Qurate Retail QRTEA Stock Analysis


Qurate Retail $QRTEA is the largest video retailer in the world, owning QVC and HSN. The stock has a PE ratio of 2.7, is it a deep value stock?


Qurate Retail today has 3 business segments, QxH (QVC + HSN), Zulily, and Cornerstone Brands. While Zulily and Cornerstone Brands are e-commerce businesses, QxH is the most important business segment.


Owning the two largest video retailers in the world, they have a moat, although video retailing is in decline in recent years with the rise of e-commerce companies such as Amazon $AMZN and the "influencer" retailing on Instagram $FB for example. They are targeting women in the age group 35-65 and they still have a big market there.


Revenues of the company are growing by 7% annually with net income growing by 12%. The main issue with the company is the debt. They took a big debt to acquire HSN.


For the time being, I have QRTEA on my watchlist, I need a bigger margin of safety before making an investment. It is mainly because of the debt.


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