Loading...

GTT Communications

NYSE:GTT
Snowflake Description

Reasonable growth potential and fair value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
GTT
NYSE
$720M
Market Cap
  1. Home
  2. US
  3. Software
Company description

GTT Communications, Inc. provides cloud networking services to multinational enterprises, carriers, and government customers in the United States, Europe, and internationally. The last earnings update was 75 days ago. More info.


Add to Portfolio Compare Print
  • GTT Communications has significant price volatility in the past 3 months.
GTT Share Price and Events
7 Day Returns
-10.5%
NYSE:GTT
0.7%
US IT
-0.9%
US Market
1 Year Returns
-72.8%
NYSE:GTT
23.4%
US IT
3.8%
US Market
GTT Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
GTT Communications (GTT) -10.5% -35.4% -68.4% -72.8% -37.9% 22.3%
US IT 0.7% 4.1% 10.6% 23.4% 95.4% 116.1%
US Market -0.9% 1.1% 1.1% 3.8% 35.5% 42.1%
1 Year Return vs Industry and Market
  • GTT underperformed the IT industry which returned 23.4% over the past year.
  • GTT underperformed the Market in United States of America which returned 3.8% over the past year.
Price Volatility
GTT
Industry
5yr Volatility vs Market
Related Companies

GTT Value

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

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of GTT Communications to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for GTT Communications.

NYSE:GTT Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 10 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 14.7%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:GTT
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
IT Unlevered Beta Simply Wall St/ S&P Global 0.99
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.986 (1 + (1- 21%) (510.31%))
3.655
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
2
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (2 * 5.96%)
14.65%

Discounted Cash Flow Calculation for NYSE:GTT using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for GTT Communications is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:GTT DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 14.65%)
2020 214.81 Analyst x7 187.36
2021 230.63 Analyst x2 175.45
2022 331.17 Analyst x1 219.75
2023 391.42 Analyst x1 226.54
2024 440.34 Est @ 12.5% 222.29
2025 482.48 Est @ 9.57% 212.44
2026 518.74 Est @ 7.52% 199.22
2027 550.29 Est @ 6.08% 184.33
2028 578.22 Est @ 5.08% 168.94
2029 603.50 Est @ 4.37% 153.79
Present value of next 10 years cash flows $1,950.12
NYSE:GTT DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $603.50 × (1 + 2.73%) ÷ (14.65% – 2.73%)
$5,201.12
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $5,201.12 ÷ (1 + 14.65%)10
$1,325.43
NYSE:GTT Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $1,950.12 + $1,325.43
$3,275.54
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $3,275.54 / 55.85
$58.65
NYSE:GTT Discount to Share Price
Calculation Result
Value per share (USD) From above. $58.65
Current discount Discount to share price of $12.90
= -1 x ($12.90 - $58.65) / $58.65
78%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price GTT Communications is available for.
Intrinsic value
>50%
Share price is $12.9 vs Future cash flow value of $58.65
Current Discount Checks
For GTT Communications to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • 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 RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for GTT Communications's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are GTT Communications's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:GTT PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $-4.48
NYSE:GTT Share Price ** NYSE (2019-07-23) in USD $12.9
United States of America IT Industry PE Ratio Median Figure of 76 Publicly-Listed IT Companies 34.79x
United States of America Market PE Ratio Median Figure of 3,083 Publicly-Listed Companies 17.8x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of GTT Communications.

NYSE:GTT PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:GTT Share Price ÷ EPS (both in USD)

= 12.9 ÷ -4.48

-2.88x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • 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
Does GTT Communications's expected growth come at a high price?
Raw Data
NYSE:GTT PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -2.88x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 10 Analysts
55%per year
United States of America IT Industry PEG Ratio Median Figure of 65 Publicly-Listed IT Companies 2.57x
United States of America Market PEG Ratio Median Figure of 2,118 Publicly-Listed Companies 1.58x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for GTT Communications, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on GTT Communications's assets?
Raw Data
NYSE:GTT PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $6.40
NYSE:GTT Share Price * NYSE (2019-07-23) in USD $12.9
United States of America IT Industry PB Ratio Median Figure of 126 Publicly-Listed IT Companies 4.09x
United States of America Market PB Ratio Median Figure of 5,249 Publicly-Listed Companies 1.78x
NYSE:GTT PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:GTT Share Price ÷ Book Value per Share (both in USD)

