LUMEN TECHNOLOGIES INC (LUMN)
US5502411037 - Common Stock
LUMN gets a fundamental rating of 1 out of 10. The analysis compared the fundamentals against 33 industry peers in the Diversified Telecommunication Services industry. LUMN has a bad profitability rating. Also its financial health evaluation is rather negative. LUMN does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
LUMN had negative earnings in the past year.
LUMN had a positive operating cash flow in the past year.
LUMN had negative earnings in 4 of the past 5 years.
LUMN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
LUMN's Return On Assets of -6.27% is on the low side compared to the rest of the industry. LUMN is outperformed by 81.82% of its industry peers.
The Return On Equity of LUMN (-443.13%) is worse than 93.94% of its industry peers.
Looking at the Return On Invested Capital, with a value of 1.56%, LUMN is doing worse than 60.61% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for LUMN is in line with the industry average of 6.11%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -6.27% | ||
| ROE | -443.13% | ||
| ROIC | 1.56% |
ROA(3y)-10.05%
ROA(5y)-8.07%
ROE(3y)-822.43%
ROE(5y)-503.49%
ROIC(3y)5.41%
ROIC(5y)5.37%
1.3 Margins
LUMN has a Operating Margin of 4.19%. This is in the lower half of the industry: LUMN underperforms 60.61% of its industry peers.
LUMN's Operating Margin has declined in the last couple of years.
LUMN has a worse Gross Margin (49.75%) than 63.64% of its industry peers.
In the last couple of years the Gross Margin of LUMN has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.19% | ||
| PM (TTM) | N/A | ||
| GM | 49.75% |
OM growth 3Y-21.4%
OM growth 5Y-10.36%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-3.61%
GM growth 5Y-1.78%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so LUMN is destroying value.
LUMN has more shares outstanding than it did 1 year ago.
LUMN has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, LUMN has a worse debt to assets ratio.
2.2 Solvency
LUMN has an Altman-Z score of -0.16. This is a bad value and indicates that LUMN is not financially healthy and even has some risk of bankruptcy.
LUMN's Altman-Z score of -0.16 is on the low side compared to the rest of the industry. LUMN is outperformed by 84.85% of its industry peers.
LUMN has a debt to FCF ratio of 125.70. This is a negative value and a sign of low solvency as LUMN would need 125.70 years to pay back of all of its debts.
LUMN's Debt to FCF ratio of 125.70 is on the low side compared to the rest of the industry. LUMN is outperformed by 66.67% of its industry peers.
A Debt/Equity ratio of 39.51 is on the high side and indicates that LUMN has dependencies on debt financing.
LUMN has a Debt to Equity ratio of 39.51. This is amonst the worse of the industry: LUMN underperforms 93.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 39.51 | ||
| Debt/FCF | 125.7 | ||
| Altman-Z | -0.16 |
ROIC/WACC0.28
WACC5.64%
2.3 Liquidity
LUMN has a Current Ratio of 1.01. This is a normal value and indicates that LUMN is financially healthy and should not expect problems in meeting its short term obligations.
LUMN has a worse Current ratio (1.01) than 60.61% of its industry peers.
A Quick Ratio of 0.96 indicates that LUMN may have some problems paying its short term obligations.
With a Quick ratio value of 0.96, LUMN perfoms like the industry average, outperforming 45.45% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.01 | ||
| Quick Ratio | 0.96 |
3. Growth
3.1 Past
The earnings per share for LUMN have decreased strongly by -123.38% in the last year.
Measured over the past years, LUMN shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -30.60% on average per year.
LUMN shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -12.01%.
The Revenue has been decreasing by -8.41% on average over the past years.
EPS 1Y (TTM)-123.38%
EPS 3Y-51.54%
EPS 5Y-30.6%
EPS Q2Q%-230%
Revenue 1Y (TTM)-12.01%
Revenue growth 3Y-11.09%
Revenue growth 5Y-8.41%
Sales Q2Q%-10.73%
3.2 Future
Based on estimates for the next years, LUMN will show a small growth in Earnings Per Share. The EPS will grow by 0.40% on average per year.
LUMN is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -2.66% yearly.
EPS Next Y-273.04%
EPS Next 2Y-118.9%
EPS Next 3Y-46.74%
EPS Next 5Y0.4%
Revenue Next Year-10.44%
Revenue Next 2Y-7.35%
Revenue Next 3Y-5.4%
Revenue Next 5Y-2.66%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
LUMN reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
Besides the negative Price/Earnings Ratio, also the Forward Price/Earnings Ratio is negative for LUMN. No positive earnings are expected for the next year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
LUMN's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. LUMN is cheaper than 72.73% of the companies in the same industry.
LUMN's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 43.9 | ||
| EV/EBITDA | 6.69 |
4.3 Compensation for Growth
A cheap valuation may be justified as LUMN's earnings are expected to decrease with -46.74% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-118.9%
EPS Next 3Y-46.74%
5. Dividend
5.1 Amount
No dividends for LUMN!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
LUMEN TECHNOLOGIES INC
NYSE:LUMN (10/31/2024, 7:48:06 PM)
After market: 6.38 -0.01 (-0.16%)6.39
-0.3 (-4.48%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap6.50B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(16)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -6.27% | ||
| ROE | -443.13% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 4.19% | ||
| PM (TTM) | N/A | ||
| GM | 49.75% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.42
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 39.51 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.01 | ||
| Quick Ratio | 0.96 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-123.38%
EPS 3Y-51.54%
EPS 5Y
EPS Q2Q%
EPS Next Y-273.04%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-12.01%
Revenue growth 3Y-11.09%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y