Frontier Communications Stock Analysis, Valuation (NASDAQ:FTR)

Add to My Stocks
$13.56 $0.25 (1.81%) FTR stock closing price Aug 18, 2017 (Closing)
Watch Robo Advisor Video of FTR Stock Analysis
Frontier Communications
Updated on : Aug 18, 2017
previous close
FTR 13.6 (0%)
S&P 500 2425.6 (0%)
Closing Price On: Aug 18, 2017
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Wireline-Regional
Sector :
Utilities
5 Quarter Revenue
Revenue Growth
2017-Q2
$billion
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
13.5%
Operating Profit
Operating Margin:
4.1%
Sector Average:
15.9%
5 Quarter Net Profit
Net Margins
2017-Q2
%
LTM Margin
Debt/Equity Ratio
Debt:
17.85B
Debt/Equity Ratio:
 5.01
Compared to the industry
Cash Flow
Operating cash flow:
$529M
Net Income:
-$662M
Dividend Yield
FTR dividend yield:
39.16%
PROS      CONS
FCF Margin
High Dividend Yield
PS Valuation
Recent Growth
Long Term Growth
Operating Margins
Net Margins
High Debt Burden
ROIC
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
PE: N/A
FTR PS :
0.1
Industry PS :
2.1
Sector:   Utilities.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
1.3%
Return on Equity:
-20.2%
Free Cash Flow Margin:
12.4%
Double Tap To Exit Full Screen
0:00
/

Frontier Communications Analysis Video

352 6 2

View Frontier Communications stock analysis video. This is our FTR analyst opinion covering the buy and sell arguments for FTR stock.

Frontier Communications Corp Stock Rating (2.4/5)

Our Frontier Communications stock opinion is based on fundamentals of the company. This Frontier Communications stock analysis is based on latest 2017 Q2 earnings. The stock price analysis takes into account the company's valuation metrics.

Should you buy FTR stock?

  • FTR stock is trading at a favorable price to sales multiple of 0.1 as against the Wireline-Regional industry average multiple of 2.1.
  • Frontier Communications's dividend yield of 39.16% is attractive.
  • The company has a good Free Cash Flow (FCF) margin of 12.4%.

Should you sell FTR stock?

  • Frontier Communications sales shrank by -11.7% year-over-year in 2017 Q2.
  • Long term revenue growth of 13.5% over the past 5 years has been disappointing.
  • Frontier Communications's TTM operating margin of 4.1% was rather poor.
  • Frontier Communications registered an average TTM Net loss of -9.4%.
  • Frontier Communications has a debt/equity ratio of  5.01, which is worse than the average in the Utilities sector.
  • The lack of profits renders the PE ratio useless for FTR stock.
  • Frontier Communications provides a low return on invested capital of 1.3%.
  • A negative ROE of -20.2% indicates that the company is not able to generate profits with the money shareholders have invested.

Comments on this video and Frontier Communications stock