= 12.9 ÷ 6.40

2.01x

* Primary Listing of GTT Communications.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • GTT Communications is good value based on assets compared to the US IT industry average.
X
Value checks
We assess GTT Communications's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the IT industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the IT industry average (and greater than 0)? (1 check)
  5. GTT Communications has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

GTT Future Performance

 How is GTT Communications expected to perform in the next 1 to 3 years based on estimates from 10 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
55%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is GTT Communications expected to grow at an attractive rate?
  • GTT Communications's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • GTT Communications's earnings growth is expected to exceed the United States of America market average.
  • GTT Communications's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:GTT Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:GTT Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 10 Analysts 55%
NYSE:GTT Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 10 Analysts 7.7%
United States of America IT Industry Earnings Growth Rate Market Cap Weighted Average 16.9%
United States of America IT Industry Revenue Growth Rate Market Cap Weighted Average 10.3%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:GTT Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 10 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:GTT Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 2,501 554 191 1
2022-12-31 2,316 482 145 1
2021-12-31 2,066 358 99 2
2020-12-31 1,874 331 36 9
2019-12-31 1,806 219 -24 10
NYSE:GTT Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 1,680 86 -240
2018-12-31 1,491 82 -243
2018-09-30 1,285 66 -240
2018-06-30 1,039 69 -226
2018-03-31 903 73 -89
2017-12-31 828 63 -72
2017-09-30 721 75 -23
2017-06-30 650 67 -8
2017-03-31 589 56 -9
2016-12-31 527 60 5
2016-09-30 500 38 34
2016-06-30 465 35 30

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • GTT Communications's earnings are expected to grow significantly at over 20% yearly.
  • GTT Communications's revenue is expected to grow by 7.7% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:GTT Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 10 Analyst Estimates (S&P Global) See Below

All data from GTT Communications Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:GTT Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31 3.14 3.14 3.14 1.00
2022-12-31 2.43 2.43 2.43 1.00
2021-12-31 1.70 1.70 1.70 1.00
2020-12-31 0.55 0.91 0.36 6.00
2019-12-31 -0.43 -0.22 -0.63 8.00
NYSE:GTT Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 -4.48
2018-12-31 -4.80
2018-09-30 -5.00
2018-06-30 -5.06
2018-03-31 -2.07
2017-12-31 -1.71
2017-09-30 -0.57
2017-06-30 -0.21
2017-03-31 -0.23
2016-12-31 0.14
2016-09-30 0.92
2016-06-30 0.84

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if GTT Communications will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess GTT Communications's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
GTT Communications has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

GTT Past Performance

  How has GTT Communications performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare GTT Communications's growth in the last year to its industry (IT).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • 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.
Earnings and Revenue History
GTT Communications's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from GTT Communications Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:GTT Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 1,680.30 -240.00 375.20
2018-12-31 1,490.80 -243.40 342.70
2018-09-30 1,285.30 -239.90 304.10
2018-06-30 1,039.20 -226.00 250.50
2018-03-31 902.60 -89.10 213.90
2017-12-31 827.90 -71.50 196.30
2017-09-30 720.70 -22.81 174.01
2017-06-30 650.05 -8.19 161.89
2017-03-31 588.86 -8.70 152.27
2016-12-31 527.30 5.30 138.40
2016-09-30 500.03 33.70 132.00
2016-06-30 465.17 30.34 120.13
2016-03-31 431.33 19.14 111.69
2015-12-31 372.50 19.30 95.60
2015-09-30 317.08 -15.94 80.08
2015-06-30 269.25 -24.34 66.57
2015-03-31 222.23 -12.25 50.83
2014-12-31 207.34 -22.98 45.61
2014-09-30 190.79 -19.02 40.62
2014-06-30 186.73 -16.67 38.01
2014-03-31 178.40 -27.93 35.97
2013-12-31 157.37 -20.79 31.68
2013-09-30 138.85 -17.41 26.81
2013-06-30 122.16 -13.62 23.29
2013-03-31 109.59 -3.84 19.59
2012-12-31 107.88 -1.56 18.96
2012-09-30 105.84 -1.32 19.44

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • 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.
  • It is difficult to establish if GTT Communications has efficiently used its assets last year compared to the US IT industry average (Return on Assets) as it is loss-making.
  • 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.
X
Past performance checks
We assess GTT Communications's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the IT industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
GTT Communications has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

GTT Health

 How is GTT Communications's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up GTT Communications's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • 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.
Balance sheet
This treemap shows a more detailed breakdown of GTT Communications's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from GTT Communications Company Filings, last reported 3 months ago.

