CVC  Cablevision Systems Corporatio...

Exchange

NYSE

Sector

Consumer Services

Industry

Television Services

Market Cap.

9.64B

Vuru Grade

28.67/100

Current Price

$34.87
+0.00 (+0.00%)

Growth Price

$2.56
Overvalued by 92.66%

Company Metrics

  • P/E 42.84
  • P/S 1.47
  • P/B 0
  • EPS 0.81
  • Cash ROIC 9.07%
  • Cash Ratio -
  • Dividend 0.6 / N/A %
  • Avg. Vol. 39,098.00
  • Shares 119.53M
  • Market Cap. 9.64B

Company Description

Cablevision Systems Corporation, through its subsidiaries, operates as a telecommunications, media, and entertainment company. Its cable television operations serve approximately 5 million households and businesses in the New York metropolitan area. The company provides telephone services and high-speed Internet access services, including iO TV digital television, Optimum Voice digital voice, Opti... more


Download 10 Years of Financial Statements:
Income Statement   Balance Sheet   Cash Flow

News

Altice expands in US with $17.7 billion Cablevision deal
Reuters - Sep 17, 2015
AS), one of the most acquisitive European telecoms groups, made a major move into the U.S. market on Thursday with a deal to buy fourth-largest operator Cablevision Systems Corp CVC.N for $17.7 billion including debt. Altice founder Patrick Drahi, who ...
Robbins Arroyo LLP: Acquisition of Cablevision Systems Corporation (CVC) by ... - PR Newswire (press release)
FCC approves Altice purchase of Cablevision Systems
Reuters - May 4, 2016
WASHINGTON The U.S. Federal Communications Commission said late on Tuesday it had approved European telecoms group Altice NV's acquisition of U.S.
Cablevision Systems Corporation Reports First Quarter 2016 Results - Business Wire (press release)
Cablevision Systems Corp. - It's Time To Sell The Bonds
Seeking Alpha - Jun 9, 2016
With a huge $14.5 billion in bonds outstanding, Cablevision Systems Corporation (TICKER: CVC) ("Cablevision" or the "Company") is a staple of most high yield funds.
Why Cablevision Systems Corporation Stock Lit Up Today
Motley Fool - May 20, 2015
What: Shares of Cablevision Systems Corporation (NYSE:CVC) were up 19% as of 12:20 p.m. Wednesday after Charter Communications reaffirmed its decision to acquire Bright House Networks for $10.4 billion, fueling speculation of further consolidation in ...
Why Cablevision Systems Corporation Stock Jumped 18% in July
Motley Fool - Aug 5, 2015
So what: The New York-based parent of Optimum cable, Internet, and phone services got a 7% boost on July 10 as Patrick Drahi, the chairman of multinational cable and telecom giant Altice said Cablevision would make a good takeover target. Drahi also ...
Altice Completes Acquisition of Cablevision Systems Corporation
Business Wire (press release) - Jun 21, 2016
NEW YORK--(BUSINESS WIRE)--Altice (Euronext: ATC, ATCB) announced today that it has completed the acquisition of Cablevision Systems Corporation, the leading communications service provider in the New York metropolitan area. Cablevision together ...
Cablevision sale to Altice for $17.7 billion completed - Newsday
Altice may seek more US growth after Cablevision deal - Reuters
Brian Sweeney to Become Chief Financial Officer of Cablevision
Business Wire (press release) - Feb 6, 2015
BETHPAGE, N.Y.--(BUSINESS WIRE)--Cablevision Systems Corporation (NYSE:CVC) today announced that the company's president Brian G. Sweeney will also become chief financial officer, effective March 1, 2015.
Sweeney Adds CFO Duties to His Role As CVC President - Multichannel News
Cablevision Systems Corporation Reports Fourth Quarter and Full Year 2015 Results
Business Wire (press release) - Feb 25, 2016
Cablevision Systems Corporation (NYSE: CVC) is a leading media and telecommunications company, serving millions of households and businesses throughout the greater New York area.
Cablevision Promotes Bret Richter to Executive Vice President, Corporate ...
Business Wire (press release) - Jan 21, 2015
BETHPAGE, N.Y.--(BUSINESS WIRE)--Cablevision Systems Corporation (NYSE: CVC) today announced that Bret Richter has been elevated to the position of executive vice president, corporate finance & development.
Cablevision Introduces Freewheel, a New Low-Cost WiFi-Exclusive Phone Service ...
Business Wire (press release) - Jan 26, 2015
Cablevision Systems Corporation today announced the upcoming launch of Freewheel, a new low-cost all-WiFi phone service providing unlimited data, talk and text.
Google, Cablevision Challenge Wireless Industry's Business Model - Wall Street Journal
Cablevision seeks niche Wi-Fi market - New York Post
Growth Rate Assumed by Market

