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GuruFocus Financial Strength Rank measures how strong a company’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 6/10

vs
industry
vs
history
Cash to Debt 0.11
ASCMA's Cash to Debt is ranked lower than
56% of the 238 Companies
in the Global Security & Protection Services industry.

( Industry Median: 0.39 vs. ASCMA: 0.11 )
ASCMA' s 10-Year Cash to Debt Range
Min: 0.11   Max: No Debt
Current: 0.11

Equity to Asset 0.23
ASCMA's Equity to Asset is ranked lower than
63% of the 240 Companies
in the Global Security & Protection Services industry.

( Industry Median: 0.44 vs. ASCMA: 0.23 )
ASCMA' s 10-Year Equity to Asset Range
Min: 0.23   Max: 0.85
Current: 0.23

0.23
0.85
Interest Coverage 0.75
ASCMA's Interest Coverage is ranked lower than
70% of the 171 Companies
in the Global Security & Protection Services industry.

( Industry Median: 8.09 vs. ASCMA: 0.75 )
ASCMA' s 10-Year Interest Coverage Range
Min: 0.54   Max: 9999.99
Current: 0.75

0.54
9999.99
F-Score: 5
Z-Score: -0.16
M-Score: -2.77
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 6/10

vs
industry
vs
history
Operating margin (%) 15.86
ASCMA's Operating margin (%) is ranked higher than
82% of the 235 Companies
in the Global Security & Protection Services industry.

( Industry Median: 7.76 vs. ASCMA: 15.86 )
ASCMA' s 10-Year Operating margin (%) Range
Min: -366.85   Max: 15.86
Current: 15.86

-366.85
15.86
Net-margin (%) -4.97
ASCMA's Net-margin (%) is ranked lower than
63% of the 235 Companies
in the Global Security & Protection Services industry.

( Industry Median: 4.26 vs. ASCMA: -4.97 )
ASCMA' s 10-Year Net-margin (%) Range
Min: -421.67   Max: 6.62
Current: -4.97

-421.67
6.62
ROE (%) -4.36
ASCMA's ROE (%) is ranked lower than
62% of the 235 Companies
in the Global Security & Protection Services industry.

( Industry Median: 8.11 vs. ASCMA: -4.36 )
ASCMA' s 10-Year ROE (%) Range
Min: -19.27   Max: 3.74
Current: -4.36

-19.27
3.74
ROA (%) -1.01
ASCMA's ROA (%) is ranked lower than
60% of the 240 Companies
in the Global Security & Protection Services industry.

( Industry Median: 3.08 vs. ASCMA: -1.01 )
ASCMA' s 10-Year ROA (%) Range
Min: -15.92   Max: 1.27
Current: -1.01

-15.92
1.27
ROC (Joel Greenblatt) (%) 126.59
ASCMA's ROC (Joel Greenblatt) (%) is ranked higher than
95% of the 237 Companies
in the Global Security & Protection Services industry.

( Industry Median: 11.95 vs. ASCMA: 126.59 )
ASCMA' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: -56.68   Max: 126.59
Current: 126.59

-56.68
126.59
Revenue Growth (%) 269.90
ASCMA's Revenue Growth (%) is ranked higher than
99% of the 170 Companies
in the Global Security & Protection Services industry.

( Industry Median: 5.30 vs. ASCMA: 269.90 )
ASCMA' s 10-Year Revenue Growth (%) Range
Min: -75.2   Max: 269.9
Current: 269.9

-75.2
269.9
EPS Growth (%) -11.80
ASCMA's EPS Growth (%) is ranked higher than
55% of the 135 Companies
in the Global Security & Protection Services industry.

( Industry Median: 5.70 vs. ASCMA: -11.80 )
ASCMA' s 10-Year EPS Growth (%) Range
Min: -39.2   Max: -11.8
Current: -11.8

-39.2
-11.8
» ASCMA's 10-Y Financials

Financials


Revenue & Net Income
Cash & Debt
Oprt. Cash Flow & Free Cash Flow

» Details

Guru Trades

Q1 2013

ASCMA Guru Trades in Q1 2013

Murray Stahl 332,090 sh (+288.62%)
Wallace Weitz 60,000 sh (+167.86%)
Jim Simons 158,600 sh (+47.26%)
Mario Gabelli 1,131,234 sh (-1.52%)
Meryl Witmer 98,373 sh (-1.55%)
» More
Q2 2013