NYSE:GTT Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 360.10 3,226.50 52.10
2018-12-31 414.70 3,213.90 56.60
2018-09-30 476.00 3,162.90 56.10
2018-06-30 502.20 3,176.10 73.70
2018-03-31 207.30 1,242.70 54.40
2017-12-31 231.40 1,243.50 101.60
2017-09-30 271.97 1,115.89 34.80
2017-06-30 221.62 1,115.81 130.74
2017-03-31 216.54 960.35 32.97
2016-12-31 127.80 729.50 29.70
2016-09-30 125.44 416.46 15.41
2016-06-30 116.20 416.94 15.37
2016-03-31 113.96 400.01 10.18
2015-12-31 110.49 386.24 14.63
2015-09-30 79.63 224.25 19.71
2015-06-30 77.05 227.13 19.42
2015-03-31 78.20 122.25 52.09
2014-12-31 77.57 120.83 49.26
2014-09-30 34.33 125.00 41.61
2014-06-30 30.56 88.07 22.54
2014-03-31 -0.05 93.52 7.24
2013-12-31 9.51 92.46 5.79
2013-09-30 10.78 89.43 4.90
2013-06-30 14.48 87.89 5.59
2013-03-31 22.10 42.66 4.61
2012-12-31 17.04 42.83 4.73
2012-09-30 17.12 43.72 4.26
  • GTT Communications's level of debt (906.5%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (32744.2% vs 906.5% today).
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 more than 3 years based on current free cash flow.
  • GTT Communications has sufficient cash runway for more than 3 years if free cash flow continues to grow at historical rates of 48.4% each year.
X
Financial health checks
We assess GTT Communications's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. GTT Communications has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

GTT Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from GTT Communications dividends.
If you bought $2,000 of GTT Communications shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • 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.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:GTT Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 10 Analyst Estimates (S&P Global) See Below
United States of America IT Industry Average Dividend Yield Market Cap Weighted Average of 34 Stocks 1.3%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2017 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:GTT Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31
2020-12-31
2019-12-31

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • 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
What portion of GTT Communications's earnings are paid to the shareholders as a dividend.
  • 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.
X
Income/ dividend checks
We assess GTT Communications's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can GTT Communications afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. GTT Communications has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

GTT Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Rick Calder
COMPENSATION $9,160,743
AGE 55
TENURE AS CEO 12.2 years
CEO Bio

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 2006, Mr. Calder served as President & Chief Operating Officer of InPhonic, Inc., a publicly-traded online seller of wireless services and products. From 2001 to 2003, Mr. Richard D. Calder served in a variety of executive roles for Broadwing Communications, including as President, Business Enterprises and Carrier Markets. From 1996 to 2001, Mr. Richard D. Calder held several senior management positions with Winstar Communications, ultimately serving as President of the company’s South Division. In 1994, Mr. Richard D. Calder co-founded Go Communications, a wireless communications company, and served as its Vice President of Corporate Development until 1996. Prior to co-founding Go Communications, Mr. Richard D. Calder held a variety of marketing, business development, and engineering positions with MCI Communications and Tellabs. Mr. Richard D. Calder received a Masters of Business Administration from Harvard Business School and received a Bachelor of Science in Electrical Engineering from Yale University.

