The Next Hot Stock — QVC?

Is QVC an investor’s gold mine?

That’s certainly what a new report from Boyar Research seems to indicate, arguing that shares of the shopping network are being overlooked by investors due to a confusing corporate structure.

According to the report, QVC shares have been on the decline since Aug. 2015 after the company announced that it had acquired internet retailer zulily (QVC’s shares dropped as much as 30 percent in the months that followed). QVC’s shares took a further hit recently after the company posted a disappointing second quarter earnings report and announced that it also expected softness in its Q3 earnings as well (shares dropped almost 30 percent once more).

But Boyar Research remains bullish on the shopping channel that sells everything from customized mops to unique jewelry sets, arguing that QVC’s current struggles actually present a rare opportunity for investors to “own a high-quality business at an attractive valuation.”

“We continue to believe that QVC operates a superior retail business model,” according to Boyar Research. “The legacy QVC business (86 percent of revenues on a pro forma basis) generates strong levels of profitability, including operating income before depreciation and amortization (OIBDA) margins of 22 percent, has minimal capital requirements (capex as a percent of revenues: 2 percent) and produces strong and consistent levels of annual free cash flow ($800 to $900 million; FCF Yield: +10 percent).”

Boyar Research noted that QVC has returned $6.4 billion to shareholders through repurchase programs since the stock was introduced in 2006, which was a reduction of 42 percent of all outstanding shares.