Fact based stock research
CenturyLink (NYSE:CTL)
US5502411037
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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".
Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".
Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.
Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.
(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).
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CenturyLink stock research in summary
ANALYSIS: With an Obermatt Combined Rank of 1 (worse than 99% compared with investment alternatives), CenturyLink (Alternative Carriers, USA) shares have lower financial characteristics compared with similar stocks. Shares of CenturyLink are low in value (priced high) with a consolidated Value Rank of 11 (worse than 89% of alternatives), and are riskily financed (Safety Rank of 18, which means above-average debt burdens) but show above-average growth (Growth Rank of 59). ...read more
RECOMMENDATION: A Combined Rank of 1, is a sell recommendation based on CenturyLink's financial characteristics. As the company CenturyLink shows low value with an Obermatt Value Rank of 11 (89% of comparable investments are less expensive), investors should look at the other ranks. In this case, growth is expected to be above-average, better than 59% of comparable companies (Obermatt Growth Rank is 59). This is a typical case. Companies with above average growth tend to cost more than stocks with slower growth expectations. If this is a high-growth company, the low Obermatt Safety Rank of 18 is a good sign. The more debt a well-performing company has, the higher the returns to shareholders. However, if growth turns negative or interest rates increase, high debt may become a burden. If you believe the future is bright for CenturyLink, even a low-value company (in terms of its key financial indicators) can be a good investment. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
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360° Viewnew| Country | USA |
| Industry | Alternative Carriers |
| Index | Recycling, D.J. US Telecom, S&P 500 |
| Size class | XX-Large |
14-Nov-2024. Stock data may be delayed. Log in or sign up to get the most recent research.
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Review the performance ranks of the individual metrics that form each investment strategy.
Research History: CenturyLink
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 81 |
|
81 |
|
57 |
|
11 |
|
| GROWTH | ||||||||
| GROWTH | 42 |
|
43 |
|
11 |
|
59 |
|
| SAFETY | ||||||||
| SAFETY | 49 |
|
45 |
|
63 |
|
18 |
|
| SENTIMENT | ||||||||
| SENTIMENT | n/a |
|
33 |
|
1 |
|
new |
|
| 360° VIEW | ||||||||
| 360° VIEW | n/a |
|
55 |
|
17 |
|
new |
|
Combined financial peformance in Detail
ANALYSIS: With an Obermatt Combined Rank of 1 (worse than 99% compared with investment alternatives), CenturyLink (Alternative Carriers, USA) shares have lower financial characteristics compared with similar stocks. Shares of CenturyLink are low in value (priced high) with a consolidated Value Rank of 11 (worse than 89% of alternatives), and are riskily financed (Safety Rank of 18, which means above-average debt burdens) but show above-average growth (Growth Rank of 59). ...read more
RECOMMENDATION: A Combined Rank of 1, is a sell recommendation based on CenturyLink's financial characteristics. As the company CenturyLink shows low value with an Obermatt Value Rank of 11 (89% of comparable investments are less expensive), investors should look at the other ranks. In this case, growth is expected to be above-average, better than 59% of comparable companies (Obermatt Growth Rank is 59). This is a typical case. Companies with above average growth tend to cost more than stocks with slower growth expectations. If this is a high-growth company, the low Obermatt Safety Rank of 18 is a good sign. The more debt a well-performing company has, the higher the returns to shareholders. However, if growth turns negative or interest rates increase, high debt may become a burden. If you believe the future is bright for CenturyLink, even a low-value company (in terms of its key financial indicators) can be a good investment. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 81 |
|
81 |
|
57 |
|
11 |
|
| GROWTH | ||||||||
| GROWTH | 42 |
|
43 |
|
11 |
|
59 |
|
| SAFETY | ||||||||
| SAFETY | 49 |
|
45 |
|
63 |
|
18 |
|
| COMBINED | ||||||||
| COMBINED | 62 |
|
71 |
|
28 |
|
1 |
|
Value Metrics in Detail
ANALYSIS: With an Obermatt Value Rank of 11 (worse than 89% compared with alternatives), CenturyLink shares are significantly more expensive than comparable stocks. The Value Rank is based on consolidating four value indicators, where half the indicators are below and half are above average for CenturyLink. Price-to-Sales (P/S) is 56, which means that the stock price compared with what market professionals expect for future sales is lower than for 56% of comparable companies, indicating a good value concerning CenturyLink's revenue size. The same is valid for expected Price-to-Profits (or Price / Earnings, P/E), more favorable than for 83% of alternatives. It is also positive for expected dividend yields with a Dividend Yield rank of 1 (dividends are expected to be higher than for 1% of other stocks). But, compared with other companies in the same industry, the Price-to-Book Capital ratio (also referred to as market-to-book ratio) is higher than average, making the stock more expensive. Only 97% of all competitors have an even higher price compared with book capital which puts the Price-to-Capital Rank for CenturyLink to 3. ...read more
