NYSE:GTT

Stock Analysis Report

Executive Summary

GTT Communications, Inc. provides cloud networking services to multinational enterprises, carriers, and government customers in the United States, Europe, and internationally.

Snowflake

Fundamentals

Fair value with imperfect balance sheet.

Risks

  • GTT Communications has significant price volatility in the past 3 months.

Similar Companies

Share Price & News

How has GTT Communications's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0.4%

NYSE:GTT

-0.7%

US IT

-1.6%

US Market


1 Year Return

-78.6%

NYSE:GTT

17.7%

US IT

-3.0%

US Market

GTT underperformed the IT industry which returned 21.1% over the past year.

GTT underperformed the Market in United States of America which returned -0% over the past year.


Share holder returns

GTTIndustryMarket
7 Day0.4%-0.7%-1.6%
30 Day-36.7%-3.2%-5.8%
90 Day-66.9%6.3%0.2%
1 Year-78.6%-78.6%19.0%17.7%-0.8%-3.0%
3 Year-58.5%-58.5%96.2%87.8%38.0%29.1%
5 Year-29.9%-29.9%137.6%113.4%50.8%34.1%

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

Valuation

Is GTT Communications undervalued based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

GTT Communications's share price is below the future cash flow value, and at a moderate discount (> 20%).

GTT Communications's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

GTT Communications is loss making, we can't compare its value to the US IT industry average.

GTT Communications is loss making, we can't compare the value of its earnings to the United States of America market.


Price Based on Expected Growth

Unable to calculate PEG ratio for GTT Communications, we can't assess if its growth is good value.


Price Based on Value of Assets

GTT Communications is good value based on assets compared to the US IT industry average.


Next Steps

Future Growth

How is GTT Communications expected to perform in the next 1 to 3 years based on estimates from 9 analysts?

56.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

GTT Communications's revenue is expected to grow by 1.6% yearly, however this is not considered high growth (20% yearly).

GTT Communications is not considered high growth as it is expected to be loss making for the next 1-3 years.

GTT Communications's revenue growth is positive but not above the United States of America market average.

Unable to compare GTT Communications's earnings growth to the United States of America market average as it is expected to be loss making during the next 1-3 years.

Unable to compare GTT Communications's earnings growth to the low risk savings rate as it is expected to be loss making during the next 1-3 years.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if GTT Communications will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has GTT Communications performed over the past 5 years?

-63.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

GTT Communications does not make a profit and their year on year earnings growth rate was negative over the past 5 years.

Unable to compare GTT Communications's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare GTT Communications's 1-year growth to the US IT industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if GTT Communications has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

GTT Communications used its assets less efficiently than the US IT industry average last year based on Return on Assets.


Return on Capital Employed

It is difficult to establish if GTT Communications improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is GTT Communications's financial position?


Financial Position Analysis

GTT Communications's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

GTT Communications's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

GTT Communications's level of debt (914.9%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (289.1% vs 914.9% today).


Balance Sheet

High level of physical assets or inventory.

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.

GTT Communications has sufficient cash runway for 2.9 years based on current free cash flow.

GTT Communications has sufficient cash runway for 2.1 years if free cash flow continues to grow at historical rates of 73.1% each year.


Next Steps

Dividend

What is GTT Communications's current dividend yield, its reliability and sustainability?


Dividend Yield and Payments Analysis

Unable to evaluate GTT Communications's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate GTT Communications's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as GTT Communications has not reported any payouts.

Unable to verify if GTT Communications's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as GTT Communications has not reported any payouts.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of GTT Communications's salary, the management and board of directors tenure and is there insider trading?

3.8yrs

Average management tenure


CEO

Rick Calder (55yo)

12.3yrs

Tenure

US$9,160,743

Compensation

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

Rick's remuneration is higher than average for companies of similar size in United States of America.

Rick's compensation has increased whilst company is loss making.


