Switch to:
Also traded in: Germany

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 : 3/10

vs
industry
vs
history
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 : 2/10

vs
industry
vs
history
» NAS:DTV's 10-Y Financials

Financials


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

» Details

Guru Trades

Q4 2014

DTV Guru Trades in Q4 2014

Paul Tudor Jones 9,200 sh (New)
David Abrams 700,000 sh (New)
David Dreman 2,917 sh (New)
George Soros 305,470 sh (New)
John Hussman 150,000 sh (New)
Jim Simons 1,712,692 sh (+1833.24%)
Joel Greenblatt 796,791 sh (+234.01%)
Louis Moore Bacon 24,036 sh (+69.89%)
Jeremy Grantham 2,500,346 sh (+13.70%)
Ruane Cunniff 47,354 sh (+10.50%)
John Paulson 11,400,000 sh (+9.62%)
Warren Buffett 31,353,468 sh (+4.51%)
Ken Fisher 4,051 sh (+3.58%)
Scott Black Sold Out
Jeff Auxier 16,309 sh (-0.39%)
PRIMECAP Management 13,914,073 sh (-0.43%)
Mario Gabelli 3,861,863 sh (-1.45%)
Robert Bruce 85,000 sh (-1.73%)
James Barrow 425,609 sh (-2.54%)
Lou Simpson 1,594,678 sh (-2.88%)
Ronald Muhlenkamp 143,343 sh (-25.97%)
RS Investment Management 243,389 sh (-31.78%)
Wallace Weitz 268,570 sh (-83.47%)
» More
Q1 2015

DTV Guru Trades in Q1 2015

First Eagle Investment 50,000 sh (New)
Lee Ainslie 2,880 sh (New)
Louis Moore Bacon 82,981 sh (+245.24%)
David Abrams 1,400,000 sh (+100.00%)
George Soros 535,556 sh (+75.32%)
Jeremy Grantham 2,697,467 sh (+7.88%)
Robert Bruce 85,000 sh (unchged)
John Paulson 11,400,000 sh (unchged)
Warren Buffett 31,353,468 sh (unchged)
First Eagle Investment 500 sh (unchged)
Wallace Weitz Sold Out
Ronald Muhlenkamp Sold Out
Lou Simpson Sold Out
David Dreman Sold Out
Ken Fisher Sold Out
PRIMECAP Management 13,903,973 sh (-0.07%)
Jeff Auxier 16,159 sh (-0.92%)
Jim Simons 1,687,092 sh (-1.49%)
Ruane Cunniff 45,977 sh (-2.91%)
Mario Gabelli 3,700,434 sh (-4.18%)
John Hussman 100,000 sh (-33.33%)
James Barrow 273,759 sh (-35.68%)
Paul Tudor Jones 5,506 sh (-40.15%)
Joel Greenblatt 162,441 sh (-79.61%)
RS Investment Management 6,569 sh (-97.30%)
» More
Q2 2015

DTV Guru Trades in Q2 2015

Ken Fisher 2,194 sh (New)
Eric Mindich 4,481,762 sh (New)
Paul Tudor Jones 503,300 sh (+9040.94%)
George Soros 695,956 sh (+29.95%)
RS Investment Management 8,227 sh (+25.24%)
David Abrams 1,714,262 sh (+22.45%)
Warren Buffett 31,353,468 sh (unchged)
John Paulson 11,400,000 sh (unchged)
Lee Ainslie 2,880 sh (unchged)
Jeff Auxier 16,159 sh (unchged)
John Hussman 100,000 sh (unchged)
Robert Bruce Sold Out
First Eagle Investment Sold Out
James Barrow Sold Out
Ruane Cunniff 45,952 sh (-0.05%)
Mario Gabelli 3,433,014 sh (-7.23%)
PRIMECAP Management 12,457,523 sh (-10.40%)
Joel Greenblatt 107,176 sh (-34.02%)
Jim Simons 553,892 sh (-67.17%)
Louis Moore Bacon 13,651 sh (-83.55%)
Jeremy Grantham 127,521 sh (-95.27%)
» More
Q3 2015