CEO Compensation
  • Rick's compensation has increased whilst company is loss making.
  • Rick's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the GTT Communications management team in years:

3.8
Average Tenure
54
Average Age
  • The tenure for the GTT Communications management team is about average.
Management Team

H. Thompson

TITLE
Founder & Executive Chairman
COMPENSATION
$650K
AGE
80

Rick Calder

TITLE
President
COMPENSATION
$9M
AGE
55
TENURE
12.2 yrs

Mike Sicoli

TITLE
Chief Financial Officer
COMPENSATION
$5M
AGE
48
TENURE
4.3 yrs

Chris McKee

TITLE
Executive VP of Corporate Development
COMPENSATION
$5M
AGE
51
TENURE
11.2 yrs

Bob Burris

TITLE
Senior Vice President of Global Engineering & Operations
TENURE
5 yrs

Gina Nomellini

TITLE
Chief Marketing Officer
TENURE
3.8 yrs

Corey Eng

TITLE
Senior Vice President of Business Operations & Systems
TENURE
3.8 yrs

Jesper Aagaard

TITLE
Division President of Europe
TENURE
0.9 yrs

Rob Westervelt

TITLE
Senior VP of Channel Sales for the Americas division
TENURE
0.5 yrs

Ernie Ortega

TITLE
Division President of Americas
AGE
54
TENURE
0.1 yrs
Board of Directors Tenure

Average tenure and age of the GTT Communications board of directors in years:

