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DISC

DiscoveryNasdaqGS:DISC.A Stock Report

Last Price

US$26.86

Market Cap

US$17.6b

7D

-9.4%

1Y

-34.0%

Updated

26 Jan, 2022

Data

Company Financials +
DISC.A fundamental analysis
Snowflake Score
Valuation4/6
Future Growth1/6
Past Performance2/6
Financial Health3/6
Dividends0/6

DISC.A Stock Overview

Discovery, Inc., a media company, provides content across various distribution platforms in approximately 50 languages worldwide.

Discovery Competitors

Fox

NasdaqGS:FOXA

US$21.5b

ViacomCBS

NasdaqGS:VIAC

US$21.4b

TEGNA

NYSE:TGNA

US$4.3b

AMC Networks

NasdaqGS:AMCX

US$1.6b

Price History & Performance

Summary of all time highs, changes and price drops for Discovery
Historical stock prices
Current Share PriceUS$26.86
52 Week HighUS$78.14
52 Week LowUS$21.66
Beta1.31
1 Month Change9.99%
3 Month Change13.81%
1 Year Change-34.04%
3 Year Change-1.97%
5 Year Change-5.26%
Change since IPO288.99%

Recent News & Updates

Jan 10
 Discovery, Inc. (NASDAQ:DISC.A) is Leading the Rebound Among the 2021 Underperformers

Discovery, Inc. (NASDAQ:DISC.A) is Leading the Rebound Among the 2021 Underperformers

Discovery, Inc. (NASDAQ: DISC.A) made the headlines in the March of the last year, as it was part of the highly levered portfolio that caused the demise of Archegos Capital. After losing over 50% in a matter of days, the stock continued a slow and uneventful slide for the rest of the year. Yet, favorable valuation and pending merger are leading the rebound.

Shareholder Returns

DISC.AUS MediaUS Market
7D-9.4%-3.2%-5.1%
1Y-34.0%-6.5%3.3%

Return vs Industry: DISC.A underperformed the US Media industry which returned -3.5% over the past year.

Return vs Market: DISC.A underperformed the US Market which returned 4.2% over the past year.

Price Volatility

Is DISC.A's price volatile compared to industry and market?
DISC.A volatility
DISC.A Average Weekly Movement8.4%
Media Industry Average Movement8.2%
Market Average Movement6.7%
10% most volatile stocks in US Market15.4%
10% least volatile stocks in US Market2.4%

Stable Share Price: DISC.A is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: DISC.A's weekly volatility (8%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19859,800David Zaslavhttps://corporate.discovery.com

Discovery, Inc., a media company, provides content across various distribution platforms in approximately 50 languages worldwide. It operates in two segments, U.S. Networks and International Networks.

Discovery Fundamentals Summary

How do Discovery's earnings and revenue compare to its market cap?
DISC.A fundamental statistics
Market CapUS$17.57b
Earnings (TTM)US$1.11b
Revenue (TTM)US$11.89b

16.0x

P/E Ratio

1.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
DISC.A income statement (TTM)
RevenueUS$11.89b
Cost of RevenueUS$4.64b
Gross ProfitUS$7.25b
ExpensesUS$6.14b
EarningsUS$1.11b

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)1.68
Gross Margin60.98%
Net Profit Margin9.33%
Debt/Equity Ratio110.4%

How did DISC.A perform over the long term?

See historical performance and comparison

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 ($26.86) is trading below our estimate of fair value ($83.22)

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 poor value based on its PE Ratio (16x) compared to the US Media industry average (12.5x).

PE vs Market: DISC.A is good value based on its PE Ratio (16x) compared to the US market (16.5x).


Price to Earnings Growth Ratio

PEG Ratio: DISC.A is poor value based on its PEG Ratio (3.3x)


Price to Book Ratio

PB vs Industry: DISC.A is good value based on its PB Ratio (1.5x) compared to the US Media industry average (1.9x).


Future Growth

How is Discovery forecast to perform in the next 1 to 3 years based on estimates from 19 analysts?

4.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DISC.A's forecast earnings growth (4.8% per year) is above the savings rate (2%).

Earnings vs Market: DISC.A's earnings (4.8% per year) are forecast to grow slower than the US market (13% per year).

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

Revenue vs Market: DISC.A's revenue (2.9% per year) is forecast to grow slower than the US market (9.1% per year).

High Growth Revenue: DISC.A's revenue (2.9% 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 low in 3 years time (16.2%).


Past Performance

How has Discovery performed over the past 5 years?

17.0%

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 (9.3%) are lower than last year (11.9%).


Past Earnings Growth Analysis

Earnings Trend: DISC.A's earnings have grown by 17% 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 (-12.7%) over the past year, making it difficult to compare to the Media industry average (74.7%).


Return on Equity

High ROE: DISC.A's Return on Equity (10.6%) is considered low.


Financial Health

How is Discovery's financial position?


Financial Position Analysis

Short Term Liabilities: DISC.A's short term assets ($6.7B) exceed its short term liabilities ($3.3B).

Long Term Liabilities: DISC.A's short term assets ($6.7B) do not cover its long term liabilities ($17.6B).


Debt to Equity History and Analysis

Debt Level: DISC.A's net debt to equity ratio (84.1%) is considered high.

Reducing Debt: DISC.A's debt to equity ratio has reduced from 146.7% to 110.4% over the past 5 years.

Debt Coverage: DISC.A's debt is not well covered by operating cash flow (16.7%).

Interest Coverage: DISC.A's interest payments on its debt are well covered by EBIT (3.8x coverage).


Balance Sheet


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?

11.8yrs

Average management tenure


CEO

David Zaslav (61 yo)

15yrs

Tenure

US$37,710,462

Compensation

Mr. David M. Zaslav had been Director of Blade Air Mobility, Inc. since May 07, 2021 till September 22, 2021. Mr. Zaslav serves as Member of Board of Advisors at QuadioMedia Inc. Mr. Zaslav has been the Ch...


CEO Compensation Analysis

Compensation vs Market: David's total compensation ($USD37.71M) is above average for companies of similar size in the US market ($USD11.47M).

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


Leadership Team

Experienced Management: DISC.A's management team is seasoned and experienced (11.8 years average tenure).


Board Members

Experienced Board: DISC.A's board of directors are seasoned and experienced ( 13.3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold 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 employee growth, exchange listings and data sources


Key Information

  • Name: Discovery, Inc.
  • Ticker: DISC.A
  • Exchange: NasdaqGS
  • Founded: 1985
  • Industry: Broadcasting
  • Sector: Media
  • Implied Market Cap: US$17.567b
  • Shares outstanding: 660.40m
  • Website: https://corporate.discovery.com

Number of Employees


Location

  • Discovery, Inc.
  • 230 Park Avenue South
  • New York
  • New York
  • 10003
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/26 01:04
End of Day Share Price2022/01/25 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


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.