Market's view on Future
Published on April 2024
- Future, a specialist media platform, has shown strong performance in its Go.Compare service, Business-to-Business (B2B) sectors, and Magazines, though challenges persist in affiliate products and digital advertising.
- The company’s marketing update includes vague terms about its Growth Acceleration Strategy, raising questions about its clarity and substance.
- Future’s cash conversion has been strong in the first half of the year, but no specific details or figures regarding net debt were provided, which was previously noted at £327 million.
- The shares of Future have increased by 16% to 695 pence, reflecting market reassurance that it is on track for the 2024 fiscal year.
- Despite recent growth, Future’s shares are still down 80% from their peak in August 2021. The company could be seen as a potential takeover target due to its attractive brands and solid cash flow.
- The price-to-earnings ratio based on forecasted earnings shows very low market confidence in the company’s future forecasts.
- Discussions around the company’s performance often highlight the speculative nature of its stock due to uncertainties, particularly in technology and gaming where it faces disruption risks.
- There is a sentiment that the company might benefit from corporate actions like being acquired or undergoing significant restructuring.
- Some stock watchers believe that the company’s media brands are strong, but its tech and gaming platforms are weak and prone to disruptions.