LUMEN TECHNOLOGIES INC (LUMN) Stock Fundamental Analysis
NYSE:LUMN - New York Stock Exchange, Inc. - US5502411037 - Common Stock - Currency: USD
We assign a fundamental rating of 2 out of 10 to LUMN. LUMN was compared to 31 industry peers in the Diversified Telecommunication Services industry. Both the profitability and financial health of LUMN have multiple concerns. LUMN does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
In the past year LUMN has reported negative net income.
In the past year LUMN had a positive cash flow from operations.
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
Looking at the Return On Assets, with a value of -6.28%, LUMN is doing worse than 76.67% of the companies in the same industry.
LUMN has a worse Return On Equity (-624.27%) than 93.33% of its industry peers.
With a Return On Invested Capital value of 1.20%, LUMN is not doing good in the industry: 63.33% of the companies in the same industry are doing better.
The Average Return On Invested Capital over the past 3 years for LUMN is in line with the industry average of 5.65%.
The last Return On Invested Capital (1.20%) for LUMN is well below the 3 year average (5.41%), which needs to be investigated, but indicates that LUMN had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -6.28% | ||
| ROE | -624.27% | ||
| ROIC | 1.2% |
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
The Operating Margin of LUMN (3.43%) is worse than 63.33% of its industry peers.
LUMN's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 49.35%, LUMN is doing worse than 60.00% of the companies in the same industry.
In the last couple of years the Gross Margin of LUMN has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.43% | ||
| PM (TTM) | N/A | ||
| GM | 49.35% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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.
LUMN has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of -0.19, we must say that LUMN is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of -0.19, LUMN is doing worse than 80.00% of the companies in the same industry.
The Debt to FCF ratio of LUMN is 14.36, which is on the high side as it means it would take LUMN, 14.36 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of LUMN (14.36) is comparable to the rest of the industry.
A Debt/Equity ratio of 53.05 is on the high side and indicates that LUMN has dependencies on debt financing.
LUMN has a worse Debt to Equity ratio (53.05) than 93.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 53.05 | ||
| Debt/FCF | 14.36 | ||
| Altman-Z | -0.19 |
ROIC/WACC0.22
WACC5.57%
2.3 Liquidity
LUMN has a Current Ratio of 1.20. 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 (1.20) than 66.67% of its industry peers.
A Quick Ratio of 1.16 indicates that LUMN should not have too much problems paying its short term obligations.
LUMN has a better Quick ratio (1.16) than 63.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.2 | ||
| Quick Ratio | 1.16 |
3. Growth
3.1 Past
The earnings per share for LUMN have decreased strongly by -140.74% in the last year.
The earnings per share for LUMN have been decreasing by -30.60% on average. This is quite bad
Looking at the last year, LUMN shows a very negative growth in Revenue. The Revenue has decreased by -10.40% in the last year.
The Revenue has been decreasing by -8.41% on average over the past years.
EPS 1Y (TTM)-140.74%
EPS 3Y-51.54%
EPS 5Y-30.6%
EPS Q2Q%-44.44%
Revenue 1Y (TTM)-10.4%
Revenue growth 3Y-11.09%
Revenue growth 5Y-8.41%
Sales Q2Q%-11.54%
3.2 Future
LUMN is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -17.24% yearly.
The Revenue is expected to decrease by -3.34% on average over the next years.