DTV Guru Trades in Q3 2015

John Hussman Sold Out
Paul Tudor Jones Sold Out
Ken Fisher Sold Out
Mario Gabelli Sold Out
RS Investment Management Sold Out
Lee Ainslie Sold Out
PRIMECAP Management Sold Out
Jim Simons Sold Out
Jeff Auxier Sold Out
Jeremy Grantham Sold Out
David Abrams Sold Out
George Soros Sold Out
Joel Greenblatt Sold Out
Ruane Cunniff Sold Out
John Paulson Sold Out
Louis Moore Bacon Sold Out
Eric Mindich Sold Out
Warren Buffett Sold Out
» More
» Details

Insider Trades

Latest Guru Trades with NAS:DTV

(List those with share number changes of more than 20%, or impact to portfolio more than 0.1%)

No Entry found in the selected group of Gurus. You can
  • 1. Modify your Personalized List of Gurus, or
  • 2. Click on Premium Premium Tools above to check out all the Gurus, or
  • 3. Click on Premium Plus Premium Plus above for the stocks picks of all the institutional investment advisors (>4000)
» Interactive Charts

Peter Lynch Chart ( What is Peter Lynch Charts )

Guru Investment Theses on Directv

Mario Gabelli Comments on DIRECTV - Mar 12, 2015

DIRECTV (1.8%) (DTV – $86.70 – NASDAQ) is the largest pay television provider in the world, with over twenty million subscribers in the U.S. and over twelve million throughout Latin America. Originally part of General Motors (less than 0.1%), DTV used its technological advantage, focus on high income customers, recognition of the necessity for superior customer service, and clever (Sunday Ticket) participation in exclusive sports programming to cement its position in the U.S. The company used essentially the same strategy in Latin America, where it is benefiting from the growth of the middle class in countries such as Brazil and Colombia. Atop a superior operating business, DTV has layered a capital structure that maximizes equity returns. The company has used modest leverage to repurchase stock, in the process cutting its shares outstanding by more than half over the last five years. Long of interest to its telecom distribution partners, AT&T (less than 0.1%) agreed to acquire the company in April 2014 for $95 per share in cash and stock. We expect the transaction to be approved and close in the first half of 2015.

From Mario Gabelli (Trades, Portfolio)’s Asset Fund Q4 2014 Commentary.

Check out Mario Gabelli latest stock trades

Mario Gabelli Comments on DIRECTV - Jul 30, 2014

DIRECTV (DTV) (1.7%) (DTV - $85.01 - NASDAQ) is the largest pay TV provider in the world, with over twenty million subscribers in the U.S. and over twelve million throughout Latin America. Originally part of General Motors, DTV used its technological advantage, focus on high income customers, recognition of the necessity for superior customer service, and clever (Sunday Ticket) participation in exclusive sports programming to cement its position in the U.S. The company used essentially the same strategy in Latin America, where it is benefiting from the growth of the middle class in countries such as Brazil and Colombia. Atop a superior operating business, DTV has layered a capital structure that maximizes equity returns. The company has used modest leverage to repurchase stock, in the process cutting its shares outstanding by more than half over the last five years. Long of interest to its telecom distribution partners, AT&T agreed to acquire the company in April 2014 for $95 per share in cash and stock. We expect the transaction to be approved and close early in 2015.

From Mario Gabelli (Trades, Portfolio)’s The Gabelli Asset Fund Second Quarter 2014 Shareholder Commentary.

Check out Mario Gabelli latest stock trades

Weitz Investment Management Comments on DIRECTV - Jul 22, 2014

DIRECTV (DTV) is on the receiving end of a takeover offer—it is the target of an acquisition by AT&T. DIRECTV had grown its business steadily over the years and had increased its value per share significantly by making very large share repurchases. AT&T is offering roughly twice the price we paid for our first shares about three years ago. We have mixed feelings about giving up our holdings but it has been a good investment for us.



From Wallace Weitz (Trades, Portfolio)'s Q2 Shareholder Letter.



Check out Wallace Weitz latest stock trades

Longleaf Partners Comments on DirecTV - Apr 18, 2014

During the quarter we exited DIRECTV (NASDAQ:DTV), a highly successful core holding in our U.S. and Global accounts for over a decade. We discuss our DTV experience not to showcase one winner, but because the investment illustrates the process and approach we follow for holdings across all mandates and highlights some of Southeastern's unique research strengths.



