Consolidated Communications Holdings (NasdaqGS:CNSL) - Share price, News & Analysis

Q: What is the Fair Price of CNSL when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

CNSL ($6.97) is trading below our estimate of [[fair value]] ($151.73)

CNSL fundamental analysis
Snowflake Score
Valuation	5/6
Future Growth	0/6
Past Performance	0/6
Financial Health	2/6
Dividends	0/6

CNSL Stock Overview

Rewards

Trading at 95.4% below our estimate of its fair value

Risk Analysis

Has less than 1 year of cash runway

Currently unprofitable and not forecast to become profitable over the next 3 years

Shareholders have been diluted in the past year

Consolidated Communications Holdings Competitors

Starry Group Holdings

NYSE:STRY

US$649.7m

IDT

NYSE:IDT

US$657.6m

ATN International

NasdaqGS:ATNI

US$712.5m

LICT

OTCPK:LICT

US$401.9m

Price History & Performance

Summary of all time highs, changes and price drops for Consolidated Communications Holdings
Historical stock prices
Current Share Price	US$6.97
52 Week High	US$9.70
52 Week Low	US$4.52
Beta	1.03
1 Month Change	8.57%
3 Month Change	18.14%
1 Year Change	-20.71%
3 Year Change	36.67%
5 Year Change	-68.38%
Change since IPO	-49.46%

Recent News & Updates

May 12

Is Consolidated Communications Holdings (NASDAQ:CNSL) A Risky Investment?

The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says...

Mar 07

Consolidated Communications Holdings (NASDAQ:CNSL) Hasn't Managed To Accelerate Its Returns

Did you know there are some financial metrics that can provide clues of a potential multi-bagger? One common approach...

Shareholder Returns

	CNSL	US Telecom	US Market
7D	-2.0%	1.3%	1.6%
1Y	-20.7%	-18.4%	-20.8%

Return vs Industry: CNSL underperformed the US Telecom industry which returned -19% over the past year.

Return vs Market: CNSL matched the US Market which returned -20.4% over the past year.

Price Volatility

Is CNSL's price volatile compared to industry and market?
CNSL volatility
CNSL Average Weekly Movement	7.5%
Telecom Industry Average Movement	8.4%
Market Average Movement	8.1%
10% most volatile stocks in US Market	16.8%
10% least volatile stocks in US Market	3.2%

Stable Share Price: CNSL is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: CNSL's weekly volatility (7%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1894	3,200	Bob Udell	https://www.consolidated.com

Consolidated Communications Holdings, Inc., together with its subsidiaries, provides broadband and business communication solutions for consumer, commercial, and carrier channels in the United States. It offers high-speed broadband Internet access and voice over Internet protocol (VoIP) phone services; commercial data connectivity services in various markets, including Ethernet services, private line data services, software defined wide area network, and multi-protocol label switching services; networking services; cloud-based services; data center and disaster recovery solutions; and wholesale services to regional and national interexchange, and wireless carriers comprising cellular backhaul and other fiber transport solutions. The company also provides voice services, such as local phone and long-distance services; and sells business equipment, as well as offers related hardware and maintenance support, video, and other miscellaneous services.

Consolidated Communications Holdings Fundamentals Summary

How do Consolidated Communications Holdings's earnings and revenue compare to its market cap?
CNSL fundamental statistics
Market Cap	US$804.31m
Earnings (TTM)	-US$172.92m
Revenue (TTM)	US$1.26b

0.6x

P/S Ratio

-4.7x

P/E Ratio

Is CNSL overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
CNSL income statement (TTM)
Revenue	US$1.26b
Cost of Revenue	US$561.55m
Gross Profit	US$696.20m
Other Expenses	US$869.13m
Earnings	-US$172.92m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	-1.50
Gross Margin	55.35%
Net Profit Margin	-13.75%
Debt/Equity Ratio	289.2%

How did CNSL perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

Is CNSL undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

Price-To-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for CNSL?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for CNSL. This is calculated by dividing CNSL's market cap by their current preferred multiple.
What is CNSL's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	US$804.31m

CNSL key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	2.5x
Enterprise Value/EBITDA	7.3x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does CNSL's PS Ratio compare to its peers?

