ETCMY - SES S.A.: Possibly The Cheapest Satellite/Telco And Best Satellite Play
2024-01-24 06:16:24 ET
Summary
- SES S.A. rated Strong Buy: massive C-band spectrum payout secured in October 2023, recapitalizing the business.
- SGBAF is trading at an absurdly cheap level: P/B is less than 0.4x and EBITDA is less than 4.0x.
- Leverage is only 1.5x. CapEx is winding down with significant cash flow and revenue visibility.
I last wrote about VSAT and SES S.A. ( SGBAF ) in January 2023. That was a pair trade for me: Short VSAT and Long SES. Since then, I have covered my short on VSAT, which had a monumental collapse in price under $20 following one disaster after another .
The price for VSAT is now tamer and I merely consider VSAT a Hold....
SES S.A.: Possibly The Cheapest Satellite/Telco And Best Satellite Play