Qurate Retail: Operational Turnaround And Balance Sheet Flexibility Set To Boost Share Price

Stefan Lingmerth
442 Followers

Summary

  • Qurate Retail is transitioning from cable TV to e-commerce, with e-commerce now constituting the majority of sales, improving margins and cash flow.
  • Despite sales declines, operational turnaround efforts under Project Athens have stabilized revenue, grown OIBDA, and are expected to generate $400 million in free cash flow for 2024.
  • The company faces significant debt challenges but is making progress with creative refinancing and debt reduction strategies, enhancing financial flexibility.
  • QRTEA stock is highly leveraged but offers substantial upside potential as debt decreases and operational improvements continue, with catalysts including earnings growth and successful debt management.

West Chester

gsheldon

Executive Summary

Qurate Retail, Inc. (QRTEA) is a large retail/media company, with a well-known brand in QVC. The company is facing a transition from cable TV to e-commerce, and the fear is cable cord cutting putting them out of business. Sales have

This article was written by

442 Followers
Stefan holds a BA in Finance from Halmstad University, Sweden and Lincolnshire & Humberside University in England. He has twenty years of institutional experience in Research and Portfolio Management, focusing on distressed situations and value opportunities. He is the CIO/Founder of Sunshine Kapital, a registered investment adviser located in Miami. Previous roles were held at Robin Capital Group in Miami, Phoenix Investment Adviser and Triton Partners/Eidesis Capital in New York.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of QRTEA either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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