11.5
Average Tenure
61
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.
Board of Directors

Rick Calder

TITLE
President
COMPENSATION
$9M
AGE
55
TENURE
12.2 yrs

Howard Janzen

TITLE
Independent Director
COMPENSATION
$257K
AGE
65
TENURE
12.8 yrs

H. Thompson

TITLE
Founder & Executive Chairman
COMPENSATION
$650K
AGE
80
TENURE
12.8 yrs

S. Bruno

TITLE
Independent Director
COMPENSATION
$264K
AGE
70
TENURE
12.2 yrs

Ted Smith

TITLE
Independent Director
COMPENSATION
$263K
AGE
56
TENURE
11.6 yrs

Rhodric Hackman

TITLE
Lead Independent Director
COMPENSATION
$261K
AGE
71
TENURE
11.4 yrs

Nick Adamo

TITLE
Independent Director
COMPENSATION
$245K
AGE
55
TENURE
3.4 yrs

Elizabeth Satin

TITLE
Independent Director
COMPENSATION
$247K
AGE
57
TENURE
3 yrs

Julius Erving

TITLE
Director
COMPENSATION
$241K
AGE
69
TENURE
1.5 yrs

Benjamin Stein

TITLE
Director
AGE
33
TENURE
0.2 yrs
Who owns this company?
Recent Insider Trading
  • GTT Communications individual insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
10. Jul 19 Sell H. Thompson Individual 09. Jul 19 09. Jul 19 -2,400 $17.07 $-40,968
08. Jul 19 Sell Richard Calder Individual 05. Jul 19 05. Jul 19 -1,274 $17.83 $-22,715
29. May 19 Sell Christopher McKee Individual 28. May 19 28. May 19 -638 $25.87 $-16,505
29. May 19 Sell Richard Calder Individual 28. May 19 28. May 19 -1,160 $25.87 $-30,009
29. May 19 Sell Michael Sicoli Individual 28. May 19 28. May 19 -681 $25.87 $-17,617
23. May 19 Sell Christopher McKee Individual 22. May 19 22. May 19 -954 $26.75 $-25,520
23. May 19 Sell Richard Calder Individual 22. May 19 22. May 19 -1,533 $26.75 $-41,008
23. May 19 Sell Michael Sicoli Individual 22. May 19 22. May 19 -727 $26.75 $-19,447
21. May 19 Sell Christopher McKee Individual 20. May 19 20. May 19 -780 $25.43 $-19,835
21. May 19 Sell Richard Calder Individual 20. May 19 20. May 19 -1,757 $25.43 $-44,681
21. May 19 Sell Michael Sicoli Individual 20. May 19 20. May 19 -833 $25.43 $-21,183
06. May 19 Sell Christopher McKee Individual 03. May 19 03. May 19 -2,642 $41.54 $-109,749
06. May 19 Sell Michael Sicoli Individual 03. May 19 03. May 19 -2,778 $41.54 $-115,398
06. May 19 Sell Richard Calder Individual 03. May 19 03. May 19 -4,860 $41.54 $-201,884
16. Apr 19 Sell Michael Sicoli Individual 15. Apr 19 15. Apr 19 -419 $40.70 $-17,053
11. Apr 19 Sell Richard Calder Individual 10. Apr 19 10. Apr 19 -1,321 $39.30 $-51,915
11. Apr 19 Sell Christopher McKee Individual 10. Apr 19 10. Apr 19 -371 $39.30 $-14,580
07. Mar 19 Sell Christopher McKee Individual 06. Mar 19 06. Mar 19 -1,964 $32.11 $-63,064
26. Feb 19 Sell Christopher McKee Individual 25. Feb 19 25. Feb 19 -1,720 $32.43 $-55,780
26. Feb 19 Sell Richard Calder Individual 25. Feb 19 25. Feb 19 -3,234 $32.43 $-104,879
26. Feb 19 Sell Michael Sicoli Individual 25. Feb 19 25. Feb 19 -1,902 $32.43 $-61,682
25. Feb 19 Sell Christopher McKee Individual 21. Feb 19 21. Feb 19 -667 $31.06 $-20,717
25. Feb 19 Sell Richard Calder Individual 21. Feb 19 21. Feb 19 -1,107 $31.06 $-34,383
25. Feb 19 Sell Michael Sicoli Individual 21. Feb 19 21. Feb 19 -531 $31.06 $-16,493
21. Feb 19 Sell Christopher McKee Individual 19. Feb 19 19. Feb 19 -515 $29.49 $-15,187
21. Feb 19 Sell Richard Calder Individual 19. Feb 19 19. Feb 19 -1,200 $29.49 $-35,388
21. Feb 19 Sell Michael Sicoli Individual 19. Feb 19 19. Feb 19 -570 $29.49 $-16,809
26. Feb 19 Sell Christopher McKee Individual 04. Feb 19 04. Feb 19 -4,401 $26.32 $-115,830
26. Feb 19 Sell Richard Calder Individual 04. Feb 19 04. Feb 19 -7,545 $26.32 $-198,578
26. Feb 19 Sell Michael Sicoli Individual 04. Feb 19 04. Feb 19 -4,857 $26.32 $-127,832
31. Jan 19 Buy Spruce House Capital LLC Company 29. Jan 19 30. Jan 19 154,000 $28.60 $4,382,100
25. Jan 19 Buy Spruce House Capital LLC Company 23. Jan 19 25. Jan 19 229,000 $29.40 $6,425,028
25. Jan 19 Buy Spruce House Capital LLC Company 16. Jan 19 18. Jan 19 1,092,000 $27.50 $27,253,793
15. Nov 18 Buy H. Thompson Individual 13. Nov 18 15. Nov 18 1,200 $32.73 $39,246
13. Nov 18 Buy Spruce House Capital LLC Company 08. Nov 18 12. Nov 18 375,000 $35.77 $13,344,347
29. Oct 18 Buy Spruce House Capital LLC Company 24. Oct 18 26. Oct 18 525,000 $34.28 $17,613,840
04. Oct 18 Buy Spruce House Capital LLC Company 02. Oct 18 04. Oct 18 387,933 $44.11 $17,110,048
14. Sep 18 Buy Spruce House Capital LLC Company 12. Sep 18 14. Sep 18 328,000 $43.24 $14,137,400
10. Sep 18 Buy Spruce House Capital LLC Company 06. Sep 18 10. Sep 18 702,531 $43.47 $29,423,994
17. Aug 18 Buy Theodore Smith Individual 16. Aug 18 16. Aug 18 1,000 $39.94 $39,945
15. Aug 18 Buy Spruce House Capital LLC Company 13. Aug 18 15. Aug 18 745,899 $36.44 $25,955,052
14. Aug 18 Buy Elizabeth Satin Individual 10. Aug 18 10. Aug 18 2,000 $32.87 $65,740
13. Aug 18 Buy Universal Telecommunications, Inc. Company 10. Aug 18 10. Aug 18 20,000 $33.96 $679,280
X
Management checks
We assess GTT Communications's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. GTT Communications has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

GTT News

Simply Wall St News

Does GTT Communications, Inc.'s (NYSE:GTT) CEO Pay Reflect Performance?

This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. … We looked at a group of companies with market capitalizations from US$400m to US$1.6b, and the median CEO total compensation was US$2.7m. … As you can see, Rick Calder is paid more than the median CEO pay at companies of a similar size, in the same market.

