| 2014 | 2015 | 2016 | 2018 | 2019 (projected) | CenturyLink Interest Expense | 1,311,000,000 | 1,312,000,000 | 1,318,000,000 | 1,186,200,000 | 893,764,500 | CenturyLink Gross Profit | 10,185,000,000 | 10,122,000,000 | 9,696,000,000 | 8,726,400,000 | 10,000,000,000 |
CenturyLink is to continue to be woozy in April
 | By Vlad Skutelnik | Macroaxis Story |
Today's write-up is for all stakeholders who are seriously contemplating on exiting a position in CenturyLink. I will summarize the rationale of why CenturyLink stakeholders should not be insulted by the new pull out. Even with fragile performance in the last few months, the Stock's technical indicators remain considerably steady which may send shares a bit higher in April 2019. The new chaos may also be a sign of medium term up-swing for the business stakeholders. CenturyLink shows prevailing Real Value of $20.6976 per share. The current price of the firm is $12.1. At this time the firm appears to be undervalued. Macroaxis approximates value of CenturyLink from analyzing the firm fundamentals such as Profit Margin of (7.39)%, Return On Equity of (8.00)% and Current Valuation of 48.77B as well as examining its technical indicators and Probability Of Bankruptcy. In general, we favor to go long with undervalued instruments and to trade away overvalued instruments since at some point assets prices and their ongoing real values will blend.
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Reviewed by Gabriel Shpitalnik
CenturyLink has 36.06B in debt with debt to equity (D/E) ratio of 181.8 . This implies that the organisation may be unable to create cash to meet all of its financial commitments. The entity has Current Ratio of 0.68 suggesting that it has not enough short term capital to pay financial commitments when the payables are due. The company dividends can provide a clue to current valuation of the stock. This firm one year expected dividend income is about $1.08 per share. The company has Net Profit Margin of (7.39) % which means that it does not effectively controls expenditures or properly executes on its pricing strategies. This is way below average. In the same way, it shows Net Operating Margin of 38.48 % which entails that for every 100 dollars of revenue it generated 0.38 of operating income.
How important is Lumen Technologies's Liquidity
Lumen Technologies financial leverage refers to using borrowed capital as a funding source to finance Lumen Technologies ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Lumen Technologies financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Lumen Technologies' owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Lumen Technologies' financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Lumen Technologies's total debt and its cash.
Detailed Perspective On Lumen Technologies
The firm has beta of 0.75. As returns on market increase, CenturyLink returns are expected to increase less than the market. However during bear market, the loss on holding CenturyLink will be expected to be smaller as well. The big decline in price over the last few months for CenturyLink could raise concerns from investors as the firm closed today at a share price of 12.05 on 15286166.000 in volume. The company management failed to add value to investors and positioning the firm components to exploit market volatility in February. However, diversifying your holdings with CenturyLink or any similar stocks can still protect your portfolios during high-volatility market scenarios. The stock standard deviation of daily returns for 30 days (very short) investing horizon is currently 3.2653. The above-average volatility is mostly attributed to market volatility and speculations regarding some of the upcoming earning calls from CenturyLink partners. CenturyLink maintains current valuation of 48.77b. CenturyLink is trading at 12.10 which is 0.08% increase. Opened at 12.10. CenturyLink Inventory Turnover is decreasing over the last 5 years. The previous year value of CenturyLink Inventory Turnover was 97.91. Also, CenturyLink Return on Investment is considerably stable at the moment.
In closing, our overall buy/sell advice on the business is Hold. We believe CenturyLink is undervalued with close to average probability of distress for the next two years.
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This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of Lumen Technologies. Please refer to our Terms of Use for any information regarding our disclosure principles.