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U are spot-on.
This one is way under priced.
JMO
ViacomCBS Inc. $VIAC
Book Value Per Share (mrq) 29.68
ViacomCBS Inc. $VIAC
Total Debt (mrq) 19.3B
$VIAC ... putting in perspective why VIAC is so controlled by hedgefunds and institutions consider the fact that 86% of shares are owned by them. So, of the 615 million outstanding shares, they own and control 529 million of those shares. Only 86 million are held by the rest of the marketplace. FACTS can sometimes be confusing, but we should understand the fact that the 86% gets to decide what happens with this stock, not anyone else.
As the old saying goes, " this can work in our favor or against us".
We just have to hope that the "hound" is eventually released to trade much higher or we are bought out. All the above is just my humble opinion of course and changes nothing one way or the other.
John
I am hoping for a breakout higher as well ... the sooner the better ... it is certainly overdue.
Nice .. still here :) I’m waiting to enter big … just need to be breaking out
BZ: ViacomCBS Block Trade: 1.5M Shares At $42.18 Above Ask
In a report released today, Laura Martin from Needham assigned a Buy rating to ViacomCBS (VIAC – Research Report), with a price target of $80.00. The company’s shares closed last Monday at $43.41.
According to TipRanks.com, Martin is a top 100 analyst with an average return of 28.5% and a 65.9% success rate. Martin covers the Services sector, focusing on stocks such as World Wrestling, CuriosityStream, and Discovery Inc.
The word on The Street in general, suggests a Hold analyst consensus rating for ViacomCBS with a $48.08 average price target.
According to Viacom's latest earnings report, its first-quarter revenue of $7.4 billion is up 14% year-over-year while its operating income of $1.5 billion is up 14%. And while Paramount+ is not in a neck-and-neck race with rivals Disney+ and Netflix (NASDAQ:NFLX), it nonetheless saw a 65% year-over-year spike in its first-quarter global streaming revenue.
ViacomCBS Will Move Significantly Higher as Its Free Cash Flow Gushes Cash
VIAC stock is worth 82% more at $77.70 using its historical yield and its implied FCF yield
2m ago · By Mark R. Hake, CFA
Just as I predicted in my last article on ViacomCBS (NASDAQ:VIAC), the company produced a large increase in free cash flow (FCF) during Q1. On May 6, the company presented its latest earnings and cash flow release. As a result of its astounding jump in FCF, I now estimate that VIAC stock is worth at least 81.7% more at $77.70 per share. And it could even go much higher than that target price.
A ViacomCBS (VIAC, VIACA) out front of a corporate building in Times Square.
Source: Jer123 / Shutterstock.com
Here is the bottom line. FCF exploded in Q1 to $1.589 billion, up from just $306 million a year ago. In fact, in all of 2020, the company made $1.891 billion in FCF, even though Q4 had negative FCF. So the Q1 2021 number was 84% of the total cash the company produced in 2020.
The reason this happened is that the TV and film entertainment company is hitting on all cylinders. Revenue was up 14% year-over-year (YoY) to $7.4 billion. Of this, the advertising revenue segment was up 21% to $2.681 billion. In addition, its streaming segment grew 65% to $816 million. These were the two largest contributors to the company’s $913 million gain in revenue year-over-year.
So, along with operating cost cuts, this was why ViacomCBS had a gain of $1.283 billion in FCF YoY (i.e., $1.589 b – $306 m). It also implies that full-year FCF for 2021 could be as high as $6.356 billion on a “run-rate” basis.
Valuing ViacomCBS Using Its FCF
Keep in mind that VIAC stock has a market capitalization of just $27.79 billion as of July 9. If we divide its run-rate FCF by the market cap, the FCF yield is an astoundingly high number: 22.87% (i.e., $6.356b/$27.59b). Just to put this in perspective, most stocks with this huge level of FCF will have a much lower FCF yield ratio of say 3% or even 5%. That implies that the market cap must go significantly higher.
