NYSE:CTL

Stock Analysis Report

Executive Summary

CenturyLink, Inc. provides various communications services to residential, business, wholesale, and governmental customers in the United States and internationally.

Snowflake

Fundamentals

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


Market Performance


7 Day Return

-2.9%

CTL

-0.0001%

US Telecom

-0.6%

US Market


1 Year Return

-45.4%

CTL

8.1%

US Telecom

0.7%

US Market

CTL underperformed the Telecom industry which returned 7.1% over the past year.

CTL underperformed the Market in United States of America which returned 0.6% over the past year.


Share holder returns

CTLIndustryMarket
7 Day-2.9%-0.0001%-0.6%
30 Day8.2%6.3%2.9%
90 Day10.4%10.0%1.3%
1 Year-39.9%-45.4%13.9%8.1%2.9%0.7%
3 Year-37.5%-54.3%15.7%-1.1%44.6%35.2%
5 Year-51.2%-68.9%36.3%5.1%61.9%44.2%

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

2 months ago | Simply Wall St

These 4 Measures Indicate That CenturyLink (NYSE:CTL) Is Using Debt Extensively

Valuation

Is CenturyLink 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

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

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


Price Based on Earnings

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

CenturyLink 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 CenturyLink, we can't assess if its growth is good value.


Price Based on Value of Assets

CenturyLink is good value based on assets compared to the US Telecom industry average.


Next Steps

Future Growth

How is CenturyLink expected to perform in the next 1 to 3 years based on estimates from 13 analysts?

63.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

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

CenturyLink's earnings are expected to grow significantly at over 20% yearly.

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

CenturyLink's earnings growth is expected to exceed the United States of America market average.

CenturyLink's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

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


Next Steps

Past Performance

How has CenturyLink performed over the past 5 years?

-52.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

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

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

Unable to compare CenturyLink'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 CenturyLink has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

It is difficult to establish if CenturyLink 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 CenturyLink 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 CenturyLink's financial position?


Financial Position Analysis

CenturyLink's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

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


Debt to Equity History and Analysis

CenturyLink's level of debt (252.5%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (126.3% vs 252.5% today).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.1x debt.


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 CenturyLink has sufficient cash runway for more than 3 years if it maintains the current positive free cash flow level.

Whilst loss making CenturyLink has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -35.7% per year.


Next Steps

Dividend

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

7.99%

Expected Dividend Yield


Dividend Yield and Payments Analysis

CenturyLink's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).

CenturyLink's dividend is above the markets top 25% of dividend payers in United States of America (3.71%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have fallen over the past 10 years.


Current Payout to Shareholders

The company is paying a dividend however it is incurring a loss.


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (1.4x coverage).


Next Steps

Management

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

1.4yrs

Average management tenure


CEO

Jeff Storey (58yo)

1.3yrs

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

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

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


Management Age and Tenure

1.4yrs

Average Tenure

54.5yo

Average Age

The average tenure for the CenturyLink management team is less than 2 years, this suggests a new team.


Board Age and Tenure

6.1yrs

Average Tenure

64yo

Average Age

The tenure for the CenturyLink board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

