Frontier Communications Stock Analysis, Valuation (NASDAQ:FTR)

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$8.06 $0.7 (7.99%) FTR stock closing price Feb 22, 2018 (Closing)
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Frontier Communications
Updated on : Feb 22, 2018
previous close
FTR 8.1 (0%)
S&P 500 2704 (0%)
Closing Price On: Feb 22, 2018
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Wireline-Regional
Sector :
Utilities
5 Quarter Revenue
Revenue Growth
2017-Q3
$billion
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
13%
Operating Profit
Operating Margin:
4.7%
Sector Average:
15.2%
5 Quarter Net Profit
Net Margins
2017-Q3
%
LTM Margin
Debt/Equity Ratio
Debt:
17.77B
Debt/Equity Ratio:
 5.21
Compared to the industry
Cash Flow
Operating cash flow:
$356M
Net Income:
-$38M
Dividend Yield
FTR dividend yield:
53.85%
PROS      CONS
High Dividend Yield
PS Valuation
Recent Growth
Long Term Growth
Operating Margins
Net Margins
High Debt Burden
ROE
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
PE: N/A
FTR PS :
0.1
Industry PS :
1.9
Sector:   Utilities.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
1.4%
Return on Equity:
-20.8%
Free Cash Flow Margin:
4%
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Frontier Communications Stock Analysis

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Take a look at Amigobulls Frontier Communications stock analysis video. Our analyst opinion covering the buy and sell arguments for FTR stock is shown in the video.

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.

Frontier Communications Corp Stock Rating 2.3/5

Amigobulls FTR stock analysis uses latest quarter 2017 Q3 financial data like Frontier Communications revenue growth, profit margins and cash flows. Frontier Communications valuation forms a crucial part of our stock analysis. Frontier Communications stock rating is our opinion about the business fundamentals of the company.

Should you buy FTR stock?

  • When compared with the Wireline-Regional industry average PS ratio of 1.9, the price-to-sales ratio of 0.1 for FTR stock is attractive.
  • The company has a healthy dividend yield of 53.85%.

Should you sell FTR stock?

  • Frontier Communications revenue saw a decline of -10.8% YoY in 2017 Q3.
  • Long term revenue growth of 13% over the past 5 years has been disappointing.
  • Frontier Communications had an unimpressive average operating margin of 4.7% during the Last Twelve Months (LTM).
  • Over the last 12 months, Frontier Communications had an average Net loss of -9.2%.
  • With a debt/equity ratio of  5.21, Frontier Communications is highly leveraged in comparison to Utilities peers.
  • The lack of profits renders the PE ratio useless for FTR stock.
  • Frontier Communications has a negative ROE (Return On Equity) of -20.8%, indicating the company is not profitable.

Comments on this video and Frontier Communications stock

Investors can make use of the Amigobulls Frontier Communications stock analysis to ascertain how FTR stock fares in fundamental analysis investment criteria. Fundamental analysis of a company is the most often used approach to find the intrinsic value of a stock.

Frontier Communications revenue growth is an indicator of the demand for a company's products while profit margin is indicative of company's pricing power and pricing strategy. Investors could make use of FTR technical analysis to check whether the fundamental story is reflected in the market sentiment.