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 35 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.
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
LUMN has a Return On Assets of -0.93%. This is comparable to the rest of the industry: LUMN outperforms 54.29% of its industry peers.
LUMN has a Return On Equity of -108.30%. This is amonst the worse of the industry: LUMN underperforms 85.71% of its industry peers.
LUMN has a Return On Invested Capital of 1.36%. This is comparable to the rest of the industry: LUMN outperforms 42.86% of its industry peers.
LUMN had an Average Return On Invested Capital over the past 3 years of 3.61%. This is below the industry average of 7.12%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.93% | ||
| ROE | -108.3% | ||
| ROIC | 1.36% |
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 (3.98%) which is in line with its industry peers.
LUMN's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 48.17%, LUMN is not doing good in the industry: 62.86% 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 | 3.98% | ||
| PM (TTM) | N/A | ||
| GM | 48.17% |
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.
Compared to 1 year ago, LUMN has more shares outstanding
LUMN has less shares outstanding than it did 5 years ago.
The debt/assets ratio for LUMN has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of -0.22, we must say that LUMN is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of -0.22, LUMN is not doing good in the industry: 77.14% of the companies in the same industry are doing better.
LUMN has a debt to FCF ratio of 17.37. This is a negative value and a sign of low solvency as LUMN would need 17.37 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 17.37, LUMN is in line with its industry, outperforming 45.71% of the companies in the same industry.
LUMN has a Debt/Equity ratio of 59.98. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 59.98, LUMN is not doing good in the industry: 88.57% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 59.98 | ||
| Debt/FCF | 17.37 | ||
| Altman-Z | -0.22 |
ROIC/WACC0.22
WACC6.31%
2.3 Liquidity
A Current Ratio of 1.21 indicates that LUMN should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.21, LUMN is in the better half of the industry, outperforming 65.71% of the companies in the same industry.
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 in the better half of the industry: LUMN outperforms 68.57% 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 -11.11% in the last year.
LUMN shows a decrease in Revenue. In the last year, the revenue decreased by -9.95%.
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)-11.11%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%76.92%
Revenue 1Y (TTM)-9.95%
Revenue growth 3Y-12.68%
Revenue growth 5Y-9.39%
Sales Q2Q%-5.39%
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 -23.85% yearly.
The Revenue is expected to decrease by -3.20% on average over the next years.
EPS Next Y-382.8%
EPS Next 2Y-96.54%
EPS Next 3Y-38.64%
EPS Next 5Y-23.85%
Revenue Next Year-4.54%
Revenue Next 2Y-4.69%
Revenue Next 3Y-3.97%
Revenue Next 5Y-3.2%
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
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of LUMN indicates a rather cheap valuation: LUMN is cheaper than 88.57% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of LUMN indicates a rather cheap valuation: LUMN is cheaper than 88.57% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.78 | ||
| EV/EBITDA | 5.7 |
4.3 Compensation for Growth
LUMN's earnings are expected to decrease with -38.64% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-96.54%
EPS Next 3Y-38.64%
5. Dividend
5.1 Amount
LUMN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
3.75
+0.04 (+1.08%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners71.49%
Inst Owner Change-0.1%
Ins Owners7.91%
Ins Owner Change18.39%
Market Cap3.85B
Analysts71
Price Target4.94 (31.73%)
Short Float %7.09%
Short Ratio6.22
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0
Dividend Growth(5Y)-68.79%
DP-0.32%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)162.07%
Min EPS beat(2)52.11%
Max EPS beat(2)272.03%
EPS beat(4)2
Avg EPS beat(4)40.12%
Min EPS beat(4)-118.13%
Max EPS beat(4)272.03%
EPS beat(8)4
Avg EPS beat(8)-60.86%
EPS beat(12)6
Avg EPS beat(12)-32.44%
EPS beat(16)9
Avg EPS beat(16)-19.77%
Revenue beat(2)1
Avg Revenue beat(2)0.93%
Min Revenue beat(2)-0.09%
Max Revenue beat(2)1.96%
Revenue beat(4)1
Avg Revenue beat(4)-0.32%
Min Revenue beat(4)-1.86%
Max Revenue beat(4)1.96%
Revenue beat(8)1
Avg Revenue beat(8)-1.09%
Revenue beat(12)1
Avg Revenue beat(12)-1.28%
Revenue beat(16)1
Avg Revenue beat(16)-1.56%
PT rev (1m)0.87%
PT rev (3m)-2.21%
EPS NQ rev (1m)-2.16%
EPS NQ rev (3m)-3.25%
EPS NY rev (1m)0.17%
EPS NY rev (3m)8.44%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)0.83%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)0.62%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 0.3 | ||
| P/FCF | 3.78 | ||
| P/OCF | 0.89 | ||
| P/B | 13.31 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.7 |
EPS(TTM)-0.2
EYN/A
EPS(NY)-0.81
Fwd EYN/A
FCF(TTM)0.99
FCFY26.44%
OCF(TTM)4.22
OCFY112.45%
SpS12.67
BVpS0.28
TBVpS-6.18
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.93% | ||
| ROE | -108.3% | ||
| ROCE | 1.72% | ||
| ROIC | 1.36% | ||
| ROICexc | 1.45% | ||
| ROICexgc | 1.9% | ||
| OM | 3.98% | ||
| PM (TTM) | N/A | ||
| GM | 48.17% | ||
| FCFM | 7.82% |
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 | 59.98 | ||
| Debt/FCF | 17.37 | ||
| Debt/EBITDA | 5.04 | ||
| Cap/Depr | 113.28% | ||
| Cap/Sales | 25.45% | ||
| Interest Coverage | 0.44 | ||
| Cash Conversion | 125.83% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.21 | ||
| Quick Ratio | 1.17 | ||
| Altman-Z | -0.22 |
F-Score5
WACC6.31%
ROIC/WACC0.22
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-382.8%
EPS Next 2Y-96.54%
EPS Next 3Y-38.64%
EPS Next 5Y-23.85%
Revenue 1Y (TTM)-9.95%
Revenue growth 3Y-12.68%
Revenue growth 5Y-9.39%
Sales Q2Q%-5.39%
Revenue Next Year-4.54%
Revenue Next 2Y-4.69%
Revenue Next 3Y-3.97%
Revenue Next 5Y-3.2%
EBIT growth 1Y-37.71%
EBIT growth 3Y-51.9%
EBIT growth 5Y-33.9%
EBIT Next Year401.19%
EBIT Next 3Y75.48%
EBIT Next 5Y35.27%
FCF growth 1Y16.1%
FCF growth 3Y-32.61%
FCF growth 5Y-18.43%
OCF growth 1Y9.38%
OCF growth 3Y-12.65%
OCF growth 5Y-8.29%