NasdaqGS:DISC.A

Stock Analysis Report

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Executive Summary

Discovery, Inc. operates as a media company in the United States and internationally. More Details


Snowflake Analysis

Good value with mediocre balance sheet.


Similar Companies

Share Price & News

How has Discovery's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: DISC.A is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: DISC.A's weekly volatility (6%) has been stable over the past year.


Market Performance


7 Day Return

2.0%

DISC.A

0.8%

US Media

1.4%

US Market


1 Year Return

23.6%

DISC.A

10.4%

US Media

22.6%

US Market

Return vs Industry: DISC.A exceeded the US Media industry which returned 7.4% over the past year.

Return vs Market: DISC.A underperformed the US Market which returned 22.8% over the past year.


Shareholder returns

DISC.AIndustryMarket
7 Day2.0%0.8%1.4%
30 Day32.7%3.1%4.9%
90 Day77.7%15.6%14.6%
1 Year23.6%23.6%12.0%10.4%25.4%22.6%
3 Year44.0%44.0%27.3%21.8%46.8%37.0%
5 Year35.9%35.9%91.8%77.7%132.0%106.1%

Long-Term Price Volatility Vs. Market

How volatile is Discovery's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Discovery undervalued compared to its fair value and its price relative to the market?

48.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: DISC.A ($36.88) is trading below our estimate of fair value ($72.91)

Significantly Below Fair Value: DISC.A is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: DISC.A is good value based on its PE Ratio (17.9x) compared to the US Media industry average (28.2x).

PE vs Market: DISC.A is good value based on its PE Ratio (17.9x) compared to the US market (21.1x).


Price to Earnings Growth Ratio

PEG Ratio: DISC.A is poor value based on its PEG Ratio (3.5x)


Price to Book Ratio

PB vs Industry: DISC.A is overvalued based on its PB Ratio (2.5x) compared to the US Media industry average (1.9x).


Next Steps

Future Growth

How is Discovery forecast to perform in the next 1 to 3 years based on estimates from 22 analysts?

5.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DISC.A's forecast earnings growth (5.2% per year) is above the savings rate (2%).

Earnings vs Market: DISC.A's earnings (5.2% per year) are forecast to grow slower than the US market (21.6% per year).

High Growth Earnings: DISC.A's earnings are forecast to grow, but not significantly.

Revenue vs Market: DISC.A's revenue (3.9% per year) is forecast to grow slower than the US market (10.5% per year).

High Growth Revenue: DISC.A's revenue (3.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: DISC.A's Return on Equity is forecast to be high in 3 years time (27.6%)


Next Steps

Past Performance

How has Discovery performed over the past 5 years?

11.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DISC.A has high quality earnings.

Growing Profit Margin: DISC.A's current net profit margins (11.9%) are lower than last year (15%).


Past Earnings Growth Analysis

Earnings Trend: DISC.A's earnings have grown by 11.3% per year over the past 5 years.

Accelerating Growth: DISC.A's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: DISC.A had negative earnings growth (-23.7%) over the past year, making it difficult to compare to the Media industry average (-12.2%).


Return on Equity

High ROE: DISC.A's Return on Equity (12.9%) is considered low.


Next Steps

Financial Health

How is Discovery's financial position?


Financial Position Analysis

Short Term Liabilities: DISC.A's short term assets ($5.5B) exceed its short term liabilities ($2.8B).

Long Term Liabilities: DISC.A's short term assets ($5.5B) do not cover its long term liabilities ($18.6B).


Debt to Equity History and Analysis

Debt Level: DISC.A's debt to equity ratio (120.7%) is considered high.

Reducing Debt: DISC.A's debt to equity ratio has increased from 117% to 120.7% over the past 5 years.

Debt Coverage: DISC.A's debt is well covered by operating cash flow (23.5%).

Interest Coverage: DISC.A's interest payments on its debt are well covered by EBIT (4.3x coverage).


Balance Sheet


Next Steps

Dividend

What is Discovery current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate DISC.A's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate DISC.A's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if DISC.A's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if DISC.A's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of DISC.A's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

10.1yrs

Average management tenure


CEO

David Zaslav (60 yo)

14yrs

Tenure

US$45,843,912

Compensation

Mr. David M. Zaslav serves as Member of Board of Advisors at QuadioMedia Inc. Mr. Zaslav has been the Chief Executive Officer and President of Discovery, Inc. (formerly known as Discovery Communications, I...


CEO Compensation Analysis

Compensation vs Market: David's total compensation ($USD45.84M) is above average for companies of similar size in the US market ($USD10.55M).

