Briefing on the Fundamentals of Consolidated Communications (CNSL)

Shares of Small-cap telecommunications company Consolidated Communications moved 16.1 this afternoon, and are now trading at $4.1 per share. On the other hand, the average analyst target price for the stock is $3.92.

Consolidated Communications Holdings, Inc., together with its subsidiaries, provides broadband and business communication solutions for consumer, commercial, and carrier channels in the United States.

Potential Consolidated Communications Investors Should Analyze the Following:

  • Consolidated Communications has moved -6.0% over the last year.

  • The company has a price to earnings growth (PEG) ratio of -1.52. A number between 0 and 1 could mean that the market is undervaluing Consolidated Communications's estimated growth potential

  • Its Price to Book (P/B) ratio is 0.88

Understanding Consolidated Communications's Operating Margins

Date Reported Total Revenue ($ k) Operating Expenses ($ k) Operating Margins (%) YoY Growth (%)
2023-03-06 1,191,263 -601,833 4 -63.64
2022-03-07 1,282,233 -571,722 11 0.0
2021-02-26 1,304,028 -600,225 11 83.33
2020-02-28 1,336,542 -680,325 6 500.0
2019-02-26 1,399,074 -766,273 1 -85.71
2018-03-01 1,059,574 -541,014 7

Over the last 6 years, Consolidated Communications's operating margins have averaged only 6.7%, with a high coefficient of variability of 59.0%. The firm's margins are declining at a -10.5% compounded yearly rate.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.

IN FOCUS