RECOMMENDATION: The overall picture with a consolidated Value Rank of 11, is a sell recommendation based on CenturyLink's stock price compared with the company's operational size and dividend yields. A low level of book capital means that the company has a business that is leaner on assets than its competitors. For instance, the company could be leasing its production facilities, or be more focussed on intellectual property, such as its brand and software, which is less visible in its book capital. If that is the case, the low Dividend Yield is also explained as such companies tend to invest their income into market development. The other good value ranks for Sales and Profits are encouraging indicators for the stock price value. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision. ...read more
| VALUE METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| PRICE VS. REVENUES (P/S) | ||||||||
| PRICE VS. REVENUES (P/S) | 87 |
|
75 |
|
91 |
|
56 |
|
| PRICE VS. PROFITS (P/E) | ||||||||
| PRICE VS. PROFITS (P/E) | 8 |
|
84 |
|
83 |
|
83 |
|
| PRICE VS. CAPITAL (Market-to-Book) | ||||||||
| PRICE VS. CAPITAL (Market-to-Book) | 76 |
|
89 |
|
83 |
|
3 |
|
| DIVIDEND YIELD | ||||||||
| DIVIDEND YIELD | 100 |
|
1 |
|
1 |
|
1 |
|
| CONSOLIDATED RANK: VALUE | ||||||||
| CONSOLIDATED RANK: VALUE | 81 |
|
81 |
|
57 |
|
11 |
|
Growth Metrics in Detail
ANALYSIS: With an Obermatt Growth Rank of 59 (better than 59% compared with alternatives), CenturyLink shows an above-average growth dynamic in its industry. Investors also speak of positive momentum. The Growth Rank is based on consolidating four value indicators, with half of the indicators below and half above average for CenturyLink. Capital Growth has a rank of 83, which means that currently professionals expect the company to grow its invested capital more than 8% of its competitors. Investors welcomed this, visible in the Stock Returns rank of 100 (above 100% of alternative investments). But Sales Growth has only a rank of 8, which means that, currently, professionals expect the company to grow less than 92% of its competitors, and Profit Growth is also low at a rank of 8. ...read more
RECOMMENDATION: The overall picture with a consolidated Growth Rank of 59, is a buy recommendation for growth and momentum investors. This is an ambiguous picture. Revenue growth and capital growth are strong, but the growth in profit, which seems good, can also be an indication that growth momentum may be negative. The fact that stock returns have been above average doesn't help much, as stock returns are less reliable in showing a company’s future growth potential. Prices may perform well for the simple reason that investors were too pessimistic in the past and are now correcting their opinions and moving the stock price to a more reasonable level. As the growth picture is mixed for CenturyLink, investors may want to look at value and sentiment indicators for a well-rounded picture of this stock. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is mixed here. ...read more
| GROWTH METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| REVENUE GROWTH | ||||||||
| REVENUE GROWTH | 10 |
|
1 |
|
1 |
|
8 |
|
| PROFIT GROWTH | ||||||||
| PROFIT GROWTH | 22 |
|
47 |
|
31 |
|
8 |
|
| CAPITAL GROWTH | ||||||||
| CAPITAL GROWTH | n/a |
|
59 |
|
55 |
|
83 |
|
| STOCK RETURNS | ||||||||
| STOCK RETURNS | 67 |
|
73 |
|
3 |
|
100 |
|
| CONSOLIDATED RANK: GROWTH | ||||||||
| CONSOLIDATED RANK: GROWTH | 42 |
|
43 |
|
11 |
|
59 |
|
Safety Metrics in Detail
ANALYSIS: With an Obermatt Safety Rank of 18 (better than 18% compared with alternatives), the company CenturyLink has much riskier financing practices than comparable other companies, which means that their overall debt burden is significantly above the industry average. This doesn't mean that the business of CenturyLink is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with just one indicator above average for CenturyLink and the other two below average. Refinancing is at 64, meaning the portion of the debt about to be refinanced is below average. It has less debt in the refinancing stage than 64% of its competitors. But Leverage is high with a rank of 2, meaning the company has an above-average debt-to-equity ratio. It has more debt than 98% of its competitors. Liquidity is also on the riskier side with a rank of 36, meaning the company generates less profit to service its debt than 64% of its competitors. ...read more
RECOMMENDATION: With a consolidated Safety Rank of 18 (worse than 82% compared with alternatives), CenturyLink has a financing structure that is significantly riskier than that of its competitors. A good Refinancing Rank means that the problems of the company may not be around the corner. But high Leverage is only good if things go well, and low Liquidity is a signal for caution. The financing signals for CenturyLink are on the riskier side, requiring the company's future to be on the safer side. Investors may want to look at Growth and Sentiment ranks before making an investment decision. In the long-term, investors may have a debt challenge with CenturyLink and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more
| SAFETY METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| LEVERAGE | ||||||||
| LEVERAGE | 6 |
|
14 |
|
34 |
|
2 |
|
| REFINANCING | ||||||||
| REFINANCING | 100 |
|
80 |
|
86 |
|
64 |
|
| LIQUIDITY | ||||||||
| LIQUIDITY | 33 |
|
47 |
|
38 |
|
36 |
|
| CONSOLIDATED RANK: SAFETY | ||||||||
| CONSOLIDATED RANK: SAFETY | 49 |
|
45 |
|
63 |
|
18 |
|
Sentiment Metrics in Detail
| SENTIMENT | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| ANALYST OPINIONS | ||||||||
| ANALYST OPINIONS | n/a |
|
5 |
|
5 |
|
new |
|
| OPINIONS CHANGE | ||||||||
| OPINIONS CHANGE | n/a |
|
50 |
|
11 |
|
new |
|
| PRO HOLDINGS | ||||||||
| PRO HOLDINGS | n/a |
|
45 |
|
12 |
|
new |
|
| MARKET PULSE | ||||||||
| MARKET PULSE | n/a |
|
70 |
|
15 |
|
new |
|
| CONSOLIDATED RANK: SENTIMENT | ||||||||
| CONSOLIDATED RANK: SENTIMENT | n/a |
|
33 |
|
1 |
|
new |
|
Free stock analysis by the purely fact based Obermatt Method for CenturyLink from November 14, 2024.
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