LUMEN TECHNOLOGIES INC(NYSE:LUMN) stock Fundamental Analysis

Fundamental Rating

LUMN gets a fundamental rating of 2 out of 10. The analysis compared the fundamentals against 31 industry peers in the Diversified Telecommunication Services industry. Both the profitability and financial health of LUMN have multiple concerns. LUMN is valued expensive and it does not seem to be growing.

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1. Profitability

1.1 Basic Checks

LUMN had negative earnings in the past year.

In the past year LUMN had a positive cash flow from operations.

LUMN had negative earnings in 4 of the past 5 years.

In the past 5 years LUMN always reported a positive cash flow from operatings.

1.2 Ratios

LUMN has a Return On Assets (-0.16%) which is in line with its industry peers.

LUMN has a Return On Equity of -11.85%. This is in the lower half of the industry: LUMN underperforms 66.67% of its industry peers.

LUMN's Return On Invested Capital of 1.26% is on the low side compared to the rest of the industry. LUMN is outperformed by 63.33% of its industry peers.

Measured over the past 3 years, the Average Return On Invested Capital for LUMN is below the industry average of 5.71%.

		Industry Rank	Sector Rank
ROA	-0.16%
ROE	-11.85%
ROIC	1.26%

ROA(3y)-11.28%

ROA(5y)-6.48%

ROE(3y)-832.11%

ROE(5y)-498.04%

ROIC(3y)3.61%

ROIC(5y)4.58%

1.3 Margins

LUMN has a Operating Margin of 3.64%. This is in the lower half of the industry: LUMN underperforms 63.33% of its industry peers.

In the last couple of years the Operating Margin of LUMN has declined.

The Gross Margin of LUMN (48.86%) is worse than 66.67% of its industry peers.

In the last couple of years the Gross Margin of LUMN has declined.

		Industry Rank	Sector Rank
OM	3.64%
PM (TTM)	N/A
GM	48.86%

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%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), LUMN is destroying value.

LUMN has more shares outstanding than it did 1 year ago.

The number of shares outstanding for LUMN has been reduced compared to 5 years ago.

The debt/assets ratio for LUMN has been reduced compared to a year ago.

2.2 Solvency

LUMN has an Altman-Z score of -0.20. This is a bad value and indicates that LUMN is not financially healthy and even has some risk of bankruptcy.

The Altman-Z score of LUMN (-0.20) is worse than 83.33% of its industry peers.

LUMN has a debt to FCF ratio of 16.25. This is a negative value and a sign of low solvency as LUMN would need 16.25 years to pay back of all of its debts.

The Debt to FCF ratio of LUMN (16.25) is comparable to the rest of the industry.

LUMN has a Debt/Equity ratio of 37.70. This is a high value indicating a heavy dependency on external financing.

LUMN has a Debt to Equity ratio of 37.70. This is amonst the worse of the industry: LUMN underperforms 93.33% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	37.7
Debt/FCF	16.25
Altman-Z	-0.2

ROIC/WACC0.19

WACC6.65%

2.3 Liquidity

LUMN has a Current Ratio of 1.21. 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 better Current ratio (1.21) than 66.67% of its industry peers.

A Quick Ratio of 1.17 indicates that LUMN should not have too much problems paying its short term obligations.

Looking at the Quick ratio, with a value of 1.17, LUMN is in the better half of the industry, outperforming 63.33% of the companies in the same industry.

		Industry Rank	Sector Rank
Current Ratio	1.21
Quick Ratio	1.17

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

LUMN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -210.53%.

The Revenue has decreased by -9.95% in the past 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)-210.53%

EPS 3YN/A

EPS 5YN/A

EPS Q2Q%12.5%

Revenue 1Y (TTM)-9.95%

Revenue growth 3Y-12.68%

Revenue growth 5Y-9.39%

Sales Q2Q%-5.35%

3.2 Future

Based on estimates for the next years, LUMN will show a quite strong growth in Earnings Per Share. The EPS will grow by 17.02% on average per year.

The Revenue is expected to decrease by -1.00% on average over the next years.

EPS Next Y-366.01%

EPS Next 2Y-97.47%

EPS Next 3Y-45.67%

EPS Next 5Y17.02%

Revenue Next Year-4.82%

Revenue Next 2Y-3.92%

Revenue Next 3Y-3.15%

Revenue Next 5Y-1%

3.3 Evolution

The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings Ratio is negative for LUMN. In the last year negative earnings were reported.

Also next year LUMN is expected to report negative earnings again, which makes the also the Forward Price/Earnings Ratio negative.

		Industry Rank	Sector Rank
PE	N/A
Fwd PE	N/A

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, LUMN is valued a bit cheaper than 80.00% of the companies in the same industry.

Based on the Price/Free Cash Flow ratio, LUMN is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.

		Industry Rank	Sector Rank
P/FCF	4.6
EV/EBITDA	6.06

4.3 Compensation for Growth

A cheap valuation may be justified as LUMN's earnings are expected to decrease with -45.67% in the coming years.

PEG (NY)N/A

PEG (5Y)N/A

EPS Next 2Y-97.47%

EPS Next 3Y-45.67%

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5. Dividend

5.1 Amount

LUMN does not give a dividend.

