LUMEN TECHNOLOGIES INC (LUMN) Stock Fundamental Analysis
NYSE:LUMN - New York Stock Exchange, Inc. - US5502411037 - Common Stock - Currency: USD
LUMN gets a fundamental rating of 2 out of 10. The analysis compared the fundamentals against 33 industry peers in the Diversified Telecommunication Services industry. LUMN has a bad profitability rating. Also its financial health evaluation is rather negative. 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.
In the past 5 years LUMN always reported a positive cash flow from operatings.
1.2 Ratios
LUMN has a Return On Assets of -0.93%. This is comparable to the rest of the industry: LUMN outperforms 45.45% of its industry peers.
The Return On Equity of LUMN (-108.30%) is worse than 90.91% of its industry peers.
LUMN has a worse Return On Invested Capital (1.36%) than 60.61% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for LUMN is below the industry average of 7.29%.
| 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
The Operating Margin of LUMN (3.98%) is comparable to the rest of the industry.
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: 66.67% 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.
The number of shares outstanding for LUMN has been increased compared to 1 year ago.
The number of shares outstanding for LUMN has been reduced compared to 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.
LUMN has a worse Altman-Z score (-0.22) than 81.82% of its industry peers.
The Debt to FCF ratio of LUMN is 17.37, which is on the high side as it means it would take LUMN, 17.37 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of LUMN (17.37) is worse than 60.61% of its industry peers.
LUMN has a Debt/Equity ratio of 59.98. This is a high value indicating a heavy dependency on external financing.
LUMN's Debt to Equity ratio of 59.98 is on the low side compared to the rest of the industry. LUMN is outperformed by 93.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 59.98 | ||
| Debt/FCF | 17.37 | ||
| Altman-Z | -0.22 |
ROIC/WACC0.21
WACC6.53%
2.3 Liquidity
A Current Ratio of 1.21 indicates that LUMN should not have too much problems paying its short term obligations.
LUMN has a Current ratio of 1.21. This is in the better half of the industry: LUMN outperforms 63.64% 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 in the better half of the industry: LUMN outperforms 63.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.21 | ||
| Quick Ratio | 1.17 |
3. Growth
3.1 Past
LUMN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -700.00%.
The Revenue has decreased by -7.86% in the past year.
LUMN shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -9.39% yearly.
EPS 1Y (TTM)-700%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-225%
Revenue 1Y (TTM)-7.86%
Revenue growth 3Y-12.68%
Revenue growth 5Y-9.39%
Sales Q2Q%-3.28%
3.2 Future
The Earnings Per Share is expected to grow by 6.48% on average over the next years.
LUMN is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -1.83% yearly.
EPS Next Y-383.61%
EPS Next 2Y-97.25%
EPS Next 3Y-39.06%
EPS Next 5Y6.48%
Revenue Next Year-4.59%
Revenue Next 2Y-4.03%
Revenue Next 3Y-3.28%
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.
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 rather cheap when compared to the industry. LUMN is cheaper than 81.82% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, LUMN is valued cheaply inside the industry as 90.91% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.75 | ||
| EV/EBITDA | 5.73 |
4.3 Compensation for Growth
A cheap valuation may be justified as LUMN's earnings are expected to decrease with -39.06% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-97.25%
EPS Next 3Y-39.06%
5. Dividend
5.1 Amount
No dividends for LUMN!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
3.72
-0.12 (-3.12%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners70.4%
Inst Owner Change1.79%
Ins Owners7.48%
Ins Owner Change18.29%
Market Cap3.81B
Analysts55.56
Price Target4.97 (33.6%)
Short Float %7.02%
Short Ratio4.98
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)-4.75%
PT rev (3m)-7.7%
EPS NQ rev (1m)-1.07%
EPS NQ rev (3m)-4.11%
EPS NY rev (1m)8.28%
EPS NY rev (3m)-3.78%
Revenue NQ rev (1m)0.83%
Revenue NQ rev (3m)0.38%
Revenue NY rev (1m)0.49%
Revenue NY rev (3m)0.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 0.29 | ||
| P/FCF | 3.75 | ||
| P/OCF | 0.88 | ||
| P/B | 13.2 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.73 |
EPS(TTM)-0.3
EYN/A
EPS(NY)-0.82
Fwd EYN/A
FCF(TTM)0.99
FCFY26.67%
OCF(TTM)4.22
OCFY113.44%
SpS12.68
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
WACC6.53%
ROIC/WACC0.21
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)-700%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-225%
EPS Next Y-383.61%
EPS Next 2Y-97.25%
EPS Next 3Y-39.06%
EPS Next 5Y6.48%
Revenue 1Y (TTM)-7.86%
Revenue growth 3Y-12.68%
Revenue growth 5Y-9.39%
Sales Q2Q%-3.28%
Revenue Next Year-4.59%
Revenue Next 2Y-4.03%
Revenue Next 3Y-3.28%
Revenue Next 5Y-1.83%
EBIT growth 1Y-37.71%
EBIT growth 3Y-51.9%
EBIT growth 5Y-33.9%
EBIT Next Year402.37%
EBIT Next 3Y77.09%
EBIT Next 5Y43.46%
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%