Frontier Communications Stock Analysis, Valuation (NASDAQ:FTR)

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$7.74 $0.04 (0.52%) FTR stock closing price Jun 19, 2018 (Closing)

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 1.8/5

Amigobulls FTR stock analysis uses latest quarter 2018 Q1 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?

  • FTR stock is trading at a favorable price to sales multiple of 0.1 as against the Utilities sector average multiple of 1.9.
  • Frontier Communications's dividend yield of 23.26 is attractive.

Should you sell FTR stock?

  • Frontier Communications revenue saw a decline of -6.7% YoY in 2018-03.
  • Long term revenue growth of 12.6 over the past 5 years has been disappointing.
  • Frontier Communications reported an average operating margin of -16.42 over the Last Twelve Months (LTM).
  • Frontier Communications posted an average Net loss of -19.1% in the last twelve months.
  • Frontier Communications is debt laden and has a high debt/equity ratio of 7.32.
  • The company does not have profits. Hence the PE ratio is meaningless for FTR stock.
  • Frontier Communications has a negative ROIC (Return on Invested Capital) of -3.7.
  • Frontier Communications has a negative ROE (Return On Equity) of -53.5, indicating the company is not profitable.
  • Frontier Communications has a negative FCF (Free Cash Flow) margin of -1.6.

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.