		Industry Rank	Sector Rank
Dividend Yield	N/A

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LUMEN TECHNOLOGIES INC

NYSE:LUMN (3/3/2025, 12:28:08 PM)

4.995

+0.28 (+5.83%)

Chartmill FA Rating

GICS SectorCommunication Services

GICS IndustryGroupTelecommunication Services

GICS IndustryDiversified Telecommunication Services

Earnings (Last)02-04 2025-02-04/amc

Earnings (Next)04-28 2025-04-28/amc

Inst Owners70.4%

Inst Owner Change7.29%

Ins Owners7.48%

Ins Owner Change-0.78%

Market Cap5.07B

Analysts53.68

Price Target5.36 (7.31%)

Short Float %8.01%

Short Ratio5.96

Dividend

		Industry Rank	Sector Rank
Dividend Yield	N/A

Yearly Dividend0

Dividend Growth(5Y)-68.79%

DP-5.45%

Div Incr Years0

Div Non Decr Years0

Ex-DateN/A

Surprises & Revisions

EPS beat(2)1

Avg EPS beat(2)113.25%

Min EPS beat(2)-45.54%

Max EPS beat(2)272.03%

EPS beat(4)1

Avg EPS beat(4)-310.14%

Min EPS beat(4)-1348.91%

Max EPS beat(4)272.03%

EPS beat(8)4

Avg EPS beat(8)-59.82%

EPS beat(12)6

Avg EPS beat(12)-33.58%

EPS beat(16)9

Avg EPS beat(16)-22.65%

Revenue beat(2)1

Avg Revenue beat(2)0.05%

Min Revenue beat(2)-1.86%

Max Revenue beat(2)1.96%

Revenue beat(4)1

Avg Revenue beat(4)-1.34%

Min Revenue beat(4)-4.19%

Max Revenue beat(4)1.96%

Revenue beat(8)1

Avg Revenue beat(8)-1.28%

Revenue beat(12)1

Avg Revenue beat(12)-1.43%

Revenue beat(16)1

Avg Revenue beat(16)-1.71%

PT rev (1m)-0.52%

PT rev (3m)7.35%

EPS NQ rev (1m)-74.57%

EPS NQ rev (3m)-83.05%

EPS NY rev (1m)-43.29%

EPS NY rev (3m)-51.89%

Revenue NQ rev (1m)-0.47%

Revenue NQ rev (3m)-0.5%

Revenue NY rev (1m)0.15%

Revenue NY rev (3m)0.3%

Valuation

		Industry Rank	Sector Rank
PE	N/A
Fwd PE	N/A
P/S	0.39
P/FCF	4.6
P/OCF	1.17
P/B	10.92
P/tB	N/A
EV/EBITDA	6.06

EPS(TTM)-0.21

EYN/A

EPS(NY)-0.98

Fwd EYN/A

FCF(TTM)1.09

FCFY21.74%

OCF(TTM)4.27

OCFY85.48%

SpS12.92

BVpS0.46

TBVpS-6.21

PEG (NY)N/A

PEG (5Y)N/A

Profitability

		Industry Rank	Sector Rank
ROA	-0.16%
ROE	-11.85%
ROCE	1.6%
ROIC	1.26%
ROICexc	1.35%
ROICexgc	1.78%
OM	3.64%
PM (TTM)	N/A
GM	48.86%
FCFM	8.41%

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-Score4

Asset Turnover0.39

Health

		Industry Rank	Sector Rank
Debt/Equity	37.7
Debt/FCF	16.25
Debt/EBITDA	5.1
Cap/Depr	109.3%
Cap/Sales	24.65%
Interest Coverage	0.38
Cash Conversion	126.22%
Profit Quality	N/A
Current Ratio	1.21
Quick Ratio	1.17
Altman-Z	-0.2

F-Score4

WACC6.65%

ROIC/WACC0.19

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)-210.53%

EPS 3YN/A

EPS 5YN/A

EPS Q2Q%12.5%

EPS Next Y-366.01%

EPS Next 2Y-97.47%

EPS Next 3Y-45.67%

EPS Next 5Y17.02%

Revenue 1Y (TTM)-9.95%

Revenue growth 3Y-12.68%

Revenue growth 5Y-9.39%

Sales Q2Q%-5.35%

Revenue Next Year-4.82%

Revenue Next 2Y-3.92%

Revenue Next 3Y-3.15%

Revenue Next 5Y-1%

EBIT growth 1Y-61.22%

EBIT growth 3Y-51.9%

EBIT growth 5Y-33.9%

EBIT Next Year408.7%

EBIT Next 3Y80.08%

EBIT Next 5Y43.74%

FCF growth 1Y217.23%

FCF growth 3Y-32.61%

FCF growth 5Y-18.43%

OCF growth 1Y100.6%

OCF growth 3Y-12.65%

OCF growth 5Y-8.29%

LUMEN TECHNOLOGIES INC (LUMN) Stock Fundamental Analysis

1. Profitability

1.1 Basic Checks

1.2 Ratios

1.3 Margins

More info and screens

2. Health

2.1 Basic Checks

2.2 Solvency

2.3 Liquidity

More info and screens

3. Growth

3.1 Past

3.2 Future

3.3 Evolution

More info and screens

4. Valuation

4.1 Price/Earnings Ratio

4.2 Price Multiples

4.3 Compensation for Growth

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5. Dividend

5.1 Amount

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