Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

Equity Capital Markets

The Walt Disney Co / Equity Capital Markets

<ul><li>Disney's recent financial results demonstrated that the company continued progress towards more normalized operations across its businesses.</li><li>The company set new advertising revenue records for the segment, as advertiser demand for their live sports, streaming, and digital businesses remain strong.</li><li>In this report, we have carried out a fundamental analysis of the historical financial statements of the company.</li></ul>

Disney's recent financial results demonstrated that the company continued progress towards more normalized operations across its businesses.The company set new advertising revenue records for the segment, as advertiser demand for their live sports, streaming, and digital businesses remain strong.In this report, we have carried out a fundamental analysis of the historical financial statements of the company.

The Walt Disney Co - Financial & Price Forecasts

Credit

<ul><li>Disney's recent financial performance showed its continued progress towards more normalized operations particularly in terms of its studios, parks, and cruise businesses.</li><li>With the post Covid-19 recovery in progress, the company has reimagined its parks business, significantly increased its investment in content creation, and implemented a reorganization to facilitate its ongoing transformation.</li><li>Based on our credit analysis, the company merits a Credit Evaluation Score of BBβ with a stable outlook and as per our Financial Strength Indicator, its performance is 3.34/ 5.</li></ul>

Disney's recent financial performance showed its continued progress towards more normalized operations particularly in terms of its studios, parks, and cruise businesses.With the post Covid-19 recovery in progress, the company has reimagined its parks business, significantly increased its investment in content creation, and implemented a reorganization to facilitate its ongoing transformation.Based on our credit analysis, the company merits a Credit Evaluation Score of BBβ with a stable outlook and as per our Financial Strength Indicator, its performance is 3.34/ 5.

The Walt Disney Company: Detailed Credit Analysis & Financial Strength Evaluation Report

TMT & Consumer Independent Equity Research Analyst, Obex Capital Research

Aaron Gabin

TMT & Consumer Independent Equity Research Analyst

TMT & Consumer Independent Equity Research

Obex Capital Research

“Obex” is Latin for Barriers to Entry. Obex Capital Management’s investment philosophy is driven by an intense focus on which business model’s Barriers to Entry are able to withstand the ever increasing competitive disruption in the TMT and Consumer Sectors.

Equity Bottom-Up

<ul>
<li>Incredible quarter for Parks, with sustainably higher levels of profitability in the cards due to Disney's pricing power.</li>
<li>Streaming is still worrisome, growth driven by bundling and Hotstar+ subs which we don't value as worth much to Disney.</li>
<li>SoTP gets us to ~$155 at best, which is where the stock trades post earnings. Not great risk reward here.</li>
</ul>


Incredible quarter for Parks, with sustainably higher levels of profitability in the cards due to Disney's pricing power.
Streaming is still worrisome, growth driven by bundling and Hotstar+ subs which we don't value as worth much to Disney.
SoTP gets us to ~$155 at best, which is where the stock trades post earnings. Not great risk reward here.


Disney 1Q2022: Knockin It Out of the Park

Value Investing

Vladimir Dimitrov, CFA

<ul>
<li>Disney is in negative territory since I first covered the company, while the market returned nearly 50% over the period.</li>
<li>Pandemic lockdowns are only part of the story, while consistently lower return on capital appears to be the chief culprit for this performance.</li>
<li>Even as margins are likely to improve, more content spend and higher competition suggest that it would likely not be enough to support valuation.</li>
</ul>


Disney is in negative territory since I first covered the company, while the market returned nearly 50% over the period.
Pandemic lockdowns are only part of the story, while consistently lower return on capital appears to be the chief culprit for this performance.
Even as margins are likely to improve, more content spend and higher competition suggest that it would likely not be enough to support valuation.


Disney: Facing The Reality Of Intensifying Competition

<ul><li>Netflix and Disney are two of the world's largest players in online audiovisual content creation and streaming services.</li><li>While Disney operates a highly diversified conglomerate that goes far beyond just streaming, the fact remains that the company's biggest growth driver today is its Disney+ streaming business where it rivals Netflix.</li><li>While Netflix is the clear market leader in streaming with the largest global subscriber base, it has been growing slower than Disney and its Originals building capability is a work-in-progress.</li></ul>

Netflix and Disney are two of the world's largest players in online audiovisual content creation and streaming services.While Disney operates a highly diversified conglomerate that goes far beyond just streaming, the fact remains that the company's biggest growth driver today is its Disney+ streaming business where it rivals Netflix.While Netflix is the clear market leader in streaming with the largest global subscriber base, it has been growing slower than Disney and its Originals building capability is a work-in-progress.

Netflix vs. Disney - The Battle of the Streaming Behemoths (12/2021)

United States

Sirius XM Holdings Inc. broadcasts various channels of audio from its satellites. The Company provides its services throughout the continental United States for a monthly subscription fee. Sirius delivers various streams of commercial-free music in every genre, as well as streams of  news, sports, weather, talk, comedy, and public radio.

News Corporation operates in the publishing industry. The Company provides publications consisting of newspapers, magazines, books and promotional inserts.

