Discovery Communicatications Stock Analysis, Valuation (NASDAQ:DISCK)

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$22.65 $0.17 (0.74%) DISCK stock closing price Feb 16, 2018 (Closing)
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Discovery Communicatications
Updated on : Feb 16, 2018
previous close
DISCK 22.7 (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
DISCK PS :
1.3
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%
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Discovery Communicatications Stock Analysis

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Watch the robo advisor video of Discovery Communicatications stock analysis on Amigobulls. Our DISCK analysis video highlights revenue and profit trends along with other important metrics such as valuation to find what makes the stock attractive.

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 4.1/5

Amigobulls DISCK stock analysis uses latest quarter 2017 Q3 financial data like Discovery Communicatications revenue growth, profit margins and cash flows. We compare Discovery Communicatications valuation with its sector peers to gauge relative attractiveness of DISCK stock. Based on a company's historical fundamentals we arrive at Discovery Communicatications stock rating which is indicative of the company's financial performance.

Should you buy DISCK stock?

  • Discovery Communicatications's average operating margin of 31.1% was exceptional.
  • Net margins came in at average 16.6% for Discovery Communicatications over the last twelve months.
  • The company has an operating cash flow which is 3.3 times the net income. We see this as a positive signal.
  • The price to earnings multiple of 10.9 is attractive when compared with the industry average PE ratio of 22.8.
  • When compared with the Broadcasting-Radio-TV industry average PS ratio of 1.7, the price-to-sales ratio of 1.3 for DISCK stock is attractive.
  • Discovery Communicatications's return on invested capital of 12.4% is good.
  • The LTM ROE of 20.6% for Discovery Communicatications is attractive.
  • The company has a healthy free cash flow margin of 42.3%.

Should you sell DISCK stock?

  • With a debt/equity ratio of  2.56, Discovery Communicatications is highly leveraged in comparison to Consumer Discretionary peers.

Comments on this video and Discovery Communicatications stock

Investors can use Amigobulls Discovery Communicatications stock analysis as a tool to arrive at accurate conclusions regarding financial health of the company and its valuation. Company's fundamentals remain one of the key driver of DISCK stock and helps investors in making good buy and sell decision.

Among the financials of the company, Discovery Communicatications 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.