Entravision Communications Corporation (EVC): A Bull Case Theory

We came across a bullish thesis on Entravision Communications Corporation (EVC) on Substack by TheYoungValueHunter. In this article, we will summarize the bulls’ thesis on EVC. Entravision Communications Corporation (EVC)’s share was trading at $1.9 as of 21^st May.

Entravision Communications (EVC) has endured significant challenges, including a 53% revenue hit from Meta’s ASP program termination and a 60% stock decline.

Yet, under CEO Michael Christenson’s leadership, the company has initiated a strategic transformation. EVC streamlined operations, prioritized dividends, and realigned executive incentives toward performance and long-term value creation. Management’s decision to forgo cash bonuses in favor of RSUs and PUs with 200–600% stock price hurdles highlight deep alignment with shareholders.

A simplified capital structure following the founder’s passing has further increased the company’s attractiveness as an acquisition target. EVC operates in two segments: Media and Ad-Tech. While Media EBITDA has declined, the segment retains significant strategic value in a deregulated environment, especially as the FCC under Chairman Brendan Carr may lift ownership caps and renew auction authority.

The Ad-Tech segment, growing at 42% annually, now represents 40% of sales and may surpass Media, making it a strong candidate for a partial or full sale at a premium valuation. EVC’s underappreciated spectrum licenses, valued at up to $276M using MHz-pop metrics, could be monetized through a future FCC auction. A complete or piecemeal sale—Media, Ad-Tech, or spectrum—could unlock an EV of $700M, over 3x the current valuation.

Risks remain, including execution, regulatory setbacks, and macro headwinds, but with industry tailwinds, a leaner cost base, and high insider ownership, EVC offers compelling upside. With a dividend yield nearing 11%, shareholders are paid to wait for multiple catalysts to close the gap between price and value.

Entravision Communications Corporation (EVC) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 12 hedge fund portfolios held EVC at the end of the fourth quarter which was 12 in the previous quarter. While we acknowledge the risk and potential of EVC as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than EVC but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article was originally published at Insider Monkey.