History of DTV Investment (based on Longleaf Partners Fund) Sometimes we can own a company in indirect ways that create part of the discount to intrinsic worth. In the case of DTV, we owned the underlying business via three different stocks over our thirteen-year holding period as shown on the chart that follows. Initially, in 2001 we bought GMH, the tracking stock that General Motors created for the Hughes division that included all of its satellite businesses. By early 2004, the company had been spun fully out of GM and renamed DIRECTV Group. Over the following four years, we opportunistically added to and trimmed our position.



In early 2008, John Malone exchanged Liberty Media's (LMDIA) News Corp shares (NWS) for the 40+% of DTV that NWS owned. We previously had purchased Liberty Media Corp, the precursor to LMDIA, and the 2008 transaction increased our underlying ownership in DTV. Throughout 2008, we swapped DTV for LMDIA which traded at a steeper discount to underlying value. In the financial crisis, although DTV's business remained remarkably stable, LMDIA shares became severely discounted when debt at other Liberty affiliates cast a shadow on LMDIA. We made sure we understood the obligations of each Liberty entity and John Malone's intentions, and then took LMDIA to a "double weight" (10%) position while maintaining our direct DTV stake. In 2009, LMDIA and DTV merged. Over the next four years, the intrinsic value of the company grew as did the stock price. We trimmed our position as the price-to-value (P/V) gap closed and completely exited in the first quarter of 2014 when the stock reached our appraisal. Because of the strength of DTV's franchise and management partners, value could continue to build unabated. We followed our discipline to exit when the price reached our appraisal, leaving no margin of safety in the stock.



Strong Business



In every new investment, we analyze why a stock is cheap and how our view of the business differs from the market's view. Initially, DTV's core strongholds were rural subscribers with no cable alternatives and premium subscribers willing to pay for the technologically superior digital picture and recording as well as exclusive sports programming. The most valuable DTV subscribers were immune from the market's concern - the "triple play threat" of a single provider for video, voice and broadband. Subsequent subscriber growth and pricing power as shown through rising ARPU (average revenue per user) were proof of DTV's advantages.



When we own a name we evaluate how the business evolves and adjust our assumptions about competitive advantages and value growth. Over time, DTV's U.S. subscriber base grew to more than 20 million, and growth inevitably slowed. Cable providers developed better picture quality and digital recording, and "cord cutting" (leaving pay-TV for video delivery alternatives) also received increasing attention. Verizon invested heavily to become a competitor. Satellite provider DISH's Hopper grew more competitive due to combining cord cutting with high definition recording. NFL programming became less exclusive. As the competitive landscape changed, at three different points over our holding period, we appointed an analyst to serve as "Devil's Advocate" (DA) to challenge the entire investment case and appraisal. Although DTV's U.S. ARPU continued to increase, we reduced our appraisal multiples to account for the increasingly competitive U.S. environment. Management also recognized the U.S. evolution and developed Latin American markets where the lack of infrastructure minimized cable competition. Over the last five years, we adjusted our appraisal as DTV transitioned from a primarily U.S. provider to a company with almost half of its value attributable to its Latin American operations. However, we recently lowered our appraisal of the Latin American business based on currency fluctuations and other geopolitical developments. While shorter-term conditions made a lower appraisal unavoidable, we remained very bullish on the company's long-term prospects in Latin America.



Good Management



The operating expertise of two successive CEOs, first Chase Carey and then Mike White, kept the company competitive over the long run, even as the landscape morphed. In addition to improving service, containing costs, and providing exclusive programming, management upgraded customer quality ahead of the recession, removing subscribers with lower credit and poor payment history. This move paid off handsomely as subscriber retention gave



DTV an edge through the financial crisis. Many CEOs have strong operating abilities, but what sets apart the all-stars is a deep understanding of building value per share through wise capital allocation. Our successive DTV partners clearly understood the risk/reward calculus when they deployed the company's resources. They successfully invested for growth by comparing subscriber acquisition cost (SAC) to the value of the cash flow stream from the incremental new subscriber. They also returned enormous capital to shareholders, repurchasing over 60% of the company's shares over the last 10 years when prices were well below intrinsic value.



