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CNSL

Consolidated Communications HoldingsNasdaqGS:CNSL Stock Report

Market Cap

US$742.6m

7D

-8.3%

1Y

33.0%

Updated

02 Dec, 2021

Data

Company Financials +
CNSL fundamental analysis
Snowflake Score
Valuation3/6
Future Growth3/6
Past Performance0/6
Financial Health3/6
Dividends0/6

CNSL Stock Overview

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

Consolidated Communications Holdings Competitors

AT&T

NYSE:T

US$163.0b

Frontier Communications Parent

NasdaqGS:FYBR

US$8.2b

Comcast

NasdaqGS:CMCS.A

US$228.4b

Charter Communications

NasdaqGS:CHTR

US$131.8b

Price History & Performance

Summary of all time highs, changes and price drops for Consolidated Communications Holdings
Historical stock prices
Current Share PriceUS$7.40
52 Week HighUS$9.89
52 Week LowUS$4.70
Beta1.22
1 Month Change-2.38%
3 Month Change-21.69%
1 Year Change32.97%
3 Year Change-39.30%
5 Year Change-73.23%
Change since IPO-46.34%

Recent News & Updates

Nov 04

Consolidated Communications: New Fiber, But No Revenue Growth

Consolidated Communications shares are up over 60% in this year, but the shares turned south after the recent Q3 earnings report. A disappointing revenue decline was the likely cause. The company has left behind a few years of distress and is currently delivering on its strategy: a big bet on fiber with an accelerated build-out of fiber infrastructure. The challenge for the company remains to reverse revenue trends. The planned 300,000 new fiber connections in 2021, and many more after that, don't translate to top-line growth yet. The bet on fiber should pay off, but it may take years. In the absence of dividends, the question for retail investors is if an investment is worth the wait.

Shareholder Returns

CNSLUS TelecomUS Market
7D-8.3%-6.6%-4.9%
1Y33.0%-18.2%17.8%

Return vs Industry: CNSL exceeded the US Telecom industry which returned -15.8% over the past year.

Return vs Market: CNSL exceeded the US Market which returned 20% over the past year.

Price Volatility

Is CNSL's price volatile compared to industry and market?
CNSL volatility
CNSL Average Weekly Movement5.7%
Telecom Industry Average Movement6.2%
Market Average Movement6.0%
10% most volatile stocks in US Market15.1%
10% least volatile stocks in US Market2.4%

Stable Share Price: CNSL is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: CNSL's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
18943,200Bob Udellhttps://www.consolidated.com

Consolidated Communications Holdings, Inc., together with 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; 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, as well as cloud-based services. 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.

Consolidated Communications Holdings Fundamentals Summary

How do Consolidated Communications Holdings's earnings and revenue compare to its market cap?
CNSL fundamental statistics
Market CapUS$742.63m
Earnings (TTM)-US$130.95m
Revenue (TTM)US$1.29b

0.6x

P/S Ratio

-5.6x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
CNSL income statement (TTM)
RevenueUS$1.29b
Cost of RevenueUS$570.72m
Gross ProfitUS$719.15m
ExpensesUS$850.11m
Earnings-US$130.95m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)-1.33
Gross Margin55.75%
Net Profit Margin-10.15%
Debt/Equity Ratio526.9%

How did CNSL perform over the long term?

See historical performance and comparison

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 ($7.4) is trading below our estimate of fair value ($109.61)

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 US 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 good value based on its PB Ratio (1.9x) compared to the US Telecom industry average (2.6x).


Future Growth

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

69.7%

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 (2%).

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 (1.5% per year) is forecast to grow slower than the US market (10.1% per year).

High Growth Revenue: CNSL's revenue (1.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Past Performance

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

-39.0%

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 39% 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 (36%).


Return on Equity

High ROE: CNSL has a negative Return on Equity (-31.99%), as it is currently unprofitable.


Financial Health

How is Consolidated Communications Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: CNSL's short term assets ($471.2M) exceed its short term liabilities ($321.1M).

Long Term Liabilities: CNSL's short term assets ($471.2M) do not cover its long term liabilities ($3.0B).


Debt to Equity History and Analysis

Debt Level: CNSL's net debt to equity ratio (463.7%) is considered high.

Reducing Debt: CNSL's debt to equity ratio has reduced from 651.8% to 526.9% 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 sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if CNSL has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


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 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.


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?

2.8yrs

Average management tenure


CEO

Bob Udell (55 yo)

6.83yrs

Tenure

US$3,421,213

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 ($USD3.42M) is above average for companies of similar size in the US market ($USD2.29M).

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


Leadership Team

Experienced Management: CNSL's management team is considered experienced (2.8 years average tenure).


Board Members

Experienced Board: CNSL's board of directors are considered experienced (8 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 24.4%.


Top Shareholders

Company Information

Consolidated Communications Holdings, Inc.'s 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$742.631m
  • Shares outstanding: 98.75m
  • Website: https://www.consolidated.com

Number of Employees


Location

  • Consolidated Communications Holdings, Inc.
  • 121 South 17th Street
  • Mattoon
  • Illinois
  • 61938-3987
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/12/02 00:01
End of Day Share Price2021/12/01 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


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.