Liberty Latin America Ltd. (NASDAQ:LILA) Shares Could Be 34% Above Their Intrinsic Value Estimate
In this article we are going to estimate the intrinsic value of Liberty Latin America Ltd. ( NASDAQ:LILA ) by taking...
U.S. Telecom Services and Carriers Industry Analysis
UpdatedNov 28, 2021
DataAggregated Company Financials
Companies65
- 7D-1.3%
- 3M-8.1%
- 1Y-12.1%
- YTD-11.7%
Over the last 7 days, the Telecom Services and Carriers industry has dropped 1.3%, driven by a pullback from AT&T of 3.3%. However, the industry is down 12% over the past year.
Industry Valuation and Performance
Has the U.S. Telecom Services and Carriers Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE |
|---|---|---|---|---|
| Tue, 30 Nov 2021 | US$457.1b | US$360.0b | US$38.7b | 16.4x |
| Thu, 28 Oct 2021 | US$468.4b | US$363.7b | US$37.0b | 15.1x |
| Sat, 25 Sep 2021 | US$486.2b | US$361.3b | US$31.5b | 11.3x |
| Mon, 23 Aug 2021 | US$487.3b | US$361.0b | US$31.6b | 11.5x |
| Sat, 10 Jul 2021 | US$503.0b | US$361.0b | US$31.6b | 11.6x |
| Fri, 02 Apr 2021 | US$512.1b | US$347.3b | US$13.4b | 13.4x |
| Mon, 04 Jan 2021 | US$495.0b | US$344.1b | US$8.6b | 10.8x |
| Thu, 08 Oct 2020 | US$492.5b | US$348.9b | US$27.2b | 10.6x |
| Wed, 01 Jul 2020 | US$486.5b | US$352.4b | US$30.6b | 13.4x |
| Sat, 04 Apr 2020 | US$468.6b | US$358.4b | US$32.8b | 12.1x |
| Tue, 07 Jan 2020 | US$587.2b | US$362.2b | US$25.7b | 20.5x |
| Mon, 30 Sep 2019 | US$575.3b | US$363.2b | US$23.1b | 15.5x |
| Thu, 04 Jul 2019 | US$531.7b | US$364.8b | US$22.8b | 14.9x |
| Sun, 07 Apr 2019 | US$522.6b | US$359.6b | US$25.4b | 15.6x |
| Wed, 09 Jan 2019 | US$488.9b | US$352.3b | US$31.0b | 15.1x |
PE Ratio
14.1x
Current Industry PE: Investors are relatively neutral on the industry at the moment, considering it's trading close to its 3-year average PE ratio of 13.9x. It appears they believe that earnings will grow in-line with historical growth rates.
Past Earnings Growth: The earnings for companies in the Telecom industry have declined 15% per year over the last three years, while revenues have remained mostly flat. This means that although sales have remained flat, either the cost of doing business or the level of investment back into businesses has increased, which has decreased profits.
Industry Trends
Which industries have driven the changes within the U.S. Telecom Services and Carriers industry?
| Integrated Telecom Services | -1.07% | |
| Alternative Carriers | -3.25% | |
Industry PE: Investors are most optimistic about the Alternative Carriers industry even though it's trading below its 3-year average PE ratio of 55.9x. However analysts are expecting annual earnings decline of 12%, which is lower than the prior year's growth of 146% per year. So the market might believe that analysts are underestimating future growth or they expect the Alternative Carriers industry's earnings to deteriorate the least compared to other industries. Meanwhile, investors are most pessimistic about the Integrated Telecom Services industry, which is trading close to its 3-year average of 13.4x.
Forecasted Growth: Analysts are most optimistic on the Integrated Telecom Services industry, expecting annual earnings growth of 2.4% over the next 5 years. Meanwhile, the Alternative Carriers industry is expected to see its earnings decline by 12% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | 7D | 1Y | Valuation | |
|---|---|---|---|---|
| VZ Verizon Communications | 0.2%+US$504.4m | -14.5% | PE9.8x | |
| BAND Bandwidth | 9.8%+US$159.3m | -53.3% | PS3.7x | |
| FYBR Frontier Communications Parent | 1.2%+US$97.8m | n/a | PE1.8x | |
| IRDM Iridium Communications | 0.7%+US$37.0m | 21.2% | PS8.5x | |
| SIFY Sify Technologies | 1.7%+US$10.9m | 218.3% | PE28x |