TFSA Value Picks: This Media Giant Could Be Ridiculously Undervalued

Corus Entertainment Inc. (TSX:CJR.B) is focused on strengthening and diversifying the company’s financial profile with a particular emphasis on generating free cash flow.

| More on:
financial freedom sign

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s premium investing services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn more

Corus Entertainment (TSX:CJR.B) is a company whose principal business activities are operated through two reporting segments. The television segment is composed of 34 discretionary specialty television networks that provide programming to audiences across Canada, including news, drama, lifestyle, arts, children’s, and entertainment content.

Diverse product segments

The company also owns television stations and a content business which includes wholly-owned Nelvana, a producer and distributor of children’s animated content and related consumer products, as well as Corus Studios, a global creator and distributor of lifestyle and factual reality content.

The radio segment is comprised of 39 radio stations that are situated primarily in high-growth urban centres in Southern Ontario. The company also operates companion websites and other digital platforms, including apps, which are related to Corus’ brands.

Robust strategic planning

In 2020, the company introduced a new strategic plan designed to increase long-term value for stakeholders. This holistic framework composed of strategic pillars, priorities and initiatives has been created to enable Corus to successfully navigate and thrive in an extremely dynamic media landscape.

The strategic plan is designed to capitalize on the ongoing shifts in audience behaviours and habits, content creation and distribution, advertising and marketing, and any future changes in the Canadian regulatory environment. The company has also contemplated the immediate and longer-term impacts of COVID-19 on Corus’ people and business, which has the potential to accelerate structural changes in the industry.

Building relationships

Corus’ foundation of long-term success is a strong, inclusive corporate culture that attracts and retains talented people, supports local communities, and creates opportunities for innovation and growth. Corus is proactively responding to changing consumer habits and audience expectations for high-quality content across a variety of platforms.

This is accomplished through deep relationships with international content partners and the creation of compelling original content.

Advertising plays a critical role in the future of media, and Corus has developed a portfolio of innovative solutions that provides the company’s clients with more targeted ways to engage audiences.

To achieve growth objectives, the company is employing a disciplined approach to Corus’s cost structure, strengthening the company’s core business while, at the same time, investing in new growth opportunities.

Growing content

Great content is the foundation of Corus’ business. Corus is working on securing long-term access to multiplatform rights from studio partners, creating original Canadian content, and growing the company’s slate of owned content for international sales.

Further, Corus is focused on the creation of engaging content and brand experiences, reaching and interacting with consumers on new platforms, and developing a unified view of audiences. The company is also focused on building businesses and brands and aspires to create powerful and relevant interactions between advertisers and audiences across Corus’s portfolio of assets.

Client-centric approach

Also, the company takes a client-centric approach to building and delivering innovative advertising solutions and becoming a trusted authority in marketing effectiveness. Corus is focused on strengthening and diversifying the company’s financial profile with a particular emphasis on generating free cash flow and achieving the company’s financial leverage goals to achieve greater financial flexibility.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Nikhil Kumar has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

More on Investing

Hands holding trophy cup on sky background
Investing

3 Growth Stocks That Could Be Huge Winners in the Next Decade and Beyond

Here are three top TSX growth stocks that may be worth a look, given the significant valuation declines these stocks…

Read more »

edit Back view of hugging couple standing with real estate agent in front of house for sale
Dividend Stocks

Why Real Estate Stocks Are a No-Brainer Addition to Your Portfolio

Real estate stocks, especially REITs, offer some distinct advantages over other types of stocks, making them must-have additions to most…

Read more »

Man data analyze
Stocks for Beginners

Beginners: 2 Market-Beating Stocks Just Getting Started

Brookfield Asset Management (TSX:BAM.A)(NYSE:BAM) and Constellation Software (TSX:CSU) are proven market beaters that could continue their ways.

Read more »

oil and natural gas
Energy Stocks

Small OPEC+ Oil-Output Hike: Buy More Energy Stocks?

Energy stocks could soar higher, because oil markets will remain tight due to the small production increase by OPEC+.

Read more »

Various Canadian dollars in gray pants pocket
Dividend Stocks

3 Top TSX Dividend Stocks to Buy for Monthly Passive Income

Top TSX stocks with monthly dividends now trade at cheap prices for investors seeking passive income.

Read more »

edit Person using calculator next to charts and graphs
Investing

Where to Invest $500 in the TSX Right Now

Long-term investors can look to buy stocks, including Suncor Energy and Shopify, as they are poised to outpace the broader…

Read more »

Canadian Dollars
Dividend Stocks

Create Free Passive Income and Turn it Into Thousands With 1 TSX Stock

If you can't afford to invest, you can certainly create passive income another way and use that to invest in…

Read more »

falling red arrow and lifting
Investing

2 Oversold TSX Stocks That Should Bounce Back

Stocks that are oversold without an external catalyst like a market crash or a weak sector might be risky buys,…

Read more »