Televisa Poised for Growth With Entry in U.S. Market

| About: Grupo Televisa, (TV)

Remember when we covered Televisa, not only because it is the largest television station in the Latin world, but because it was going after the U.S. market? Well, here is the headline we were waiting for: TV’s first English language feature film opened this weekend in the United States.

At a box office gross of $1.15 million, the per screen take of From Prada to Nada of $5,000 is well below average. But the most important idea behind the film is to push TV’s content further in the U.S. Latino market.

The focus is on audience recognition. They are doing that, and winning on both sides of the border.

For more details, we talked about Televisa awhile back on Trading the Globe.

And some fundamentals from Emerging Media: TV in November.

The Fundamentals: Televisa seems relatively rich in terms of growth, with a PEG value of 1.9949, one of the highest in the industry. Furthermore, PE is 25.601, well above the industry median of 17.13.

TV is reasonably profitable, with a net margin of 12.15%. Its operating margin is among the strongest of any peer and gross margin is above the industry median.

TV’s debt to total capital ratio of 47.94% is in line with industry norms, but has risen significantly over the last year. With an interest coverage ratio of 3.85 and a quick ratio of 3.73, the company should be able to easily repay its debt.

TV pays an annual dividend of $0.52 that, at its current price, yields 2.34% — in line with both the industry (among those rare broadcasters that do pay a dividend) and the S&P 500. Institutional holdings are 55.68% of the float while short interest is a very low 0.77%.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.