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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 : 5/10

vs
industry
vs
history
Cash to Debt 0.22
DTV's Cash to Debt is ranked lower than
67% of the 447 Companies
in the Global Pay TV industry.

( Industry Median: 0.54 vs. DTV: 0.22 )
Ranked among companies with meaningful Cash to Debt only.
DTV' s 10-Year Cash to Debt Range
Min: 0.06   Max: No Debt
Current: 0.22

Equity to Asset -0.19
DTV's Equity to Asset is ranked lower than
96% of the 418 Companies
in the Global Pay TV industry.

( Industry Median: 0.41 vs. DTV: -0.19 )
Ranked among companies with meaningful Equity to Asset only.
DTV' s 10-Year Equity to Asset Range
Min: -0.32   Max: 0.67
Current: -0.19

-0.32
0.67
Interest Coverage 5.71
DTV's Interest Coverage is ranked lower than
63% of the 255 Companies
in the Global Pay TV industry.

( Industry Median: 16.49 vs. DTV: 5.71 )
Ranked among companies with meaningful Interest Coverage only.
DTV' s 10-Year Interest Coverage Range
Min: 0.48   Max: 10.58
Current: 5.71

0.48
10.58
F-Score: 6
Z-Score: 2.66
M-Score: -3.10
WACC vs ROIC
8.90%
31.29%
WACC
ROIC
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 : 7/10

vs
industry
vs
history
Operating margin (%) 15.76
DTV's Operating margin (%) is ranked higher than
74% of the 450 Companies
in the Global Pay TV industry.

( Industry Median: 8.49 vs. DTV: 15.76 )
Ranked among companies with meaningful Operating margin (%) only.
DTV' s 10-Year Operating margin (%) Range
Min: -18.66   Max: 17.1
Current: 15.76

-18.66
17.1
Net-margin (%) 8.72
DTV's Net-margin (%) is ranked higher than
66% of the 450 Companies
in the Global Pay TV industry.

( Industry Median: 4.49 vs. DTV: 8.72 )
Ranked among companies with meaningful Net-margin (%) only.
DTV' s 10-Year Net-margin (%) Range
Min: -17.16   Max: 16.58
Current: 8.72

-17.16
16.58
ROA (%) 12.50
DTV's ROA (%) is ranked higher than
88% of the 455 Companies
in the Global Pay TV industry.

( Industry Median: 3.22 vs. DTV: 12.50 )
Ranked among companies with meaningful ROA (%) only.
DTV' s 10-Year ROA (%) Range
Min: -11.69   Max: 15.13
Current: 12.5

-11.69
15.13
ROC (Joel Greenblatt) (%) 56.17
DTV's ROC (Joel Greenblatt) (%) is ranked higher than
84% of the 451 Companies
in the Global Pay TV industry.

( Industry Median: 15.00 vs. DTV: 56.17 )
Ranked among companies with meaningful ROC (Joel Greenblatt) (%) only.
DTV' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: -43   Max: 65.58
Current: 56.17

-43
65.58
Revenue Growth (3Y)(%) 21.70
DTV's Revenue Growth (3Y)(%) is ranked higher than
90% of the 374 Companies
in the Global Pay TV industry.

( Industry Median: 2.00 vs. DTV: 21.70 )
Ranked among companies with meaningful Revenue Growth (3Y)(%) only.
DTV' s 10-Year Revenue Growth (3Y)(%) Range
Min: 6.2   Max: 33.7
Current: 21.7

6.2
33.7
EBITDA Growth (3Y)(%) 19.80
DTV's EBITDA Growth (3Y)(%) is ranked higher than
85% of the 317 Companies
in the Global Pay TV industry.

( Industry Median: 0.70 vs. DTV: 19.80 )
Ranked among companies with meaningful EBITDA Growth (3Y)(%) only.
DTV' s 10-Year EBITDA Growth (3Y)(%) Range
Min: -35.8   Max: 108.8
Current: 19.8

-35.8
108.8
EPS Growth (3Y)(%) 15.90
DTV's EPS Growth (3Y)(%) is ranked higher than
73% of the 285 Companies
in the Global Pay TV industry.

