CMCSA - Comcast: Neither Growth Nor Value

2024-07-01 07:34:13 ET

Summary

• Comcast is undervalued by over 30%, yet it lacks exposure to emerging industries, as all its businesses operate in saturated and highly competitive markets.
• The company's financial performance over the last decade has been decent, but its capital allocation and debt levels raise concerns about future growth potential.
• Apart from presenting low growth prospects, the stock also lacks value, as its forward dividend yield is significantly below the current yields of U.S. Treasuries.

Investment thesis

I do not like to use a "zombie company" term for Comcast ( CMCSA ). The company has vibrant history, and it can even be called iconic. Its profitability is still stellar and recent earnings show that there is still some potential to expand left. ...

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