MOI Global - Entravision: TV and Radio Operator With Valuable Digital Ad Businesses
Entravision is a media company focused on Hispanic audiences, operating 49 television and 44 radio stations, along with international digital marketing businesses, Smax and Adwick. Headquartered in Santa Monica, California, it has 637 employees. Univision owns about 10% of Entravision, which is its largest affiliate in the U.S. The company has a market cap of $216 million, with $93 million in cash and $187 million in debt, leading to a net debt of $93 million and an enterprise value of $310 million. Gate City has set a price target of $477 per share, suggesting a 75% upside from current prices. The investment thesis highlights Entravision's strong asset base and recent changes in company control following the founder's death. Despite a significant stock price drop after Facebook ended its partnership, this was seen as an opportunity to invest, making the investors one of the largest shareholders.
Key Points:
- Entravision operates 49 TV and 44 radio stations, focusing on Hispanic audiences.
- The company has international digital marketing businesses, Smax and Adwick.
- Univision owns 10% of Entravision, which is its largest U.S. affiliate.
- Gate City predicts a 75% stock price increase, targeting $477 per share.
- Recent changes in company control and a stock price drop present investment opportunities.
Details:
1. 📺 Entravision's Media Operations Overview
- Entravision is a leading Hispanic-focused media company with operations across television, radio, and digital platforms.
- The company owns and operates 49 television stations and 44 radio stations, providing a broad reach in the media landscape.
- Entravision's digital presence includes two international digital businesses, Smax and Adwick, which offer digital marketing solutions on a global scale.
- Headquartered in Santa Monica, California, Entravision employs 600 people, contributing significantly to the media industry.
- The company leverages its diverse media channels to effectively reach Hispanic audiences, enhancing its market influence and audience engagement.
2. 📊 Financial Snapshot and Univision's Stake
- Univision owns approximately 10% of Entravision stock through class U shares.
- Entravision is the largest affiliate of Univision in the United States.
- Entravision's recent share price is $238, giving it a market cap of $X.
3. 💼 Market Valuation and Investment Potential
- The company has a market valuation of $216 million and holds $93 million in cash against $187 million in debt, resulting in a net debt of $93 million. This positions the company's enterprise value at $310 million, offering a comprehensive view of its market standing.
- With a price target set by Gate City at $477 per share, the company is poised for significant growth with a projected 75% upside from current price levels. This reflects a strong potential for investment returns.
- The stock's current trading near the low end of its recent range suggests a potential undervaluation, presenting an attractive entry point for investors.
- A deeper analysis of market trends, such as sector growth and competitive positioning, could further illuminate the company's standing and investment potential.
4. 🔍 Investment Thesis and Company Research
- Intervision has been followed by the team for nearly a decade, indicating a long-term interest and thorough understanding.
- Nick Bodner has led the research process, showcasing dedicated leadership in company analysis.
- The team conducted multiple visits to Intervision's headquarters in Santa Monica, reflecting a commitment to in-depth research.
- The asset base of Intervision is impressive, suggesting strong underlying value, which could be crucial for future strategic investments.
- Concerns around company control highlight potential governance issues, which may affect strategic decision-making and investor confidence.