In fact, just to be conservative, and, given that its FCF was negative during Q4, let’s assume that the ViacomCBS will be 75% of its run-rate figure. That means we should use $4.767 billion. Now, if we divide $4.767 b by 5%, the target market cap works out to $95.34 billion. That is 3.43 times today’s market cap, implying that VIAC stock should be at $146.70.
Let’s also assume that it will take 2 years for the market to realize this. That means that the stock will rise 85.22% annually, on a compound basis for the next 2 years. So this year, its price target is $79.21.
Just so you don’t think this method is too far out of the question, take a note of this. At the end of 2019, VIAC stock was at $43.72 and had a market cap of $26.887 billion (with 615 million shares outstanding). But during 2019, the company had adj. FCF of $826 million. So, as a result, its FCF yield at the time was 3.07%. Compare that with my projection that it will have $4.767 billion in run-rate FCF with its $27.79 billion market cap today. That is an FCF yield of 17.15%. In other words, VIAC is very undervalued.
Using Historical Dividend Yield To Value ViacomCBS
Another way to value VIAC stock is to look at its historical dividend yield. Right now the company pays a quarterly dividend of 24 cents. Its 96 cents annual dividend per share represents 2.245% of its stock price as of July 9 of $42.77.
But if we look at its past historical dividend yield history, the stock has had a much lower average yield. For example, if you look at the table on the right you can see that the average yield over the five-year period from 2015 to 2019 was 1.26%. These figures came from Seeking Alpha’s dividend yield data.
7-9-21 - VIAC stock - Historical Yield Target Price
Click to Enlarge
Source: Mark R. Hake, CFA
I excluded the 2 most recent years due to the Covid-19 effect on the stock. Once VIAC stock returns to its historical yield, it will move substantially higher.
Therefore, if we divide the 96 cents dividend by 1.26%, the target price is $76.19 per share. That represents a potential 78% upside for VIAC stock.
What To Do with VIAC Stock
We now have two interesting ways to value the stock. Using its FCF yield, the stock target price is $79.21 this year. Using its historical dividend yield, the target price is $76.19. The average target is $77.70, which gives it an upside potential of 81.7% over July 9’s price of $42.77.
Even it takes two years for the stock to reach these levels, the upside is still 34.8% per year. But that is a worst-case situation. I believe that once the market realizes that this company is gushing cash the stock will move substantially higher, likely close to my $77.70 target price.
On the date of publication, Mark R. Hake did not hold a position in any security mentioned in the article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Mark Hake writes about personal finance on mrhake.medium.com and runs the Total Yield Value Guide which you can review here.
Let’s see a spin off that’s debt free … instantly goes to $200
This could be HUGE for $VIAC, oversold for far too long
All we heard for along time was that Shari Redstone would never sell. Now that it is out in the open that she will, do not be surprised if she ends up recv. multiple offers. This is smart lady and won't give this valuable asset away to anybody ... you want it ... fine ... let's see the MONEY. ... ;)
Still got that gap to fill @ $90 LOL, let’s goooooo $VIAC!
July 12, 2021 01:27 PM ET (BZ Newswire) -- News
BREAKING: Biggest takeaway from the #SunValley Allen & Co conference: Shari Redstone made it clear she's shopping @ViacomCBS and not just to @comcast. Second biggest takeaway: The security acted like bigger assholes than ever before. More now @FoxBusiness @TeamCavuto $CMCSA $VIAC
— Charles Gasparino (@CGasparino) July 12, 2021
I think when we get the next earning report people will start to get it that Pluto and Paramount + are going to be cash cows going forward.
This stock has been beat up to the point that it is rediculous and someone has got to be talking to Redstone about either a merger or a outright buyout. Just my opinion but Shari Redstone would not let us go for less than $75 a share, but I could be wrong ... ;)
Nice news :)
Keep it up VIAC ...
LOS ANGELES --(BUSINESS WIRE)-- Pluto TV, the leading free streaming television service, and PBR, the world’s premier bull riding organization, today announced a new multifaceted partnership that will kick off by bringing PBR’s signature streaming service RidePass, and its stable of live events, talent and fans, to an all-new arena. Beginning July 20th, 2021 , PBR RidePass will stream exclusively on Pluto TV, as both a linear channel and on-demand featuring hundreds of hours of live professional bull riding, rodeo, other western sporting events, and more. Additionally, Pluto TV will market its service to PBR fans, becoming one of the sport’s largest partners.
