The largest and most known risk is the fact that people are utilizing the services of Netflix, Hulu, and live streaming services such as PlayStation Vue and Sling TV. Keep in mind that Sling TV is a part of Dish but operates as a stand-alone business. With these new services, people can watch what they want on their own time and also have a monthly pay as you go option rather than being locked into a 2 year contract of sorts.
Typically, a company's
financial statements are the reports that show the
financial position of the company. There are three main documents that fall into the category of financial statements. These documents include DISH Network income statement, its balance sheet, and the statement of cash flows. Potential DISH Network investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although DISH Network investors may use each financial statement separately, they are all related. The changes in DISH Network's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on DISH Network's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our
technical analysis and
fundamental analysis pages.
The goal of DISH Network
fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of DISH Network performance into the future periods or doing a reasonable stock valuation. The intrinsic value of DISH Network shares is the value that is considered the true value of the share. If
the intrinsic value of DISH is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares DISH Network. Please read more on our
fundamental analysis page.
How important is DISH Network's Liquidity
DISH Network
financial leverage refers to using borrowed capital as a funding source to finance DISH Network ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. DISH Network financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to DISH Network's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of DISH Network's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between DISH Network's total debt and its cash.
Another Deeper Perspective
Dish is currently on its way up from the previous low around the $45 price level. Taking a look at the monthly time frame, you can see that the stock has grow nicely but there is still further to go. Right now, it appears it is on a downtrend but that does not mean it can’t break the downtrend. The trend is established because there are lower highs and lower lows. You can use stochastic and other indicators to help confirm direction of the market.
Some of the risks you have to keep in mind is first, the development of how people are consuming their entertainment. With people no longer needing to be at home or even prepared at the time of original airing, Dish will need to keep that in their product line otherwise people will look elsewhere. Secondly, people are cutting the cord are a record pace and this should be cause for concern for companies such as Dish. As long as they are able to adjust and make the change, they should be able to ride the evolutionary wave and keep revenue going. Be sure to watch other factors that can affect the company but these are a few that stand out.
Be sure to take the time to research and see if this is a good fit for your portfolio. Take a look at the fundamentals as well as the technical health of the stock and go from there. If you get stuck, reach out to an investing professional and they can help to guide you in the right direction. Media consumption is changing and Dish must stay on top of the evolution to continue their success.
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Nathan Young is a Senior Member of Macroaxis Editorial Board - US Equity Analysis. With years of experience in the financial sector, Nathan brings a diverse base of knowledge. Specifically, he has in-depth understanding of application of technical and fundamental analysis across different equity instruments. Utilizing SEC filings and technical indicators, Nathan provides a reputable analysis of companies trading in the United States.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Nathan Young do not own shares of DISH Network. Please refer to our
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