Live Nation Entertainment, Inc. produces live concerts and sells tickets to those events over the Internet. The Company also offers ticketing services for leading arenas, stadiums, professional sports franchises and leagues, college sports teams, performing arts venues, museums and theaters.

The Interpublic Group of Companies, Inc. is an organization of advertising agencies and marketing service companies.  The Company operates globally in the sectors of advertising, independent media buying, direct marketing, healthcare communications, interactive consulting services, marketing research, promotions, experiential marketing, public relations, and sports marketing.

Omnicom Group Inc. provides advertising, marketing and corporate communications services. The Company's agencies, which operate in major markets around the world, provide a comprehensive range of services including traditional media advertising; customer relationship management ("CRM"); public relations; and specialty communications.

Madison Square Garden Sports Corp. is a professional sports company that owns and operates sports franchises.

Madison Square Garden Sports Corp. (MSGS US)

The New York Times Company operates media businesses.  The Company publishes daily newspapers and operates Internet websites.  The newspapers and websites distribute news and entertainment.

Liberty Global plc owns interests in broadband, distribution, and content companies operating outside the continental United States, principally in Europe, Asia, and Latin America.

Liberty Broadband Corporation invests in communication companies. The Company has principal assets in TruePosition and Time Warner Cable.

Nexstar Broadcasting Group, Inc, is a television broadcasting company focused on the acquisition, development, and operation of television stations in medium using traditional media, e-MEDIA, digital and mobile media platforms. Nexstar Broadcasting Group, Inc offers its services in the central east part of United States.

Nexstar Broadcasting Group, Inc (NXST US)

REA Group Limited provides online property listings, web development and internet related technology services to the real estate industry along with providing advertising services to Australian companies.  The Company also offers online real estate search services to the Australian public.

Publicis Groupe SA offers advertising services.  The Company develops advertising campaigns and sells advertising on billboards and urban furniture, in newspapers and magazines, on radio, and in movie theaters.  Publicis offers direct marketing, customer relationship marketing, sales promotion, public relations and human resources services, and operates retail drugstores.

Informa PLC provides business information on a worldwide basis.  The Company provides information in the finance and insurance, maritime transport and trade, law and tax, telecom and media, commodities and energy, and biomedical and pharmaceutical global markets.  Informa provides its information through newspapers, magazines, electronic media, books, and journals.

Pearson plc provides education products and services to institutions, governments and individual learners in over 80 countries. The Company's major revenue markets are North America, 'Core' including the UK, Italy and Australia and 'Growth' including Brazil, China and South Africa. It also owns the Financial Times, 50% of the Economist and 47% of Penguin Random House.

TOHO CO., LTD. produces and distributes motion pictures for cinema, television, and video.  The Company also sells character merchandise based on their media productions, distributes foreign films, operates musical theaters, and produces musical shows. In addition, Toho manages movie theaters in urban areas.

DENTSU INC. mainly provides comprehensive advertising services.  The Company also provides marketing and event planning & promotion services.  Dentsu has associated companies in the US, Europe, and Asia.

TOKYO BROADCASTING SYSTEM HOLDINGS, INC. is a media company that broadcasts television and radio programs nationally.  The Company offers a variety of TV programs & film production, visual & music software production, and cable television programming.  Tokyo Broadcasting System provides digital satellite broadcasting services and also operates real estate business.

Compagnie du Cambodge is an investment holding company that invests in companies active in agriculture, industry, real estate and finance.  The Company owns and operates plantations in Malaysia and forests in Cameroon.

JC Decaux SA offers advertising services.  The Company sells advertising on street furniture such as bus shelters, free standing panels, columns, and automatic toilets, billboards, and posters on buses, trains, and subways, and at railroad stations and airports.

CTS Eventim AG & Co. KGaA produces, sells, brokers and distributes entry tickets for concerts, theater productions, artistic, sporting and similar events. The Company operates an online booking system that allows event promoters to sell their tickets over a variety of distribution channels. CTS also sells tickets directly over the Internet and a call center and offers system support services.

The Walt Disney Company is an entertainment company that conducts operations in media networks, studio entertainment, theme parks and resorts, consumer products, and interactive media. The Company produces motion pictures, television programs, and musical recordings, as well as books and magazines.

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The Walt Disney Co (DIS US)

The Walt Disney Co - Financial & Price Forecasts

Disney's recent financial results demonstrated that the company continued progress towards more normalized operations across its businesses. The...

Baptista Research

The Walt Disney Company: Detailed Credit Analysis & Financial Strength Evaluation Report

Disney's recent financial performance showed its continued progress towards more normalized operations particularly in terms of its studios,...

Baptista Research

Disney 1Q2022: Knockin It Out of the Park

Despite a fantastic Parks quarter, which we think offers sustainably higher profits, the higher competitive intensity in streaming means the SoTP...

Aaron Gabin

Disney: Facing The Reality Of Intensifying Competition

Disney is in negative territory since I first covered the company, while the market returned nearly 50% over the period. Pandemic lockdowns are...

Vladimir Dimitrov, CFA

Netflix vs. Disney - The Battle of the Streaming Behemoths (12/2021)

Netflix and Disney are two of the world's largest players in online audiovisual content creation and streaming services. While Disney operates a...

Baptista Research

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