NasdaqGS:DISC.A

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Good value with proven track record.


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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-0.1%

DISC.A

5.0%

US Media

7.2%

US Market


1 Year Return

-26.9%

DISC.A

-12.9%

US Media

-10.4%

US Market

Return vs Industry: DISC.A underperformed the US Media industry which returned -12.9% over the past year.

Return vs Market: DISC.A underperformed the US Market which returned -10.4% over the past year.


Shareholder returns

DISC.AIndustryMarket
7 Day-0.1%5.0%7.2%
30 Day-22.1%-16.4%-12.6%
90 Day-38.9%-24.0%-19.4%
1 Year-26.9%-26.9%-11.6%-12.9%-8.5%-10.4%
3 Year-31.6%-31.6%-12.2%-16.0%15.8%8.3%
5 Year-39.2%-39.2%2.3%-5.8%35.8%21.0%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: DISC.A ($20.01) is trading below our estimate of fair value ($59.41)

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 (7x) compared to the Media industry average (10x).

PE vs Market: DISC.A is good value based on its PE Ratio (7x) compared to the US market (13.1x).


Price to Earnings Growth Ratio

PEG Ratio: DISC.A is poor value based on its PEG Ratio (6.4x)


Price to Book Ratio

PB vs Industry: DISC.A is overvalued based on its PB Ratio (1.4x) compared to the US Media industry average (0.9x).


Next Steps

Future Growth

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

1.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DISC.A's forecast earnings growth (1.1% per year) is below the savings rate (1.7%).

Earnings vs Market: DISC.A's earnings (1.1% per year) are forecast to grow slower than the US market (12.2% per year).

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

Revenue vs Market: DISC.A's revenue (2% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: DISC.A's revenue (2% 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 low in 3 years time (19.8%).


Next Steps

Past Performance

How has Discovery performed over the past 5 years?

-0.8%

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 (16.6%) are higher than last year (5%).


Past Earnings Growth Analysis

Earnings Trend: DISC.A's earnings have declined by -0.8% per year over the past 5 years.

Accelerating Growth: DISC.A's earnings growth over the past year (248.8%) exceeds its 5-year average (-0.8% per year).

Earnings vs Industry: DISC.A earnings growth over the past year (248.8%) exceeded the Media industry 6%.


Return on Equity

High ROE: DISC.A's Return on Equity (18.5%) 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 ($5.2B) exceed its short term liabilities ($3.2B).

Long Term Liabilities: DISC.A's short term assets ($5.2B) do not cover its long term liabilities ($18.5B).


Debt to Equity History and Analysis

Debt Level: DISC.A's debt to equity ratio (128.9%) is considered high.

Reducing Debt: DISC.A's debt to equity ratio has increased from 109.1% to 128.9% over the past 5 years.

Debt Coverage: DISC.A's debt is well covered by operating cash flow (22%).

Interest Coverage: DISC.A's interest payments on its debt are well covered by EBIT (4.7x coverage).


Balance Sheet

Inventory Level: DISC.A has a low level of unsold assets or inventory.

Debt Coverage by Assets: DISC.A's debt is not covered by short term assets (assets are 0.3x debt).


Next Steps

Dividend

What is Discovery's 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 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 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?

2.8yrs

Average management tenure


CEO

David Zaslav (59yo)

13.17s

Tenure

US$129,499,005

Compensation

Mr. David M. Zaslav has been the Chief Executive Officer and President of Discovery Communications, Inc. and Discovery Communications Holding, LLC at Discovery Communications, LLC since January 2007. Mr. Z ...


CEO Compensation Analysis

Compensation vs Market: David's total compensation ($USD129.50M) is above average for companies of similar size in the US market ($USD11.74M).

Compensation vs Earnings: David's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
David Zaslav
President13.17yrsUS$129.50m0.61% $79.4m
Gunnar Wiedenfels
Chief Financial Officer2.83yrsUS$6.65m0.034% $4.5m
Bruce Campbell
Chief Development9.25yrsUS$12.34m0.067% $8.8m
Peter Faricy
Chief Executive Officer of Global Direct-to-Consumer1.42yrsUS$4.83m0.036% $4.7m
Jean-Briac Perrette
CEO & President of Discovery Internationalno dataUS$8.49m0.040% $5.2m
David Leavy
Chief Corporate Operating Officer4yrsno data0.017% $2.3m
Lori Locke
Chief Accounting Officer & Executive VP0.67yrno data0.0028% $366.5k
Avi Saxena
Chief Technology Officer of Direct-to-Consumer1.17yrsno datano data
Jackie Burka
Senior Vice Presidentno datano datano data
Savalle Sims
Executive VP & General Counsel2.83yrsno data0.011% $1.5m

2.8yrs

Average Tenure

51yo

Average Age

Experienced Management: DISC.A's management team is considered experienced (2.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
David Zaslav
President13.17yrsUS$129.50m0.61% $79.4m
J. Wargo
Independent Director11.42yrsUS$314.94k0.054% $7.1m
John Malone
Independent Director11.42yrsUS$260.38k2.93% $383.9m
Robert Bennett
Independent Director11.42yrsUS$285.38k0.012% $1.6m
Paul Gould
Director11.42yrsUS$321.32k0.10% $13.5m
Robert Miron
Chairman of the Board5.83yrsUS$404.88k0.0067% $882.3k
S. Anstrom
Independent Director7.25yrsUS$280.38k0.0022% $282.8k
Susan Swain
Independent Director3.25yrsUS$290.38k0.0030% $387.5k
Robert Beck
Independent Director11.42yrsUS$302.88k0.024% $3.1m
Steven Miron
Independent Director11.42yrsUS$305.38k0.0093% $1.2m

11.4yrs

Average Tenure

67.5yo

Average Age

Experienced Board: DISC.A's board of directors are seasoned and experienced ( 11.4 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 been diluted in the past year, with total shares outstanding growing by 5%.


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$13.091b
  • Shares outstanding: 688.42m
  • 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
DC6CETLX (Eurotlx)Series C 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 television networks under the Discovery Channel, TLC, Animal Planet, Investigation Discovery, Science Channel, MotorTrend, Food Network, HGTV, Travel Channel, TVN, DIY Network, Cooking Channel, Discovery Family Channel, American Heroes Channel, Destination America, Discovery Life, Discovery en Espanol, Discovery Familia, Great American Country, ID, the Oprah Winfrey Network, Eurosport, Discovery Kids, DMAX, and Discovery Home & Health brands, as well as other regional television networks. Its content spans genres, including survival, exploration, sports, lifestyle, general entertainment, home, food and travel, heroes, adventure, crime and investigation, health, and kids. The company also operates production studios that develop and produce content; and digital products and Websites. It provides content through various distribution platforms comprising pay-television, free-to-air and broadcast television, authenticated GO applications, digital distribution arrangements, and content licensing agreements, as well as various platforms that include brand-aligned Websites, online streaming, mobile devices, video on demand, and broadband channels. As of February 27, 2020, the company delivered approximately 8,000 hours of original programming each year in approximately 50 languages worldwide. Discovery, Inc. was founded in 1985 and is headquartered in Silver Spring, Maryland. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/31 03:10
End of Day Share Price2020/03/30 00:00
Earnings2019/12/31
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.