Discovery Communicatications Stock Analysis, Valuation (NASDAQ:DISCK)

Add to My Stocks
$20.36 $0.06 (0.29%) DISCK stock closing price Sep 25, 2017 (Closing)
Watch Robo Advisor Video of DISCK Stock Analysis
Discovery Communicatications
Updated on : Sep 25, 2017
previous close
DISCK 20.4 (0%)
S&P 500 2496.7 (0%)
Closing Price On: Sep 25, 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
DISCK 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%
Double Tap To Exit Full Screen
0:00
/

Discovery Communicatications Stock Analysis

106 5 2

View Discovery Communicatications stock analysis video. This is our analyst opinion covering the buy and sell arguments for DISCK stock.

Discovery Communications Inc. Stock Rating 3.9/5

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

Should you buy DISCK stock?

  • The TTM operating margin was good at 31.9% for Discovery Communicatications.
  • LTM Net margins were good at 16.9% for Discovery Communicatications.
  • DISCK stock is trading at an earnings multiple of 9.9 which is better than the industry average of 21.
  • The lower PS ratio 1.2 for DISCK stock versus Broadcasting-Radio-TV industry average of 1.6 is a positive for the company.
  • Discovery Communicatications generates a high return on invested capital of 11.3%.
  • The LTM ROE of 20.9% for Discovery Communicatications is attractive.

Should you sell DISCK stock?

  • Discovery Communicatications is debt laden and has a high debt/equity ratio of  1.5.
  • Cash flow from operations is low at 0.5 times the net income.

Comments on this video and Discovery Communicatications stock