DHX Media Ltd.
Thesis
DHX Media is positioned well in the over-the-top video distribution landscape, focusing on kids' content which is crucial as 30% of SVOD viewing is kids' content. The company has a clean business model, high organic growth potential, and optionality for acquisition, trading at a lower valuation multiple compared to Lions Gate despite having higher growth. The relaunch of Teletubbies and a strong library of content further enhance its value proposition.
Did it work?
The long thesis on DHX Media has clearly played out: the stock returned +84.9% over 28 months, a strong gain consistent with the pitch's direction. The thesis emphasized undervaluation relative to growth (vs. Lions Gate), high organic growth potential, and content library value (Teletubbies relaunch, kids' SVOD demand), and the substantial positive price appreciation indicates the market re-rated the stock in line with these dynamics. With no stated multi-year target left unmet and a large directional gain realized, the verdict is worked with high confidence.