This press release features multimedia. View the full release here: https://www.businesswire
ViacomCBS Stock Is a Diamond in the Rough
It may not get back above $100 per share, but media conglomerate VIAC stock is attractive at its current levels
24m ago · By Thomas Niel
ViacomCBS (NASDAQ:VIAC) may be making all the right moves when it comes to streaming. But investors have yet to get excited again about VIAC stock. Since cratering in April, due to the Archegos blow up, the shares of the media conglomerate have traded sideways, changing hands for around $45 per share.
VIAC Stock
Source: Jer123 / Shutterstock.com
Chances are, though, that the shares won’t stay stuck at their current price levels forever.
Two potential catalysts could boost VIAC stock. First, the company’s pivot to streaming could continue to be successful, helping to remove many of the fears that have weighed down the stock.
Secondly, talk about takeovers in the media sector is still ongoing. Big tech and big media are looking to consolidate further, so ViacomCBS could be taken over for a price well above the level at which VIAC stock is trading now.
With the main risk facing Viacom/CBS — a faster-than-expected decline of its broadcast/cable TV revenue — priced in at today’s valuation, and two potential, positive catalysts, consider the shares a screaming buy at this point.
Why Hasn’t the Stock Climbed on the Company’s Streaming Success?
ViacomCBS is making headlines with the success of its Paramount+ (subscription-based) and PlutoTV (ad-supported) streaming platforms.
Investors, though, continue to treat this stock as if it’s still an “old media” play. In the first quarter, the company’s streaming revenues were up 65% year-over-year. But its revenues from streaming accounted for just 11% of its overall sales.
Indeed, its broadcasting (CBS) and cable networks units (MTV, Nickelodeon, Showtime) continue to generate the lion’s share of its revenue.
Given the initial success of Paramount+ and PlutoTV, ViacomCBS looks primed to successfully make the full pivot from old media to new media. On the other hand, the company may face big challenges as competition heats up in the streaming arena.
Tech names like Amazon (NASDAQ:AMZN) and Netflix (NASDAQ:NFLX) still have the first -mover advantage, as both bet big on streaming way before the big media companies did. Not to mention that some media conglomerates like Disney (NYSE:DIS) have made up for lost time and built up impressive subscriber bases.
To top it all off, AT&T’s (NYSE:T) WarnerMedia unit is merging with Discovery Networks (NASDAQ:DISCA, NASDAQ:DISCB). In short, a year or so from now, ViacomCBS will be a small fish in a big pond.
That’s not exactly a great position. But don’t take this to mean that the stock is “doomed” or even set to languish at today’s prices. It still has two solid pathways to higher prices.
More on the Stock’s Two Potential, Positive Catalysts
As mentioned above, there are two potential, positive catalysts that can push VIAC stock higher. First, although the sector is getting crowded, its streaming platforms could continue to generate strong revenue growth.
Secondly, as streaming becomes a larger and larger piece of the company’s revenue mix, investors may stop viewing the conglomerate as a broadcast and cable name that could become obsolete due to cord cutting.
As a result, the stock could soar on a combination of increased earnings and multiple expansion. For example, ViacomCBS today trades for 10.3 times analysts’ average 2021 earnings per share estimate of $4.08.
Even if the conglomerate’s EPS fails to come in much higher than $4.08 in the upcoming quarters, investors could start viewing ViacomCBS as less of an “old media” play and more of a “new media” play. Consequently, the shares’ forward multiple would likely expand.
And if its forward P/E climbs to a still-low 15 times, its share price would rise to $61.20, over 30% above today’s price (assuming analysts’ average EPS estimate doesn’t change).
And one of the larger media conglomerates could decide to snap up ViacomCBS. Recent headlines suggest that Comcast (NASDAQ:CMCSA) could be a possible suitor for it,
But the pool of potential buyers is deep. Amazon, Apple (NASDAQ:AAPL), or even Netflix could want Viacom/CBS’ content library. And, as is par for the course with takeovers of publicly-traded companies, those holding VIAC stock today would likely get bought out at a 20%-30% premium above today’s price.
