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

Fundamentals

Fair value with worrying balance sheet.


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


Market Performance


7 Day Return

-8.6%

CNSL

-0.3%

US Telecom

1.0%

US Market


1 Year Return

-70.6%

CNSL

10.9%

US Telecom

6.7%

US Market

Return vs Industry: CNSL underperformed the US Telecom industry which returned 10.9% over the past year.

Return vs Market: CNSL underperformed the US Market which returned 6.7% over the past year.


Share holder returns

CNSLIndustryMarket
7 Day-8.6%-0.3%1.0%
30 Day-26.9%-1.0%-1.8%
90 Day-35.3%7.1%-1.8%
1 Year-68.5%-70.6%16.7%10.9%9.1%6.7%
3 Year-81.4%-85.8%19.6%2.2%46.1%36.6%
5 Year-81.2%-87.5%39.4%7.7%66.9%48.6%

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 based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Undervalued: CNSL ($3.44) is trading below our estimate of fair value ($16.99)

Significantly Undervalued: CNSL is trading below fair value by more than 20%.


Price Based on Earnings

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 Based on Expected Growth

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


Price Based on Value of Assets

PB vs Industry: CNSL is good value based on its PB Ratio (0.7x) compared to the US Telecom industry average (1.4x).


Next Steps

Future Growth

How is Consolidated Communications Holdings expected to perform in the next 1 to 3 years based on estimates from 4 analysts?

85.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

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 (-3.1% per year).

High Growth Revenue: CNSL's revenue is forecast to decline over the next 3 years (-3.1%).


Earnings per Share Growth Estimates


Future Return on Equity

High 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?

-14.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: CNSL is unprofitable, and losses have increased over the past 5 years at a rate of -14.9% 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 (-23%).


Return on Equity

High ROE: CNSL has a negative Return on Equity (-12.06%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: CNSL is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: CNSL is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Consolidated Communications Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: CNSL's short term assets ($200.6M) do not cover its short term liabilities ($264.1M)

Long Term Liabilities: CNSL's short term assets (200.6M) do not cover its long term liabilities (2.9B)


Debt to Equity History and Analysis

Debt Level: CNSL's debt to equity ratio (651.8%) is considered high

Reducing Debt: CNSL's debt to equity ratio has reduced from 859.9% to 651.8% over the past 5 years.

Debt Coverage: CNSL's debt is not well covered by operating cash flow (13.9%).

Interest Coverage: CNSL is unprofitable, therefore interest payments are not well covered by earnings.


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).


Next Steps

Dividend

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

5.62%

Expected Dividend Yield


Dividend Yield vs Market

company0%marketbottom25%1.5%markettop25%3.8%industryaverage4.1%forecastin3Years5.6%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

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.

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 .


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

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

1.4yrs

Average management tenure


CEO

Bob Udell (53yo)

4.8yrs

Tenure

US$3,152,335

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 ($USD3.15M) is above average for companies of similar size in the US market ($USD1.17M).

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


Management Age and Tenure

1.4yrs

Average Tenure

55yo

Average Age

Experienced Management: CNSL's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Age and Tenure

6.3yrs

Average Tenure

69.5yo

Average Age

Experienced Board: CNSL's board of directors are considered experienced (6.3 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$43,40024 May 19
C. Udell
EntityIndividual
Role
Chief Executive Officer
President
Shares10,000
Max PriceUS$4.34

Ownership Breakdown


Management Team

  • Bob Currey (73yo)

    Executive Chairman

    • Tenure: 5.9yrs
    • Compensation: US$432.14k
  • Lisa Hood (53yo)

    VP, Treasurer & Investor Relations

    • Tenure: 0yrs
  • Bob Udell (53yo)

    President

    • Tenure: 4.8yrs
    • Compensation: US$3.15m
  • Steve Childers (63yo)

    CFO, Chief Accounting Officer & Assistant Secretary

    • Tenure: 15.5yrs
    • Compensation: US$1.31m
  • Jennifer Spaude

    Vice President of Corporate Communications

    • Tenure: 0yrs
  • John Lunny (55yo)

    Chief Information Officer

    • Tenure: 0yrs
  • Ryan Whitlock

    Senior VP of Operations

    • Tenure: 0.8yrs
  • Tom White

    Chief Technology Officer

    • Tenure: 0yrs
  • Gabe Waggoner

    Executive Vice President of Operations

    • Tenure: 1.4yrs
  • Garrett Van Osdell

    VP of Legal & Corporate Secretary

    • Tenure: 0.8yrs

Board Members

  • Roger Moore (77yo)

    Director

    • Tenure: 14.3yrs
    • Compensation: US$226.14k
  • Wayne Wilson (70yo)

    Director

    • Tenure: 2.3yrs
    • Compensation: US$208.64k
  • Bob Currey (73yo)

    Executive Chairman

    • Tenure: 5.9yrs
    • Compensation: US$432.14k
  • Maribeth Rahe (70yo)

    Director

    • Tenure: 14.3yrs
    • Compensation: US$232.64k
  • Timothy Taron (69yo)

    Director

    • Tenure: 7.3yrs
    • Compensation: US$222.64k
  • Tom Gerke (63yo)

    Director

    • Tenure: 6.7yrs
    • Compensation: US$212.64k
  • Dale Parker (68yo)

    Director

    • Tenure: 5yrs
    • Compensation: US$208.64k
  • Bob Udell (53yo)

    President

    • Tenure: 4.8yrs
    • Compensation: US$3.15m

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$247.581m
  • Shares outstanding: 72.08m
  • 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 Interne ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 02:04
End of Day Share Price2019/10/11 00:00
Earnings2019/06/30
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.

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