We conduct a comprehensive assessment of management at the outset of every investment. At DTV, we did this a second time in 2010 when Mike White came from Pepsi to be CEO after Chase Carey left for NWS (which became 21st Century Fox). We quickly called upon our broad network of contacts, including some who had worked directly with Mike, to gain insight into his skills, character, and record, and we received positive feedback.



Deeply Discounted Price



How can strong businesses with good management become deeply discounted? Four common ways that we find a cheap stock applied at DTV. First, a mismatch between real or perceived threats and when or how they will impact value creates opportunity. In some cases, short-term challenges have little impact on long-term value. In the case of DTV, the stock price was over-discounting the near-term "triple play threat," even though longer-term technology changes did alter the competitive landscape.



Second, we see many external reports that determine price targets by simply putting a multiple on earnings. Our due diligence breaks down business segments, evaluates free cash flow versus earnings, and differentiates between capital spending to maintain the business versus to grow it. We analyze growth spending as a choice that must be weighed against capital allocation options. At DTV, management's investment in U.S. SAC lowered short-term profits, but when U.S. growth spending slowed, the cash flow from those subscribers continued to roll in, generating a high long-term return. A similar dynamic continues today with the build out of Latin America.



Third, we often find a "sum of the parts" discount when we can own a business indirectly through another stock. Our appraisals break down the value of each underlying piece of a company. The most extreme example at DTV came in December 2008 when we could own a share of DTV through LMDIA for less than half the price of directly owning DTV. Fourth, controversial management can generate a discount. When we doubled down on LMDIA, skepticism about John Malone played a part in the price decoupling from the value. Although accurately assessing executives is difficult, we spend immense time reviewing operating and capital allocation history, understanding incentives, interviewing others who have interacted with the person, meeting with the CEO, and researching professional and personal backgrounds.



From Longleaf Partners first quarter 2014 commentary.



Check out Mason Hawkins latest stock trades

Top Ranked Articles about Directv

Sells and Additions in Third Quarter Have Greatest Impact on Mario Gabelli's Portfolio Guru adds nearly four dozen new stakes
Mario Gabelli (Trades, Portfolio) of GAMCO Investors bought nearly four dozen stakes in the third quarter that are new to his portfolio, but his sales of existing stakes and additions to others had more of an impact on it. Read more...
Wallace Weitz Sells Off 5 Holdings
During the first quarter, Wallace Weitz (Trades, Portfolio) of Weitz Investment Management did not see any new opportunities and instead sold off five holdings, including acquisition target DirecTV. Read more...
Better Business Bureau Pulls Plug On DTV's Advertisements
It really shouldn’t surprise anyone that cable TV providers have felt put upon by the advertising campaign launched by DirecTV (NASDAQ:DTV) in September. The entertaining advertisements, which feature actor Rob Lowe as a DirecTV customer and several of Lowe’s bizarre alter egos cast as cable subscribers, have been so successful with viewers that memes parodying them have been popping up on social media sites. Read more...
Mario Gabelli Comments on DIRECTV
DIRECTV (1.8%) (DTV – $86.70 – NASDAQ) is the largest pay television provider in the world, with over twenty million subscribers in the U.S. and over twelve million throughout Latin America. Originally part of General Motors (less than 0.1%), DTV used its technological advantage, focus on high income customers, recognition of the necessity for superior customer service, and clever (Sunday Ticket) participation in exclusive sports programming to cement its position in the U.S. The company used essentially the same strategy in Latin America, where it is benefiting from the growth of the middle class in countries such as Brazil and Colombia. Atop a superior operating business, DTV has layered a capital structure that maximizes equity returns. The company has used modest leverage to repurchase stock, in the process cutting its shares outstanding by more than half over the last five years. Long of interest to its telecom distribution partners, AT&T (less than 0.1%) agreed to acquire the company in April 2014 for $95 per share in cash and stock. We expect the transaction to be approved and close in the first half of 2015. Read more...

