LUMEN TECHNOLOGIES INC (LUMN)
US5502411037 - Common Stock
We assign a fundamental rating of 2 out of 10 to LUMN. LUMN was compared to 33 industry peers in the Diversified Telecommunication Services industry. Both the profitability and financial health of LUMN have multiple concerns. LUMN has a expensive valuation and it also scores bad on growth.
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.
In the past 5 years LUMN reported 4 times negative net income.
LUMN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of -6.28%, LUMN is not doing good in the industry: 71.88% of the companies in the same industry are doing better.
With a Return On Equity value of -624.27%, LUMN is not doing good in the industry: 93.75% of the companies in the same industry are doing better.
LUMN has a Return On Invested Capital of 1.20%. This is comparable to the rest of the industry: LUMN outperforms 40.63% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for LUMN is in line with the industry average of 5.42%.
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
With a Operating Margin value of 3.43%, LUMN perfoms like the industry average, outperforming 40.63% of the companies in the same industry.
In the last couple of years the Operating Margin of LUMN has declined.
With a Gross Margin value of 49.35%, LUMN is not doing good in the industry: 62.50% of the companies in the same industry are doing better.
LUMN's Gross Margin has declined in the last couple of years.
| 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.
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
Based on the Altman-Z score of -0.17, we must say that LUMN is in the distress zone and has some risk of bankruptcy.
LUMN has a worse Altman-Z score (-0.17) than 81.25% of its industry peers.
LUMN has a debt to FCF ratio of 14.36. This is a negative value and a sign of low solvency as LUMN would need 14.36 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 14.36, LUMN is in line with its industry, outperforming 56.25% of the companies in the same industry.
LUMN has a Debt/Equity ratio of 53.05. This is a high value indicating a heavy dependency on external financing.
LUMN has a Debt to Equity ratio of 53.05. This is amonst the worse of the industry: LUMN underperforms 93.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 53.05 | ||
| Debt/FCF | 14.36 | ||
| Altman-Z | -0.17 |
ROIC/WACC0.22
WACC5.51%
2.3 Liquidity
A Current Ratio of 1.20 indicates that LUMN should not have too much problems paying its short term obligations.
LUMN has a better Current ratio (1.20) than 68.75% of its industry peers.
LUMN has a Quick Ratio of 1.16. This is a normal value and indicates that LUMN is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of LUMN (1.16) is better than 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.2 | ||
| Quick Ratio | 1.16 |
3. Growth
3.1 Past
LUMN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -140.74%.
The earnings per share for LUMN have been decreasing by -30.60% on average. This is quite bad
The Revenue for LUMN has decreased by -10.40% in the past year. This is quite bad
Measured over the past years, LUMN shows a decrease in Revenue. The Revenue has been decreasing by -8.41% on average per year.
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.
LUMN is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -3.34% yearly.
EPS Next Y-287.89%
EPS Next 2Y-136.52%
EPS Next 3Y-53.56%
EPS Next 5Y-17.24%
Revenue Next Year-10.41%
Revenue Next 2Y-7.74%
Revenue Next 3Y-6.06%
Revenue Next 5Y-3.34%
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.
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
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 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 75.00% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, LUMN is valued cheaper than 93.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.47 | ||
| EV/EBITDA | 6.41 |
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 (12/26/2024, 9:37:06 AM)
5.695
-0.12 (-2.15%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners65.29%
Inst Owner Change1.25%
Ins Owners7.4%
Ins Owner Change-0.34%
Market Cap5.78B
Analysts52.22
Price Target5.25 (-7.81%)
Short Float %7.52%
Short Ratio4.59
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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)6.19%
PT rev (3m)12.59%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-337.87%
EPS NY rev (1m)-8.7%
EPS NY rev (3m)-8.58%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.18%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)0.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 0.43 | ||
| P/FCF | 4.47 | ||
| P/OCF | 1.3 | ||
| P/B | 16.9 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.41 |
EPS(TTM)-0.22
EYN/A
EPS(NY)-0.68
Fwd EYN/A
FCF(TTM)1.27
FCFY22.36%
OCF(TTM)4.36
OCFY76.63%
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 | -0.17 |
F-Score5
WACC5.51%
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-10.41%
Revenue Next 2Y-7.74%
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 Year3056.41%
EBIT Next 3Y215.03%
EBIT Next 5Y101.17%
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%