Simply Wall St -

Have Insiders Been Selling GTT Communications, Inc. (NYSE:GTT) Shares?

But logic dictates you should pay some attention to whether insiders are buying or selling shares. … As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.' View our latest analysis for GTT Communications GTT Communications Insider Transactions Over The Last Year Over the last year, we can see that the biggest insider sale was by the President, Richard Calder, for US$202k worth of shares, at about US$41.54 per share. … Over the last year we saw more insider selling of GTT Communications shares, than buying.

Simply Wall St -

Before You Buy GTT Communications, Inc. (NYSE:GTT), Consider Its Volatility

Modern finance theory considers volatility to be a measure of risk, and there are two main types of price volatility. … Beta is a widely used metric to measure a stock's exposure to market risk (volatility). … Before we go on, it's worth noting that Warren Buffett pointed out in his 2014 letter to shareholders that 'volatility is far from synonymous with risk.' Having said that, beta can still be rather useful.

Simply Wall St -

Are Investors Undervaluing GTT Communications, Inc. (NYSE:GTT) By 33%?

by estimating the company's future cash flows and discounting them to their present value. … Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model. … The first stage is generally a higher growth period which levels off heading towards the terminal value, captured in the second 'steady growth' period.

Simply Wall St -

Is It Time To Consider Buying GTT Communications, Inc. (NYSE:GTT)?

received a lot of attention from a substantial price increase on the NYSE over the last few months. … With many analysts covering the stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price? … However, what if the stock is still a bargain

Simply Wall St -

How Much is GTT Communications, Inc.'s (NYSE:GTT) CEO Getting Paid?

This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. … Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. … How Does Rick Calder's Compensation Compare With Similar Sized Companies?

Simply Wall St -

GTT Communications, Inc. (NYSE:GTT): What Does Its Beta Value Mean For Your Portfolio?

(NYSE:GTT), then you might want to consider its beta (a measure of share price volatility) in order to understand how the stock could impact your portfolio. … Beta can be a useful tool to understand how much a stock is influenced by market risk (volatility). … Any stock with a beta of greater than one is considered more volatile than the market, while those with a beta below one are either less volatile or poorly correlated with the market.

Simply Wall St -

Calculating The Intrinsic Value Of GTT Communications Inc (NYSE:GTT)

Today I will be providing a simple run through of a valuation method used to estimate the attractiveness of GTT Communications Inc (NYSE:GTT) as an investment opportunity. … by estimating the company's future cash flows and discounting them to their present value. … Discounted Cash Flows (DCF).

Simply Wall St -

What does GTT Communications Inc's (NYSE:GTT) Balance Sheet Tell Us About Its Future?

Small-caps and large-caps are wildly popular among investors; however, mid-cap stocks, such as GTT Communications Inc (NYSE:GTT) with a market-capitalization of US$2.57b, rarely draw their attention. … Today we will look at GTT’s financial liquidity and debt levels, which are strong indicators for whether the company can weather economic downturns or fund strategic acquisitions for future growth. … Don’t forget that this is a general and concentrated examination of GTT Communications’s financial health, so you should conduct further analysis.

Simply Wall St -

Is GTT Communications Inc (NYSE:GTT) Undervalued?

saw a decent share price growth in the teens level on the NYSE over the last few months. … With many analysts covering the mid-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price? … Let’s take a look at GTT Communications’s outlook and value based on the most recent financial data to see if the opportunity still exists?

Simply Wall St -

GTT Company Info

Description

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.

Details
Name: GTT Communications, Inc.
GTT
Exchange: NYSE
Founded: 2005
$720,426,506
55,847,016
Website: http://www.gtt.net
Address: GTT Communications, Inc.
7900 Tysons One Place,
Suite 1450,
McLean,
Virginia, 22102,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE GTT Common Stock New York Stock Exchange US USD 19. May 2005
DB 2G6 Common Stock Deutsche Boerse AG DE EUR 19. May 2005
Number of employees
Current staff
Staff numbers
3,000
GTT Communications employees.
Industry
Internet Services and Infrastructure
Software
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/24 01:46
End of day share price update: 2019/07/23 00:00
Last estimates confirmation: 2019/07/19
Last earnings filing: 2019/05/10
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.