Consolidated Communications Stock Analysis, Valuation (NASDAQ:CNSL)
Consolidated Communications Stock Analysis
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 2.6/5
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?
- The lower PS ratio 0.7 for CNSL stock versus Wireline-Regional industry average of 1.8 is a positive for the company.
- Consolidated Communications is a dividend paying stock with a high yield of 14.21%.
- The LTM ROE of 21.1% for Consolidated Communications is attractive.
- The company has a healthy free cash flow margin of 6.6%.
Should you sell CNSL stock?
- Over the last 5 years, the company registered a poor revenue growth of 16%.
- Consolidated Communications had a poor average operating margin of 3.7% over the last 4 quarters.
- Consolidated Communications's LTM Net margins were poor at 6.1%.
- With a debt/equity ratio of 4.08, Consolidated Communications is highly leveraged in comparison to Utilities peers.
- The CNSL stock currently trades at a PE of 52.3, which is expensive, compared to the industry average of 20.1.
- Consolidated Communications has a negative ROIC (Return on Invested Capital) of -1.9%.
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.