Grupo Televisa SAB (TV, Financial) has experienced a notable uptick in its stock performance, with a market capitalization now standing at $1.57 billion. The current price of $2.81 reflects a 1.08% gain over the past week and a more significant 16.12% gain over the past three months. Despite these gains, the GF Value of $9.06 suggests a cautious approach, with the current GF Valuation indicating a possible value trap, a sentiment that has remained unchanged from the past GF Valuation.
Introduction to Grupo Televisa SAB
Grupo Televisa SAB operates within the telecommunication services industry, holding a dominant position in Mexico. Its cable division, Izzi, reaches approximately 20 million homes and serves 6 million broadband customers. As a major pay-television provider, it boasts over 4 million subscribers and maintains a majority stake in Sky Mexico, the nation's sole satellite-TV provider with around 6 million customers. Televisa also has interests in various smaller ventures, including terrestrial radio, magazine publishing, and professional soccer teams. The company is preparing to spin off these segments and has merged its traditional media business with Univision, now holding a 45% stake in TelevisaUnivision.
Analyzing Profitability
Grupo Televisa's Profitability Rank stands at 6/10, indicating a moderate level of profitability within the industry. The company's operating margin of 4.51% is better than 34.88% of 387 companies in the telecommunication services sector. However, its Return on Equity (ROE) of -10.61%, Return on Assets (ROA) of -4.70%, and Return on Invested Capital (ROIC) of 1.34% suggest that there are areas for improvement. Despite these figures, Grupo Televisa has maintained profitability for 9 out of the past 10 years, outperforming 66.05% of its peers.
Growth Prospects and Challenges
The company's Growth Rank is currently at 3/10, reflecting challenges in revenue expansion. The 3-year revenue growth rate per share has declined by 10.70%, and the 5-year rate has decreased by 8.10%. Looking ahead, the estimated total revenue growth rate for the next 3 to 5 years is a modest 0.55%. The EPS without NRI Growth Rate is projected to fall by 39.28%, indicating potential headwinds for earnings growth.
Major Shareholders
Dodge & Cox is the leading holder of Grupo Televisa stock, with 65,012,920 shares, representing an 11.67% stake. Mario Gabelli (Trades, Portfolio) follows with 9,795,478 shares, accounting for 1.76% of the company, and Jim Simons (Trades, Portfolio) holds 606,000 shares, equating to a 0.11% share percentage.
Competitive Landscape
When compared to its competitors, Grupo Televisa's market cap of $1.57 billion positions it differently within the industry. Axtel SAB de CV (MEX:AXTELCPO, Financial) has a market cap of $709.715 million, while giants like T-Mobile US Inc (TMUS, Financial) and China Mobile Ltd (SHSE:600941, Financial) have market caps of $191.03 billion and $178.79 billion, respectively. This disparity highlights the varying scales of operation and market influence among these telecommunication service providers.
Conclusion
In summary, Grupo Televisa SAB's recent stock performance has been positive, with a 16.12% gain over the past three months. However, the GF Value suggests investors should approach with caution, as the company may be a possible value trap. The profitability analysis shows a company that is moderately profitable with room for improvement, while growth metrics indicate potential challenges ahead. Shareholder composition and market cap comparisons with competitors provide additional context for investors considering Grupo Televisa's stock. As the telecommunication industry evolves, it will be crucial to monitor these factors to understand Grupo Televisa's future trajectory.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