The Bottom Line on VIAC Stock
To be clear, ViacomCBS may not have much chance of getting back above $100 per share. It probably only reached that price because of Archego’s big bet on it, just prior to the latter fund’s blowup. Yet ViacomCBS still has two clear paths to climb by at least 10%.
With the conglomerate’s risks more than factored into its current low valuation, consider VIAC stock a clear buy at today’s prices.
On the date of publication, Thomas Niel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Thomas Niel, a contributor for InvestorPlace.com, has been writing single-stock analysis for web-based publications since 2016.
Me too Mad ... she is so undervalued ... ;)
Still think we see $60 in the next few months :)
Looks like a lot of short covering this morning just in case a deal develops with VIAC and one of the other media moguls.
JMHO
B of A still values VIAC at $70 @ share ...
https://www.cnbc.com/video/2021/07/07/jessica-reif-ehrlich-media-mergers.html
Goodbye to Volatility and ‘Hello’ to Steady Growth ...
https://www.msn.com/en-us/money/topstocks/viacomcbs-stock-says-e2-80-98goodbye-e2-80-99-to-volatility-and-e2-80-98hello-e2-80-99-to-steady-growth/ar-AALI9C0
VIAC is a GOOD BUY ... Seeking Alpha article from today ...
Viacom's Worth Is Underrated
Jul. 02, 2021 1:22 AM ETViacomCBS Inc. (VIAC)11 Comments5 Likes
Summary
Viacom is a dividend powerhouse.
The company has added to its top-line prospects through the Pluto TV acquisition.
Normalized EPS indicates that the business cycle has been going through a trough.
Its dividend capacity is respectable with improvements in operating cash flow as well as net income.
There's a mixed consensus on Wall Street, but we think it's a buy.
CBS And Viacom Reach Deal for 12 Billion Dollar Merger
Drew Angerer/Getty Images News
Article Objective
The aim of this article is to identify the true value and assess the dividends of the stock. Viacom (NASDAQ:VIAC) is a popular stock among many but we'll convey through this article what needs to be considered when investing.
Viacom is the world's leading media and entertainment company. It operates through three segments TV entertainment, cable networks and film entertainment.
The stock has been touted by many as a dividend play or as a cyclical play. Let's get into it and see where it's at.
Performance
Source
Source: Portfolio Visualizer
If you're after capital gains, then Viacom is a pure cyclical play for you. The stock has over and underperformed the S&P 500 at various stages of the company's life cycle. When studying the correlation with the U.S. stock universe, there's not been a trend in correlation. It would be easy to conclude that we're in for a cyclical swing due to the stock lagging the market and by studying the correlation, but further analysis is required. Let's get into the value drivers.
Latest Value Drivers
The cable network unit continues to do well as Showtime has continued to gain traction. Both Showtime OTT Access and CBS All Access have gained significant traction. There has also been a resurgence in MTV, with the MTV music awards drawing 6.4 million viewers across its live simulcast and 41.1 million interactions across social media, making it the second most social show of the year.
Online video-on-demand services have also gained traction. BET has gained popularity within the African American communities. Comedy Central's South Side remains the world's highest-rated series premiere since 2012 among young adult African Americans.
Continuing, Nickelodeon is one of the most successful basic cable networks among children. In 2020 Viacom entered into a licensing agreement with local toy brand company Melissa & Doug to deliver PAW Control, Blue's Clues and You!
Viacom has strength in streaming services in both subscription and advertising. The recent acquisition of Pluto TV is a big value add as it offers access to over 250 live channels.
The quality of content allows ad revenue to flourish. Viacom reported a 62% year-over-year increase in ad revenue in its latest Q-1 report.
From a financial perspective, Viacom has solid balance sheet health with a Piotroski score of 7, which communicates to us that the balance sheet is more healthy than the industry average of 4.
Interest coverage of 4.7X accommodated by a 5-year revenue constant annual growth rate of 14.8% indicates that the company is scaling well in its top line, and efficiency isn't a problem as it's able to repay its debt comfortably.
