LUMEN TECHNOLOGIES INC (LUMN) Stock Fundamental Analysis
USA - NYSE:LUMN - US5502411037 - Common Stock
7.16 USD
+0.6 (+9.15%)
7.1799 USD
+0.02 (+0.28%)
We assign a fundamental rating of 2 out of 10 to LUMN. LUMN was compared to 36 industry peers in the Diversified Telecommunication Services industry. While LUMN seems to be doing ok healthwise, there are quite some concerns on its profitability. 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.
Each year in the past 5 years LUMN had a positive operating cash flow.
1.2 Ratios
The Return On Assets of LUMN (-3.58%) is worse than 77.78% of its industry peers.
LUMN's Return On Invested Capital of 1.11% is on the low side compared to the rest of the industry. LUMN is outperformed by 61.11% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for LUMN is below the industry average of 6.38%.
| Industry Rank | Sector 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%
1.3 Margins
LUMN has a Operating Margin of 3.21%. This is in the lower half of the industry: LUMN underperforms 63.89% 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: 63.89% 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 | 3.21% | ||
| 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%
2. Health
2.1 Basic Checks
LUMN has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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.
2.2 Solvency
LUMN has an Altman-Z score of -0.11. This is a bad value and indicates that LUMN is not financially healthy and even has some risk of bankruptcy.
LUMN's Altman-Z score of -0.11 is on the low side compared to the rest of the industry. LUMN is outperformed by 80.56% of its industry peers.
LUMN has a debt to FCF ratio of 19.08. This is a negative value and a sign of low solvency as LUMN would need 19.08 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 19.08, LUMN is in line with its industry, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 19.08 | ||
| Altman-Z | -0.11 |
ROIC/WACC0.17
WACC6.43%
2.3 Liquidity
A Current Ratio of 2.13 indicates that LUMN has no problem at all paying its short term obligations.
LUMN has a Current ratio of 2.13. This is amongst the best in the industry. LUMN outperforms 83.33% of its industry peers.
A Quick Ratio of 2.10 indicates that LUMN has no problem at all paying its short term obligations.
LUMN's Quick ratio of 2.10 is amongst the best of the industry. LUMN outperforms 86.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.13 | ||
| Quick Ratio | 2.1 |
3. Growth
3.1 Past
The earnings per share for LUMN have decreased strongly by -11.11% in the last year.
The Revenue has decreased by -6.50% in the past year.
The Revenue has been decreasing by -9.39% on average over the past years.
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
Based on estimates for the next years, LUMN will show a small growth in Earnings Per Share. The EPS will grow by 5.71% on average per year.
Based on estimates for the next years, LUMN will show a decrease in Revenue. The Revenue will decrease by -2.87% on average per year.
EPS Next Y-223.49%
EPS Next 2Y-68.31%
EPS Next 3Y-16.48%
EPS Next 5Y5.71%
Revenue Next Year-4.81%
Revenue Next 2Y-5.15%
Revenue Next 3Y-4.24%
Revenue Next 5Y-2.87%
3.3 Evolution
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.
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
66.67% of the companies in the same industry are more expensive than LUMN, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, LUMN is valued cheaper than 80.56% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.83 | ||
| EV/EBITDA | 7.03 |
4.3 Compensation for Growth
A cheap valuation may be justified as LUMN's earnings are expected to decrease with -16.48% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-68.31%
EPS Next 3Y-16.48%
5. Dividend
5.1 Amount
No dividends for LUMN!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
7.16
+0.6 (+9.15%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners71.63%
Inst Owner Change0%
Ins Owners7.81%
Ins Owner Change3.63%
Market Cap7.35B
Analysts71
Price Target5.41 (-24.44%)
Short Float %6.56%
Short Ratio4.02
Dividend
| Industry Rank | Sector 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)4.53%
PT rev (3m)10.47%
EPS NQ rev (1m)0.54%
EPS NQ rev (3m)20.57%
EPS NY rev (1m)-3.19%
EPS NY rev (3m)33.11%
Revenue NQ rev (1m)-0.1%
Revenue NQ rev (3m)-0.67%
Revenue NY rev (1m)-0.4%
Revenue NY rev (3m)-0.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 0.57 | ||
| P/FCF | 7.83 | ||
| P/OCF | 1.68 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.03 |
EPS(TTM)-0.2
EYN/A
EPS(NY)-0.59
Fwd EYN/A
FCF(TTM)0.91
FCFY12.77%
OCF(TTM)4.27
OCFY59.68%
SpS12.5
BVpS-0.58
TBVpS-4.99
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | -0.11 |
F-Score5
WACC6.43%
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-223.49%
EPS Next 2Y-68.31%
EPS Next 3Y-16.48%
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-2.87%
EBIT growth 1Y-28.35%
EBIT growth 3Y-51.9%
EBIT growth 5Y-33.9%
EBIT Next Year399.42%
EBIT Next 3Y75.15%
EBIT Next 5Y39.88%
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%