Entravision Communications Corporation (EVC): A Bull Case Theory
We came across a bullish thesis on Entravision Communications Corporation (EVC) on Substack by TheYoungValueHunter. In this article, we will summarize the bulls' thesis on EVC. Entravision Communications Corporation (EVC)'s share was trading at $1.9 as of 21st May.
An aerial view of a broadcasting company's television stations, showing the power of the company's media presence.
Entravision Communications (EVC) has endured significant challenges, including a 53% revenue hit from Meta's ASP program termination and a 60% stock decline.
Yet, under CEO Michael Christenson's leadership, the company has initiated a strategic transformation. EVC streamlined operations, prioritized dividends, and realigned executive incentives toward performance and long-term value creation. Management's decision to forgo cash bonuses in favor of RSUs and PUs with 200–600% stock price hurdles highlight deep alignment with shareholders.
A simplified capital structure following the founder's passing has further increased the company's attractiveness as an acquisition target. EVC operates in two segments: Media and Ad-Tech. While Media EBITDA has declined, the segment retains significant strategic value in a deregulated environment, especially as the FCC under Chairman Brendan Carr may lift ownership caps and renew auction authority.
The Ad-Tech segment, growing at 42% annually, now represents 40% of sales and may surpass Media, making it a strong candidate for a partial or full sale at a premium valuation. EVC's underappreciated spectrum licenses, valued at up to $276M using MHz-pop metrics, could be monetized through a future FCC auction. A complete or piecemeal sale—Media, Ad-Tech, or spectrum—could unlock an EV of $700M, over 3x the current valuation.
Risks remain, including execution, regulatory setbacks, and macro headwinds, but with industry tailwinds, a leaner cost base, and high insider ownership, EVC offers compelling upside. With a dividend yield nearing 11%, shareholders are paid to wait for multiple catalysts to close the gap between price and value.
Entravision Communications Corporation (EVC) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 12 hedge fund portfolios held EVC at the end of the fourth quarter which was 12 in the previous quarter. While we acknowledge the risk and potential of EVC as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than EVC but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.
Disclosure: None. This article was originally published at Insider Monkey.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
New York Times
6 hours ago
- New York Times
The Washington Post Plans an Influx of Outside Opinion Writers
The Washington Post has published some of the world's most influential voices for more than a century, including columnists like George Will and newsmakers like the Dalai Lama and President Trump. A new initiative aims to sharply expand that lineup, opening The Post to many published opinion articles from other newspapers across America, writers on Substack and eventually nonprofessional writers, according to four people familiar with the plan. Executives hope that the program, known internally as Ripple, will appeal to readers who want more breadth than The Post's current opinion section and more quality than social platforms like Reddit and X. The project will promote the outside opinion columns on The Post's website and app but outside its paywall, according to the people, who would speak only anonymously to discuss a confidential project. It will operate outside the paper's opinion section. The Post aims to strike some of the initial partnership deals this summer, two of the people said, and the company recently hired an editor to oversee writing for Ripple. A final phase, allowing nonprofessionals to submit columns with help from an A.I. writing coach called Ember, could begin testing this fall. Human editors would review submissions before publication. A spokeswoman for The Post declined to comment. Jeff Bezos, the founder and owner of The Post, has been trying to turn around the news organization's struggling business. He has told confidants that he wants to broaden the publication's reach beyond its traditional audience of coastal elites. For years, Mr. Bezos has also urged leaders at The Post to embrace aggregation, the practice of summarizing and linking to journalism published by other outlets, to attract additional readers. Ripple would be a big step in that direction. Executives involved with the project believe that it could reach a potential audience of 38 million U.S. adults, based on internal research, and that some of them would join a 'talent network' to submit their own writing, two of the people said. The company is also planning to explore subscription bundles with partner publishers, one of the people said. Want all of The Times? Subscribe.
Fox News
6 hours ago
- Fox News
AI robots help nurses beat burnout and transform hospital care
All times eastern The Evening Edit with Elizabeth Macdonald FOX News Radio Live Channel Coverage WATCH LIVE: House Democratic leader holds news conference
Fox News
6 hours ago
- Fox News
Joy Reid floats speculation that her race, 'anxiety' surrounding Trump played role in MSNBC firing
Ex-MSNBC host Joy Reid spoke out about her show being canceled on Monday, speculating that her race and network "anxiety" surrounding President Donald Trump played a role in her ultimately being fired from the liberal network. "I try not to speculate too much publicly because, again, I can't get inside the minds of other people. But I can tell you what other people have speculated about… There are lots of people at the network who are critical of Donald Trump. I mean, and they're still critical of him, I'm assuming, you know. So I don't think that's [it], but I do know there is a lot of anxiety both there and, I think, in every media. We're seeing it at CBS," she said, referring to Trump's lawsuit against the network over a "60 Minutes" interview with former Vice President Kamala Harris. Reid spoke with Katie Couric in a video posted on her Substack page and on her YouTube channel. Reid's MSNBC show was canceled earlier this year. "We're seeing it at ABC, where allegedly 'The View' hosts were told not to go so hard on Trump. There's a push for people to, hey, do less Trump. Do more entertainment. Don't be hard on him," the former MSNBC host said, noting reporting that ABC's "The View" hosts were told to tone down their political discussions. Couric pointed out that there was no difference between Reid and liberal hosts Nicolle Wallace or Rachel Maddow, to which Reid responded, "only in one way was I different. I'm a Black woman doing the thing." "I think that there is a difference for Trump in hearing the kinds of criticisms specifically out of a Black woman, it bothers him in a way it doesn't bother him like anything else. He's got this sort of tick about race, you know, and about, sort of criticism coming specifically from a Black woman because we've seen him lay out and dish out real abuse against Black women journalists," Reid said during her conversation with Couric. "I did a specific thing, which was, I tried to constantly unpack the racial history of the country, which is very much against the sort of Project 2025 thing. And it's something I can do in a certain capacity because of my background, because not only am I a Black woman, but I come from immigrant parents who come from what Donald Trump would consider s---hole countries, but that have a take on race that is different," Reid continued. Reid's show was replaced with "The WeekNight", an ensemble program featuring former Kamala Harris spokesperson Symone Sanders-Townsend, Alicia Menendez, the daughter of disgraced former New Jersey Sen. Bob Menendez, and Michael Steele, the former Republican National Committee chair who now staunchly opposes the GOP. MSNBC's new lineup has struggled in its first month, with Psaki shedding half the audience her predecessors averaged in the same timeslot, and with its other new programming struggling to attract viewers. MSNBC and ABC's "The View" did not immediately return requests for comment. Reid said prior to her show's cancellation, she was told that her show was "down less" in ratings than any other MSNBC show, aside from Maddow's. Reid and her former primetime colleagues faced a major ratings decline after Trump won the election. Her show, "The Reidout," shed 47% of its total audience, averaging just 759,000 viewers after averaging 1.4 million viewers throughout 2024 leading up to Election Day, "Our show was down less than any other primetime show. We were down, other than Rachel Maddow, we were down the least. So we were just told that we were holding on pretty well. And, you know, it's not like the ratings have gotten better since I've been gone. So I can tell you, honestly, I even had my exit interview and no one has told me why I was fired. I have no idea," she said. Reid said MSNBC's reasoning was "scripted" and "perfunctory," and explained that she had started being careful on social media. "We were being very careful, and I was trying to be more careful about anything on social media, because I know there was a real anxiety about social media, very much an anxiety about anything on social media," she said. "I don't know, I genuinely was not told."
