NYSE:CBB

Stock Analysis Report

Executive Summary

Cincinnati Bell Inc., together with its subsidiaries, provides diversified telecommunications and technology services to residential and business customers in the United States.


Snowflake Analysis

Weak fundamentals or lack of information.


Similar Companies

Share Price & News

How has Cincinnati Bell's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-0.9%

CBB

-0.2%

US Telecom

0.9%

US Market


1 Year Return

45.5%

CBB

14.9%

US Telecom

20.0%

US Market

Return vs Industry: CBB exceeded the US Telecom industry which returned 15.4% over the past year.

Return vs Market: CBB exceeded the US Market which returned 20.1% over the past year.


Shareholder returns

CBBIndustryMarket
7 Day-0.9%-0.2%0.9%
30 Day12.2%-1.1%1.4%
90 Day133.3%1.0%8.8%
1 Year45.5%45.5%20.5%14.9%22.5%20.0%
3 Year-35.4%-35.4%17.9%0.7%49.9%40.3%
5 Year-24.3%-24.3%39.8%8.4%73.2%54.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Cincinnati Bell undervalued compared to its fair value and its price relative to the market?


Share Price vs. Fair Value

Below Fair Value: CBB ($12.83) is trading above our estimate of fair value ($0.35)

Significantly Below Fair Value: CBB is trading above our estimate of fair value.


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: CBB has negative assets, so we can't compare its PB Ratio to the US Telecom industry average.


Next Steps

Future Growth

How is Cincinnati Bell forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

40.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

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

High Growth Revenue: CBB'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: Insufficient data to determine if CBB's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Cincinnati Bell performed over the past 5 years?

-60.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CBB is currently unprofitable.

Growing Profit Margin: CBB is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: CBB is unprofitable, and losses have increased over the past 5 years at a rate of -60.1% per year.

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

Earnings vs Industry: CBB is unprofitable, making it difficult to compare its past year earnings growth to the Telecom industry (-23.8%).


Return on Equity

High ROE: CBB's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Cincinnati Bell's financial position?


Financial Position Analysis

Short Term Liabilities: CBB has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: CBB has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: CBB has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: CBB's has negative shareholder equity, so we do not need to check if its debt has reduced over time.


Balance Sheet

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

Debt Coverage by Assets: CBB 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.

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

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


Next Steps

Dividend

What is Cincinnati Bell's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage4.9%forecastin3Years0%

Current dividend yield vs market & industry

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

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

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


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

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

2.7yrs

Average management tenure


CEO

Leigh Fox (46yo)

2.8yrs

Tenure

US$3,101,489

Compensation

Mr. Leigh R. Fox serves as the Chief Executive Officer and President of Cincinnati Bell Inc. (“Cincinnati Bell”) since May 31, 2017 and September 2016 respectively. Mr. Fox is a Director at Cincinnati Bell ...


CEO Compensation Analysis

Compensation vs Market: Leigh's total compensation ($USD3.10M) is about average for companies of similar size in the US market ($USD2.48M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Leigh Fox
President2.8yrsUS$3.10m0.20% $1.3m
Andrew Kaiser
Chief Financial Officer3.4yrsUS$1.21m0.044% $283.7k
Thomas Simpson
Chief Operating Officer2.7yrsUS$1.35m0.058% $377.9k
Christopher Wilson
VP & General Counsel16.5yrsUS$1.11m0.12% $767.1k
Christi Cornette
Chief Culture Officer2.7yrsUS$1.01m0.085% $550.8k
Joshua Duckworth
Vice President of Treasury2.3yrsUS$420.91k0.033% $211.2k
Kevin Murray
Senior VP & Chief Information Officer2.1yrsno datano data
Christopher Elma
Chief Financial Officer of Entertainment & Communications's Business Segment2.3yrsno datano data
Connie Vogt
Corporate Secretary0yrsno datano data
Suzanne Maratta
VP & Corporate Controller0.8yrsno datano data

2.7yrs

Average Tenure

46yo

Average Age

Experienced Management: CBB's management team is considered experienced (2.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Leigh Fox
President2.8yrsUS$3.10m0.20% $1.3m
Walter Dods
Independent Director1.6yrsUS$20.00k0.053% $340.5k
Meredith Ching
Independent Director1.6yrsUS$19.17kno data
Craig Maier
Independent Director11.6yrsUS$203.00k0.078% $504.2k
Martin Yudkovitz
Independent Director4.6yrsUS$190.00k0.055% $353.0k
Lynn Wentworth
Chairman of the Board0.8yrsUS$207.00k0.080% $518.6k
John Eck
Independent Director5.3yrsUS$190.00k0.042% $272.6k
Jakki Haussler
Independent Director11.8yrsUS$201.00k0.081% $526.7k
Theodore Torbeck
Director7.1yrsUS$170.00k0.54% $3.5m
Russel Mayer
Independent Director6.3yrsUS$201.00k0.051% $328.8k

5.0yrs

Average Tenure

62yo

Average Age

Experienced Board: CBB's board of directors are considered experienced (5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: CBB insiders have only sold shares 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 8.9%.


Top Shareholders

Company Information

Cincinnati Bell Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Cincinnati Bell Inc.
  • Ticker: CBB
  • Exchange: NYSE
  • Founded: 1873
  • Industry: Integrated Telecommunication Services
  • Sector: Telecom
  • Market Cap: US$646.928m
  • Shares outstanding: 50.42m
  • Website: https://www.cincinnatibell.com

Number of Employees


Location

  • Cincinnati Bell Inc.
  • 221 East Fourth Street
  • Cincinnati
  • Ohio
  • 45202
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CBBNYSE (New York Stock Exchange)YesCommon SharesUSUSDFeb 1969
CIB1DB (Deutsche Boerse AG)YesCommon SharesDEEURFeb 1969

Biography

Cincinnati Bell Inc., together with its subsidiaries, provides diversified telecommunications and technology services to residential and business customers in the United States. It operates in two segments, Entertainment and Communications, and IT Services and Hardware. The Entertainment and Communications segment offers data services, including high-speed Internet access, data transport, and interconnection services, as well as metro-Ethernet products; and voice local services, as well as long distance, digital trunking, switched access, and other value-added services, such as caller identification, voicemail, call waiting, and call return. This segment also provides video services comprising entertainment channels, including digital music, local, movie, and sports programming with high-definition (HD) channels, parental controls, HD DVR, and video on-demand. In addition, this segment undertakes wiring projects for business customers; and offers advertising, directory assistance, maintenance, and information services. The IT Services and Hardware segment provides consulting services consisting of IT staffing and project-based engagements, including engineering and installation of voice, connectivity and IT technologies, development of digital application solutions, and staff augmentation; and hosted solutions comprising converged IP communications platforms of data, voice, video, and mobility applications. This segment also offers cloud services, such as virtual data center, storage, and backup services; and monitoring and managing technology environments and applications, as well as sells, architects, and installs telecommunications and IT infrastructure equipment. The company was founded in 1873 and is headquartered in Cincinnati, Ohio. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/17 23:55
End of Day Share Price2020/02/14 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.