INITIATING COVERAGE REPORT William C. Dunkelberg Owl Fund November 30, 2018 Daniel Pearson – Lead Analyst
[email protected] | (484) 888-4552 Brendan Young – Associate Analyst
[email protected] | (610) 620-3312 Comcast Corp. Andrew Connelly – Associate Analyst Exchange: NASDAQ | Ticker: CMCSA | Target Price: ~$45
[email protected] | (610) 308-5588 COMPANY OVERVIEW Comcast Corporation (NASDAQ: CMCSA) is a global media, Key Statistics (in M, except per share data) entertainment, and communications conglomerate Share Price $39.01 52-Week Low $30.43 headquartered in Philadelphia, PA. The company is the second- Exp. Return ~17% 52-Week High $44.00 largest broadcasting and cable television company in the world by revenue. It is also the largest pay-TV, cable TV, and Internet Shares O/S 4,540 Div. Yield 1.98% Enterprise provider in the United States. CMCSA engages in the provision Market Cap $174,520 $238,926 Value of video, internet, and phone services through its two primary businesses, Comcast Cable and NBCUniversal. CMCSA breaks One-Year Price Graph: down operations into six reportable segments, including Cable Communications (~62% of FY’17 revenue), Cable Networks $45 100 M (~12%), Broadcast Television (~11%), Filmed Entertainment (~9%), Theme Parks (~5%), and Corporate & Other (~1%). $40 75 M The company will report 4Q’18 and FY’18 results before the $35 50 M opening bell on January 23, 2019. $30 25 M INVESTMENT THESIS CMCSA is currently trading at a 2-year LTM P/E multiple of $25 - 16.2x, representing a 12.1% discount to its median multiple of 18.4x. Despite consistently beating earnings the past four quarters with an average surprise of ~6.5%, the stock was unjustly discounted due to the acquisition process of Sky UK, Earnings (Adj.) / Revenue Surprise History one of Europe’s leading media and telecommunications Quarters EPS Revenue Δ Price companies.