Compensation vs Earnings: David's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
David Zaslav
President14yrsUS$45.84m0.56%
$ 130.4m
Gunnar Wiedenfels
Chief Financial Officer3.75yrsUS$7.39m0.034%
$ 8.0m
Bruce Campbell
Chief Development10.08yrsUS$9.17m0.026%
$ 6.1m
Jean-Briac Perrette
CEO & President of Discovery International6.83yrsUS$14.47m0.011%
$ 2.5m
David Leavy
Chief Corporate Operating Officer4.83yrsno data0.017%
$ 4.0m
Lori Locke
Chief Accounting Officer & Executive VP1.58yrsno data0.0028%
$ 650.6k
Avi Saxena
Chief Technology Officer of Direct-to-Consumer2yrsno datano data
Jackie Burka
Senior Vice Presidentno datano datano data
Adria Alpert Romm
Chief People & Culture Officer13.83yrsUS$2.48m0.0049%
$ 1.2m
Albert Rosenthaler
Senior Vice President15.83yrsUS$13.88kno data
Henry Schleiff
Group President of Travel11.58yrsno datano data
Alexa Verveer
Senior Vice President of Public Policy17yrsno datano data

10.1yrs

Average Tenure

57yo

Average Age

Experienced Management: DISC.A's management team is seasoned and experienced (10.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
David Zaslav
President14yrsUS$45.84m0.56%
$ 130.4m
J. Wargo
Independent Director12.33yrsUS$309.22k0.026%
$ 6.1m
Kenneth Lowe
Independent Director2.83yrsUS$320.72k0.18%
$ 42.1m
John Malone
Independent Director12.33yrsUS$251.22k2.91%
$ 682.8m
Robert Bennett
Independent Director12.33yrsUS$276.22k0.013%
$ 3.1m
Paul Gould
Director12.33yrsUS$296.22k0.11%
$ 24.8m
Robert Miron
Chairman of the Board6.67yrsUS$395.72k0.0069%
$ 1.6m
Susan Swain
Independent Director4.08yrsUS$308.72k0.0040%
$ 941.9k
Robert Beck
Independent Director12.33yrsUS$288.72k0.026%
$ 6.1m
Steven Miron
Independent Director12.33yrsUS$296.22k0.0095%
$ 2.2m
Jerold Chun
Member of Scientific Advisory Board0.17yrno datano data
Daniel Sanchez
Independent Director3.67yrsUS$266.22k0.00072%
$ 169.1k

12.3yrs

Average Tenure

67yo

Average Age

Experienced Board: DISC.A's board of directors are seasoned and experienced ( 12.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: DISC.A insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Discovery, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Discovery, Inc.
  • Ticker: DISC.A
  • Exchange: NasdaqGS
  • Founded: 1985
  • Industry: Broadcasting
  • Sector: Media
  • Market Cap: US$23.488b
  • Shares outstanding: 675.68m
  • Website: https://corporate.discovery.com

Number of Employees


Location

  • Discovery, Inc.
  • 8403 Colesville Road
  • Silver Spring
  • Maryland
  • 20910
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DISC.ANasdaqGS (Nasdaq Global Select)YesSeries A Common StockUSUSDSep 2008
DISC.BNasdaqGS (Nasdaq Global Select)Series B Common StockUSUSDSep 2008
DISC.KNasdaqGS (Nasdaq Global Select)Series C Common StockUSUSDSep 2008
DC6DB (Deutsche Boerse AG)YesSeries A Common StockDEEURSep 2008
DC6CDB (Deutsche Boerse AG)Series C Common StockDEEURSep 2008
DISAWBAG (Wiener Boerse AG)YesSeries A Common StockATEURSep 2008
DISCWBAG (Wiener Boerse AG)Series C Common StockATEURSep 2008
DISCA *BMV (Bolsa Mexicana de Valores)YesSeries A Common StockMXMXNSep 2008
0IBDLSE (London Stock Exchange)YesSeries A Common StockGBUSDSep 2008
0IBFLSE (London Stock Exchange)Series C Common StockGBUSDSep 2008
DC6ETLX (Eurotlx)YesSeries A Common StockITEURSep 2008
DCVY34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EA REP 1 COM USD0.01 SER ABRBRLMay 2019
DCVY35BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 1 REPR 1 C SHS UNSPONBRBRLJan 2020

Biography

Discovery, Inc. operates as a media company in the United States and internationally. The company operates in two segments, U.S. Networks and International Networks. The company owns and operates various t...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/22 23:00
End of Day Share Price2021/01/22 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.