We did a reverse valuation to calculate the growth rate the market is assuming for CVC to be considered fairly valued at its current market price. It's useful to compare this to the growth rate we're assuming for the Growth Price.

Future Free Cash Flow Growth Rate

This is the annual growth rate we've applied to calculate CVC's Free Cash Flow for the next 10 years. To calculate it, we looked at several time periods of the last 10 years. Feel free to adjust it, but we limit the initial growth rate to 20% and slow it down over the years. Otherwise, long-term sustainability issues come into play.

Discount Rate

The discount rate is the annual rate of return an investor requires to take the risk of investing in a single stock. To account for that risk, this should be above 8-10%, as this is the avg. annual rate of return for the S&P500 over the past 100 years.

$34.87 Current Price

$2.56 Growth Price (DCF)

Overvalued by 92.66%


Growth Rate Assumed by Market: 77.82%


Future Free Cash Flow Growth Rate: -11.0%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$- NCA Price

Overvalued by 100.00%

$3.19 Book Price

Overvalued by 90.86%


Poor Cash Return on Invested Capital over the past 5 years

CVC has been unable to consistently generate sufficient returns from its investments in buildings, projects and equipment. This could be due to poor management, lack of an economic moat or the capital intensive nature of the business.

CVC has only created $9.07 of cash for every $100 invested.
Figures in USD. Fiscal year ends in June
20122013201420152016
Free Cash Flow 71.57M 179.61M 484.20M 433.66M 24.64M
divided by
Invested Capital 4.79B 4.03B 3.54B 3.22B 201.21M
Cash ROIC 1.50% 4.46% 13.67% 13.47% 12.25%

Poor Return on Equity over the past 5 years

CVC has shown an inability to deliver strong results for shareholders. This could be due to poor management, CVC operating in a highly competitive industry, or having a weak business in general.

CVC has only generated $- of Earnings for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in June
20122013201420152016
Net Income 233.61M 465.64M 312.20M 175.25M -
divided by
Stockholders' Equity -5.64B -5.28B -5.04B -4.91B 201.21M
Return on Equity - - - - -

Excellent Business Performance over the past 6 years

CVC has been able to maintain profitability in good times and bad. This could mean CVC has an extremely strong business or has the ability to scale down costs when needed. This should be a fairly resilient business, but double check for future sustainability by looking at its Risk Factors in the Annual Report.

CVC has created positive free cash flow for 9 or more of the past 10 years.
Figures in USD. Fiscal year ends in June
201120122013201420152016
Free Cash Flow 701.24M 71.57M 179.61M 484.20M 433.66M 24.64M

Very Weak Balance Sheet

CVC is in a poor financial position. This could be due to a slowdown in sales, indulging in debt-fuelled growth, or the nature of CVC's business. If it is highly capital intensive (see Economic Moat), they likely have to outlay significant capital just to stay competitive. This habit often destroys more value than it creates.
Figures in USD. Fiscal year ends in June
201120122013201420152016
Cash 803.29M 765.92M 1.12B 1.47B 1.46B -
Current Assets 1.35B 1.37B 1.72B 1.93B 1.88B -
Total Assets 7.14B 7.25B 6.59B 6.77B 6.87B -
Current Liabilities 1.60B 1.69B 1.44B 1.75B 2.19B -
Total Liabilities 12.72B 12.89B 11.88B 11.81B 11.78B -
Stockholder' Equity -5.58B -5.64B -5.28B -5.04B -4.91B 201.21M
Current Ratio 0.85 0.81 1.20 1.10 0.86 -
TL-to-TA 1.78 1.78 1.80 1.75 1.72 -

