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LUMEN TECHNOLOGIES INC (LUMN) Stock Fundamental Analysis

USA - NYSE:LUMN - US5502411037 - Common Stock

5.595 USD
+0.05 (+0.99%)
Last: 9/17/2025, 3:53:08 PM
Fundamental Rating

2

We assign a fundamental rating of 2 out of 10 to LUMN. LUMN was compared to 35 industry peers in the Diversified Telecommunication Services industry. The financial health of LUMN is average, but there are quite some concerns on its profitability. LUMN does not seem to be growing, but still is valued expensively.


Dividend Valuation Growth Profitability Health

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1

1. Profitability

1.1 Basic Checks

In the past year LUMN has reported negative net income.
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.
LUMN Yearly Net Income VS EBIT VS OCF VS FCFLUMN Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5B -5B -10B

1.2 Ratios

Looking at the Return On Assets, with a value of -3.58%, LUMN is doing worse than 77.14% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 1.11%, LUMN is doing worse than 62.86% of the companies in the same industry.
LUMN had an Average Return On Invested Capital over the past 3 years of 3.61%. This is below the industry average of 6.32%.
Industry RankSector Rank
ROA -3.58%
ROE N/A
ROIC 1.11%
ROA(3y)-11.28%
ROA(5y)-6.48%
ROE(3y)-832.11%
ROE(5y)-498.04%
ROIC(3y)3.61%
ROIC(5y)4.58%
LUMN Yearly ROA, ROE, ROICLUMN Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 -500 -1K -1.5K -2K

1.3 Margins

The Operating Margin of LUMN (3.21%) is worse than 65.71% of its industry peers.
In the last couple of years the Operating Margin of LUMN has declined.
With a Gross Margin value of 47.68%, LUMN is not doing good in the industry: 62.86% of the companies in the same industry are doing better.
LUMN's Gross Margin has declined in the last couple of years.
Industry RankSector Rank
OM 3.21%
PM (TTM) N/A
GM 47.68%
OM growth 3Y-44.91%
OM growth 5Y-27.05%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-4.94%
GM growth 5Y-3.18%
LUMN Yearly Profit, Operating, Gross MarginsLUMN Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20 40 -40 -60

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5

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so LUMN is destroying value.
Compared to 1 year ago, LUMN has more shares outstanding
LUMN has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, LUMN has an improved debt to assets ratio.
LUMN Yearly Shares OutstandingLUMN Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M 1B
LUMN Yearly Total Debt VS Total AssetsLUMN Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20B 40B 60B

2.2 Solvency

Based on the Altman-Z score of -0.13, we must say that LUMN is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of LUMN (-0.13) is worse than 80.00% of its industry peers.
The Debt to FCF ratio of LUMN is 19.08, which is on the high side as it means it would take LUMN, 19.08 years of fcf income to pay off all of its debts.
LUMN's Debt to FCF ratio of 19.08 is in line compared to the rest of the industry. LUMN outperforms 51.43% of its industry peers.
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 19.08
Altman-Z -0.13
ROIC/WACC0.17
WACC6.45%
LUMN Yearly LT Debt VS Equity VS FCFLUMN Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10B 20B 30B

2.3 Liquidity

A Current Ratio of 2.13 indicates that LUMN has no problem at all paying its short term obligations.
The Current ratio of LUMN (2.13) is better than 82.86% of its industry peers.
LUMN has a Quick Ratio of 2.10. This indicates that LUMN is financially healthy and has no problem in meeting its short term obligations.
With an excellent Quick ratio value of 2.10, LUMN belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 2.13
Quick Ratio 2.1
LUMN Yearly Current Assets VS Current LiabilitesLUMN Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B 10B

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1

3. Growth

3.1 Past

LUMN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -11.11%.
Looking at the last year, LUMN shows a decrease in Revenue. The Revenue has decreased by -6.50% in the last year.
Measured over the past years, LUMN shows a decrease in Revenue. The Revenue has been decreasing by -9.39% on average per year.
EPS 1Y (TTM)-11.11%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%76.92%
Revenue 1Y (TTM)-6.5%
Revenue growth 3Y-12.68%
Revenue growth 5Y-9.39%
Sales Q2Q%-5.39%

3.2 Future

LUMN is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.71% yearly.
Based on estimates for the next years, LUMN will show a decrease in Revenue. The Revenue will decrease by -2.86% on average per year.
EPS Next Y-213.49%
EPS Next 2Y-67.08%
EPS Next 3Y-25.84%
EPS Next 5Y5.71%
Revenue Next Year-4.81%
Revenue Next 2Y-5.15%
Revenue Next 3Y-4.24%
Revenue Next 5Y-2.86%

3.3 Evolution

The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
LUMN Yearly Revenue VS EstimatesLUMN Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 5B 10B 15B 20B
LUMN Yearly EPS VS EstimatesLUMN Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 0 1 2

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2

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings Ratio is negative for LUMN. In the last year negative earnings were reported.
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 RankSector Rank
PE N/A
Fwd PE N/A
LUMN Price Earnings VS Forward Price EarningsLUMN Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 10 -10 20 -20

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, LUMN is valued a bit cheaper than 68.57% of the companies in the same industry.
85.71% of the companies in the same industry are more expensive than LUMN, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 6.12
EV/EBITDA 6.72
LUMN Per share dataLUMN EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 10