ASCMA Guru Trades in Q2 2013

Murray Stahl 406,426 sh (+22.38%)
Jim Simons 175,670 sh (+10.76%)
Wallace Weitz 60,000 sh (unchged)
Meryl Witmer 94,912 sh (-3.52%)
Mario Gabelli 1,089,973 sh (-3.65%)
» More
Q3 2013

ASCMA Guru Trades in Q3 2013

Jim Simons 215,891 sh (+22.9%)
Wallace Weitz 60,000 sh (unchged)
Murray Stahl 405,062 sh (-0.34%)
Mario Gabelli 1,064,900 sh (-2.3%)
» More
Q4 2013

ASCMA Guru Trades in Q4 2013

Ron Baron 3,830 sh (New)
Jim Simons 237,763 sh (+10.13%)
Wallace Weitz 60,000 sh (unchged)
Murray Stahl 384,129 sh (-5.17%)
Mario Gabelli 999,850 sh (-6.11%)
» More
» Details

Insider Trades

Latest Guru Trades with ASCMA

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
Ron Baron 2013-12-31 New Buy$80.98 - $88.5 $ 70.25-17%3830
Wallace Weitz 2013-03-31 Add 167.86%0.11%$61.94 - $74.44 $ 70.256%60000
Wallace Weitz 2012-12-31 Reduce -91.04%0.57%$55.04 - $63.13 $ 70.2518%22400
Wallace Weitz 2012-09-30 Reduce -48.88%0.54%$48.55 - $54.75 $ 70.2535%250000
Premium More recent guru trades are included for Premium Members only!!
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Guru Investment Theses on Ascent Capital Group Inc

Baron Funds Comments on Ascent Capital Group - Mar 05, 2014

Ascent Capital Group, Inc. (ASCMA) is the second largest residential alarm monitoring company in the U.S. behind ADT. It has over 1 million subscribers in all 50 states, DC, Puerto Rico and Canada. Accounts are 95% residential and 5% small business. Ascent has a monitoring center in Dallas (which has won Five Diamond Certified status, which fewer than 5% of central stations achieve) with a backup in McKinney, TX. It features cellular transmission options, as well as technology to provide some next- generation services, such as remote arm/disarm. The company runs on an "asset light" model, which means that it only does monitoring, not installation or customer service. For the latter, it relies on its pre-qualified nationwide network of dealers from which Ascent buys new accounts (using its free cash flow). Its customers are of very high quality with FICO scores averaging 720. The industry is incredibly fragmented, and we believe that Ascent has only 4% of overall subscribers in an industry which itself is only 20% penetrated into U.S. households. The long customer life (8-9 years), combined with a high return on investment provides a significant stream of free cash flow to the company (and its investors).

We like these types of businesses as they exhibit excellent stable free cash flow characteristics (subscribers are growing, retention is nearly 90%, and cash flow margins are nearly 70%). We believe that over the next five years the company can grow its revenues by 50%, and its cash flow by nearly 70%. Therefore, the current multiple of under 7x is too cheap given the company's prospects. We think that a business like this could trade at a 10x multiple in the right circumstances. Therefore, we believe that shares could at least double over their current $82 price over the next five years. Upside could come from additional accretive acquisitions or the return of excess free cash flow to shareholders

From Ron Baron (Trades, Portfolio)'s Baron Funds fourth quarter 2013 commentary.