( Industry Median: 1.30 vs. DTV: 15.90 )
Ranked among companies with meaningful EPS Growth (3Y)(%) only.
DTV' s 10-Year EPS Growth (3Y)(%) Range
Min: -30   Max: 83.5
Current: 15.9

-30
83.5
» DTV's 10-Y Financials

Financials


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

» Details

Guru Trades

Q2 2014

DTV Guru Trades in Q2 2014

Caxton Associates 243,500 sh (New)
Jeremy Grantham 426,600 sh (New)
Pioneer Investments 110,764 sh (New)
John Burbank 27,679 sh (New)
John Paulson 10,000,000 sh (New)
Joel Greenblatt 359,256 sh (+213.98%)
James Barrow 495,000 sh (+51.52%)
Ruane Cunniff 44,114 sh (+25.51%)
Jim Simons 1,468,992 sh (+22.68%)
David Dreman 3,701 sh (+16.60%)
Lou Simpson 1,646,368 sh (+0.05%)
Robert Bruce 86,500 sh (unchged)
Louis Moore Bacon 200,000 sh (unchged)
Steven Cohen 250,000 sh (unchged)
Bill Nygren Sold Out
Chuck Royce Sold Out
First Eagle Investment Sold Out
John Rogers Sold Out
Mario Cibelli Sold Out
Manning & Napier Advisors, Inc Sold Out
Chuck Akre Sold Out
George Soros Sold Out
Ronald Muhlenkamp 193,638 sh (-0.33%)
Jeff Auxier 27,373 sh (-0.36%)
PRIMECAP Management 14,006,090 sh (-0.83%)
Mario Gabelli 3,970,372 sh (-3.98%)
Louis Moore Bacon 5,157 sh (-11.36%)
RS Investment Management 644,189 sh (-12.39%)
Wallace Weitz 1,681,100 sh (-17.27%)
Paul Tudor Jones 10,234 sh (-19.42%)
Warren Buffett 23,467,995 sh (-32.01%)
Scott Black 67,626 sh (-62.45%)
» More
Q3 2014

DTV Guru Trades in Q3 2014

Ken Fisher 3,911 sh (New)
Jeremy Grantham 2,199,000 sh (+415.47%)
Louis Moore Bacon 14,148 sh (+174.35%)
John Paulson 10,400,000 sh (+4.00%)
Robert Bruce 86,500 sh (unchged)
Ronald Muhlenkamp 193,638 sh (unchged)
Warren Buffett 30,000,000 sh (unchged)
John Burbank Sold Out
David Dreman Sold Out
Paul Tudor Jones Sold Out
Caxton Associates Sold Out
Steven Cohen Sold Out
PRIMECAP Management 13,974,790 sh (-0.22%)
Lou Simpson 1,641,997 sh (-0.27%)
Mario Gabelli 3,918,667 sh (-1.30%)
Scott Black 65,841 sh (-2.64%)
Ruane Cunniff 42,854 sh (-2.86%)
Wallace Weitz 1,624,412 sh (-3.37%)
James Barrow 436,706 sh (-11.78%)
Joel Greenblatt 238,550 sh (-33.60%)
Jeff Auxier 16,373 sh (-40.19%)
RS Investment Management 356,789 sh (-44.61%)
Jim Simons 88,592 sh (-93.97%)
» More
Q4 2014

