LUMEN TECHNOLOGIES INC (LUMN)
US5502411037 - Common Stock
LUMN gets a fundamental rating of 2 out of 10. The analysis compared the fundamentals against 35 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 was profitable.
In the past year LUMN had a positive cash flow from operations.
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's Return On Assets of -30.27% is on the low side compared to the rest of the industry. LUMN is outperformed by 91.67% of its industry peers.
LUMN has a worse Return On Equity (-2469.54%) than 94.44% of its industry peers.
With a Return On Invested Capital value of 3.19%, LUMN perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
LUMN had an Average Return On Invested Capital over the past 3 years of 5.41%. This is in line with the industry average of 5.67%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -30.27% | ||
| ROE | -2469.54% | ||
| ROIC | 3.19% |
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
LUMN has a Operating Margin (8.45%) which is in line with its industry peers.
LUMN's Operating Margin has declined in the last couple of years.
LUMN has a worse Gross Margin (50.92%) than 66.67% of its industry peers.
LUMN's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.45% | ||
| PM (TTM) | N/A | ||
| GM | 50.92% |
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) just above the Cost of Capital (WACC), LUMN is creating some value.
LUMN has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, LUMN has less shares outstanding
LUMN has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of -0.12, we must say that LUMN is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of -0.12, LUMN is not doing good in the industry: 77.78% of the companies in the same industry are doing better.
LUMN has a Debt/Equity ratio of 47.56. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 47.56, LUMN is doing worse than 94.44% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 47.56 | ||
| Debt/FCF | N/A | ||
| Altman-Z | -0.12 |
ROIC/WACC0.62
WACC5.11%
2.3 Liquidity
LUMN has a Current Ratio of 1.35. This is a normal value and indicates that LUMN is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Current ratio value of 1.35, LUMN is doing good in the industry, outperforming 72.22% of the companies in the same industry.
LUMN has a Quick Ratio of 1.29. This is a normal value and indicates that LUMN is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.29, LUMN is in the better half of the industry, outperforming 63.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.35 | ||
| Quick Ratio | 1.29 |
3. Growth
3.1 Past
LUMN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -87.74%.
The earnings per share for LUMN have been decreasing by -30.60% on average. This is quite bad
LUMN shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -16.71%.
LUMN shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -8.41% yearly.
EPS 1Y (TTM)-87.74%
EPS 3Y-51.54%
EPS 5Y-30.6%
EPS growth Q2Q-81.4%
Revenue 1Y (TTM)-16.71%
Revenue growth 3Y-11.09%
Revenue growth 5Y-8.41%
Revenue growth Q2Q-7.45%
3.2 Future
Based on estimates for the next years, LUMN will show a very negative growth in Earnings Per Share. The EPS will decrease by -17.80% on average per year.
LUMN is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.69% yearly.
EPS Next Y-112.21%
EPS Next 2Y-55.08%
EPS Next 3Y-28.6%
EPS Next 5Y-17.8%
Revenue Next Year-8.02%
Revenue Next 2Y-5.63%
Revenue Next 3Y-4.16%
Revenue Next 5Y-0.69%
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.
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
A Price/Earnings ratio of 6.37 indicates a rather cheap valuation of LUMN.
97.22% of the companies in the same industry are more expensive than LUMN, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of LUMN to the average of the S&P500 Index (24.84), we can say LUMN is valued rather cheaply.
LUMN is expected to report negative earnings next year, which makes the Forward Price/Earnings Ratio negative.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.37 | ||
| 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 86.11% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 4.5 |
4.3 Compensation for Growth
LUMN's earnings are expected to decrease with -28.60% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-55.08%
EPS Next 3Y-28.6%
5. Dividend
5.1 Amount
No dividends for LUMN!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
LUMEN TECHNOLOGIES INC
NYSE:LUMN (4/26/2024, 7:04:00 PM)
After market: 1.2298 +0.02 (+1.64%)1.21
0 (0%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.23B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.37 | ||
| Fwd PE | N/A | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -30.27% | ||
| ROE | -2469.54% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 8.45% | ||
| PM (TTM) | N/A | ||
| GM | 50.92% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.43
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 47.56 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.35 | ||
| Quick Ratio | 1.29 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-87.74%
EPS 3Y-51.54%
EPS 5Y
EPS growth Q2Q
EPS Next Y-112.21%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-16.71%
Revenue growth 3Y-11.09%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y