Today CBS has operations in the following segments:
- Entertainment: This segment is composed of the CBS Television Network, the CBS Television Studios, the CBS Global Distribution Group (composed of CBS Studios International and CBS Television Distribution), CBS Interactive, and CBS Films
- Cable Networks: This segment is composed of Showtime Networks (Showtime, The Movie Channel, and Flix), the CBS Sports Network (the Company’s cable network focused on college athletics and other sports), and the Smithsonian Networks (a venture between Showtime Networks and Smithsonian Institution) which operates the Smithsonian Channel, a basic cable program service.
- Publishing: This segment is composed of Simon & Schuster, which publishes and distributes consumer books under imprints such as Simon & Schuster, Pocket Books, Scribner and Atria Books.
- Local Broadcasting: This segment is composed of its 30 owned CBS Television Stations and the 117 owned and operated CBS Radio stations in 26 US markets.
CBS Corporation is a worldwide mass media company operating through four segments: Entertainment, Cable Networks, Publishing, and Local Broadcasting. The Entertainment segment distributes a schedule of news and public affairs broadcasts, and sports and entertainment programming; produces, acquires, and distributes programming, including series, specials, news, and public affairs; operates online content networks for information and entertainment; and produces, acquires, and distributes theatrical motion pictures. The Cable Networks segment offers subscription program services, such as original series, theatrical feature films, documentaries, boxing and other sports-related programming, and special events; and owns and operates multiplexed channels. This segment also owns and manages Smithsonian Networks, which operates a channel featuring cultural, historical, scientific, and educational programs; and operates a CBS Sports Network, a 24-hour cable program service that provides college sports and related content. The Publishing segment publishes and distributes adult and children's consumer books in printed, digital, and audio formats; develops special imprints and publishes titles based on the products; and delivers content and promotes its products on its own Websites and general Internet sites, as well as those linked to individual titles. The Local Broadcasting segment owns 30 broadcast television stations; owns and operates 117 radio stations in 26 U.S. markets and related online properties; and operates local Websites in various U.S. markets, which combine the company's television and radio local media brands online to offer the latest news, traffic, weather, and sports information, as well as local discounts, directories, and reviews for local community. CBS Corporation was founded in 1986 and is headquartered in New York, New York. CBS Corporation operates as a subsidiary of National Amusements, Inc.
(Summary) (Company) (Chart)
13 September 2015
1yr Target $63.00
Payout Ratio 17.91%
1yr Cap Gain 43.40%
1yr Tot Return 44.76%
Market Cap $21.41 Bil
1yr EarnGR 75.08%
3yr EarnGR 39.54%
5yr EarnGR 74.04%
1yr DivGR 12.50%
3yr DivGR 15.38%
5yr DivGR 21.97%
Revenues $13.77 Bil
Earnings $1.20 Bil
Profit Margin 8.71%
EPS (ttm) $2.35
EPS next yr $4.13
EPS next 5yr 14.43%
It's no secret that I like the entertainment and media companies because I believe that this area will garner a larger and larger portion of the consumer budget in the years ahead. I believe that consumers are after content regardless of the venue or location where that content will be delivered and consumed. That said, I'm interested in any company that's producing content.
Since ABC has been swallowed up by Disney and NBC has been swallowed up by Comcast, CBS's breakaway from Viacom opens up an opportunity to own one of the original big three television networks. Throw in the cable networks, the local broadcasting affiliates, and the publishing arm and this could be a great investment in a great entertainment company.
Looking at the fundamentals above, it's hard to place any faith in the one year target grade because its based on only 1 analyst's projection, but it's a large number with a huge one year return on investment. The yield is also a little lower than I would like but it's growing at a fast pace. And the dividend payout ratio is low and could obviously be increased multiple times in the future.
All in all I like this company's future prospects as the fundamental begin to ease from such a torrid pace to a more normal expected rate near 15%. I'll also be watching the debt levels to make sure that debt subsides as the company continues to stand up on its own more and more. I just think there's too many great content stories going on here not to take advantage of owning shares in this company.
My intent is to open up a small position in CBS in the next couple of weeks and then let that position grow naturally over time through dividend reinvestment. I think this is a solid investment that will grow over time and benefit my portfolio greatly.