Fact based stock research
Consolidated Communications (NasdaqGS:CNSL)
US2090341072
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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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Consolidated Communications stock research in summary
ANALYSIS: With an Obermatt Combined Rank of 12 (worse than 88% compared with investment alternatives), Consolidated Communications (Integrated Telecommunication, USA) shares have lower financial characteristics compared with similar stocks. Shares of Consolidated Communications are a good value (attractively priced) with a consolidated Value Rank of 55 (better than 55% of alternatives) but show below-average growth (Growth Rank of 39), and are riskily financed (Safety Rank of 8), which means above-average debt burdens. ...read more
RECOMMENDATION: A Combined Rank of 12, is a sell recommendation based on Consolidated Communications's financial characteristics. As the company Consolidated Communications's key financial metrics exhibit good value (Obermatt Value Rank of 55) but low growth (Obermatt Growth Rank of 39) and risky financing practices (Obermatt Safety Rank of 8), it may be a risky investment, because debt in times of crises can make things worse. The good value, better than 55% of comparable companies, may indicate the company's future is challenging. If you believe that low growth is temporary or just due to a specific current event, you may conclude that the good value of the stock provides an attractive investment opportunity. 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 | Integrated Telecommunication |
| Index | Renewables Users, NASDAQ, D.J. US Telecom |
| Size class | Large |
This stock has achievements: Top 10 Stock.
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: Consolidated Communications
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 25 |
|
35 |
|
64 |
|
55 |
|
| GROWTH | ||||||||
| GROWTH | 44 |
|
8 |
|
21 |
|
39 |
|
| SAFETY | ||||||||
| SAFETY | 3 |
|
25 |
|
10 |
|
8 |
|
| SENTIMENT | ||||||||
| SENTIMENT | n/a |
|
3 |
|
20 |
|
new |
|
| 360° VIEW | ||||||||
| 360° VIEW | n/a |
|
1 |
|
8 |
|
new |
|
Combined financial peformance in Detail
ANALYSIS: With an Obermatt Combined Rank of 12 (worse than 88% compared with investment alternatives), Consolidated Communications (Integrated Telecommunication, USA) shares have lower financial characteristics compared with similar stocks. Shares of Consolidated Communications are a good value (attractively priced) with a consolidated Value Rank of 55 (better than 55% of alternatives) but show below-average growth (Growth Rank of 39), and are riskily financed (Safety Rank of 8), which means above-average debt burdens. ...read more
RECOMMENDATION: A Combined Rank of 12, is a sell recommendation based on Consolidated Communications's financial characteristics. As the company Consolidated Communications's key financial metrics exhibit good value (Obermatt Value Rank of 55) but low growth (Obermatt Growth Rank of 39) and risky financing practices (Obermatt Safety Rank of 8), it may be a risky investment, because debt in times of crises can make things worse. The good value, better than 55% of comparable companies, may indicate the company's future is challenging. If you believe that low growth is temporary or just due to a specific current event, you may conclude that the good value of the stock provides an attractive investment opportunity. 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 | 25 |
|
35 |
|
64 |
|
55 |
|
| GROWTH | ||||||||
| GROWTH | 44 |
|
8 |
|
21 |
|
39 |
|
| SAFETY | ||||||||
| SAFETY | 3 |
|
25 |
|
10 |
|
8 |
|
| COMBINED | ||||||||
| COMBINED | 9 |
|
6 |
|
10 |
|
12 |
|
Value Metrics in Detail
ANALYSIS: With an Obermatt Value Rank of 55 (better than 55% compared with alternatives), Consolidated Communications shares are more attractively priced than the majority of comparable stocks. The Value Rank is based on consolidating four value indicators, where half the indicators are below and half above average for Consolidated Communications. Price-to-Sales (P/S) is 78, which means that the stock price compared with what market professionals expect for future sales is lower than for 78% of comparable companies, indicating a good value concerning Consolidated Communications's revenue size. The same is valid for the Price-to-Book Capital ratio (also referred to as market-to-book ratio), which is more favorable than for 74% of alternatives (26% of peers have a higher ratio). But expected dividend yields with a Dividend Yield rank of 1 are lower than average (dividends are expected to be lower than 99% of other stocks) while the Price to Profit ratio (or Price to Earnings (P/E) ratio) is higher than average with a Price-to-Profit Rank of 16, making the stock more expensive compared with the company's expected profit levels. ...read more
RECOMMENDATION: The overall picture with a consolidated Value Rank of 55, is a buy recommendation based on Consolidated Communications's stock price compared with the company's operational size and dividend yields. Low profits and low dividends as seen here for Consolidated Communications may indicate a restructuring phase. This could be transitory, making the company a good value when profits recover and dividends return to higher levels. If the stock price is compared with the size indicators for revenue and invested capital, it is on the lower side, making this stock a good value investment (apart from current profit and dividend expectations). 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) | 84 |
