NYSE:GTT

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Fair value with imperfect balance sheet.


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

Stable Share Price: GTT is more volatile than 75% of US stocks over the past 3 months, typically moving +/- 13% a week.

Volatility Over Time: GTT's weekly volatility (13%) has been stable over the past year, but is still higher than 75% of US stocks.


Market Performance


7 Day Return

-1.0%

GTT

2.8%

US IT

1.8%

US Market


1 Year Return

-42.1%

GTT

27.4%

US IT

20.4%

US Market

Return vs Industry: GTT underperformed the US IT industry which returned 27.4% over the past year.

Return vs Market: GTT underperformed the US Market which returned 20.4% over the past year.


Shareholder returns

GTTIndustryMarket
7 Day-1.0%2.8%1.8%
30 Day-20.8%5.7%6.0%
90 Day-19.4%3.2%6.8%
1 Year-42.1%-42.1%28.7%27.4%23.2%20.4%
3 Year-90.1%-90.1%95.5%87.9%47.4%37.6%
5 Year-81.1%-81.1%172.7%153.7%91.9%70.8%

Long-Term 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 compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GTT ($3.95) is trading below our estimate of fair value ($24.87)

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 US 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 (1.2x) compared to the US IT industry average (4x).


Next Steps

Future Growth

How is GTT Communications forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

13.6%

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 (1.4% per year) is forecast to grow slower than the US market (10.2% per year).

High Growth Revenue: GTT's revenue (1.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if GTT's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has GTT Communications performed over the past 5 years?

-54.4%

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 54.4% 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 (3.2%).


Return on Equity

High ROE: GTT has a negative Return on Equity (-82.27%), as it is currently unprofitable.


Next Steps

Financial Health

How is GTT Communications's financial position?


Financial Position Analysis

Short Term Liabilities: GTT's short term assets ($338.4M) do not cover its short term liabilities ($566.2M).

Long Term Liabilities: GTT's short term assets ($338.4M) do not cover its long term liabilities ($4.0B).


Debt to Equity History and Analysis

Debt Level: GTT's debt to equity ratio (1699.5%) is considered high.

Reducing Debt: GTT's debt to equity ratio has increased from 157.1% to 1699.5% over the past 5 years.


Balance Sheet


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 27.4% per year.


Next Steps

Dividend

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 recent payouts.

High Dividend: Unable to evaluate GTT's dividend yield against the top 25% of dividend payers, as the company has not reported any recent 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.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.0yrs

Average management tenure


CEO

Ernie Ortega (55 yo)

0.33

Tenure

Mr. Ernest Ortega, also known as Ernie, has been Chief Executive Officer of Towerstream Corporation since January 24, 2017. Mr. Ortega serves as Interim Chief Executive Officer of GTT Communications, Inc. ...


Leadership Team

NamePositionTenureCompensationOwnership
H. Thompson
Founder & Executive Chairman14.08yrsUS$715.07k1.12%
$ 2.6m
Christopher McKee
Executive VP of Corporate Development12.5yrsUS$1.09m1.03%
$ 2.4m
Ernest Ortega
Interim CEO & Chief Revenue Officer0.33yrno data0.45%
$ 1.1m
Steven Berns
CFO & Interim Principal Accounting Officer0.58yrno data0.55%
$ 1.3m
Donald MacNeil
Chief Operating Officer0.33yrno data0.13%
$ 296.3k
Frederique Arnold
Senior Vice President of Human Resources1yrno datano data
Corey Eng
Senior Vice President of Product Management & Systems5.08yrsno datano data
Robert Burris
Senior Vice President of Global Engineering & Operationsno datano datano data
Robert Westervelt
Senior VP of Channel Sales for the Americas division1.83yrsno datano data
Beth Hollenback
Senior Vice President of Client Experience1.08yrsno datano data
Tony Hansel
Senior VP of Legalno datano datano data

1.0yrs

Average Tenure

55yo

Average Age

Experienced Management: GTT's management team is not considered experienced ( 1 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
H. Thompson
Founder & Executive Chairman14.08yrsUS$715.07k1.12%
$ 2.6m
Howard Janzen
Independent Director14.08yrsUS$270.00k0.49%
$ 1.1m
Julius Erving
Independent Director2.42yrsUS$257.50k0.078%
$ 180.7k
Rhodric Hackman
Lead Independent Director12.75yrsUS$277.50k0.35%
$ 817.5k
S. Bruno
Independent Director13.5yrsUS$275.00k0.28%
$ 655.6k
Elizabeth Satin
Independent Director4.33yrsUS$260.00k0.13%
$ 301.8k
Nicholas Adamo
Independent Vice Chairman0.83yrUS$233.75k0.17%
$ 401.1k
Theodore Smith
Independent Director12.92yrsUS$282.50k0.81%
$ 1.9m
Zachary Sternberg
Independent Director1.42yrsno data0.022%
$ 50.2k
Benjamin Stein
Independent Director1.5yrsUS$210.00k0.051%
$ 119.0k

8.5yrs

Average Tenure

62yo

Average Age

Experienced Board: GTT's board of directors are considered experienced (8.5 years average tenure).


Ownership

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

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3.8%.


Top Shareholders

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$232.337m
  • Shares outstanding: 58.82m
  • 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 wide area ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/24 23:52
End of Day Share Price2020/11/24 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


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.