Management Age and Tenure

3.8yrs

Average Tenure

54yo

Average Age

The tenure for the GTT Communications management team is about average.


Board Age and Tenure

11.6yrs

Average Tenure

61yo

Average Age

The average tenure for the GTT Communications board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

More shares have been bought than sold by GTT Communications individual insiders in the past 3 months.


Recent Insider Transactions

SellUS$6,88922 Aug 19
Michael Sicoli
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares837
Max PriceUS$8.23
BuyUS$9,597,20815 Aug 19
Spruce House Capital LLC
EntityCompany
Shares1,050,000
Max PriceUS$9.75
BuyUS$111,44615 Aug 19
Universal Telecommunications, Inc.
EntityCompany
Shares15,000
Max PriceUS$7.43
BuyUS$19,71515 Aug 19
H. Thompson
EntityIndividual
Role
Chairman of the Board
Founder & Executive Chairman
Shares2,500
Max PriceUS$7.89
BuyUS$96,24115 Aug 19
Nicholas Adamo
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares10,000
Max PriceUS$9.85
BuyUS$62,31013 Aug 19
S. Bruno
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares9,300
Max PriceUS$6.70
BuyUS$67,20013 Aug 19
Nicholas Adamo
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares10,000
Max PriceUS$6.72
BuyUS$7,12013 Aug 19
Rhodric Hackman
EntityIndividual
Role
Lead Director
Lead Independent Director
Shares1,000
Max PriceUS$7.12
BuyUS$38,00013 Aug 19
Theodore Smith
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares5,000
Max PriceUS$7.60
BuyUS$58,50013 Aug 19
Elizabeth Satin
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares7,500
Max PriceUS$7.80
BuyUS$99,99812 Aug 19
Christopher McKee
EntityIndividual
Role
Chief Legal Officer
Executive VP of Corporate Development
Shares12,840
Max PriceUS$7.79
BuyUS$131,40012 Aug 19
Richard Calder
EntityIndividual
Role
Chief Executive Officer
President
Shares20,000
Max PriceUS$6.57
SellUS$56,51807 Aug 19
Richard Calder
EntityIndividual
Role
Chief Executive Officer
President
Shares5,006
Max PriceUS$11.29
SellUS$35,27007 Aug 19
Michael Sicoli
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares3,124
Max PriceUS$11.29
SellUS$32,98907 Aug 19
Christopher McKee
EntityIndividual
Role
Chief Legal Officer
Executive VP of Corporate Development
Shares2,922
Max PriceUS$11.29
SellUS$40,96810 Jul 19
H. Thompson
EntityIndividual
Role
Chairman of the Board
Founder & Executive Chairman
Shares2,400
Max PriceUS$17.07
SellUS$22,71508 Jul 19
Richard Calder
EntityIndividual
Role
Chief Executive Officer
President
Shares1,274
Max PriceUS$17.83
SellUS$17,61729 May 19
Michael Sicoli
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares681
Max PriceUS$25.87
SellUS$16,50529 May 19
Christopher McKee
EntityIndividual
Role
Chief Legal Officer
Executive VP of Corporate Development
Shares638
Max PriceUS$25.87
SellUS$30,00929 May 19
Richard Calder
EntityIndividual
Role
Chief Executive Officer
President
Shares1,160
Max PriceUS$25.87
SellUS$25,52023 May 19
Christopher McKee
EntityIndividual
Role
Chief Legal Officer
Executive VP of Corporate Development
Shares954
Max PriceUS$26.75
SellUS$41,00823 May 19
Richard Calder
EntityIndividual
Role
Chief Executive Officer
President
Shares1,533
Max PriceUS$26.75
SellUS$19,44723 May 19
Michael Sicoli
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares727
Max PriceUS$26.75
SellUS$44,68121 May 19
Richard Calder
EntityIndividual
Role
Chief Executive Officer
President
Shares1,757
Max PriceUS$25.43
SellUS$19,83521 May 19
Christopher McKee
EntityIndividual
Role
Chief Legal Officer
Executive VP of Corporate Development