BuyUS$106,30030 May 19
W. Hanks
EntityIndividual
Role
Vice Chairman
Vice Chairman & Lead Independent Director
Shares10,000
Max PriceUS$10.63
BuyUS$196,60024 May 19
T. Glenn
EntityIndividual
Shares20,000
Max PriceUS$9.83
BuyUS$491,48023 May 19
Jeffrey Storey
EntityIndividual
Role
Chief Executive Officer
President
Shares50,000
Max PriceUS$9.83
BuyUS$147,15523 May 19
Indraneel Dev
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares15,000
Max PriceUS$9.85
BuyUS$109,19215 May 19
Harvey Perry
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares10,000
Max PriceUS$10.92
BuyUS$404,25013 May 19
Steven Clontz
EntityIndividual
Shares37,000
Max PriceUS$11.00
BuyUS$24,60814 Mar 19
Kevin Chilton
EntityIndividual
Role
Member of the Board of Directors
Director
Shares2,000
Max PriceUS$12.30
BuyUS$95,60007 Mar 19
Steven Clontz
EntityIndividual
Shares8,000
Max PriceUS$11.95
BuyUS$587,50006 Mar 19
Indraneel Dev
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares50,000
Max PriceUS$11.75
BuyUS$991,26106 Mar 19
Jeffrey Storey
EntityIndividual
Role
Chief Executive Officer
President
Shares83,000
Max PriceUS$11.94
SellUS$18,161,09219 Feb 19
Southeastern Asset Management, Inc.
EntityCompany
Shares1,093,383
Max PriceUS$16.61
BuyUS$77,592,77619 Feb 19
Southeastern Asset Management, Inc.
EntityCompany
Shares4,795,598
Max PriceUS$16.18
SellUS$254,400,00018 Jan 19
Temasek Holdings (Private) Limited
EntityCompany
Shares16,000,000
Max PriceUS$15.90
BuyUS$141,16013 Dec 18
Steven Clontz
EntityIndividual
Shares8,207
Max PriceUS$17.20
SellUS$1,003,78406 Dec 18
Scott Trezise
EntityIndividual
Role
Head of Human Resources
Executive Vice President of Human Resources
Shares53,164
Max PriceUS$18.88

Ownership Breakdown


Management Team

  • Jeff Storey (58yo)

    President

    • Tenure: 1.3yrs
    • Compensation: US$35.66m
  • Stacey Goff (53yo)

    Executive VP

    • Tenure: 4.8yrs
    • Compensation: US$3.58m
  • Eric Mortensen (59yo)

    Principal Accounting Officer

    • Tenure: 1.4yrs
  • Bryan Taylor

    Vice President of Corporate Development

    • Tenure: 13.2yrs
  • Neel Dev (47yo)

    Executive VP & CFO

    • Tenure: 1yrs
    • Compensation: US$2.73m
  • Shaun Andrews (56yo)

    Executive VP & Chief Marketing Officer

    • Tenure: 0.7yrs
  • Scott Trezise (50yo)

    Executive Vice President of Human Resources

    • Tenure: 6.1yrs
    • Compensation: US$1.86m
  • Andrew Dugan

    Chief Technology Officer

    • Tenure: 0yrs
  • Mark Stoutenberg

    Senior Director of Investor Relations

    • Tenure: 1.3yrs
  • Valerie Finberg

    Vice President of Investor Relations

    • Tenure: 0yrs

Board Members

  • Peter Brown (60yo)

    Director

    • Tenure: 10.2yrs
    • Compensation: US$276.69k
  • Glen Post (66yo)

    Director

    • Tenure: 34.7yrs
    • Compensation: US$10.74m
  • W. Hanks (64yo)

    Vice Chairman & Lead Independent Director

    • Tenure: 2.3yrs
    • Compensation: US$413.62k
  • Harvey Perry (74yo)

    Chairman of the Board

    • Tenure: 2.3yrs
    • Compensation: US$475.91k
  • Jeff Storey (58yo)

    President

    • Tenure: 1.3yrs
    • Compensation: US$35.66m
  • Virginia Boulet (65yo)

    Director

    • Tenure: 24.7yrs
    • Compensation: US$295.44k
  • Laurie Siegel (63yo)

    Director

    • Tenure: 10.2yrs
    • Compensation: US$321.51k
  • Mike Roberts (68yo)

    Director

    • Tenure: 8.4yrs
    • Compensation: US$303.44k
  • Chili Chilton (64yo)

    Director

    • Tenure: 1.8yrs
    • Compensation: US$301.69k
  • Mary Landrieu (63yo)

    Director

    • Tenure: 3.8yrs
    • Compensation: US$276.44k

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$13.656b
  • 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

Biography

CenturyLink, Inc. provides various communications services to residential, business, wholesale, and governmental customers in the United States and internationally. The company operates in two segments, Bu ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/21 23:33
End of Day Share Price2019/09/20 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.