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

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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-4.3%

GTT

1.4%

US IT

0.5%

US Market


1 Year Return

-82.7%

GTT

34.0%

US IT

16.1%

US Market

Return vs Industry: GTT underperformed the US IT industry which returned 34% over the past year.

Return vs Market: GTT underperformed the US Market which returned 16.1% over the past year.


Shareholder returns

GTTIndustryMarket
7 Day-4.3%1.4%0.5%
30 Day-29.2%6.9%3.9%
90 Day-35.7%2.1%6.6%
1 Year-82.7%-82.7%35.3%34.0%18.7%16.1%
3 Year-78.4%-78.4%97.6%89.2%47.2%37.7%
5 Year-60.9%-60.9%133.4%112.7%61.5%43.7%

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 ($5.52) is trading below our estimate of fair value ($27.71)

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 (1.1x) 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 9 analysts?

56.5%

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 (1.2% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: GTT's revenue (1.2% 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?

-60.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GTT has large one-off items impacting its financial results.

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 -60.4% 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 (17%).


Return on Equity

High ROE: GTT has a negative Return on Equity (-51.27%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is GTT Communications's financial position?


Financial Position Analysis

Short Term Liabilities: GTT's short term assets ($275.9M) do not cover its short term liabilities ($507.9M)

Long Term Liabilities: GTT's short term assets ($275.9M) do not cover its long term liabilities (3.9B)


Debt to Equity History and Analysis

Debt Level: GTT's debt to equity ratio (1178.4%) is considered high.

Reducing Debt: GTT's debt to equity ratio has increased from 359% to 1178.4% over the past 5 years.


Balance Sheet

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, even with free cash flow being positive and shrinking by -50.8% per year.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.3%forecastin3Yearsn/a

Current dividend yield vs market & industry

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.


Next Steps

Management

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

1.3yrs

Average management tenure


CEO

Rick Calder (55yo)

12.5yrs

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

Compensation vs Market: Rick's total compensation ($USD9.16M) is above average for companies of similar size in the US market ($USD1.73M).

Compensation vs Earnings: Rick's compensation has increased whilst the company is unprofitable.


Management Age and Tenure

1.3yrs

Average Tenure

54.5yo

Average Age

Experienced Management: GTT's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Age and Tenure

11.8yrs

Average Tenure

61yo

Average Age

Experienced Board: GTT's board of directors are seasoned and experienced ( 11.8 years average tenure).


Insider Trading

Insider Buying: GTT insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$50,08208 Nov 19
Julius Erving
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares5,100
Max PriceUS$9.82
BuyUS$25,10929 Aug 19
Howard Janzen
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,850
Max PriceUS$8.81
BuyUS$4,342,37529 Aug 19
Spruce House Capital LLC
EntityCompany
Shares520,000
Max PriceUS$9.29
SellUS$9,94229 Aug 19
Richard Calder
EntityIndividual
Role
Chief Executive Officer
President
Shares1,152
Max PriceUS$8.63
SellUS$5,67929 Aug 19
Michael Sicoli
EntityIndividual
Shares658
Max PriceUS$8.63
SellUS$5,46329 Aug 19
Christopher McKee
EntityIndividual
Role
Chief Legal Officer
Executive VP of Corporate Development
Shares633
Max PriceUS$8.63
BuyUS$41,15027 Aug 19
Michael Sicoli
EntityIndividual
Shares5,000
Max PriceUS$8.23
SellUS$6,72427 Aug 19
Michael Sicoli
EntityIndividual
Shares791
Max PriceUS$8.50
SellUS$8,71327 Aug 19
Christopher McKee
EntityIndividual
Role
Chief Legal Officer
Executive VP of Corporate Development
Shares1,025
Max PriceUS$8.50
SellUS$13,99127 Aug 19
Richard Calder
EntityIndividual
Role
Chief Executive Officer
President
Shares1,646
Max PriceUS$8.50
SellUS$14,56723 Aug 19
Richard Calder
EntityIndividual
Role
Chief Executive Officer
President
Shares1,770
Max PriceUS$8.23
SellUS$6,88922 Aug 19
Michael Sicoli
EntityIndividual
Shares837
Max PriceUS$8.23
SellUS$6,46122 Aug 19
Christopher McKee
EntityIndividual
Role
Chief Legal Officer
Executive VP of Corporate Development
Shares785
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
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
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
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
Shares833
Max PriceUS$25.43
SellUS$115,39806 May 19
Michael Sicoli
EntityIndividual
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
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
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
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
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
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

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 16.6%.


Management Team

  • Rick Calder (55yo)

    President

    • Tenure: 12.5yrs
    • Compensation: US$9.16m
  • H. Thompson (80yo)

    Founder & Executive Chairman

    • Tenure: 13.1yrs
    • Compensation: US$650.01k
  • Ernie Ortega (54yo)

    Division President of Americas

    • Tenure: 0.4yrs
  • Chris McKee (51yo)

    Executive VP of Corporate Development

    • Tenure: 11.5yrs
    • Compensation: US$5.05m
  • Bob Burris

    Senior Vice President of Global Engineering & Operations

    • Tenure: 5.3yrs
  • Jesper Aagaard

    Division President of Europe

    • Tenure: 1.3yrs
  • Corey Eng

    Senior Vice President of Business Operations & Systems

    • Tenure: 4.1yrs
  • Rob Westervelt

    Senior VP of Channel Sales for the Americas division

    • Tenure: 0.8yrs
  • Dan Fraser

    Interim CFO

    • Tenure: 0.2yrs
  • Beth Hollenback

    Senior Vice President of Client Experience

    • Tenure: 0.08yrs

Board Members

  • Rick Calder (55yo)

    President

    • Tenure: 12.5yrs
    • Compensation: US$9.16m
  • Howard Janzen (65yo)

    Independent Director

    • Tenure: 13.1yrs
    • Compensation: US$256.50k
  • Julius Erving (69yo)

    Independent Director

    • Tenure: 1.8yrs
    • Compensation: US$241.25k
  • Rhodric Hackman (71yo)

    Lead Independent Director

    • Tenure: 11.8yrs
    • Compensation: US$260.75k
  • S. Bruno (70yo)

    Independent Director

    • Tenure: 12.5yrs
    • Compensation: US$264.00k
  • H. Thompson (80yo)

    Founder & Executive Chairman

    • Tenure: 13.1yrs
    • Compensation: US$650.01k
  • Elizabeth Satin (57yo)

    Independent Director

    • Tenure: 3.3yrs
    • Compensation: US$246.50k
  • Nick Adamo (55yo)

    Independent Director

    • Tenure: 3.8yrs
    • Compensation: US$244.75k
  • Ted Smith (56yo)

    Independent Director

    • Tenure: 11.9yrs
    • Compensation: US$263.25k
  • Ben Stein (33yo)

    Independent Director

    • Tenure: 0.5yrs

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$312.712m
  • Shares outstanding: 56.65m
  • 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 Analysis2019/11/22 00:10
End of Day Share Price2019/11/21 00:00
Earnings2019/09/30
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.