DTV Guru Trades in Q4 2014

Paul Tudor Jones 9,200 sh (New)
George Soros 305,470 sh (New)
David Abrams 700,000 sh (New)
John Hussman 150,000 sh (New)
David Dreman 2,917 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%)
Warren Buffett 31,353,468 sh (unchged)
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%)
John Paulson 11,400,000 sh (unchged)
Warren Buffett 31,353,468 sh (unchged)
First Eagle Investment 500 sh (unchged)
Robert Bruce 85,000 sh (unchged)
Ken Fisher Sold Out
Ronald Muhlenkamp Sold Out
Wallace Weitz Sold Out
David Dreman Sold Out
Lou Simpson Sold Out
PRIMECAP Management 13,903,973 sh (-0.07%)
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%)
Jeff Auxier 9,660 sh (-40.77%)
Joel Greenblatt 162,441 sh (-79.61%)
RS Investment Management 6,569 sh (-97.30%)
» More
» Details

Insider Trades

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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.

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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.

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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.



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Longleaf Partners Comments on DirecTV - Apr 18, 2014

During the quarter we exited DIRECTV (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.



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Mario Gabelli Comments on DIRECTV - Jan 06, 2014

DIRECTV (1.4%) (DTV - $59.75 - NASDAQ)(DTV) is the largest pay television provider in the world, with nearly twenty million subscribers in the United States and eight million subscribers 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 six years.

 

From Mario Gabelli (Trades, Portfolio)'s third quarter 2013 commentary.

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Mason Hawkins's Longleaf Partners Comments on DIRECTV - Oct 25, 2013

The Fund had only three detractors in the quarter: Mosaic, Abbott Labs, and DIRECTV (DTV), with only Mosaic negatively impacting YTD results. We bought and exited Mosaic during the third quarter. Our case changed quickly with the potash industry drama that caused prices to drop. Abbott was down 4% in the quarter following FX headwinds, concerns over tougher rules for device approval in Europe, and issues at a dairy supplier leading to a meaningful product recall in the baby formula division in China. DIRECTV slipped 3% on increased subscriber churn amidst a challenged Brazilian economy. DIRECTV Latin America remains well positioned to benefit from rising pay-TV penetration in the region, and the mature U.S. business continues to generate higher ARPU (average revenue per user).

From Mason Hawkins' Longleaf Partners Fund third quarter 2013 commentary.


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Mason Hawkins Comments on DirecTV - Aug 12, 2013

Three holdings have been among the largest positive contributors for both the quarter and the first half. DIRECTV (DTV) advanced 9% over the last three months and has risen 23% YTD. We have owned DTV for over eight years as its value has grown along with its price. CEO Mike White is one of our "all-star" partners. He and his team have grown ARPU (average revenue per user) for the company's 20 million U.S. satellite subscribers even as the industry has matured. Management has also made high-return investments in Latin America where subscribers have grown rapidly, making this geographic segment almost half of our DTV appraisal. Management consistently has returned capital to owners through repurchasing undervalued shares, including $1.4 billion in the second quarter.

From Mason Hawkin's semi-annual report 2013.
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Wallace Weitz Comments on DirecTV - Jul 15, 2013

DIRECTV (DTV--$62)(DTV) DTV continues to grow profits in a stable U.S. market and to add subscribers rapidly in Latin America. The economics of the business are very good (subscriptions, growing free cash flow per share) and management’s capital allocation is excellent (careful with acquisitions, substantial share buybacks).

From Wallace Weitz’s second quarter 2013 letter to shareholders.


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Top Ranked Articles about Directv

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 (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...
A Look at John Hussman's Recent Additions to His Portfolio
John Hussman (Trades, Portfolio) of Hussman Strategic Advisors, Inc. is known for not holding back on sharing his opinions about the government's handling of the nation's financial state. He has openly criticized the U.S. Treasury and the Federal Reserve. He is also known for predicting the U.S. Recession in 2008-2009 and since the end of 2009, he has been calling for another financial crisis to come along due to the poor policy choices made by the government. Read more...
Mario Gabelli's Top Four Favorite Stock Picks
Mario Gabelli (Trades, Portfolio) of GAMCO Investors currently owns 880 stocks in his portfolio, valued at $18.58 billion. According to GuruFocus Real Time Picks, the number of new stocks is 47 and the quarter-over-quarter turnover is 6%. Read more...
Analyzing AT&T and DirecTV Merger Using John Paulson's Merger Arbitrage Checklist
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Warren Buffett and CIOs Buy DirecTV, Charter Communications, General Motors Co, Express Scripts, Sells Deere, ConocoPhillips
Warren Buffett (Trades, Portfolio) and CIOs Buy DirecTV, Charter Communications, General Motors Co, Express Scripts, Sells Deere, ConocoPhillips Read more...
Mario Gabelli Comments on DIRECTV
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. Read more...
Weitz Investment Management Comments on DIRECTV
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. Read more...