Check out Ron Baron latest stock trades

Top Ranked Articles about Ascent Capital Group Inc

Baron Funds Comments on Ascent Capital Group
Ascent Capital Group, Inc. (ASCMA) is the second largest residential alarm monitoring company in the U.S. behind ADT. It has over 1 million subscribers in all 50 states, DC, Puerto Rico and Canada. Accounts are 95% residential and 5% small business. Ascent has a monitoring center in Dallas (which has won Five Diamond Certified status, which fewer than 5% of central stations achieve) with a backup in McKinney, TX. It features cellular transmission options, as well as technology to provide some next- generation services, such as remote arm/disarm. The company runs on an "asset light" model, which means that it only does monitoring, not installation or customer service. For the latter, it relies on its pre-qualified nationwide network of dealers from which Ascent buys new accounts (using its free cash flow). Its customers are of very high quality with FICO scores averaging 720. The industry is incredibly fragmented, and we believe that Ascent has only 4% of overall subscribers in an industry which itself is only 20% penetrated into U.S. households. The long customer life (8-9 years), combined with a high return on investment provides a significant stream of free cash flow to the company Read more...
Mario Gabelli’s Two Real-Time Reductions
According to GuruFocus Real Time Picks, GAMCO Investors’ chairman and CEO Mario Gabelli just reduced his positions in Ascent Capital Group Inc. (ASCMA) and Biglari Holdings Inc. (BH). After making the decreases, Gabelli is still the largest guru stakeholder of both companies. The GAMCO Investors portfolio shows 820 stocks, 55 of them new, with a total value of $17.02 billion. GAMCO’s quarter-over- quarter turnover is 6%. As of the third quarter of 2013, the portfolio’s top three sector weightings were: industrials at 24.6%, consumer cyclical at 20.3% and consumer defensive at 10.8%.Here’s a look at Mario Gabelli’s real-time reductions. Read more...

Ratios

vs
industry
vs
history
P/B 1.90
ASCMA's P/B is ranked higher than
57% of the 236 Companies
in the Global Security & Protection Services industry.

( Industry Median: 1.78 vs. ASCMA: 1.90 )
ASCMA' s 10-Year P/B Range
Min: 0.38   Max: 2.42
Current: 1.9

0.38
2.42
P/S 2.17
ASCMA's P/S is ranked lower than
63% of the 244 Companies
in the Global Security & Protection Services industry.

( Industry Median: 1.20 vs. ASCMA: 2.17 )
ASCMA' s 10-Year P/S Range
Min: 0.45   Max: 39.37
Current: 2.17

0.45
39.37
EV-to-EBIT 34.50
ASCMA's EV-to-EBIT is ranked lower than
69% of the 216 Companies
in the Global Security & Protection Services industry.

( Industry Median: 15.03 vs. ASCMA: 34.50 )
ASCMA' s 10-Year EV-to-EBIT Range
Min: 30.4   Max: 181.2
Current: 34.5

30.4
181.2

Valuation & Return

vs
industry
vs
history
Price/DCF (Projected) 7.70
ASCMA's Price/DCF (Projected) is ranked lower than
66% of the 89 Companies
in the Global Security & Protection Services industry.

( Industry Median: 1.40 vs. ASCMA: 7.70 )
ASCMA' s 10-Year Price/DCF (Projected) Range
Min: 9.4   Max: 9.4
Current: 7.7

Price/Median PS Value 0.90
ASCMA's Price/Median PS Value is ranked higher than
84% of the 232 Companies
in the Global Security & Protection Services industry.

( Industry Median: 1.14 vs. ASCMA: 0.90 )
ASCMA' s 10-Year Price/Median PS Value Range
Min: 0.21   Max: 14.57
Current: 0.9

0.21
14.57
Earnings Yield (Greenblatt) 2.90
ASCMA's Earnings Yield (Greenblatt) is ranked lower than
65% of the 227 Companies
in the Global Security & Protection Services industry.

( Industry Median: 6.70 vs. ASCMA: 2.90 )
ASCMA' s 10-Year Earnings Yield (Greenblatt) Range
Min: 0.6   Max: 3.3
Current: 2.9

0.6
3.3
Forward Rate of Return (Yacktman) -2.21
ASCMA's Forward Rate of Return (Yacktman) is ranked higher than
61% of the 147 Companies
in the Global Security & Protection Services industry.

( Industry Median: 4.13 vs. ASCMA: -2.21 )
ASCMA' s 10-Year Forward Rate of Return (Yacktman) Range
Min: -2.8   Max: 0.7
Current: -2.21

-2.8
0.7

Business Description

Industry: Consulting & Outsourcing » Security & Protection Services
Compare: » details
Traded in other countries:ASCMB.USA
Ascent Capital Group, Inc. is a holding company and its assets primarily consist of its wholly-owned subsidiary, Monitronics International, Inc. (Monitronics). The Monitronics business provides security alarm monitoring and related services to residential and business subscribers throughout the United States and parts of Canada. Monitronics monitors signals arising from burglaries, fires and other events through security systems at subscribers' premises. Nearly all of its revenues are derived from monthly recurring revenues under security alarm monitoring contracts purchased from independent dealers in its exclusive nationwide network.

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