4.3 Compensation for Growth

A cheap valuation may be justified as LUMN's earnings are expected to decrease with -25.84% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-67.08%
EPS Next 3Y-25.84%

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0

5. Dividend

5.1 Amount

LUMN does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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LUMEN TECHNOLOGIES INC

NYSE:LUMN (9/17/2025, 3:53:08 PM)

5.595

+0.05 (+0.99%)

Chartmill FA Rating
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)07-31 2025-07-31/amc
Earnings (Next)11-03 2025-11-03/amc
Inst Owners71.48%
Inst Owner Change0.13%
Ins Owners7.9%
Ins Owner Change2.75%
Market Cap5.74B
Analysts70.53
Price Target5.27 (-5.81%)
Short Float %6.54%
Short Ratio4.83
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly Dividend0
Dividend Growth(5Y)-68.79%
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)70.47%
Min EPS beat(2)52.11%
Max EPS beat(2)88.84%
EPS beat(4)3
Avg EPS beat(4)91.86%
Min EPS beat(4)-45.54%
Max EPS beat(4)272.03%
EPS beat(8)4
Avg EPS beat(8)-65.72%
EPS beat(12)7
Avg EPS beat(12)-22.95%
EPS beat(16)9
Avg EPS beat(16)-14.81%
Revenue beat(2)0
Avg Revenue beat(2)-1.34%
Min Revenue beat(2)-2.58%
Max Revenue beat(2)-0.09%
Revenue beat(4)1
Avg Revenue beat(4)-0.64%
Min Revenue beat(4)-2.58%
Max Revenue beat(4)1.96%
Revenue beat(8)1
Avg Revenue beat(8)-1.16%
Revenue beat(12)1
Avg Revenue beat(12)-1.38%
Revenue beat(16)1
Avg Revenue beat(16)-1.51%
PT rev (1m)3.68%
PT rev (3m)7.63%
EPS NQ rev (1m)3.17%
EPS NQ rev (3m)20.57%
EPS NY rev (1m)35.07%
EPS NY rev (3m)35.18%
Revenue NQ rev (1m)-0.1%
Revenue NQ rev (3m)-0.67%
Revenue NY rev (1m)-0.28%
Revenue NY rev (3m)-0.23%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE N/A
P/S 0.45
P/FCF 6.12
P/OCF 1.31
P/B N/A
P/tB N/A
EV/EBITDA 6.72
EPS(TTM)-0.2
EYN/A
EPS(NY)-0.59
Fwd EYN/A
FCF(TTM)0.91
FCFY16.34%
OCF(TTM)4.27
OCFY76.38%
SpS12.5
BVpS-0.58
TBVpS-4.99
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -3.58%
ROE N/A
ROCE 1.4%
ROIC 1.11%
ROICexc 1.17%
ROICexgc 1.4%
OM 3.21%
PM (TTM) N/A
GM 47.68%
FCFM 7.31%
ROA(3y)-11.28%
ROA(5y)-6.48%
ROE(3y)-832.11%
ROE(5y)-498.04%
ROIC(3y)3.61%
ROIC(5y)4.58%
ROICexc(3y)3.79%
ROICexc(5y)4.7%
ROICexgc(3y)6.35%
ROICexgc(5y)8.52%
ROCE(3y)4.57%
ROCE(5y)5.8%
ROICexcg growth 3Y-47.53%
ROICexcg growth 5Y-31.85%
ROICexc growth 3Y-41.43%
ROICexc growth 5Y-24.11%
OM growth 3Y-44.91%
OM growth 5Y-27.05%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-4.94%
GM growth 5Y-3.18%
F-Score5
Asset Turnover0.39
Health
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 19.08
Debt/EBITDA 5.36
Cap/Depr 120.27%
Cap/Sales 26.88%
Interest Coverage 0.31
Cash Conversion 133.77%
Profit Quality N/A
Current Ratio 2.13
Quick Ratio 2.1
Altman-Z -0.13
F-Score5
WACC6.45%
ROIC/WACC0.17
Cap/Depr(3y)102.09%
Cap/Depr(5y)91.52%
Cap/Sales(3y)21.07%
Cap/Sales(5y)19.19%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-11.11%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%76.92%
EPS Next Y-213.49%
EPS Next 2Y-67.08%
EPS Next 3Y-25.84%
EPS Next 5Y5.71%
Revenue 1Y (TTM)-6.5%
Revenue growth 3Y-12.68%
Revenue growth 5Y-9.39%
Sales Q2Q%-5.39%
Revenue Next Year-4.81%
Revenue Next 2Y-5.15%
Revenue Next 3Y-4.24%
Revenue Next 5Y-2.86%
EBIT growth 1Y-28.35%
EBIT growth 3Y-51.9%
EBIT growth 5Y-33.9%
EBIT Next Year396.91%
EBIT Next 3Y74.63%
EBIT Next 5Y39.36%
FCF growth 1Y243.21%
FCF growth 3Y-32.61%
FCF growth 5Y-18.43%
OCF growth 1Y78.32%
OCF growth 3Y-12.65%
OCF growth 5Y-8.29%