Home Sectors Communication Services Stock Valuation: CenturyLink (NYSE: CTL)

Stock Valuation: CenturyLink (NYSE: CTL)


CenturyLink is part of the communication services sector and is part of the communication services industry. The company CEO is Jeffrey K. Storey. CenturyLink Inc operates as a telecommunications company in the United States. It provides broadband, voice and wireless services to consumers and businesses across the country.

Previous Intraday Trading Performance:

The CTL stock showed a previous change of 0.64% with an open at 14.02 and a close of 14.21. It reached an intraday high of 14.24 and a low of 13.97.

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The stock has a market cap of $15.4b with 1.1b shares outstanding, of which the float is 1.1b shares. Trading volume reached 11,191,048 shares compared to its average volume of 14,991,110 shares. Based on the current average volume and close price, the trading liquidity is good.

Historical Trading Performance:

Over the last five trading days, CenturyLink shares returned -5.46% and in the past 30 trading days it returned -6.82%. Over three months, it changed -25.91%. In one year it has changed -11.50% and within that year its 52-week high was 24.20 and its 52-week low was 13.88. CTL stock is 2.38% above its 52 Week Low.

Our calculations show a 200 day moving average of 18.31 and a 50 day moving average of 16.12. Currently CTL stock is trading -22.39% below its 200 day moving average and may not be a good opportunity to buy as it may continue to trend down.

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The last annual fiscal EPS for the company was reported at 2.21 that ended on 31st of December 2017, which according to the previous close, that is a PE of 6.43. Based on 7 analyst estimates, the consensus EPS for the next quarter is 0.36. The TTM EPS is 0.99, which comes to a TTM PE of 14.35.

The following are the last four quarter reported earnings per share:
09-30-2018:  0.30
06-30-2018:  0.26
03-31-2018:  0.25
12-31-2017:  0.18

The dividend per share is currently 2.16, which is a dividend yield of 15.20%. CTL stock may not have enough earnings to cover future dividends and still be able to invest in the business, therefore the dividend may be cut in the future.

Base on our calculations, the intrinsic value per share is 41.36, which means it is possibly undervalued and has a margin of safety of 65.64%

Indicators to Watch:

Based on the latest filings, there is 0.90% of insider ownership and 103.20% of institutional ownership. Short-interest is 97,255,307, which is 9.00% of shares outstanding. The short-interest ratio or days-to-cover ratio is 6.54. This stock has a moderate level of short interest, but may still be a buying opportunity depending on other indicators.

The current calculated beta is 0.87

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Fundamental Indicators:

Based on last reported financials, the company’s return on equity is 10.04%, return on assets is 2.90%, profit margin is 3.84%, price-to-sales is 0.86 and price-to-book is 0.67.

Company Scores:

All scores are out of six:
 6  :Valuation Score
 4  :Past Performance Score
 0  :Financial Strength Score
 1  :Future Growth Score
 2  :Dividend Score
 2  :Overall Score

John Jones
Worked for several Wall Street firms: Salomon Smith Barney, UBS, and Charles Schwab. Has developed skills and gained extensive experience over the years that is used today to uncover winning penny stocks.Also was an attorney for small businesses in Scottsdale, Arizona. That experience and understanding of law provides a unique perspective and edge in discovering quality companies in various industries.