Now trading at a price of $5.9, Lumen Technologies has moved -2.3% so far today on a volume of 18,396,603, compared to its average of 23,363,141. In contrast, the S&P 500 index moved 0.4%.
Lumen Technologies shares moved -51.4% over the last 52 weeks, with a high of $12.93 and a low of $4.99. During this time, the stock lagged the S&P 500 index by -38.7%. As of January 2022, the company's 50-day average price is $5.67.
Lumen Technologies, Inc., a facilities-based technology and communications company, provides various integrated products and services under the Lumen, Quantum Fiber, and CenturyLink brands to business and residential customers in the United States and internationally. The large-cap Communication Services company has 29,000 full time employees and is based in Monroe, LA. Lumen Technologies has returned a 16.6% dividend yield over the last 12 months.
Snapshot of the Company's Consistent Operating Margins with a Positive Growth Rate:
| 2019-12-31 | 2020-12-31 | 2021-12-31 | |
|---|---|---|---|
| Revenue (MM) | $22,401 | $20,712 | $19,687 |
| Revenue Growth | n/a | -7.54% | -4.95% |
| Gross Margins | 55.0% | 56.9% | 56.9% |
| Gross Margins Growth | n/a | 3.45% | 0.0% |
| Operating Margins | 16.9% | 17.4% | 21.8% |
| Operating Margins Growth | n/a | 2.96% | 25.29% |
| Earnings Per Share | -$4.92 | -$1.14 | $1.91 |
| EPS Growth | n/a | 76.83% | 267.54% |
| Free Cash Flow (MM) | $3,052 | $2,795 | $3,601 |
| FCF Growth | n/a | -8.42% | 28.84% |
| Capital Expenditures (MM) | -$3,628 | -$3,729 | -$2,900 |
| Net Debt / EBITDA | 3.89 | 3.86 | 3.57 |
Lumen Technologies Is Undervalued at Today's Prices:
Compared to the Communication Services sector's average of 18.65, Lumen Technologies has a trailing twelve month P/E ratio of 2.8 and, according to its EPS guidance of 0.75, an expected P/E ratio of 7.9.
Lumen Technologies is undervalued in terms of its assets because its P/B ratio is 0.5 compared to its sector average of 2.62. The company's shares are now trading -74.2% below their Graham number, implying there is a margin of safety for the stock. We calculate the number according to this formula:
√(22.5 * EPS * book value per share) = √(22.5 * 1.91 * 12.155) = $22.86
Most of the Market Indicators on Lumen Technologies Are Negative:
12 analysts are following Lumen Technologies and have set target prices ranging from $5 to $8.8 per share. On average, they have given the company a rating of hold. At the current price of $5.9, LUMN is trading -12.33% away from its average analyst target price of $6.73 per share, implying an analyst consensus of some upside potential for the stock.
The company has an above average percentage of its shares sold short since 14.8% of the company's shares are tied to short positions. Institutions own 77.9% of Lumen Technologies's shares, while the insider ownership rate stands at 0.9%. The biggest shareholder is the Vanguard Group, Inc. with a 11% stake in the company worth approximately $698,461,156.
