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 stock pitch for DHX Media has significantly outperformed expectations, with a price increase of 90.9% over 28 months, aligning with the long thesis that highlighted the company's strong positioning in the kids' content segment and its growth potential. The relaunch of Teletubbies and the company's clean business model have likely contributed to this positive performance, confirming the thesis dynamics.
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