| 2013 | 2014 | 2015 | 2018 | 2019 (projected) | Frontier Communications Interest Expense | 667,000,000 | 696,000,000 | 1,113,000,000 | 1,001,700,000 | 747,074,582 | Frontier Communications Gross Profit | 4,331,000,000 | 4,307,000,000 | 4,936,000,000 | 4,442,400,000 | 5,270,000,000 |
Is holding Frontier Communications Corporation will be justified in April 2019?
 | By Rifka Kats | Macroaxis Story |
The company chance of financial distress is now about 42.0 percent. Macroaxis considers Frontier Communications to be extremely volatile. Frontier Communications secures Sharpe Ratio (or Efficiency) of -8.0E-4 which denotes the organization had -8.0E-4% of return per unit of risk over the last 1 month. Macroaxis philosophy towards predicting risk of any stock is to look at both systematic and un-systematic factors of the business, including all available market data and technical indicators. Frontier Communications Corporation exposes twenty-one different technical indicators which can help you to evaluate volatility that cannot be diversified away. Please be advised to confirm Frontier Communications Coefficient Of Variation of (24,156) and Mean Deviation of 3.83 to check risk estimate we provide.
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Reviewed by Gabriel Shpitalnik
The entity has beta of 1.72. As market goes up, the company is expected to significantly outperform it. However, if the market returns are negative, Frontier Communications will likely underperform. This firm dividends can provide a clue to current valuation of the stock. Frontier Communications one year expected dividend income is about $0.41 per share. Now, lets check Frontier Communications Operating Margin. Based on recorded statements Frontier Communications Corporation has Operating Margin of 40.26%. This is much higher than that of the Communication Services sector, and significantly higher than that of Telecom Services industry, The Operating Margin for all stocks is notably lower than Frontier Communications.
How important is Frontier Communications's Liquidity
Frontier Communications financial leverage refers to using borrowed capital as a funding source to finance Frontier Communications ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Frontier Communications 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 Frontier Communications' 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 Frontier Communications' 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 Frontier Communications's total debt and its cash.
Detailed Perspective On Frontier Communications
Frontier Communications reported last year revenue of 8.61B. Reported Net Loss for the year was (750M) with profit before taxes, overhead, and interest of 5.27B. The small decline in market price for the last few months could raise concerns from investors as the firm closed today at a share price of 2.65 on 2987962.000 in volume. The company directors and management did not add much value to Frontier Communications investors in February. However, diversifying your holdings with Frontier Communications Corporation or similar stocks can still protect your portfolio during high-volatility market scenarios. The stock standard deviation of daily returns for 30 days (very short) investing horizon is currently 5.2087. The very high volatility is mostly attributed to the latest market swings and not very good earning reports from some ot the Frontier Communications partners. Frontier Communications preserves 5.27b of gross profit. Frontier Communications is selling for under 2.69. That is 9.80 percent up. Opened at 2.69. Frontier Communications Cash and Equivalents USD is increasing over the last 5 years. Also, Frontier Communications Net Income Common Stock USD is relatively stable at the moment.
To conclude, we believe that at this point Frontier Communications is extremely volatile with below average probability of distress within the next 2 years. Our actual buy vs. sell advice on the enterprise is Cautious Hold.
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