LUMN Stock Overview
Lumen Technologies, Inc., a facilities-based technology and communications company, provides various integrated products and services under the Lumen, Quantum Fiber, and CenturyLink brands to business and residential customers in the United States and internationally.
Lumen Technologies, Inc. Competitors
Price History & Performance
|Historical stock prices|
|Current Share Price||US$7.71|
|52 Week High||US$14.50|
|52 Week Low||US$7.62|
|1 Month Change||-28.35%|
|3 Month Change||-31.47%|
|1 Year Change||-41.24%|
|3 Year Change||-38.22%|
|5 Year Change||-60.09%|
|Change since IPO||-26.96%|
Recent News & Updates
Lumen Technologies establishes new subsea fiber route between US and France
Lumen Technologies (NYSE:LUMN) established a new subsea fiber route between the U.S. and France as the company seeks to increase network capacity and diversity. LUMN is now investing in a fiber pair on Grace Hopper, a subsea cable system spearheaded by Google, between New York and Bude, Cornwall in the U.K. Data flows are the lifeblood of the U.S.- Europe trade and investment partnership, according to the U.S. Chamber of Commerce. Shares were trading +0.12% pre-market. Source: Press Release
Lumen hires new CEO as Jeff Storey retires
Kate Johnson has been appointed as president, CEO and a member of the board of directors at Lumen Technologies (NYSE:LUMN). Johnson will succeed Jeff Storey, who is retiring after a distinguished 40-year career within the telecommunication and technology industries. The transition date is expected to be Nov 7, 2022. Johnson is a seasoned tech executive with experience working across a variety of Fortune 100 companies, including Oracle (ORCL), General Electric (GE) and Microsoft (MSFT). Most recently, she led Microsoft U.S., with a remit for all of the company's sales, services, marketing and operations.
Better High Yield Telecom Buy: Lumen Technologies Or AT&T?
Summary Lumen Technologies and AT&T are two high yield telecommunications companies. Which one is a better buy at the moment? We compare LUMN and T side-by-side and offer our take. Both Lumen Technologies (LUMN) and AT&T (T) are telecommunications businesses that currently offer very attractive dividends yields of 10.2% and 6.5%, respectively. While LUMN offers a vastly superior current dividend yield, AT&T has an investment grade balance sheet, implying that it is lower risk. In this article, we will compare them side by side and offer our take on which one is a better buy. Lumen Technologies Vs. AT&T - Business Model LUMN operates two main business segments: Business and Mass Markets. Within these segments, it offers various telecommunications related services, such as cloud services, managed security services, intellectual property and data services information technology solutions, colocation and data center services, and unified communication and collaboration solutions. It is also investing aggressively in rapidly growing its Quantum Fiber business as it seeks to capitalize on the growing demand for fiber infrastructure services. LUMN highlights its edge computing services and significant quantum fiber growth runway as key competitive advantages for its business. However, these capabilities have as of yet to translate into generating strong overall topline growth for the company. Recently, LUMN has sold off several of its non-core businesses and assets in an effort to deleverage the balance sheet and streamline its capital expenditure budget in order to be able to maximize capital investments into its growthiest and best-positioned assets. Thus far, management has struggled to build a sustainable business model that is able to generate stable or even growing cash flows. However, organic revenue declines are decelerating, and management continues to believe that organic revenue growth is only a year or two away for the company. Meanwhile, AT&T operates a more broadly diversified telecommunications business as it offers wireless voice and data communications services, wireless computing devices, handsets, data cards, and carrying cases. It also offers similar services to LUMN, including security, cloud solutions, data, and outsourcing services. Its clients include individuals, small and mid-sized businesses, multinational corporations, and governments. AT&T also offers broadband fiber and legacy telephone services to residential customers. Also similar to LUMN, AT&T has recently made moves to streamline its business model and deleverage its balance sheet. It spun off its media assets along with a large pile of debt, and now is solely focused on its core telecommunications business. However, it is struggling to generate any sort of meaningful growth in this business while also having to pour a lot