LUMEN TECHNOLOGIES INC (LUMN) Stock Fundamental Analysis
NYSE:LUMN - New York Stock Exchange, Inc. - US5502411037 - Common Stock - Currency: USD
Taking everything into account, LUMN scores 2 out of 10 in our fundamental rating. LUMN was compared to 31 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
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.
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 comparable to the rest of the industry.
LUMN has a Return On Equity (-11.85%) which is comparable to the rest of the industry.
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 61.29% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for LUMN is below the industry average of 5.74%.
| 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
With a Operating Margin value of 3.64%, LUMN perfoms like the industry average, outperforming 41.94% of the companies in the same industry.
LUMN's Operating Margin has declined in the last couple of years.
LUMN has a worse Gross Margin (48.86%) than 61.29% 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%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so LUMN is destroying value.
The number of shares outstanding for LUMN has been increased compared to 1 year ago.
Compared to 5 years ago, LUMN has less shares outstanding
Compared to 1 year ago, LUMN has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of -0.23, we must say that LUMN is in the distress zone and has some risk of bankruptcy.
LUMN has a worse Altman-Z score (-0.23) than 74.19% of its industry peers.
The Debt to FCF ratio of LUMN is 16.25, which is on the high side as it means it would take LUMN, 16.25 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 16.25, LUMN perfoms like the industry average, outperforming 51.61% of the companies in the same 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 worse Debt to Equity ratio (37.70) than 90.32% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 37.7 | ||
| Debt/FCF | 16.25 | ||
| Altman-Z | -0.23 |
ROIC/WACC0.2
WACC6.35%
2.3 Liquidity
A Current Ratio of 1.21 indicates that LUMN should not have too much problems paying its short term obligations.
LUMN's Current ratio of 1.21 is fine compared to the rest of the industry. LUMN outperforms 64.52% of its industry peers.
A Quick Ratio of 1.17 indicates that LUMN should not have too much problems paying its short term obligations.
LUMN has a Quick ratio of 1.17. This is comparable to the rest of the industry: LUMN outperforms 58.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.21 | ||
| Quick Ratio | 1.17 |
3. Growth
3.1 Past
The earnings per share for LUMN have decreased strongly by -210.53% in the last year.
Looking at the last year, LUMN shows a decrease in Revenue. The Revenue has decreased by -9.95% in the last year.
LUMN shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -9.39% yearly.
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 small growth in Earnings Per Share. The EPS will grow by 6.48% on average per year.
LUMN is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -1.83% yearly.
EPS Next Y-427.28%
EPS Next 2Y-93.89%
EPS Next 3Y-40.93%
EPS Next 5Y6.48%
Revenue Next Year-5.06%
Revenue Next 2Y-4.27%
Revenue Next 3Y-3.43%
Revenue Next 5Y-1.83%
3.3 Evolution
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.
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 cheaper than 87.10% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, LUMN is valued cheaper than 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.86 | ||
| EV/EBITDA | 5.58 |
4.3 Compensation for Growth
LUMN's earnings are expected to decrease with -40.93% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-93.89%
EPS Next 3Y-40.93%
5. Dividend
5.1 Amount
LUMN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
3.07
-0.22 (-6.69%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners70.4%
Inst Owner Change-0.1%
Ins Owners7.48%
Ins Owner Change15.31%
Market Cap3.15B
Analysts55.56
Price Target5.22 (70.03%)
Short Float %8.33%
Short Ratio6.26
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)-2.59%
PT rev (3m)-1%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-80.43%
EPS NY rev (1m)-13.15%
EPS NY rev (3m)-62.15%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.47%
Revenue NY rev (1m)-0.21%
Revenue NY rev (3m)-0.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 0.24 | ||
| P/FCF | 2.86 | ||
| P/OCF | 0.73 | ||
| P/B | 6.78 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.58 |
EPS(TTM)-0.21
EYN/A
EPS(NY)-1.11
Fwd EYN/A
FCF(TTM)1.08
FCFY35.02%
OCF(TTM)4.23
OCFY137.68%
SpS12.79
BVpS0.45
TBVpS-6.15
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 | -0.23 |
F-Score4
WACC6.35%
ROIC/WACC0.2
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-427.28%
EPS Next 2Y-93.89%
EPS Next 3Y-40.93%
EPS Next 5Y6.48%
Revenue 1Y (TTM)-9.95%
Revenue growth 3Y-12.68%
Revenue growth 5Y-9.39%
Sales Q2Q%-5.35%
Revenue Next Year-5.06%
Revenue Next 2Y-4.27%
Revenue Next 3Y-3.43%
Revenue Next 5Y-1.83%
EBIT growth 1Y-61.22%
EBIT growth 3Y-51.9%
EBIT growth 5Y-33.9%
EBIT Next Year402.37%
EBIT Next 3Y77.09%
EBIT Next 5Y43.46%
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%