Consolidated Communications Holdings, Inc. [NASDAQ:CNSL]: Analyst Rating and Earnings
Professional stock traders oftentimes make sure they verify what some leading Wall Street voices have to say about a potential buy. Currently, in relation to Consolidated Communications Holdings, Inc. [CNSL], the latest Wall Street average recommendation we can view is from the fiscal quarter that will be ending in the month of December. On average, stock market experts give CNSL an Outperform rating. The average 12-month price forecast for this stock is $13.05, with the high estimate being $17.00, the low estimate being $11.25 and the median estimate amounting to $12.50. This is compared to its latest closing price of $11.40.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for Consolidated Communications Holdings, Inc. [CNSL] is sitting at 2.20. This is compared to 1 month ago, when its average rating was 2.20.
For the quarter ending in Sep-18 Consolidated Communications Holdings, Inc. [CNSL] generated $0.35 billion in sales. That’s 0.86% higher than the average estimate of $0.35 billion as provided by Wall Street analysts. The three indicators above suggest that overall, this stock is demonstrating a mixed bag of positive appeal and some drawbacks, making it a somewhat risky investment that also has the potential to generate high ROI in the long run.
Keep on the lookout for this organization’s next scheduled financial results, which are expected to be made public on Thu 7 Mar (In 56 Days).
Fundamental Analysis of Consolidated Communications Holdings, Inc. [CNSL]
Now let’s turn to look at profitability: with a current Operating Margin for Consolidated Communications Holdings, Inc. [CNSL] sitting at +6.82 and its Gross Margin at +30.36, this company’s Net Margin is now 4.40%. These metrics indicate that this company is not generating as much profit, after accounting for expenses, compared to its market peers.
This company’s Return on Total Capital is 3.23, and its Return on Invested Capital has reached 1.70%. Its Return on Equity is 17.47, and its Return on Assets is 2.15. These metrics suggest that this Consolidated Communications Holdings, Inc. does a poor job of managing its assets, and likely won’t be able to provide successful business outcomes for its investors in the near term.
Turning to investigate this organization’s capital structure, Consolidated Communications Holdings, Inc. [CNSL] has generated a Total Debt to Total Equity ratio of 411.98. Similarly, its Total Debt to Total Capital is 80.47, while its Total Debt to Total Assets stands at 59.81. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 406.75, and its Long-Term Debt to Total Capital is 79.45. This company is not leveraging its assets to take on debt, which stunts its growth and limits the ROI for investors.
What about valuation? This company’s Enterprise Value to EBITDA is 8.54 and its Total Debt to EBITDA Value is 6.43. The Enterprise Value to Sales for this firm is now 2.20, and its Total Debt to Enterprise Value stands at 0.76. Consolidated Communications Holdings, Inc. [CNSL] has a Price to Book Ratio of 1.52, a Price to Cash Flow Ratio of 3.50 and P/E Ratio of 12.58. These metrics all suggest that Consolidated Communications Holdings, Inc. is more likely to generate a positive ROI.
Shifting the focus to workforce efficiency, Consolidated Communications Holdings, Inc. [CNSL] earns $269,612 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 9.58 and its Total Asset Turnover is 0.35. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 0.83 and its Current Ratio is 0.83. This company is not investing its short-term assets in an optimally efficient way, making it a riskier investment.
Let’s now turn our attention to trading performance: Consolidated Communications Holdings, Inc. [CNSL] has 70.60M shares outstanding, amounting to a total market cap of $790.70M. Its stock price has been found in the range of 8.51 to 14.23. At its current price, it has moved by -21.29% from its 52-week high, and it has moved 31.61% from its 52-week low.
This stock’s Beta value is currently 0.97, which indicates that it is more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 51.37. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is Consolidated Communications Holdings, Inc. [CNSL] a Reliable Buy?
Consolidated Communications Holdings, Inc. [CNSL] stock is presenting a less attractive investment opportunity when compared to similarly-sized corporations in the same industry. The price performance of these shares has not shown much promise, and the financial results that this company has recently delivered present a highly risky investment.