of money into it via capital expenditures. We rate this segment as a draw between LUMN and AT&T. While AT&T is slightly better diversified, both businesses face significant competition in their businesses and are struggling to generate high returns on invested capital, so ultimately neither has anything impressive to stand on. Lumen Technologies Vs. AT&T - Balance Sheet LUMN has a junk credit rating from S&P at BB, with a negative outlook. That said, it is making some strides to improve its balance sheet and it is not in any sort of near-term risk of financial distress. Year-to-date in 2022, it has reduced net debt by nearly $900 million, while generating substantial free cash flow. Furthermore, it continues to divest non-core assets, generating billions of dollars in proceeds that it is largely using to pay down debt. Between its impressive free cash flow generation, net proceeds from divestures, and well-laddered debt maturity calendar, LUMN should not have any issue meeting financial obligations for years to come. Meanwhile, AT&T has an investment grade BBB credit rating from S&P with a stable outlook. Furthermore, between the debt that it recently spun off along with its media assets and its meaningful retained free cash flow at the moment thanks to its recently slashed dividend, AT&T is able to continue paying down debt to further strengthen its balance sheet. As management said on its latest earnings call: Importantly, we maintained our focus on paying down debt, with the $40 billion in proceeds from the completion of the WarnerMedia Discovery transaction in April helping us to significantly reduce our net debt in the quarter. Overall, neither business is in trouble in this segment, but we give the win to AT&T given that it has an investment grade balance sheet and is more focused on reducing debt at the moment thanks to its lower dividend payout ratio. Lumen Technologies Vs. AT&T - Growth Potential This is an area where both businesses are currently struggling while also investing aggressively in an attempt to drive a turnaround. Both businesses have seen revenues and EBITDA decline since 2020 (LUMN also saw revenue decline in 2019, but its EBITDA edged up slightly that year), and analysts expect revenue to continue declining for both businesses in 2023, though AT&T is expected to see EBITDA increase slightly next year. LUMN, meanwhile, is not expected to see EBITDA return to growth until 2024 and revenue will likely be flattish in 2024 and then post solid growth beginning in 2025. While neither business has strong growth potential moving forward, we give AT&T the slight edge here as analysts have a rosier outlook for its business relative to LUMN's, and AT&T is also retaining more cash flow at the moment for reinvesting in growth. Lumen Technologies Vs. AT&T - Track Record When it comes to track record, neither business is particularly impressive in recent years. However, over the long term, LUMN and AT&T have posted similar results, with AT&T enjoying a slight edge: LUMN Total Return Price data by YCharts
|LUMN||US Telecom||US Market|
Return vs Industry: LUMN underperformed the US Telecom industry which returned -33.8% over the past year.
Return vs Market: LUMN underperformed the US Market which returned -23% over the past year.
|LUMN Average Weekly Movement||4.8%|
|Telecom Industry Average Movement||5.8%|
|Market Average Movement||6.9%|
|10% most volatile stocks in US Market||15.7%|
|10% least volatile stocks in US Market||2.8%|
Stable Share Price: LUMN is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.
Volatility Over Time: LUMN's weekly volatility (5%) has been stable over the past year.
About the Company
Lumen Technologies, Inc., a facilities-based technology and communications company, provides various integrated products and services under the Lumen, Quantum Fiber, and CenturyLink brands to business and residential customers in the United States and internationally. The company operates in two segments, Business and Mass Markets. It offers compute and application services, such as cloud services, IT solutions, unified communication and collaboration solutions, colocation and data center services, content delivery services, and managed security services; and IP and data services, including VPN data network, Ethernet, internet protocol (IP), and voice over internet protocol.
Lumen Technologies, Inc. Fundamentals Summary
|LUMN fundamental statistics|
Is LUMN overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|LUMN income statement (TTM)|
|Cost of Revenue||US$8.28b|
Last Reported Earnings
Jun 30, 2022
Next Earnings Date
|Earnings per share (EPS)||1.93|
|Net Profit Margin||10.49%|
How did LUMN perform over the long term?See historical performance and comparison