Ratios

vs
industry
vs
history
P/E(ttm) 15.70
DTV's P/E(ttm) is ranked higher than
65% of the 411 Companies
in the Global Pay TV industry.

( Industry Median: 18.90 vs. DTV: 15.70 )
Ranked among companies with meaningful P/E(ttm) only.
DTV' s 10-Year P/E(ttm) Range
Min: 10.26   Max: 63.48
Current: 15.7

10.26
63.48
Forward P/E 14.66
DTV's Forward P/E is ranked higher than
61% of the 534 Companies
in the Global Pay TV industry.

( Industry Median: 84.03 vs. DTV: 14.66 )
Ranked among companies with meaningful Forward P/E only.
N/A
PE(NRI) 15.90
DTV's PE(NRI) is ranked higher than
67% of the 298 Companies
in the Global Pay TV industry.

( Industry Median: 19.90 vs. DTV: 15.90 )
Ranked among companies with meaningful PE(NRI) only.
DTV' s 10-Year PE(NRI) Range
Min: 10.26   Max: 71.27
Current: 15.9

10.26
71.27
P/S 1.40
DTV's P/S is ranked lower than
58% of the 634 Companies
in the Global Pay TV industry.

( Industry Median: 1.20 vs. DTV: 1.40 )
Ranked among companies with meaningful P/S only.
DTV' s 10-Year P/S Range
Min: 0.99   Max: 2.35
Current: 1.4

0.99
2.35
PFCF 14.60
DTV's PFCF is ranked higher than
62% of the 397 Companies
in the Global Pay TV industry.

( Industry Median: 17.90 vs. DTV: 14.60 )
Ranked among companies with meaningful PFCF only.
DTV' s 10-Year PFCF Range
Min: 10.92   Max: 78.4
Current: 14.6

10.92
78.4
POCF 7.25
DTV's POCF is ranked higher than
55% of the 336 Companies
in the Global Pay TV industry.

( Industry Median: 7.71 vs. DTV: 7.25 )
Ranked among companies with meaningful POCF only.
DTV' s 10-Year POCF Range
Min: 5.23   Max: 105.29
Current: 7.25

5.23
105.29
EV-to-EBIT 11.66
DTV's EV-to-EBIT is ranked higher than
69% of the 331 Companies
in the Global Pay TV industry.

( Industry Median: 15.38 vs. DTV: 11.66 )
Ranked among companies with meaningful EV-to-EBIT only.
DTV' s 10-Year EV-to-EBIT Range
Min: -682.6   Max: 33.2
Current: 11.66

-682.6
33.2
PEG 0.60
DTV's PEG is ranked higher than
82% of the 137 Companies
in the Global Pay TV industry.

( Industry Median: 2.15 vs. DTV: 0.60 )
Ranked among companies with meaningful PEG only.
DTV' s 10-Year PEG Range
Min: 0.37   Max: 0.75
Current: 0.6

0.37
0.75
Shiller P/E 22.30
DTV's Shiller P/E is ranked lower than
63% of the 366 Companies
in the Global Pay TV industry.

( Industry Median: 18.56 vs. DTV: 22.30 )
Ranked among companies with meaningful Shiller P/E only.
DTV' s 10-Year Shiller P/E Range
Min: 18.67   Max: 1339
Current: 22.3

18.67
1339
Current Ratio 1.06
DTV's Current Ratio is ranked lower than
56% of the 433 Companies
in the Global Pay TV industry.