EPS Next Y-287.89%
EPS Next 2Y-136.52%
EPS Next 3Y-53.56%
EPS Next 5Y-17.24%
Revenue Next Year-10.39%
Revenue Next 2Y-7.71%
Revenue Next 3Y-6.06%
Revenue Next 5Y-3.34%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
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 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 | 3.99 | ||
| EV/EBITDA | 6.16 |
4.3 Compensation for Growth
LUMN's earnings are expected to decrease with -53.56% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-136.52%
EPS Next 3Y-53.56%
5. Dividend
5.1 Amount
No dividends for LUMN!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
LUMEN TECHNOLOGIES INC
NYSE:LUMN (1/28/2025, 5:33:33 PM)
After market: 5.09 +0.01 (+0.2%)5.08
+0.11 (+2.21%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners65.29%
Inst Owner Change1.38%
Ins Owners7.4%
Ins Owner Change-0.45%
Market Cap5.16B
Analysts52.22
Price Target5.27 (3.74%)
Short Float %7.77%
Short Ratio4.93
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0.01
Dividend Growth(5Y)-65.25%
DP-0.19%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-81.83%
Min EPS beat(2)-118.13%
Max EPS beat(2)-45.54%
EPS beat(4)1
Avg EPS beat(4)-174.89%
Min EPS beat(4)-1348.91%
Max EPS beat(4)813.01%
EPS beat(8)4
Avg EPS beat(8)-78.2%
EPS beat(12)5
Avg EPS beat(12)-56.92%
EPS beat(16)9
Avg EPS beat(16)-36.15%
Revenue beat(2)0
Avg Revenue beat(2)-1.56%
Min Revenue beat(2)-1.86%
Max Revenue beat(2)-1.27%
Revenue beat(4)0
Avg Revenue beat(4)-1.87%
Min Revenue beat(4)-4.19%
Max Revenue beat(4)-0.14%
Revenue beat(8)0
Avg Revenue beat(8)-1.69%
Revenue beat(12)0
Avg Revenue beat(12)-1.78%
Revenue beat(16)0
Avg Revenue beat(16)-1.94%
PT rev (1m)0.49%
PT rev (3m)6.71%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-337.87%
EPS NY rev (1m)0%
EPS NY rev (3m)-8.58%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.18%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)0.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 0.39 | ||
| P/FCF | 3.99 | ||
| P/OCF | 1.16 | ||
| P/B | 15.07 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.16 |
EPS(TTM)-0.22
EYN/A
EPS(NY)-0.68
Fwd EYN/A
FCF(TTM)1.27
FCFY25.06%
OCF(TTM)4.36
OCFY85.91%
SpS13.1
BVpS0.34
TBVpS-6.49
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -6.28% | ||
| ROE | -624.27% | ||
| ROCE | 1.52% | ||
| ROIC | 1.2% | ||
| ROICexc | 1.31% | ||
| ROICexgc | 1.76% | ||
| OM | 3.43% | ||
| PM (TTM) | N/A | ||
| GM | 49.35% | ||
| FCFM | 9.72% |
ROA(3y)-10.05%
ROA(5y)-8.07%
ROE(3y)-822.43%
ROE(5y)-503.49%
ROIC(3y)5.41%
ROIC(5y)5.37%
ROICexc(3y)5.58%
ROICexc(5y)5.51%
ROICexgc(3y)9.86%
ROICexgc(5y)10.59%
ROCE(3y)6.85%
ROCE(5y)6.79%
ROICexcg growth 3Y-25.46%
ROICexcg growth 5Y-14.54%
ROICexc growth 3Y-14.16%
ROICexc growth 5Y-3.23%
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%
F-Score5
Asset Turnover0.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 53.05 | ||
| Debt/FCF | 14.36 | ||
| Debt/EBITDA | 5.33 | ||
| Cap/Depr | 106.38% | ||
| Cap/Sales | 23.59% | ||
| Interest Coverage | 0.4 | ||
| Cash Conversion | 130.07% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.2 | ||
| Quick Ratio | 1.16 | ||
| Altman-Z | -0.19 |
F-Score5
WACC5.57%
ROIC/WACC0.22
Cap/Depr(3y)89.71%
Cap/Depr(5y)84.69%
Cap/Sales(3y)17.76%
Cap/Sales(5y)17.64%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-140.74%
EPS 3Y-51.54%
EPS 5Y-30.6%
EPS Q2Q%-44.44%
EPS Next Y-287.89%
EPS Next 2Y-136.52%
EPS Next 3Y-53.56%
EPS Next 5Y-17.24%
Revenue 1Y (TTM)-10.4%
Revenue growth 3Y-11.09%
Revenue growth 5Y-8.41%
Sales Q2Q%-11.54%
Revenue Next Year-10.39%
Revenue Next 2Y-7.71%
Revenue Next 3Y-6.06%
Revenue Next 5Y-3.34%
EBIT growth 1Y-71.57%
EBIT growth 3Y-30.12%
EBIT growth 5Y-17.89%
EBIT Next Year3077.88%
EBIT Next 3Y213.56%
EBIT Next 5Y101.73%
FCF growth 1Y-47.69%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-19.49%
OCF growth 3Y-30.82%
OCF growth 5Y-21.03%