CNSL PS Ratio vs Peers

The above table shows the PS ratio for CNSL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PS	Estimated Growth	Market Cap
Peer Average	7.6x
STRY Starry Group Holdings	25.9x	52.2%	US$649.7m
IDT IDT	0.5x	n/a	US$657.6m
ATNI ATN International	1.1x	5.2%	US$712.5m
LICT LICT	3.1x	n/a	US$401.9m
CNSL Consolidated Communications Holdings	0.6x	-0.8%	US$804.3m

Forward PS

Price-To-Sales vs Peers: CNSL is good value based on its Price-To-Sales Ratio (0.6x) compared to the peer average (7.6x).

Price to Earnings Ratio vs Industry

How does CNSL's PE Ratio compare vs other companies in the US Telecom Industry?

Price-To-Sales vs Industry: CNSL is good value based on its Price-To-Sales Ratio (0.6x) compared to the US Telecom industry average (1.6x)

Price to Sales Ratio vs Fair Ratio

What is CNSL's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

CNSL PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	0.6x
Fair PS Ratio	0.9x

Price-To-Sales vs Fair Ratio: CNSL is good value based on its Price-To-Sales Ratio (0.6x) compared to the estimated Fair Price-To-Sales Ratio (0.9x).

Share Price vs Fair Value

What is the Fair Price of CNSL when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: CNSL ($6.97) is trading below our estimate of fair value ($151.73)

Significantly Below Fair Value: CNSL is trading below fair value by more than 20%.

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate CNSL's PEG Ratio to determine if it is good value.

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Future Growth

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

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

72.7%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: CNSL is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: CNSL is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: CNSL is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: CNSL's revenue is expected to decline over the next 3 years (-0.8% per year).

High Growth Revenue: CNSL's revenue is forecast to decline over the next 3 years (-0.8% per year).

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: CNSL is forecast to be unprofitable in 3 years.

Discover growth companies

Past Performance

How has Consolidated Communications Holdings performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-50.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: CNSL is currently unprofitable.

Growing Profit Margin: CNSL is currently unprofitable.

Past Earnings Growth Analysis

Earnings Trend: CNSL is unprofitable, and losses have increased over the past 5 years at a rate of 50% per year.

Accelerating Growth: Unable to compare CNSL's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: CNSL is unprofitable, making it difficult to compare its past year earnings growth to the Telecom industry (-17.9%).

Return on Equity

High ROE: CNSL has a negative Return on Equity (-21.97%), as it is currently unprofitable.

Discover strong past performing companies

Financial Health

How is Consolidated Communications Holdings's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Stable Cash Runway
Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: CNSL's short term assets ($437.0M) exceed its short term liabilities ($302.4M).

Long Term Liabilities: CNSL's short term assets ($437.0M) do not cover its long term liabilities ($2.6B).

Debt to Equity History and Analysis

Debt Level: CNSL's net debt to equity ratio (267.3%) is considered high.

Reducing Debt: CNSL's debt to equity ratio has reduced from 878% to 289.2% 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: CNSL has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: CNSL has less than a year of cash runway if free cash flow continues to reduce at historical rates of 18.1% each year

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Dividend

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

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate CNSL's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate CNSL'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 CNSL's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if CNSL's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: CNSL is not paying a notable dividend for the US market.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as CNSL has not reported any payouts.

Discover strong dividend paying companies

Management

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

3.4yrs

Average management tenure

CEO

Bob Udell (55 yo)

8.58yrs

Tenure

US$4,671,543

Compensation

Mr. C. Robert Udell, Jr., also known as Bob, had been Chief Executive Officer and President of Fairpoint Communications, Inc. since July 3, 2017. He had been Director of Fairpoint Communications, Inc. sinc...

CEO Compensation Analysis

Compensation vs Market: Bob's total compensation ($USD4.67M) is about average for companies of similar size in the US market ($USD4.00M).

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

Leadership Team

Experienced Management: CNSL's management team is considered experienced (3.4 years average tenure).

Board Members

Experienced Board: CNSL's board of directors are considered experienced (8.6 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.

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 44.3%.

Data	Last Updated (UTC time)
Company Analysis	2022/06/29 00:00
End of Day Share Price	2022/06/29 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31