Ratios

vs
industry
vs
history

Valuation & Return

vs
industry
vs
history

More Statistics

Revenue(Mil) $33548
EPS $ 5.77
Short Percentage of Float1.90%
52-Week Range $82.04 - 95.51
Shares Outstanding(Mil)504.29

Analyst Estimate

Dec15 Dec16 Dec17
Revenue(Mil) 34,504 36,083 36,564
EPS($) 5.98 6.20 6.46
EPS without NRI($) 5.98 6.20 6.46

Business Description

Industry: Communication Services » Pay TV
Compare:CMCSA, TWC, NPSNY, BSYBY, DISH » details
Traded in other countries:DIG1.Germany,
Directv was incorporated in Delaware in 2009. The Company is a provider of digital television entertainment in the United States and Latin America. It operates two direct-to-home, or DTH, business units: DIRECTV U.S. and DIRECTV Latin America, which are differentiated by their geographic location and are engaged in acquiring, promoting, selling and distributing digital entertainment programming via satellite to residential and commercial subscribers. In addition, the Company owns and operate two regional sports networks, or RSNs, hold a minority ownership interest in ROOT SPORTS Northwest and own a 42% interest in Game Show Network, LLC, or GSN, a television network dedicated to game-related programming and Internet interactive game playing. The Company face substantial competition in the MVPD industry and from emerging digital media distribution providers. Its competition includes companies that offer video, audio, interactive programming, telephony, data and other entertainment services, such as cable television, other DTH companies, telcos, wireless companies and companies that are developing new technologies, including online video distributors. The Company provides services in PanAmericana and Brazil from leased transponders on two geosynchronous satellites. Sky Mexico provides its services from leased transponders on a separate satellite. In addition, it leases a backup satellite that serves Sky Brasil and Sky Mexico. The Company is subject to government regulation in the United States, by the FCC and by other federal, state and local authorities. The Company is subject to similar regulatory agencies in Latin America. It is also subject to the rules and procedures of the International Telecommunication Union, or ITU, a agency of the United Nations, which coordinates telecommunications networks and services.
» More Articles for DTV

Headlines

Articles On GuruFocus.com
PRIMECAP Sells Stake in Technology Company Nov 16 2015 
Auxier Buys New Stake in Allstate Nov 13 2015 
Sells and Additions in Third Quarter Have Greatest Impact on Mario Gabelli's Portfolio Oct 25 2015 
A Dividend Aristocrat With a Safe 5% Dividend Yield Oct 22 2015 
Stocks Both Warren Buffett and George Soros Own Oct 07 2015 
Gabelli Confident About Investment in Cable Giants Discovery, Viacom Sep 10 2015 
David Abrams Focuses on Food, Fuel, Entertainment Stocks in Second Quarter Aug 21 2015 
Jeremy Grantham Reduces More Than 250 Stakes in Second Quarter Aug 18 2015 
Warren Buffett Sells Viacom and Buys Charter in the Second Quarter Aug 17 2015 
Berkshire Hathaway's $2 Billion Stake in AT&T Jul 27 2015 

More From Other Websites
Comcast sideswiped by lawsuit against MLB Feb 11 2016
AT&T’s Latin American Video Revenue Hurt by Strong Dollar Feb 09 2016
DIRECTV Supports Customer Acquisitions of AT&T in Domestic Video Feb 08 2016
AT&T Long-Term Prospects Bright, Competition on the Rise Feb 05 2016
NFL's Technology Innovations Follow the Money Feb 03 2016
AT&T's leadership: Here's what we're changing as we integrate our services Feb 02 2016
AT&T Shake-Up: Stankey Gets Consumer Wireless, Video, Broadband Feb 01 2016
Key Takeaways From AT&T's Q4 Results Jan 28 2016
Why AT&T Might Sell Latin American Pay-TV Assets to Telefonica Jan 28 2016
AT&T Rising: Bulls Cheer Story 'Intact'; Totally Inscrutable, Says Moffett Jan 27 2016
AT&T Q4 Takeaways: Mexico, DirecTV, Postpaid, Accounting, Guidance Jan 27 2016
5 highlights from AT&T's fourth-quater earnings Jan 27 2016
AT&T revenue below forecasts, shares fall Jan 26 2016
Video plans take shape for AT&T as mobile phone customer growth slows Jan 26 2016
AT&T revenue below forecasts, shares fall Jan 26 2016

Personalized Checklist

Checklist has been moved to "Checklist" tab.

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
FEEDBACK