CenturyLink, Inc. [NYSE: CTL] shares went higher by 3.53% from its previous closing of $10.77, now trading at the price of $11.15, also adding 0.38 points. Is CTL stock a buy or should you stay away?
The stock had a rather active trading session with the latest closing, by far recording 14.47 million contracts. Compared to the average trading volume of CTL shares, the company saw a far better performance. Moreover, the stock has a 1.08B float and a +6.39% run over in the last seven days. CTL share price has been hovering between $24.20 and $9.64 lately, and is definitely worthy of attention.
CenturyLink, Inc. [NYSE:CTL]: Analyst Rating and Earnings
Pro stock market traders often keep their attention pointed at what top market analysts have to say regarding a potential equity investment. For CenturyLink, Inc. [CTL] currently, the latest-available mean analyst rating is for the fiscal quarter that will end in December. On average, stock market experts give CTL an Hold rating. Its stock price has been found in the range of 9.64 to 24.20. This is compared to its latest closing price of $10.77.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for CenturyLink, Inc. [CTL] is sitting at 2.87. This is compared to 1 month ago, when its average rating was 3.06.
For the quarter ending in Mar-19 CenturyLink, Inc. [CTL] generated $5.65 billion in sales. That’s 1.08% lower than the average estimate of $5.71 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 your eyes peeled for this company’s upcoming financial results publication, which is slated for Wed 14 Aug (In 62 Days).
Fundamental Analysis of CenturyLink, Inc. [CTL]
Now let’s turn to look at profitability: with a current Operating Margin for CenturyLink, Inc. [CTL] sitting at +15.74 and its Gross Margin at +31.83, this company’s Net Margin is now -34.60%. 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 6.30, and its Return on Invested Capital has reached 0.90%. Its Return on Equity is -8.00, and its Return on Assets is -2.38. These metrics suggest that this CenturyLink, 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, CenturyLink, Inc. [CTL] has generated a Total Debt to Total Equity ratio of 181.87. Similarly, its Total Debt to Total Capital is 64.52, while its Total Debt to Total Assets stands at 51.33. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 178.58, and its Long-Term Debt to Total Capital is 63.36. 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 5.34 and its Total Debt to EBITDA Value is 4.09. The Enterprise Value to Sales for this firm is now 2.03, and its Total Debt to Enterprise Value stands at 0.70. CenturyLink, Inc. [CTL] has a Price to Book Ratio of 0.83, a Price to Cash Flow Ratio of 2.30.
Shifting the focus to workforce efficiency, CenturyLink, Inc. [CTL] earns $520,956 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 8.64 and its Total Asset Turnover is 0.32. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 0.64 and its Current Ratio is 0.66. This company is not investing its short-term assets in an optimally efficient way, making it a riskier investment.
CenturyLink, Inc. [CTL] has 1.08B shares outstanding, amounting to a total market cap of $12.09B. Its stock price has been found in the range of 9.64 to 24.20. At its current price, it has moved down by -53.93% from its 52-week high, and it has moved up 15.66% from its 52-week low.
This stock’s Beta value is currently 0.74, which indicates that it is 3.55% more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 57.84. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is CenturyLink, Inc. [CTL] a Reliable Buy?
CenturyLink, Inc. [CTL] 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.