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.