Frontier Communications Corporation [NASDAQ:FTR]: Analyst Rating and Earnings
Stock market traders oftentimes pay a lot of attention to what top analysts say regarding a potential investment. Regarding Frontier Communications Corporation [FTR], the latest average analyst recommendation we can see is from the quarter closing in December. On average, stock market experts give FTR an Underperform rating. Its stock price has been found in the range of 1.81 to 11.64. This is compared to its latest closing price of $2.46.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for Frontier Communications Corporation [FTR] is sitting at 3.83. This is compared to 1 month ago, when its average rating was 3.83.
For the quarter ending in Dec-18 Frontier Communications Corporation [FTR] generated $2.12 billion in sales. That’s 1.74% higher than the average estimate of $2.09 billion as provided by Wall Street analysts. The three indicators above suggest that the company is performing better than market experts expected, boosting its appeal as a solid investment.
Pay attention for this company’s financial results, of which the next release is scheduled to happen on Tue 30 Apr (In 13 Days).
Fundamental Analysis of Frontier Communications Corporation [FTR]
Now let’s turn to look at profitability: with a current Operating Margin for Frontier Communications Corporation [FTR] sitting at +17.45 and its Gross Margin at +38.53, this company’s Net Margin is now -8.70%. 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 7.74, and its Return on Invested Capital has reached 4.70%. Its Return on Equity is -33.20, and its Return on Assets is -2.53. These metrics suggest that this Frontier Communications Corporation 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, Frontier Communications Corporation [FTR] has generated a Total Debt to Total Equity ratio of 1,077.56. Similarly, its Total Debt to Total Capital is 91.51, while its Total Debt to Total Assets stands at 69.48. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 1,024.81, and its Long-Term Debt to Total Capital is 87.03. 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 4.96 and its Total Debt to EBITDA Value is 4.99. The Enterprise Value to Sales for this firm is now 1.99, and its Total Debt to Enterprise Value stands at 1.01. Frontier Communications Corporation [FTR] has a Price to Book Ratio of 0.16, a Price to Cash Flow Ratio of 0.12.
Shifting the focus to workforce efficiency, Frontier Communications Corporation [FTR] earns $406,179 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 10.85 and its Total Asset Turnover is 0.34. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 0.52 and its Current Ratio is 0.52. This company is not investing its short-term assets in an optimally efficient way, making it a riskier investment.
Frontier Communications Corporation [FTR] has 107.01M shares outstanding, amounting to a total market cap of $266.45M. Its stock price has been found in the range of 1.81 to 11.64. At its current price, it has moved by -78.61% from its 52-week high, and it has moved 37.57% from its 52-week low.
This stock’s Beta value is currently 1.13, which indicates that it is more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 52.89. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is Frontier Communications Corporation [FTR] a Reliable Buy?
Frontier Communications Corporation [FTR] 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.