Consistent Reinvestment of Profits over the past 6 years

CVC has consistently retained profits. This may put CVC in a strong position to invest for the future, by buying new machinery, investing in R&D or a number of other options. By effectively using these earnings, CVC can greatly improve their long-term economic picture.
Figures in USD. Fiscal year ends in June
201120122013201420152016
Retained Earnings -5.25B -5.01B -4.55B -4.23B -4.06B 72.77M
Retained Earnings Growth - 4.45% 9.29% 6.85% 4.14% 101.79%

Highly Competitive Industry over the past 6 years

It's likely that CVC is in an industry with low barriers to entry, spurring high competition. If Gross Margins are at least satisfactory, it's likely CVC invests heavily in R&D and Sales, General & Administrative expenses.

Only $3.81 of every $100 of Revenue have been profit, on average over the past 6 years.
Figures in USD. Fiscal year ends in June
201120122013201420152016
Net Income 292.28M 233.61M 465.64M 312.20M 175.25M -
divided by
Revenue 6.70B 6.71B 6.23B 6.46B 6.51B 78.53M
Net Profit Margin 4.36% 3.48% 7.47% 4.83% 2.69% -

Varying Pricing Power over the past 6 years

CVC has maintained substantial gross margins, suggesting that they have been able to set prices without consideration of the cost of goods sold. However, there is a substantial variation in their Gross Profit Margins from year-to-year, which indicates inconsistent performance. Look at reasons for this inconsistency to determine the likelihood of future sustainability.

$50.56 of every $100 worth of sales have been Gross Profit, on average over the past 6 years.
Figures in USD. Fiscal year ends in June
201120122013201420152016
Gross Profit 6.70B 3.38B 3.15B 3.32B 3.31B -
divided by
Revenue 6.70B 6.71B 6.23B 6.46B 6.51B 78.53M
Gross Margin 100.00% 50.43% 50.59% 51.45% 50.87% -

High Capital Intensity over the past 6 years

CVC spends large amounts of capital buying new equipment or investing in new facilities to stay competitive. Over the long term, those costs may have to be fuelled by debt. Look at the growth of Shareholders' Equity to see if this strategy is having a positive or negative impact.

341.27% of Profits are being spent on Capital Expenditures, like Property, Plant, & Equipment, required to run the business.
Figures in USD. Fiscal year ends in June
201120122013201420152016
Capital Expenditure 825.60M 1.08B 955.36M 892.87M 824.43M 187,226.00
divided by
Net Income 292.28M 233.61M 465.64M 312.20M 175.25M -
Capital Expenditure Ratio 282.47% 462.29% 205.17% 285.99% 470.44% -

Good Dividend History over the past 6 years

CVC has distributed dividends for the past 6 years. Remember, the longer a company's dividend history, the more established the company might be and the more reliable the future of the dividend probably is.
Figures in USD. Fiscal year ends in June
201120122013201420152016
Dividend Paid 163.34M 165.46M 161.13M 160.55M 125.17M 10.55M
divided by
Shares Outstanding 284.90M 267.33M 265.94M 270.70M 276.34M 119.53M
Dividend Paid Per Share 0.57 0.62 0.61 0.59 0.45 0.09
Price at Year End 14.22 14.73 17.76 21.08 31.86 34.87
Dividend Yield 4.03% 4.20% 3.41% 2.81% 1.42% 0.25%

History of Stock Buybacks over the past 6 years

CVC has some history of delivering increased value for shareholders in the form of stock buybacks. These have helped improve financial metrics and increase each shareholders' relative ownership stake in the company, due to fewer shares outstanding and holding the same number of shares.
Figures in USD. Fiscal year ends in June
201120122013201420152016
Shares Outstanding 284.90M 267.33M 265.94M 270.70M 276.34M 119.53M
Stock Bought Back - 6.57% 0.52% -1.76% -2.04% 131.18%
Share your thoughts about CVC

Sign Up or Log In to start contributing!


Discussion

Nothing here yet. Be the first to post!