( Industry Median: 1.19 vs. DTV: 1.06 )
Ranked among companies with meaningful Current Ratio only.
DTV' s 10-Year Current Ratio Range
Min: 0.76   Max: 3.29
Current: 1.06

0.76
3.29
Quick Ratio 1.02
DTV's Quick Ratio is ranked lower than
54% of the 433 Companies
in the Global Pay TV industry.

( Industry Median: 1.08 vs. DTV: 1.02 )
Ranked among companies with meaningful Quick Ratio only.
DTV' s 10-Year Quick Ratio Range
Min: 0.68   Max: 2.96
Current: 1.02

0.68
2.96
Days Inventory 6.24
DTV's Days Inventory is ranked higher than
74% of the 346 Companies
in the Global Pay TV industry.

( Industry Median: 15.83 vs. DTV: 6.24 )
Ranked among companies with meaningful Days Inventory only.
DTV' s 10-Year Days Inventory Range
Min: 6.01   Max: 111.13
Current: 6.24

6.01
111.13
Days Sales Outstanding 28.67
DTV's Days Sales Outstanding is ranked higher than
76% of the 379 Companies
in the Global Pay TV industry.

( Industry Median: 46.98 vs. DTV: 28.67 )
Ranked among companies with meaningful Days Sales Outstanding only.
DTV' s 10-Year Days Sales Outstanding Range
Min: 26.37   Max: 81.02
Current: 28.67

26.37
81.02

Valuation & Return

vs
industry
vs
history
Price/DCF (Projected) 1.40
DTV's Price/DCF (Projected) is ranked lower than
51% of the 373 Companies
in the Global Pay TV industry.

( Industry Median: 1.30 vs. DTV: 1.40 )
Ranked among companies with meaningful Price/DCF (Projected) only.
DTV' s 10-Year Price/DCF (Projected) Range
Min: 1.3   Max: 551.67
Current: 1.4

1.3
551.67
Price/Median PS Value 0.90
DTV's Price/Median PS Value is ranked higher than
73% of the 615 Companies
in the Global Pay TV industry.

( Industry Median: 1.10 vs. DTV: 0.90 )
Ranked among companies with meaningful Price/Median PS Value only.
DTV' s 10-Year Price/Median PS Value Range
Min: 0.53   Max: 3.67
Current: 0.9

0.53
3.67
Price/Peter Lynch Fair Value 0.70
DTV's Price/Peter Lynch Fair Value is ranked higher than
92% of the 155 Companies
in the Global Pay TV industry.

( Industry Median: 1.70 vs. DTV: 0.70 )
Ranked among companies with meaningful Price/Peter Lynch Fair Value only.
DTV' s 10-Year Price/Peter Lynch Fair Value Range
Min: 0.44   Max: 5.63
Current: 0.7

0.44
5.63
Earnings Yield (Greenblatt) 8.60
DTV's Earnings Yield (Greenblatt) is ranked higher than
76% of the 567 Companies
in the Global Pay TV industry.

( Industry Median: 5.30 vs. DTV: 8.60 )
Ranked among companies with meaningful Earnings Yield (Greenblatt) only.
DTV' s 10-Year Earnings Yield (Greenblatt) Range
Min: 3   Max: 11.7
Current: 8.6

3
11.7
Forward Rate of Return (Yacktman) 28.81
DTV's Forward Rate of Return (Yacktman) is ranked higher than
84% of the 236 Companies
in the Global Pay TV industry.

( Industry Median: 8.56 vs. DTV: 28.81 )
Ranked among companies with meaningful Forward Rate of Return (Yacktman) only.
DTV' s 10-Year Forward Rate of Return (Yacktman) Range
Min: -4.4   Max: 46.5
Current: 28.81

-4.4
46.5

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.
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