NYSE:CTL

Stock Analysis Report

Executive Summary

CenturyLink, Inc., a facilities-based communications company, provides various integrated services under ‘CenturyLink’ name to business and residential customers in the United States and internationally.


Snowflake Analysis

Fair value with moderate growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-0.3%

CTL

0.2%

US Telecom

-2.6%

US Market


1 Year Return

-23.9%

CTL

-7.8%

US Telecom

-13.3%

US Market

Return vs Industry: CTL underperformed the US Telecom industry which returned -11.5% over the past year.

Return vs Market: CTL underperformed the US Market which returned -15.9% over the past year.


Shareholder returns

CTLIndustryMarket
7 Day-0.3%0.2%-2.6%
30 Day-21.2%-12.9%-15.2%
90 Day-27.4%-17.3%-22.2%
1 Year-17.3%-23.9%-4.0%-7.8%-11.5%-13.3%
3 Year-48.5%-62.1%0.6%-13.1%13.2%5.7%
5 Year-58.0%-73.6%19.1%-6.6%31.8%17.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is CenturyLink 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: CTL ($9.11) is trading below our estimate of fair value ($38.79)

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: CTL is good value based on its PB Ratio (0.7x) compared to the US Telecom industry average (1x).


Next Steps

Future Growth

How is CenturyLink forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

85.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: CTL's revenue is expected to decline over the next 3 years (-2.5% per year).

High Growth Revenue: CTL's revenue is forecast to decline over the next 3 years (-2.5% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CTL's Return on Equity is forecast to be low in 3 years time (9.5%).


Next Steps

Past Performance

How has CenturyLink performed over the past 5 years?

-65.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CTL is currently unprofitable.

Growing Profit Margin: CTL is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: CTL is unprofitable, and losses have increased over the past 5 years at a rate of -65.9% per year.

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

Earnings vs Industry: CTL is unprofitable, making it difficult to compare its past year earnings growth to the Telecom industry (4.8%).


Return on Equity

High ROE: CTL has a negative Return on Equity (-39.12%), as it is currently unprofitable.


Next Steps

Financial Health

How is CenturyLink's financial position?


Financial Position Analysis

Short Term Liabilities: CTL's short term assets ($4.8B) do not cover its short term liabilities ($7.3B).

Long Term Liabilities: CTL's short term assets ($4.8B) do not cover its long term liabilities ($44.0B).


Debt to Equity History and Analysis

Debt Level: CTL's debt to equity ratio (255.9%) is considered high.

Reducing Debt: CTL's debt to equity ratio has increased from 136.5% to 255.9% 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: Whilst unprofitable CTL has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: CTL is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 5.3% per year.


Next Steps

Dividend

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

10.60%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CTL's dividend (10.98%) is higher than the bottom 25% of dividend payers in the US market (2.07%).

High Dividend: CTL's dividend (10.98%) is in the top 25% of dividend payers in the US market (5.82%)


Stability and Growth of Payments

Stable Dividend: CTL's dividend payments have been volatile in the past 10 years.

Growing Dividend: CTL's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: CTL is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: CTL's dividends in 3 years are forecast to be covered by earnings (72.7% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.0yrs

Average management tenure


CEO

Jeff Storey (58yo)

1.92s

Tenure

US$35,655,646

Compensation

Mr. Jeffrey K. Storey, also known as Jeff, has been Chief Executive Officer of CenturyLink Inc. since May 2018. Mr. Storey serves as Chief Executive Officer and President of Qwest Corporation. Mr. Storey h ...


