2024-05-22 10:58:24 ET
Summary
- Warner Bros. Discovery turned around its negative FCF in 1Q 2023 to increase its FCF by $1.3 billion YoY.
- The company is right around its 60% FCF target and the company's debt is ~1 year from targets at current pay down rates.
- Once debt hits targets, we expect the company to convert its 30% FCF yield to focusing on strong shareholder returns.
Warner Bros. Discovery ( WBD ) is among the largest media companies in the world. However, the company has continued to be pressured by its debt load along with a decline in its traditional assets, pushing its market capitalization to below $20 billion. Despite this pressure, as we'll see throughout this article, Warner Bros. Discovery has the ability to continue generating strong shareholder returns....
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Warner Bros. Discovery Is A Hidden Opportunity For Smart Investors