Shares780
Max PriceUS$25.43
SellUS$21,18321 May 19
Michael Sicoli
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares833
Max PriceUS$25.43
SellUS$115,39806 May 19
Michael Sicoli
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares2,778
Max PriceUS$41.54
SellUS$109,74906 May 19
Christopher McKee
EntityIndividual
Role
Chief Legal Officer
Executive VP of Corporate Development
Shares2,642
Max PriceUS$41.54
SellUS$201,88406 May 19
Richard Calder
EntityIndividual
Role
Chief Executive Officer
President
Shares4,860
Max PriceUS$41.54
SellUS$17,05316 Apr 19
Michael Sicoli
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares419
Max PriceUS$40.70
SellUS$51,91511 Apr 19
Richard Calder
EntityIndividual
Role
Chief Executive Officer
President
Shares1,321
Max PriceUS$39.30
SellUS$14,58011 Apr 19
Christopher McKee
EntityIndividual
Role
Chief Legal Officer
Executive VP of Corporate Development
Shares371
Max PriceUS$39.30
SellUS$63,06407 Mar 19
Christopher McKee
EntityIndividual
Role
Chief Legal Officer
Executive VP of Corporate Development
Shares1,964
Max PriceUS$32.11
SellUS$127,83226 Feb 19
Michael Sicoli
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares4,857
Max PriceUS$26.32
SellUS$115,83026 Feb 19
Christopher McKee
EntityIndividual
Role
Chief Legal Officer
Executive VP of Corporate Development
Shares4,401
Max PriceUS$26.32
SellUS$198,57826 Feb 19
Richard Calder
EntityIndividual
Role
Chief Executive Officer
President
Shares7,545
Max PriceUS$26.32
SellUS$61,68226 Feb 19
Michael Sicoli
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares1,902
Max PriceUS$32.43
SellUS$55,78026 Feb 19
Christopher McKee
EntityIndividual
Role
Chief Legal Officer
Executive VP of Corporate Development
Shares1,720
Max PriceUS$32.43
SellUS$104,87926 Feb 19
Richard Calder
EntityIndividual
Role
Chief Executive Officer
President
Shares3,234
Max PriceUS$32.43
SellUS$16,49325 Feb 19
Michael Sicoli
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares531
Max PriceUS$31.06
SellUS$34,38325 Feb 19
Richard Calder
EntityIndividual
Role
Chief Executive Officer
President
Shares1,107
Max PriceUS$31.06
SellUS$20,71725 Feb 19
Christopher McKee
EntityIndividual
Role
Chief Legal Officer
Executive VP of Corporate Development
Shares667
Max PriceUS$31.06
SellUS$16,80921 Feb 19
Michael Sicoli
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares570
Max PriceUS$29.49
SellUS$15,18721 Feb 19
Christopher McKee
EntityIndividual
Role
Chief Legal Officer
Executive VP of Corporate Development
Shares515
Max PriceUS$29.49
SellUS$35,38821 Feb 19
Richard Calder
EntityIndividual
Role
Chief Executive Officer
President
Shares1,200
Max PriceUS$29.49
BuyUS$4,382,10031 Jan 19
Spruce House Capital LLC
EntityCompany
Shares154,000
Max PriceUS$28.60
BuyUS$6,425,02825 Jan 19
Spruce House Capital LLC
EntityCompany
Shares229,000
Max PriceUS$29.40
BuyUS$27,253,79325 Jan 19
Spruce House Capital LLC
EntityCompany
Shares1,092,000
Max PriceUS$27.50
BuyUS$39,24615 Nov 18
H. Thompson
EntityIndividual
Role
Chairman of the Board
Founder & Executive Chairman
Shares1,200
Max PriceUS$32.73
BuyUS$13,344,34713 Nov 18
Spruce House Capital LLC
EntityCompany
Shares375,000
Max PriceUS$35.77
BuyUS$17,613,84029 Oct 18
Spruce House Capital LLC
EntityCompany
Shares525,000
Max PriceUS$34.28
BuyUS$17,110,04804 Oct 18
Spruce House Capital LLC
EntityCompany
Shares387,933
Max PriceUS$44.11
BuyUS$14,137,40014 Sep 18
Spruce House Capital LLC
EntityCompany
Shares328,000
Max PriceUS$43.24
BuyUS$29,423,99410 Sep 18
Spruce House Capital LLC
EntityCompany
Shares702,531
Max PriceUS$43.47

