Discovery Communications (Class B) Stock Analysis, Valuation (NASDAQ:DISCB)

Add to My Stocks
$31.16 $0.84 (2.63%) DISCB stock closing price Feb 16, 2018 (Closing)
Watch Robo Advisor Video of DISCB Stock Analysis
Discovery Communications (Class B)
Updated on : Feb 16, 2018
previous close
DISCB 31.2 (0%)
S&P 500 2732.2 (0%)
Closing Price On: Feb 16, 2018
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Broadcasting-Radio-TV
Sector :
Consumer Discretionary
5 Quarter Revenue
Revenue Growth
2017-Q3
$billion
%
YOY GROWTH
Compared to the industry
Operating Profit
Operating Margin:
31.1%
Sector Average:
11%
5 Quarter Net Profit
Net Margins
2017-Q3
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
14.71B
Debt/Equity Ratio:
 2.56
Compared to the industry
Cash Flow
Operating cash flow:
$724M
Net Income:
$218M
PROS      CONS
Operating Margins
Net Margins
Cash Flow
ROIC
ROE
FCF Margin
High Debt Burden
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
DISCB PS :
1.8
Industry PS :
1.7
Sector:   Consumer Discretionary.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
12.4%
Return on Equity:
20.6%
Free Cash Flow Margin:
42.3%
Double Tap To Exit Full Screen
0:00
/

DISCB Stock Analysis

5 2

Take a look at Amigobulls Discovery Communications stock analysis video. This is our analyst opinion covering the buy and sell arguments for DISCB stock.

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 3.9/5

Amigobulls DISCB stock analysis uses latest quarter 2017 Q3 financial data like Discovery Communications revenue growth, profit margins and cash flows. Discovery Communications valuation forms a crucial part of our stock analysis. Discovery Communications stock rating is our opinion about the business fundamentals of the company.

Should you buy DISCB stock?

  • The TTM operating margin was good at 31.1% for Discovery Communications (Class B).
  • Net margins came in at average 16.6% for Discovery Communications (Class B) over the last twelve months.
  • The company has an operating cash flow which is 3.3 times the net income.
  • The Discovery Communications (Class B) stock currently trades at a price to earnings ratio of 15. We rate this as a positive, compared to the industry average of 22.8.
  • Discovery Communications (Class B) has an attractive ROIC (Return on Invested Capital) of 12.4%
  • Discovery Communications (Class B) has a good Return On Equity (ROE) of 20.6%.
  • The company has a healthy free cash flow margin of 42.3%.

Should you sell DISCB stock?

  • Discovery Communications (Class B) is debt laden and has a high debt/equity ratio of  2.56.

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

Investors can make use of the Amigobulls Discovery Communications stock analysis to ascertain how DISCB stock fares in fundamental analysis investment criteria. Company's fundamentals remain one of the key driver of DISCB stock and helps investors in making good buy and sell decision.

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. Technical analysis comes in handy to check whether the market sentiment is in line with the fundamental picture of the company.