CEO Compensation Analysis

Compensation vs Market: Jeff's total compensation ($USD35.66M) is above average for companies of similar size in the US market ($USD12.09M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Jeffrey Storey
President1.92yrsUS$35.66m0.36% $36.9m
Indraneel Dev
Executive VP & CFO1.58yrsUS$2.73m0.072% $7.3m
Stacey Goff
Executive VP20.25yrsUS$3.58m0.062% $6.4m
Scott Trezise
Executive Vice President of Human Resources6.67yrsUS$1.86m0.025% $2.5m
Eric Mortensen
Principal Accounting Officer2yrsno data0.020% $2.1m
Andrew Dugan
Chief Technology Officerno datano datano data
Valerie Finberg
Vice President of Investor Relationsno datano datano data
Mark Stoutenberg
Senior Director of Investor Relations1.83yrsno datano data
Bryan Taylor
Vice President of Corporate Development13.75yrsno datano data
Shaun Andrews
Executive VP & Chief Marketing Officer1.25yrsno data0.018% $1.9m

2.0yrs

Average Tenure

54.5yo

Average Age

Experienced Management: CTL's management team is not considered experienced ( 2 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Jeffrey Storey
President1.92yrsUS$35.66m0.36% $36.9m
Peter Brown
Independent Director10.75yrsUS$276.69k0.0049% $505.5k
Glen Post
Director35.25yrsUS$10.74m0.12% $11.8m
W. Hanks
Vice Chairman & Lead Independent Director2.92yrsUS$413.62k0.0094% $963.7k
Harvey Perry
Chairman of the Board2.92yrsUS$475.91k0.013% $1.3m
Virginia Boulet
Independent Director25.25yrsUS$295.44k0.0061% $627.8k
Laurie Siegel
Independent Director10.75yrsUS$321.51k0.0054% $560.0k
Michael Roberts
Independent Director9yrsUS$303.44k0.0045% $464.4k
Kevin Chilton
Independent Director2.42yrsUS$301.69k0.0062% $637.0k
Mary Landrieu
Independent Director4.42yrsUS$276.44k0.0031% $322.6k

6.7yrs

Average Tenure

64yo

Average Age

Experienced Board: CTL'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: CTL 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

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


Key Information

  • Name: CenturyLink, Inc.
  • Ticker: CTL
  • Exchange: NYSE
  • Founded: 1968
  • Industry: Alternative Carriers
  • Sector: Telecom
  • Market Cap: US$10.274b
  • Shares outstanding: 1.09b
  • Website: https://www.centurylink.com

Number of Employees


Location

  • CenturyLink, Inc.
  • 100 CenturyLink Drive
  • Monroe
  • Louisiana
  • 71203
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CTLNYSE (New York Stock Exchange)YesCommon StockUSUSDDec 1972
CYTDB (Deutsche Boerse AG)YesCommon StockDEEURDec 1972
CTL *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNDec 1972
0HVPLSE (London Stock Exchange)YesCommon StockGBUSDDec 1972
CYTBRSE (Berne Stock Exchange)YesCommon StockCHCHFDec 1972
CYTETLX (Eurotlx)YesCommon StockITEURDec 1972
C1TL34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH REPR 1 COMBRBRLDec 2019

Biography

CenturyLink, Inc., a facilities-based communications company, provides various integrated services under ‘CenturyLink’ name to business and residential customers in the United States and internationally. The company operates through five segments: International and Global Accounts Management, Enterprise, Small and Medium Business, Wholesale, and Consumer. It offers IP and data services, including VPN data network, Ethernet, internet protocol (IP), and content delivery services. CenturyLink, Inc. also offers transport and infrastructure services comprising high bandwidth optical networks; unlit optical fiber networks, and related professional and management services; private line services, a direct circuit or channel specifically dedicated for connecting two or more organizational sites; colocation and data center services; and consulting services, which include network management, installation and maintenance of data equipment, and building of proprietary fiber-optic broadband networks for government and business customers. In addition, the company provides voice and collaboration services, including primary rate interface service, local inbound service, switched one-plus, toll free, long distance, and international services; and voice over internet protocol services, as well as satellite television services under DIRECTV name. Further, it offers IT and managed service that include network, hosting, public and private cloud, and other IT services, as well as intuitive management tools. Additionally, the company is involved in leasing and subleasing of space. As of December 31, 2019, it served approximately 4.7 million broadband subscribers. CenturyLink, Inc. was founded in 1968 and is headquartered in Monroe, Louisiana. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/07 01:30
End of Day Share Price2020/04/06 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.