|
87 |
|
81 |
|
78 |
|
| PRICE VS. PROFITS (P/E) | ||||||||
| PRICE VS. PROFITS (P/E) | 11 |
|
16 |
|
16 |
|
16 |
|
| PRICE VS. CAPITAL (Market-to-Book) | ||||||||
| PRICE VS. CAPITAL (Market-to-Book) | 40 |
|
56 |
|
81 |
|
74 |
|
| DIVIDEND YIELD | ||||||||
| DIVIDEND YIELD | 1 |
|
1 |
|
1 |
|
1 |
|
| CONSOLIDATED RANK: VALUE | ||||||||
| CONSOLIDATED RANK: VALUE | 25 |
|
35 |
|
64 |
|
55 |
|
Growth Metrics in Detail
ANALYSIS: With an Obermatt Growth Rank of 39 (better than 39% compared with alternatives), Consolidated Communications shows a below-average growth dynamic in its industry. There is limited momentum in this company. The Growth Rank is based on consolidating four value indicators, with three out of four indicators below average for Consolidated Communications. Only Capital Growth has a good rank of 63, which means that currently professionals expect the company to grow its invested capital more than 33% of its competitors. The other three indicators are pointing South: Sales Growth has a rank of 33 which means that currently professionals expect the company to grow less than 67% of its competitors. Profit Growth with a rank of 33 and Stock Returns with a rank of 43 are also low (below 57% of alternative investments). ...read more
RECOMMENDATION: The overall picture with a consolidated Growth Rank of 39, is a hold recommendation for growth and momentum investors. The good news from the invested capital side is surprising. A company with disappointing revenues, profits, and disappointed shareholders typically doesn't invest above average. Overall, the growth momentum for Consolidated Communications is thus negative. As it is intriguing to see that company executives are optimistic about their investment policy, it is worthwhile looking into the details of the capital investment projects. They may indicate future growth and profits and thus if accompanied by a good value, a sign of good timing to invest in the 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 limited here. ...read more
| GROWTH METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| REVENUE GROWTH | ||||||||
| REVENUE GROWTH | 13 |
|
6 |
|
28 |
|
33 |
|
| PROFIT GROWTH | ||||||||
| PROFIT GROWTH | 65 |
|
8 |
|
12 |
|
33 |
|
| CAPITAL GROWTH | ||||||||
| CAPITAL GROWTH | n/a |
|
19 |
|
16 |
|
63 |
|
| STOCK RETURNS | ||||||||
| STOCK RETURNS | 85 |
|
83 |
|
87 |
|
43 |
|
| CONSOLIDATED RANK: GROWTH | ||||||||
| CONSOLIDATED RANK: GROWTH | 44 |
|
8 |
|
21 |
|
39 |
|
Safety Metrics in Detail
ANALYSIS: With an Obermatt Safety Rank of 8 (better than 8% compared with alternatives), the company Consolidated Communications 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 Consolidated Communications 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 all three metrics below average for Consolidated Communications. Liquidity is at 14, meaning that the company generates less profit to service its debt than 86% of its competitors. This indicates that the company is on the riskier side when it comes to debt service. Even worse, Leverage is at a rank of 16, meaning the company has an above-average debt-to-equity ratio. It has more debt than 84% of its competitors. Finally, Refinancing is at a rank of 29 which means that the portion of the debt about to be refinanced is above average. It has more debt in the refinancing stage than 71% of its competitors. ...read more
RECOMMENDATION: With a consolidated Safety Rank of 8 (worse than 92% compared with alternatives), Consolidated Communications has a financing structure that is significantly riskier than that of its competitors. This combination is rather dangerous in most situations. Only very promising companies with bright future outlooks and stellar reputations can operate with such risky financing. Investors should look at Obermatt’s Value, Growth, and Sentiment Ranks to confirm a very positive outlook or be careful with investing in stocks of Consolidated Communications because it may suffer significantly in case of future difficulties. ...read more
| SAFETY METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| LEVERAGE | ||||||||
| LEVERAGE | 6 |
|
6 |
|
16 |
|
16 |
|
| REFINANCING | ||||||||
| REFINANCING | 23 |
|
79 |
|
49 |
|
29 |
|
| LIQUIDITY | ||||||||
| LIQUIDITY | 25 |
|
32 |
|
17 |
|
14 |
|
| CONSOLIDATED RANK: SAFETY | ||||||||
| CONSOLIDATED RANK: SAFETY | 3 |
|
25 |
|
10 |
|
8 |
|
Sentiment Metrics in Detail
| SENTIMENT | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| ANALYST OPINIONS | ||||||||
| ANALYST OPINIONS | n/a |
|
17 |
|
15 |
|
new |
|
| OPINIONS CHANGE | ||||||||
| OPINIONS CHANGE | n/a |
|
50 |
|
89 |
|
new |
|
| PRO HOLDINGS | ||||||||
| PRO HOLDINGS | n/a |
|
42 |
|
32 |
|
new |
|
| MARKET PULSE | ||||||||
| MARKET PULSE | n/a |
|
4 |
|
11 |
|
new |
|
| CONSOLIDATED RANK: SENTIMENT | ||||||||
| CONSOLIDATED RANK: SENTIMENT | n/a |
|
3 |
|
20 |
|
new |
|
Free stock analysis by the purely fact based Obermatt Method for Consolidated Communications from November 14, 2024.
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