Grupo Televisa SAB (NYSE: TV) is a well-established company in the Telecommunication Services industry. It has recently seen a surge of 0.29%, but over the past three months, it experienced a change of -35.93%. However, new insights from the GuruFocus Score Rating suggest potential headwinds for the company. Its rankings in financial strength, growth, and valuation have diminished, indicating that it may not live up to its historical performance.
The GF Score is a stock performance ranking system developed by GuruFocus. It uses five aspects of valuation that have been found to be closely correlated to the long-term performances of stocks. The GF Score ranges from 0 to 100, with a higher score indicating better performance. Grupo Televisa SAB has been assigned a GF Score of 66 out of 100, signaling poor future outperformance potential.
Grupo Televisa SAB is one of the leading telecommunication firms in Mexico with a market cap of $1.96 billion and sales of $4.02 billion. The company has a significant presence in the industry, with an operating margin of 5.52%. Its cable arm, Izzi, provides broadband service to 6 million customers and holds networks that pass 19 million Mexican homes. Televisa is also one of the largest pay-television providers in Mexico, serving over 4 million customers. It holds a majority stake in Sky Mexico, the country’s only satellite TV provider, with approximately 6 million customers. Televisa has interests in various smaller businesses and plans to spin them off in the near future. After merging its traditional media business into Univision, Televisa now owns a 45% stake in the combined entity, TelevisaUnivision.
Financial strength indicators for Grupo Televisa SAB raise concerns about the company’s balance sheet health. Its interest coverage ratio and Altman Z-Score position it worse than a significant percentage of companies in the Telecommunication Services industry. The company’s cash-to-debt ratio indicates a struggle in handling existing debt levels. Additionally, its debt-to-Ebitda ratio is higher than recommended levels.
The company’s growth prospects are also lacking. Its revenue and earnings before interest, taxes, depreciation, and amortization (EBITDA) have been declining over the past few years, and its predictability rank is low. These factors contribute to investor uncertainty regarding revenue and earnings consistency.
In conclusion, considering Grupo Televisa SAB’s financial strength, profitability, and growth metrics, the GuruFocus Score Rating suggests potential underperformance. While the company has a strong presence in the Telecommunication Services industry, its financial health and growth prospects raise concerns about its ability to outperform in the future. These factors should be taken into consideration by investors before making investment decisions.