Dish Network Corp - Class A
Exchange: NASDAQSector: Communication ServicesIndustry: Telecom Services
DISH Network Corporation is a pay-television (TV) provider, with approximately 13.967 million customers across the United States as of December 31, 2011. The Company offers a range of local and national programming, featuring more national and local high definition (HD) channels than pay-TV providers. During the year ended December 31, 2011, DISH added approximately 2.576 million gross new subscribers. On April 26, 2011, the Company acquired Blockbuster, Inc. It acquired Blockbuster operations in the United States and in certain foreign countries. Blockbuster primarily offers movies and video games for sale and rental through multiple distribution channels, such as retail stores, by-mail, digital devices, the blockbuster.com Website and the BLOCKBUSTER On Demand service. In March 2012, the Company acquired DBSD North America, Inc. and TerreStar Networks, Inc. In July 2012, Blockbuster, a subsidiary of the Company, acquired the assets of retail software provider Alpha Bay Corporation.
Did you know?
Trading 991% below its estimated fair value of $62.97.
Current Price
$5.77
GoodMoat Value
$62.97
991.4% undervaluedProfile
Valuation (TTM)
Market Cap$3.08B
P/E2.53
EV$26.39B
P/B0.17
Shares Out533.86M
P/Sales0.20
Revenue$15.62B
EV/EBITDA9.77
Dish Network Corp - Class A (DISH) Stock Analysis
GoodMoat Analysis
Dish Network appears deeply undervalued based on a target price of $62.97, but it fails the initial quality gate of the investment framework. The company's financial health is weak, with negative free cash flow and significant debt, raising serious questions about its underlying business strength.
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Dish Network is a telecom services company that operates satellite TV and a nascent wireless network. A moat analysis reveals potential strengths in regulatory barriers, through its ownership of valuable wireless spectrum licenses, and in scale privilege via its physical infrastructure. However, these are offset by a highly competitive and capital-intensive industry, high disruption risk from streaming services, and a lack of clear pricing power or network effects. The company's quality indicators are deeply concerning. With a Free Cash Flow Yield of -254.1%, it is burning cash at an alarming rate. Its Debt/Equity ratio of 1.34 indicates a leveraged balance sheet, and its ROE of 6.8% is below the desired 15-20% threshold for a quality business. The GoodMoat Target of $62.97 suggests a massive margin of safety, implying the stock is deeply undervalued. However, following the Decision Framework, the stock fails Step 1: The Moat & Quality Gate. The weak financial metrics, particularly the severe cash burn, indicate the business lacks the fundamental strength required to proceed, regardless of the attractive headline valuation. A value investor would need to see a credible path to sustainable profitability and positive cash flow before this opportunity could be considered further.
Market Cap$3.08B
Current Price$5.77
P/E Ratio2.53
Forward P/E—
PEG Ratio-0.02
EPS$3.61
Book Value$33.61
P/B Ratio0.17
DISH Financial Charts
FCF vs CAPEX
FCFCAPEX
Cash vs Debt
Net Debt: 22.3B
Revenue
15.2B
FY16
14.4B
FY17
13.6B
FY18
12.8B
FY19
15.5B
FY20
17.9B
FY21
16.7B
FY22
Net Income
1.5B
FY16
2.1B
FY17
1.6B
FY18
1.4B
FY19
1.8B
FY20
2.4B
FY21
2.3B
FY22
Did you know?
Trading 991% below its estimated fair value of $62.97.
Dish Network Corp - Class A (DISH) Financial Summary
Dish Network Corp - Class A (DISH) is a Communication Services company in the Telecom Services industry, listed on NASDAQ. The stock currently trades at $5.77 with a market capitalization of $3.08B.
Key valuation metrics include a P/E ratio of 2.53, price-to-book ratio of 0.17, and EPS of $3.61. The company reports a profit margin of 7.8% and return on equity of 6.8%.
DISH Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $3.08B |
| P/E Ratio | 2.53 |
| EPS | $3.61 |
| P/B Ratio | 0.17 |
| P/S Ratio | 0.20 |
| EV/EBITDA | 9.77 |
| Profit Margin | 7.8% |
| Return on Equity | 6.8% |
| Debt/Equity | 1.34 |
DISH Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY16 | $15.21B | $1.50B |
| FY17 | $14.39B | $2.10B |
| FY18 | $13.62B | $1.58B |
| FY19 | $12.81B | $1.40B |
| FY20 | $15.49B | $1.76B |
| FY21 | $17.88B | $2.41B |
| FY22 | $16.68B | $2.30B |
Dish Network Corp - Class A (DISH) Valuation
Based on GoodMoat's DCF model, Dish Network Corp - Class A has a fair value estimate of $62.97. At the current price of $5.77, the stock appears 90.8% undervalued relative to our intrinsic value estimate.
DISH Quality Indicators
Dish Network Corp - Class A maintains a profit margin of 7.8% and an operating margin of 12.3%. Return on equity stands at 6.8%. The current ratio is 0.77. Debt-to-equity ratio is 1.34.
About Dish Network Corp - Class A
DISH Network Corporation is a pay-television (TV) provider, with approximately 13.967 million customers across the United States as of December 31, 2011. The Company offers a range of local and national programming, featuring more national and local high definition (HD) channels than pay-TV providers. During the year ended December 31, 2011, DISH added approximately 2.576 million gross new subscribers. On April 26, 2011, the Company acquired Blockbuster, Inc. It acquired Blockbuster operations in the United States and in certain foreign countries. Blockbuster primarily offers movies and video games for sale and rental through multiple distribution channels, such as retail stores, by-mail, digital devices, the blockbuster.com Website and the BLOCKBUSTER On Demand service. In March 2012, the Company acquired DBSD North America, Inc. and TerreStar Networks, Inc. In July 2012, Blockbuster, a subsidiary of the Company, acquired the assets of retail software provider Alpha Bay Corporation.
DISH Free Cash Flow
Dish Network Corp - Class A generated $-7.83B in trailing twelve-month free cash flow, representing an FCF yield of -254.07%. This low FCF yield may reflect heavy reinvestment or growth spending.
DISH Shares Outstanding
Dish Network Corp - Class A has 0.53 billion shares outstanding at a share price of $5.77, giving it a market capitalization of $3.08B.