NasdaqGS:FTR

Stock Analysis Report

Frontier Communications

Executive Summary

Frontier Communications Corporation provides communications services to consumer, commercial, and wholesale customers in the United States.

Snowflake

Fundamentals

Mediocre balance sheet and slightly overvalued.

Risks

  • Frontier Communications has significant price volatility in the past 3 months.

Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-5.2%

NasdaqGS:FTR

-2.9%

US Telecom

-0.02%

US Market


1 Year Return

-83.5%

NasdaqGS:FTR

7.9%

US Telecom

1.6%

US Market

FTR underperformed the Telecom industry which returned 7% over the past year.

FTR underperformed the Market in United States of America which returned 1.9% over the past year.


Share holder returns

FTRIndustryMarket
7 Day-5.2%-2.9%-0.02%
30 Day26.6%4.4%2.7%
90 Day-21.6%8.4%1.4%
1 Year-83.5%-83.5%13.6%7.9%3.8%1.6%
3 Year-97.9%-98.3%15.6%-1.2%45.2%35.8%
5 Year-98.4%-98.9%33.5%2.9%61.8%44.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Frontier Communications 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

Frontier Communications's share price is below the future cash flow value, and at a moderate discount (> 20%).

Frontier Communications's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Frontier Communications is loss making, we can't compare its value to the US Telecom industry average.

Frontier 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

Unable to calculate PEG ratio for Frontier Communications, we can't assess if its growth is good value.


Price Based on Value of Assets

Frontier Communications has negative assets, we can't compare the value of its assets to the US Telecom industry average.


Next Steps

Future Growth

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

85.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Frontier Communications's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.

Frontier Communications is not considered high growth as it is expected to be loss making for the next 1-3 years.

Frontier Communications's revenues are expected to decrease over the next 1-3 years, this is below the United States of America market average.

Unable to compare Frontier Communications's earnings growth to the United States of America market average as it is expected to be loss making during the next 1-3 years.

Unable to compare Frontier Communications's earnings growth to the low risk savings rate as it is expected to be loss making during the next 1-3 years.


Earnings per Share Growth Estimates


Future Return on Equity

Frontier Communications is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Frontier Communications performed over the past 5 years?

-61.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Frontier Communications does not make a profit and their year on year earnings growth rate was negative over the past 5 years.

Unable to compare Frontier Communications's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare Frontier Communications's 1-year growth to the US Telecom industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if Frontier Communications has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) due to its liabilities exceeding its assets.


Return on Assets

It is difficult to establish if Frontier Communications has efficiently used its assets last year compared to the US Telecom industry average (Return on Assets) as it is loss-making.


Return on Capital Employed

It is difficult to establish if Frontier Communications improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is Frontier Communications's financial position?


Financial Position Analysis

Frontier Communications is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Frontier Communications's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Frontier Communications has negative shareholder equity (liabilities exceed assets), this is a more serious situation compared with a high debt level.

Irrelevant to check if Frontier Communications's debt level has increased considering it has negative shareholder equity.


Balance Sheet

High level of physical assets or inventory.

Frontier Communications has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.


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.

Whilst loss making Frontier Communications has sufficient cash runway for more than 3 years if it maintains the current positive free cash flow level.

Whilst loss making Frontier Communications has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -31.1% per year.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

Unable to evaluate Frontier Communications's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Frontier Communications's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Frontier Communications has not reported any payouts.

Unable to verify if Frontier Communications's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Frontier Communications has not reported any payouts.


Future Payout to Shareholders

No need to calculate the sustainability of Frontier Communications's dividends in 3 years as they are not expected to pay a notable one for United States of America.


Next Steps

Management

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

2.2yrs

Average management tenure


CEO

Dan McCarthy (55yo)

4.4yrs

Tenure

US$7,135,383

Compensation

Mr. Daniel J. McCarthy, also known as Dan, is the President and Chief Executive Officer of Frontier Communications Corporation (“Frontier”) and has been with Frontier since December 1990. He was elected to ...


CEO Compensation Analysis

Dan's remuneration is higher than average for companies of similar size in United States of America.

Dan's compensation has increased whilst company is loss making.


Management Age and Tenure

2.2yrs

Average Tenure

54yo

Average Age

The tenure for the Frontier Communications management team is about average.


Board Age and Tenure

3.4yrs

Average Tenure

60yo

Average Age

The tenure for the Frontier Communications board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • John Maduri (58yo)

    Executive VP & Chief Customer Officer

    • Tenure: 2.2yrs
    • Compensation: US$3.66m
  • Dan McCarthy (55yo)

    President

    • Tenure: 4.4yrs
    • Compensation: US$7.14m
  • Don Daniels (51yo)

    Senior VP & Chief Accounting Officer

    • Tenure: 1.7yrs
  • Steve Gable (45yo)

    Executive VP & Chief Technology Officer

    • Tenure: 4.4yrs
    • Compensation: US$2.39m
  • Luke Szymczak

    Vice President of Investor Relations

    • Tenure: 6.5yrs
  • Ken Arndt (54yo)

    Executive VP & COO

    • Tenure: 1.7yrs
    • Compensation: US$2.22m
  • Mark Nielsen (54yo)

    Executive VP

    • Tenure: 5.5yrs
    • Compensation: US$1.38m
  • Sheldon Bruha (51yo)

    CFO, Executive VP & Treasurer

    • Tenure: 1yrs
    • Compensation: US$715.47k
  • Javier Mendoza

    Vice President of Corporate Communications & External Affairs

    • Tenure: 0yrs
  • Rob Curtis

    Senior VP & Chief Marketing Officer

    • Tenure: 1.5yrs

Board Members

  • Pam Reeve (69yo)

    Chairman of the Board

    • Tenure: 3.4yrs
    • Compensation: US$390.00k
  • Rob Schriesheim (58yo)

    Director

    • Tenure: 0.8yrs
    • Compensation: US$11.69k
  • Kevin Beebe (60yo)

    Director

    • Tenure: 0.3yrs
  • Peter C. Bynoe (69yo)

    Independent Director

    • Tenure: 11.9yrs
    • Compensation: US$230.00k
  • Diana Ferguson (55yo)

    Independent Director

    • Tenure: 4.9yrs
    • Compensation: US$215.00k
  • Dan McCarthy (55yo)

    President

    • Tenure: 4.4yrs
    • Compensation: US$7.14m
  • Mo Meghji (54yo)

    Director

    • Tenure: 0.3yrs
  • Paul Keglevic (65yo)

    Director

    • Tenure: 0.3yrs
  • Ed Fraioli (72yo)

    Independent Director

    • Tenure: 9.2yrs
    • Compensation: US$240.00k

Company Information

Frontier Communications Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Frontier Communications Corporation
  • Ticker: FTR
  • Exchange: NasdaqGS
  • Founded: 1927
  • Industry: Integrated Telecommunication Services
  • Sector: Telecom
  • Market Cap: US$114.854m
  • Shares outstanding: 105.37m
  • Website: https://www.frontier.com

Number of Employees


Location

  • Frontier Communications Corporation
  • 401 Merritt 7
  • Norwalk
  • Connecticut
  • 6851
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FTRNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJul 1970
YC51DB (Deutsche Boerse AG)YesCommon StockDEEURJul 1970
0TP1LSE (London Stock Exchange)YesCommon StockGBUSDJul 1970

Biography

Frontier Communications Corporation provides communications services to consumer, commercial, and wholesale customers in the United States. It offers broadband, video, voice, and other services and product ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/19 00:03
End of Day Share Price2019/09/18 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.