OPTIMUM COMMUNICATIONS INC-A (OPTU) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:OPTU - US02156K1034 - Common Stock
1.94 USD
+0.04 (+2.11%)
1.95 USD
+0.01 (+0.52%)
Taking everything into account, OPTU scores 2 out of 10 in our fundamental rating. OPTU was compared to 91 industry peers in the Media industry. While OPTU is still in line with the averages on profitability rating, there are concerns on its financial health. OPTU has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
OPTU had negative earnings in the past year.
In the past year OPTU had a positive cash flow from operations.
OPTU had positive earnings in 4 of the past 5 years.
In the past 5 years OPTU always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of -6.03%, OPTU perfoms like the industry average, outperforming 43.96% of the companies in the same industry.
OPTU has a Return On Invested Capital of 3.47%. This is comparable to the rest of the industry: OPTU outperforms 58.24% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for OPTU is below the industry average of 7.07%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -6.03% | ||
| ROE | N/A | ||
| ROIC | 3.47% |
ROA(3y)0.14%
ROA(5y)0.94%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)4.17%
ROIC(5y)4.59%
1.3 Margins
Looking at the Operating Margin, with a value of 17.30%, OPTU belongs to the top of the industry, outperforming 84.62% of the companies in the same industry.
In the last couple of years the Operating Margin of OPTU has remained more or less at the same level.
OPTU's Gross Margin of 68.83% is amongst the best of the industry. OPTU outperforms 83.52% of its industry peers.
OPTU's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.3% | ||
| PM (TTM) | N/A | ||
| GM | 68.83% |
OM growth 3Y-8.93%
OM growth 5Y-0.42%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.58%
GM growth 5Y0.44%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so OPTU is destroying value.
OPTU has more shares outstanding than it did 1 year ago.
OPTU has less shares outstanding than it did 5 years ago.
The debt/assets ratio for OPTU is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.33, we must say that OPTU is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of OPTU (0.33) is worse than 63.74% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.33 |
ROIC/WACC0.74
WACC4.71%
2.3 Liquidity
OPTU has a Current Ratio of 0.77. This is a bad value and indicates that OPTU is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of OPTU (0.77) is worse than 70.33% of its industry peers.
A Quick Ratio of 0.77 indicates that OPTU may have some problems paying its short term obligations.
OPTU's Quick ratio of 0.77 is on the low side compared to the rest of the industry. OPTU is outperformed by 69.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.77 | ||
| Quick Ratio | 0.77 |
3. Growth
3.1 Past
The earnings per share for OPTU have decreased strongly by -62.97% in the last year.
OPTU shows a decrease in Revenue. In the last year, the revenue decreased by -4.19%.
Measured over the past years, OPTU shows a decrease in Revenue. The Revenue has been decreasing by -1.71% on average per year.
EPS 1Y (TTM)-62.97%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-36.67%
Revenue 1Y (TTM)-4.19%
Revenue growth 3Y-3.9%
Revenue growth 5Y-1.71%
Sales Q2Q%-5.37%
3.2 Future
Based on estimates for the next years, OPTU will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.96% on average per year.
Based on estimates for the next years, OPTU will show a decrease in Revenue. The Revenue will decrease by -3.59% on average per year.
