA stock.

Discovery Communications Inc. Stock Rating 3.9/5

Our Discovery Communications (Class A) stock opinion is based on fundamentals of the company. This Discovery Communications (Class A) stock analysis is based on latest 2017 Q2 earnings. The stock price analysis takes into account the company's valuation metrics.

Should you buy DISCA stock?

  • The TTM operating margin was good at 31.9% for Discovery Communications (Class A).
  • LTM Net margins were good at 16.9% for Discovery Communications (Class A).
  • The Discovery Communications (Class A) stock currently trades at a price to earnings ratio of 10.4. We rate this as a positive, compared to the industry average of 21.
  • The lower PS ratio 1.2 for DISCA stock versus Broadcasting-Radio-TV industry average of 1.6 is a positive for the company.
  • Discovery Communications (Class A) has an attractive ROIC (Return on Invested Capital) of 11.3%
  • Discovery Communications (Class A) has a good Return On Equity (ROE) of 20.9%.

Should you sell DISCA stock?

  • Discovery Communications (Class A) is debt laden and has a high debt/equity ratio of  1.5.
  • Cash flow from operations is 0.5 times net income which is a negative signal.

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