NasdaqGS:CNSL

Stock Analysis Report

Consolidated Communications Holdings

Executive Summary

Consolidated Communications Holdings, Inc., through its subsidiaries, provides telecommunications services to business and residential customers in the United States.


Snowflake Analysis

Moderate growth potential and slightly overvalued.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: CNSL's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

15.7%

CNSL

8.2%

US Telecom

12.5%

US Market


1 Year Return

-55.2%

CNSL

-9.0%

US Telecom

-12.7%

US Market

Return vs Industry: CNSL underperformed the US Telecom industry which returned -9% over the past year.

Return vs Market: CNSL underperformed the US Market which returned -12.7% over the past year.


Shareholder returns

CNSLIndustryMarket
7 Day15.7%8.2%12.5%
30 Day-20.6%-9.8%-14.7%
90 Day27.3%-18.9%-21.5%
1 Year-53.6%-55.2%-4.6%-9.0%-10.9%-12.7%
3 Year-72.6%-78.7%-1.3%-15.7%12.6%5.4%
5 Year-66.2%-77.1%17.2%-9.1%31.9%17.5%

Price Volatility Vs. Market

How volatile is Consolidated Communications Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Consolidated Communications Holdings 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: CNSL ($4.94) is trading below our estimate of fair value ($18.24)

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


Price To Earnings Ratio

PE vs Industry: CNSL is unprofitable, so we can't compare its PE Ratio to the Telecom industry average.

PE vs Market: CNSL 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 CNSL's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: CNSL is overvalued based on its PB Ratio (1x) compared to the US Telecom industry average (1x).


Next Steps

Future Growth

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

33.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CNSL is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).

Earnings vs Market: CNSL is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: CNSL's is expected to become profitable in the next 3 years.

Revenue vs Market: CNSL's revenue is expected to decline over the next 3 years (-2.7% per year).

High Growth Revenue: CNSL's revenue is forecast to decline over the next 3 years (-2.7% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

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

-17.2%

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 -17.2% 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 (4.8%).


Return on Equity

High ROE: CNSL has a negative Return on Equity (-5.74%), as it is currently unprofitable.


Next Steps

Financial Health

How is Consolidated Communications Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: CNSL's short term assets ($176.9M) do not cover its short term liabilities ($244.3M).

Long Term Liabilities: CNSL's short term assets ($176.9M) do not cover its long term liabilities ($2.8B).


Debt to Equity History and Analysis

Debt Level: CNSL's debt to equity ratio (657%) is considered high.

Reducing Debt: CNSL's debt to equity ratio has increased from 407.6% to 657% over the past 5 years.


Balance Sheet

Inventory Level: CNSL has a high level of physical assets or inventory.

Debt Coverage by Assets: CNSL'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: CNSL has been profitable on average in the past, therefore cash runway is not a concern.

Forecast Cash Runway: CNSL has been profitable on average in the past, therefore cash runway is not a concern.


Next Steps

Dividend

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


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 payouts.

High Dividend: Unable to evaluate CNSL'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 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.


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of CNSL'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?

1.5yrs

Average management tenure


CEO

Bob Udell (53yo)

5.17s

Tenure

US$3,067,592

Compensation

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


CEO Compensation Analysis

Compensation vs Market: Bob's total compensation ($USD3.07M) is above average for companies of similar size in the US market ($USD2.17M).

Compensation vs Earnings: Bob's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
C. Udell
President5.17yrsUS$3.07m0.74% $2.6m
Steven Childers
CFO & Treasurer15.92yrsUS$1.24m0.37% $1.3m
Gabe Waggoner
Executive Vice President of Operations1.83yrsno datano data
Tom White
Chief Technology Officerno datano datano data
John Lunny
Chief Information Officerno datano datano data
Jennifer Spaude
Vice President of Corporate Communications & Investor Relations1.17yrsno datano data
J. Van Osdell
Chief Legal Officer & Secretary1.17yrsno datano data
Ryan Whitlock
Senior VP of Operations1.17yrsno datano data
Michael Smith
Chief Revenue Officerno datano datano data
David Herrick
VP & Controllerno datano datano data

1.5yrs

Average Tenure

55yo

Average Age

Experienced Management: CNSL's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
C. Udell
President5.17yrsUS$3.07m0.74% $2.6m
Roger Moore
Independent Director14.67yrsUS$211.14k0.11% $386.0k
Wayne Wilson
Independent Director2.67yrsUS$193.64k0.13% $449.6k
Robert Currey
Non-Executive Chairman6.33yrsUS$417.14k0.22% $779.1k
Maribeth Rahe
Independent Director14.67yrsUS$217.64k0.12% $412.9k
Timothy Taron
Independent Director7.67yrsUS$207.64k0.11% $373.6k
Thomas Gerke
Independent Director7yrsUS$197.64k0.089% $315.8k
Dale Parker
Independent Director5.42yrsUS$193.64k0.085% $300.5k

6.7yrs

Average Tenure

69.5yo

Average Age

Experienced Board: CNSL's board of directors are considered experienced (6.7 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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: Consolidated Communications Holdings, Inc.
  • Ticker: CNSL
  • Exchange: NasdaqGS
  • Founded: 1894
  • Industry: Integrated Telecommunication Services
  • Sector: Telecom
  • Market Cap: US$355.449m
  • Shares outstanding: 71.95m
  • Website: https://www.consolidated.com

Number of Employees


Location

  • Consolidated Communications Holdings, Inc.
  • 121 South 17th Street
  • Mattoon
  • Illinois
  • 61938
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CNSLNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJul 2005
C8CDB (Deutsche Boerse AG)YesCommon StockDEEURJul 2005

Biography

Consolidated Communications Holdings, Inc., through its subsidiaries, provides telecommunications services to business and residential customers in the United States. It offers high-speed broadband Internet access and voice over Internet protocol (VoIP) phone services to small, medium, and large business customers; commercial data connectivity services in select markets, including a portfolio of Ethernet services, software defined wide area network, multi-protocol label switching, and private line services; and wholesale services to regional and national interexchange and wireless carriers, including cellular backhaul, dark fiber, and other fiber transport solutions. The company also provides voice services that include local phone and long-distance service packages for business customers; and sells business equipment and provides related hardware and maintenance support, video, and other miscellaneous services, as well as rents customer premises equipment. In addition, it offers video services, which consist of high-definition television, digital video recorders (DVR), and/or a whole home DVR; other in-demand streaming content; and network access services, including interstate and intrastate switched access, network special access, and end user access. Further, the company engages in telephone directory publishing, video advertising, billing and support services, and other miscellaneous activities. As of December 31, 2018, it had approximately 902 thousand voice connections, 779 thousand data connections, and 93 thousand video connections. The company serves customers in consumer, commercial, and carrier channels. Consolidated Communications Holdings, Inc. was founded in 1894 and is headquartered in Mattoon, Illinois. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/30 01:23
End of Day Share Price2020/03/27 00:00
Earnings2019/12/31
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.