Ownership Breakdown


Management Team

  • Rick Calder (55yo)

    President

    • Tenure: 12.3yrs
    • Compensation: US$9.16m
  • H. Thompson (80yo)

    Founder & Executive Chairman

    • Tenure: 12.8yrs
    • Compensation: US$650.01k
  • Ernie Ortega (54yo)

    Division President of Americas

    • Tenure: 0.2yrs
  • Mike Sicoli (48yo)

    Chief Financial Officer

    • Tenure: 4.3yrs
    • Compensation: US$5.05m
  • Chris McKee (51yo)

    Executive VP of Corporate Development

    • Tenure: 11.3yrs
    • Compensation: US$5.05m
  • Bob Burris

    Senior Vice President of Global Engineering & Operations

    • Tenure: 5.1yrs
  • Gina Nomellini

    Chief Marketing Officer

    • Tenure: 3.8yrs
  • Jesper Aagaard

    Division President of Europe

    • Tenure: 1.0yrs
  • Corey Eng

    Senior Vice President of Business Operations & Systems

    • Tenure: 3.8yrs
  • Rob Westervelt

    Senior VP of Channel Sales for the Americas division

    • Tenure: 0.6yrs

Board Members

  • Rick Calder (55yo)

    President

    • Tenure: 12.3yrs
    • Compensation: US$9.16m
  • Howard Janzen (65yo)

    Independent Director

    • Tenure: 12.8yrs
    • Compensation: US$256.50k
  • Julius Erving (69yo)

    Director

    • Tenure: 1.6yrs
    • Compensation: US$241.25k
  • Rhodric Hackman (71yo)

    Lead Independent Director

    • Tenure: 11.5yrs
    • Compensation: US$260.75k
  • S. Bruno (70yo)

    Independent Director

    • Tenure: 12.3yrs
    • Compensation: US$264.00k
  • H. Thompson (80yo)

    Founder & Executive Chairman

    • Tenure: 12.8yrs
    • Compensation: US$650.01k
  • Elizabeth Satin (57yo)

    Independent Director

    • Tenure: 3.1yrs
    • Compensation: US$246.50k
  • Nick Adamo (55yo)

    Independent Director

    • Tenure: 3.5yrs
    • Compensation: US$244.75k
  • Ted Smith (56yo)

    Independent Director

    • Tenure: 11.7yrs
    • Compensation: US$263.25k
  • Ben Stein (33yo)

    Director

    • Tenure: 0.3yrs

Company Information

GTT Communications, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: GTT Communications, Inc.
  • Ticker: GTT
  • Exchange: NYSE
  • Founded: 2005
  • Industry: Internet Services and Infrastructure
  • Sector: Software
  • Market Cap: US$483.582m
  • Shares outstanding: 56.36m
  • Website: https://www.gtt.net

Number of Employees


Location

  • GTT Communications, Inc.
  • 7900 Tysons One Place
  • Suite 1450
  • McLean
  • Virginia
  • 22102
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GTTNYSE (New York Stock Exchange)YesCommon StockUSUSDMay 2005
2G6DB (Deutsche Boerse AG)YesCommon StockDEEURMay 2005

Biography

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, p ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/23 23:56
End of Day Share Price2019/08/23 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.