GTT Communications, Inc. provides cloud networking services to multinational enterprises, carriers, and government customers in the United States, Europe, and internationally.
Fair value with imperfect balance sheet.
Share Price & News
How has GTT Communications's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: GTT's share price has been volatile over the past 3 months.
7 Day Return
1 Year Return
Return vs Industry: GTT underperformed the US IT industry which returned -9.4% over the past year.
Return vs Market: GTT underperformed the US Market which returned -15.1% over the past year.
Price Volatility Vs. Market
How volatile is GTT Communications's share price compared to the market and industry in the last 5 years?
Simply Wall St News
2 weeks ago | Simply Wall StHow Many GTT Communications, Inc. (NYSE:GTT) Shares Have Insiders Sold, In The Last Year?
1 month ago | Simply Wall StHow Much is GTT Communications, Inc.'s (NYSE:GTT) CEO Getting Paid?
2 months ago | Simply Wall StSuch Is Life: How GTT Communications (NYSE:GTT) Shareholders Saw Their Shares Drop 53%
Is GTT Communications undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: GTT ($7.18) is trading below our estimate of fair value ($34.82)
Significantly Below Fair Value: GTT is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: GTT is unprofitable, so we can't compare its PE Ratio to the IT industry average.
PE vs Market: GTT is unprofitable, so we can't compare its PE Ratio to the US market.
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate GTT's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: GTT is good value based on its PB Ratio (1.4x) compared to the US IT industry average (2.7x).
How is GTT Communications forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: GTT is forecast to remain unprofitable over the next 3 years.
Earnings vs Market: GTT is forecast to remain unprofitable over the next 3 years.
High Growth Earnings: GTT is forecast to remain unprofitable over the next 3 years.
Revenue vs Market: GTT's revenue (1% per year) is forecast to grow slower than the US market (7.1% per year).
High Growth Revenue: GTT's revenue (1% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: GTT is forecast to be unprofitable in 3 years.
How has GTT Communications performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: GTT is currently unprofitable.
Growing Profit Margin: GTT is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: GTT is unprofitable, and losses have increased over the past 5 years at a rate of -56.5% per year.
Accelerating Growth: Unable to compare GTT's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: GTT is unprofitable, making it difficult to compare its past year earnings growth to the IT industry (13.4%).
Return on Equity
High ROE: GTT has a negative Return on Equity (-36.38%), as it is currently unprofitable.
How is GTT Communications's financial position?
Financial Position Analysis
Short Term Liabilities: GTT's short term assets ($254.3M) do not cover its short term liabilities ($486.9M).
Long Term Liabilities: GTT's short term assets ($254.3M) do not cover its long term liabilities ($4.0B).
Debt to Equity History and Analysis
Debt Level: GTT's debt to equity ratio (1125.5%) is considered high.
Reducing Debt: GTT's debt to equity ratio has increased from 155.8% to 1125.5% over the past 5 years.
Inventory Level: GTT has a high level of physical assets or inventory.
Debt Coverage by Assets: GTT's debt is not covered by short term assets (assets are 0.1x debt).
Cash Runway Analysis
For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.
Stable Cash Runway: Whilst unprofitable GTT has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.
Forecast Cash Runway: GTT is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 16.2% per year.
What is GTT Communications's current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate GTT's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.
High Dividend: Unable to evaluate GTT's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if GTT's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if GTT's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of GTT's dividend in 3 years as they are not forecast to pay a notable one for the US market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Rick Calder (55yo)
Mr. Richard D. Calder Jr., also known as Rick, has been the Chief Executive Officer and President at GTT Communications, Inc. (the "Company") since May 14, 2007. Prior to joining the Company, from 2004 to ...
CEO Compensation Analysis
Compensation vs Market: Rick's total compensation ($USD9.16M) is above average for companies of similar size in the US market ($USD2.25M).
Compensation vs Earnings: Rick's compensation has increased whilst the company is unprofitable.
|Founder & Executive Chairman||13.5yrs||US$650.01k||1.14% $4.6m|
|Executive VP of Corporate Development||11.92yrs||US$5.05m||0.94% $3.8m|
|Interim CFO||0.58yr||no data||0.23% $951.5k|
|Senior Vice President of Global Engineering & Operations||5.75yrs||no data||no data|
|Senior Vice President of Human Resources||0.42yr||no data||no data|
|Senior Vice President of Business Operations & Systems||4.5yrs||no data||no data|
|Division President of Europe||1.67yrs||no data||no data|
|Senior VP of Channel Sales for the Americas division||1.25yrs||no data||no data|
|Division President of Americas||0.83yr||no data||no data|
Experienced Management: GTT's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.
|Founder & Executive Chairman||13.5yrs||US$650.01k||1.14% $4.6m|
|Independent Director||13.5yrs||US$256.50k||0.48% $1.9m|
|Independent Director||2.25yrs||US$241.25k||0.053% $214.8k|
|Lead Independent Director||12.17yrs||US$260.75k||0.34% $1.4m|
|Independent Director||12.92yrs||US$264.00k||0.27% $1.1m|
|Independent Director||3.75yrs||US$246.50k||0.11% $434.1k|
|Independent Director||4.17yrs||US$244.75k||0.15% $617.5k|
|Independent Director||12.33yrs||US$263.25k||0.81% $3.3m|
|Independent Director||0.92yr||no data||0.022% $91.3k|
Experienced Board: GTT's board of directors are seasoned and experienced ( 12.3 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 10.9%.
GTT Communications, Inc.'s company bio, employee growth, exchange listings and data sources
- Name: GTT Communications, Inc.
- Ticker: GTT
- Exchange: NYSE
- Founded: 2005
- Industry: Internet Services and Infrastructure
- Sector: Software
- Market Cap: US$407.374m
- Shares outstanding: 56.74m
- Website: https://www.gtt.net
Number of Employees
- GTT Communications, Inc.
- 7900 Tysons One Place
- Suite 1450
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|GTT||NYSE (New York Stock Exchange)||Yes||Common Stock||US||USD||May 2005|
|2G6||DB (Deutsche Boerse AG)||Yes||Common Stock||DE||EUR||May 2005|
GTT Communications, Inc. provides cloud networking services to multinational enterprises, carriers, and government customers in the United States, Europe, and internationally. The company offers private, public, and hybrid cloud network solutions; high bandwidth-Internet connectivity and IP transit, as well as broadband and wireless Internet access services; managed equipment, security, and hosting services; and voice services consisting of session initiation protocol trunking and hosted private branch exchange services. It also provides transport and infrastructure services enabling cloud-based applications and the transport of high volume data between data centers, enterprise office locations, and media hubs; video transport services to support broadcast quality transmission of live events, sports entertainment, and news to media and entertainment industry; wavelength services to deliver scalable high-performance optical connectivity; Ethernet services that enable to design network equipment; and colocation, turnkey, duct, and dark fiber services. The company’s IP network consists of approximately 600 points of presence. GTT Communications, Inc. markets its products and services through a network of direct sales force and indirect sales channels. The company was formerly known as Global Telecom & Technology, Inc. and changed its name to GTT Communications, Inc. in January 2014. GTT Communications, Inc. was founded in 2005 and is headquartered in McLean, Virginia.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/04/05 01:12|
|End of Day Share Price||2020/04/03 00:00|
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.