Grupo Televisa: Excellent Efficiency Improvements Improve Cash Flow
Summary
- Grupo Televisa remains a strong buy due to significant undervaluation and impressive cash flow growth, despite market ignorance and top-line revenue declines.
- Efficiency gains have led to a 27% increase in operating cash flow and a 30% free cash flow yield at current market prices.
- The 45% stake in TelevisaUnivision alone is worth $3-4 per share, making the current stock price of $1.90 highly undervalued.
- While high leverage and declining business are concerns, the focus on cash flow and recent efficiency gains are bullish signals for investors.
Analyst’s Disclosure:I/we have a beneficial long position in the shares of TV 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.
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