Consolidated Communications (NASDAQ: CNSL) shares currently have a dividend yield of 8.40%. Consolidated Communications Holdings, Inc., together with its subsidiaries, provides telecommunications services to residential and business customers in Illinois, Texas, Pennsylvania, California, Kansas, and Missouri. The company has a P/E ratio of 122.87. The average volume for Consolidated Communications has been 173,700 shares per day over the past 30 days. Consolidated Communications has a market cap of $739.3 million and is part of the telecommunications industry. Shares are up 12.2% year to date as of the close of trading on Wednesday. TheStreet Ratings rates Consolidated Communications as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, good cash flow from operations and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and generally higher debt management risk. Highlights from the ratings report include:
- CNSL's very impressive revenue growth greatly exceeded the industry average of 2.2%. Since the same quarter one year prior, revenues leaped by 70.9%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- Net operating cash flow has increased to $51.32 million or 39.15% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 21.31%.
- The gross profit margin for CONSOLIDATED COMM HLDGS INC is rather high; currently it is at 61.40%. Regardless of CNSL's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 1.28% trails the industry average.
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. When compared to other companies in the Diversified Telecommunication Services industry and the overall market, CONSOLIDATED COMM HLDGS INC's return on equity is below that of both the industry average and the S&P 500.
- In its most recent trading session, CNSL has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. Looking ahead, other than the push or pull of the broad market, we do not see anything in the company's numbers that may help reverse the decline experienced over the past 12 months. Despite the past decline, the stock is still selling for more than most others in its industry.
- You can view the full Consolidated Communications Ratings Report.
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