LUMEN TECHNOLOGIES INC (LUMN) Stock Fundamental Analysis
NYSE:LUMN - New York Stock Exchange, Inc. - US5502411037 - Common Stock - Currency: USD
Overall LUMN gets a fundamental rating of 2 out of 10. We evaluated LUMN against 33 industry peers in the Diversified Telecommunication Services industry. LUMN may be in some trouble as it scores bad on both profitability and health. LUMN is valued expensive and it does not seem to be growing.
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
With a Return On Assets value of -0.93%, LUMN perfoms like the industry average, outperforming 48.48% of the companies in the same industry.
The Return On Equity of LUMN (-108.30%) is worse than 90.91% of its industry peers.
LUMN has a Return On Invested Capital of 1.36%. This is in the lower half of the industry: LUMN underperforms 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 7.13%.
| 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's Operating Margin of 3.98% is in line compared to the rest of the industry. LUMN outperforms 42.42% of its industry peers.
In the last couple of years the Operating Margin of LUMN has declined.
LUMN has a Gross Margin of 48.17%. This is in the lower half of the industry: LUMN underperforms 66.67% of its industry peers.
In the last couple of years the Gross Margin of LUMN has declined.
| 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
Compared to 5 years ago, LUMN has less shares outstanding
LUMN has a better debt/assets ratio than last year.
2.2 Solvency
LUMN has an Altman-Z score of -0.22. This is a bad value and indicates that LUMN is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of -0.22, LUMN is not doing good in the industry: 78.79% 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.
LUMN has a Debt to FCF ratio of 17.37. This is comparable to the rest of the industry: LUMN outperforms 42.42% 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.
Looking at the Debt to Equity ratio, with a value of 59.98, LUMN is doing worse than 93.94% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 59.98 | ||
| Debt/FCF | 17.37 | ||
| Altman-Z | -0.22 |
ROIC/WACC0.19
WACC7.13%
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 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.
The Quick ratio of LUMN (1.17) is better than 63.64% 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 -700.00% in the last year.
Looking at the last year, LUMN shows a decrease in Revenue. The Revenue has decreased by -7.86% in the last year.
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)-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 decrease by -23.85% on average over the next years. This is quite bad
Based on estimates for the next years, LUMN will show a decrease in Revenue. The Revenue will decrease by -2.67% on average per year.
EPS Next Y-383.61%
EPS Next 2Y-97.25%
EPS Next 3Y-39.06%
EPS Next 5Y-23.85%
Revenue Next Year-4.59%
Revenue Next 2Y-4.45%
Revenue Next 3Y-3.71%
Revenue Next 5Y-2.67%
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.
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
Based on the Enterprise Value to EBITDA ratio, LUMN is valued 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 87.88% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.07 | ||
| EV/EBITDA | 5.79 |
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 |
4.04
-0.16 (-3.81%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners71.49%
Inst Owner Change1.95%
Ins Owners7.91%
Ins Owner Change18.29%
Market Cap4.14B
Analysts71
Price Target4.9 (21.29%)
Short Float %7.05%
Short Ratio5.03
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)-1.47%
PT rev (3m)-8.59%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.5%
EPS NY rev (1m)0%
EPS NY rev (3m)-3.78%
Revenue NQ rev (1m)-0.03%
Revenue NQ rev (3m)0.79%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 0.32 | ||
| P/FCF | 4.07 | ||
| P/OCF | 0.96 | ||
| P/B | 14.33 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.79 |
EPS(TTM)-0.3
EYN/A
EPS(NY)-0.82
Fwd EYN/A
FCF(TTM)0.99
FCFY24.56%
OCF(TTM)4.22
OCFY104.46%
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
WACC7.13%
ROIC/WACC0.19
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 5Y-23.85%
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-4.45%
Revenue Next 3Y-3.71%
Revenue Next 5Y-2.67%
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 5Y39.58%
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%