Consolidated Communications Stock Analysis, Valuation (NASDAQ:CNSL)

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$13.13 $0.32 (2.5%) CNSL stock closing price Jun 22, 2018 (Closing)

View the Consolidated Communications stock analysis video on Amigobulls. This video puts forward our latest analysis highlighting the pros and cons for CNSL stock.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

Consolidated Communications Holdings Inc Stock Rating 2.4/5

We at Amigobulls use various financial measures including profit margins, revenue growth and dividends for CNSL stock analysis. Consolidated Communications valuation forms a crucial part of our stock analysis. Based on a company's historical fundamentals we arrive at Consolidated Communications stock rating which is indicative of the company's financial performance.

Should you buy CNSL stock?

  • CNSL stock is trading at a favorable price to sales multiple of 0.7 as against the Utilities sector average multiple of 1.9.
  • Consolidated Communications's dividend yield of 12.18 is attractive.
  • Consolidated Communications has a good Return On Equity (ROE) of 15.
  • Consolidated Communications has a healthy FCF (Free Cash Flow) margin of 8.5.

Should you sell CNSL stock?

  • Consolidated Communications had a poor average operating margin of 2.32 over the last 4 quarters.
  • Consolidated Communications's LTM Net margins were poor at 4.6%.
  • Consolidated Communications is debt laden and has a high debt/equity ratio of 4.32.
  • CNSL stock is trading at a PE ratio of 427, which is worse than the sector average multiple of 18.7.
  • Consolidated Communications has a negative ROIC (Return on Invested Capital) of -0.9.

Comments on this video and Consolidated Communications stock

Amigobulls Consolidated Communications stock analysis helps investors in understanding how the company's fundamentals have performed in the last few quarters. Fundamental analysis of a company is the most often used approach to find the intrinsic value of a stock.

While doing a study of the company financials, Consolidated Communications revenue growth and profit or net income are two main metrics which help in identifying whether CNSL stock is overvalued or undervalued. Investors could make use of CNSL technical analysis to check whether the fundamental story is reflected in the market sentiment.