Viacom beat its Q-1 revenue target by $135.27 million and its EPS target by $0.30.
Source: Gurufocus
Viacom has provided good value to shareholders of late as its diluted EPS has stabilized over the past decade. Rising net income and share repurchases have added to shareholder value.
Valuation
All of the base data used in our formulas throughout this section can be found on Seeking Alpha and Morningstar.
Source
We're going into a robust analysis of price multiples for a couple of reasons. First of all, we need to calculate the normalized P/E to identify business cycle impacts. Secondly, we need to see whether or not it has relative value.
Normalized P/E = Price/Normalized EPS = $45/4.64 = 9.70
We normalized the EPS by taking the 4-year average to account for changes in the business cycle. The current P/E exceeds the normalized P/E, indicating that an uptick in the business cycle could approach and the EPS could improve, subsequently improving the stock price.
Moving on to a relative valuation.
The P/E is currently under a 5-year average and well below the index. Based on the relative valuation of P/E, the stock is undervalued.
Taking a look at the price to sales and price to cash flow.
Based on the chart, the stock has good value in sales as the figure you ideally want to see as an investor is between 1 and 2. The price to sales is also lower than the 5-year average, which shows good value based on revenue.
The price to cash flow figure is really good. As an investor, any price to cash flow ratio of 15-20 is great to see; anything below that indicates value.
Dividends
Viacom has paid out 15 consecutive years and has a forward yield that is impressive.
Source
One common issue with dividends is usually that it erodes the capital for growth. In Viacom's case, that's extremely unlikely due to strong net income and cash flows.
Source
Source
Viacom's dividend per share has also increased steadily over the past years. The latest dividend was in line with the previous quarters but an operating cash flow growth of 457.23% YoY might ensure hikes in the following quarters.
Risks
Revenues from theatre income are still uncertain. In a changing world, it's difficult to predict whether that particular business unit might have to be streamlined. The content streaming business is competitive with the rise of the likes of Netflix (NASDAQ:NFLX), Disney+ (NYSE:DIS), and Amazon (NASDAQ:AMZN). There's also been a large shift from cable TV to large telecom operators and low-cost over the top service providers. Viacom's stock has underperformed the market. Additionally, the consensus on Wall Street is mixed at the moment, with nobody seemingly agreeing on a close range of price targets.
That would be nice ... we are still really undervalued ... Dividend is also paid tomorrow ... which is a nice plus for this stock ... ;)
Time to retest $46.50
You are printing $ on two positions today
Looking great :) and $60 calls looking good
VIAC looking strong today
Let’s go back to $60
Check the weekly setup ;)
Solid week
im in hodl mode
for a break of $45?
ViacomCBS rearranges streaming leadership to align for future
Jun. 24, 2021 2:19 PM ETViacomCBS Inc. (VIAC), VIACABy: Jason Aycock, SA News Editor
ViacomCBS (VIAC +2.2%, VIACA +2.7%) has announced a realigned leadership structure around streaming services, including promoting Tanya Giles to lead programming.
Giles takes over as chief programming officer, Streaming.
And the company is elevating global content leaders to oversee their respective genres within the company's flagship streaming service, Paramount Plus.
Accordingly, George Cheeks (president and CEO of CBS) will also serve as chief content officer, News & Sports, Paramount Plus. Jim Gianopulos, Chairman and CEO of Paramount Pictures, will also serve as chief content officer, Movies, Paramount Plus.
Bruce Gillmer (president of Music, Music Talent, Programming & Events) will hold the role of chief content officer for Music at Paramount Plus. MTV President Chris McCarthy will be Paramount Plus' CCO for Unscripted Entertainment and Adult Animation. Showtime Chairman/CEO David Nevins will be CCO of Scripted Originals. And Kids & Family Entertainment President Brian Robbins will be CCO for Kids & Family.
“Tanya is a stellar media executive who brings a deep familiarity with our brands and audiences, as well as an unmatched talent for harnessing data to make high-impact programming decisions," says Tom Ryan, President/CEO of ViacomCBS Streaming.
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