EPS Next Y-588.28%
EPS Next 2Y6.59%
EPS Next 3Y10.96%
EPS Next 5YN/A
Revenue Next Year-4.57%
Revenue Next 2Y-3.85%
Revenue Next 3Y-3.59%
Revenue Next 5YN/A
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
OPTU reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
Also next year OPTU 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
Based on the Enterprise Value to EBITDA ratio, OPTU is valued a bit cheaper than 70.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.16 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y6.59%
EPS Next 3Y10.96%
5. Dividend
5.1 Amount
OPTU does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
1.94
+0.04 (+2.11%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners104.1%
Inst Owner ChangeN/A
Ins Owners4.28%
Ins Owner Change-41.92%
Market Cap911.47M
Revenue(TTM)8.64B
Net Income(TTM)-1.85B
Analysts56.36
Price Target2.56 (31.96%)
Short Float %15.07%
Short Ratio16.41
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-321.7%
Min EPS beat(2)-562.43%
Max EPS beat(2)-80.98%
EPS beat(4)0
Avg EPS beat(4)-301.56%
Min EPS beat(4)-562.43%
Max EPS beat(4)-80.98%
EPS beat(8)0
Avg EPS beat(8)-515.89%
EPS beat(12)3
Avg EPS beat(12)-343.48%
EPS beat(16)5
Avg EPS beat(16)-259.65%
Revenue beat(2)0
Avg Revenue beat(2)-2.85%
Min Revenue beat(2)-3.39%
Max Revenue beat(2)-2.31%
Revenue beat(4)0
Avg Revenue beat(4)-2.52%
Min Revenue beat(4)-3.39%
Max Revenue beat(4)-2.19%
Revenue beat(8)0
Avg Revenue beat(8)-2.24%
Revenue beat(12)0
Avg Revenue beat(12)-2.25%
Revenue beat(16)0
Avg Revenue beat(16)-2.3%
PT rev (1m)-0.66%
PT rev (3m)N/A
EPS NQ rev (1m)-24.79%
EPS NQ rev (3m)N/A
EPS NY rev (1m)-13.98%
EPS NY rev (3m)N/A
Revenue NQ rev (1m)0.23%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)N/A
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 0.11 | ||
| P/FCF | N/A | ||
| P/OCF | 0.77 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.16 |
EPS(TTM)-0.6
EYN/A
EPS(NY)-0.2
Fwd EYN/A
FCF(TTM)-0.57
FCFYN/A
OCF(TTM)2.53
OCFY130.21%
SpS18.4
BVpS-4.77
TBVpS-48.2
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -6.03% | ||
| ROE | N/A | ||
| ROCE | 5.2% | ||
| ROIC | 3.47% | ||
| ROICexc | 3.58% | ||
| ROICexgc | 13.46% | ||
| OM | 17.3% | ||
| PM (TTM) | N/A | ||
| GM | 68.83% | ||
| FCFM | N/A |
ROA(3y)0.14%
ROA(5y)0.94%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)4.17%
ROIC(5y)4.59%
ROICexc(3y)4.21%
ROICexc(5y)4.63%
ROICexgc(3y)18.59%
ROICexgc(5y)21.15%
ROCE(3y)6.26%
ROCE(5y)6.88%
ROICexgc growth 3Y-13.83%
ROICexgc growth 5Y-2.67%
ROICexc growth 3Y-11.41%
ROICexc growth 5Y-0.67%
OM growth 3Y-8.93%
OM growth 5Y-0.42%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.58%
GM growth 5Y0.44%
F-Score4
Asset Turnover0.28
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 8.14 | ||
| Cap/Depr | 84.88% | ||
| Cap/Sales | 16.84% | ||
| Interest Coverage | 0.87 | ||
| Cash Conversion | 36.97% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.77 | ||
| Quick Ratio | 0.77 | ||
| Altman-Z | 0.33 |
F-Score4
WACC4.71%
ROIC/WACC0.74
Cap/Depr(3y)99.62%
Cap/Depr(5y)83.87%
Cap/Sales(3y)18.1%
Cap/Sales(5y)15.47%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-62.97%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-36.67%
EPS Next Y-588.28%
EPS Next 2Y6.59%
EPS Next 3Y10.96%
EPS Next 5YN/A
Revenue 1Y (TTM)-4.19%
Revenue growth 3Y-3.9%
Revenue growth 5Y-1.71%
Sales Q2Q%-5.37%
Revenue Next Year-4.57%
Revenue Next 2Y-3.85%
Revenue Next 3Y-3.59%
Revenue Next 5YN/A
EBIT growth 1Y-18.39%
EBIT growth 3Y-12.49%
EBIT growth 5Y-2.13%
EBIT Next Year77.26%
EBIT Next 3Y21.9%
EBIT Next 5YN/A
FCF growth 1Y-66.68%
FCF growth 3Y-54.84%
FCF growth 5Y-34.02%
OCF growth 1Y-33.75%
OCF growth 3Y-17.85%
OCF growth 5Y-9.13%
OPTIMUM COMMUNICATIONS INC-A / OPTU FAQ
What is the ChartMill fundamental rating of OPTIMUM COMMUNICATIONS INC-A (OPTU) stock?
ChartMill assigns a fundamental rating of 2 / 10 to OPTU.
What is the valuation status for OPTU stock?
ChartMill assigns a valuation rating of 1 / 10 to OPTIMUM COMMUNICATIONS INC-A (OPTU). This can be considered as Overvalued.
What is the profitability of OPTU stock?
OPTIMUM COMMUNICATIONS INC-A (OPTU) has a profitability rating of 4 / 10.
How financially healthy is OPTIMUM COMMUNICATIONS INC-A?
The financial health rating of OPTIMUM COMMUNICATIONS INC-A (OPTU) is 0 / 10.