The two companies currently have an agreement to offer solar power and/or natural gas to those who live within Frontier service areas in New York, Ohio, Illinois, and Arizona. Under the expanded agreement the companies plan to offer solar power to more markets in California, Arizona, Oregon, New York, and Washington.
Connecticut residents will also have the option to buy solar panel after Frontier gains approval for its acquisition of AT&T (T) wireline, broadband, and U-verse operations in the state.
"This is a natural extension of the partnership between Crius Energy and Frontier Communications," Michael Fallquist , CEO of Crius Energy said in a press release. "Offering solar power in Frontier territories strengthens an already successful relationship and expands the service offerings and geographic reach of Crius Energy."
TheStreet Ratings team rates FRONTIER COMMUNICATIONS CORP as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate FRONTIER COMMUNICATIONS CORP (FTR) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its good cash flow from operations, expanding profit margins and increase in stock price during the past year. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity and generally higher debt management risk."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Net operating cash flow has slightly increased to $420.29 million or 7.16% when compared to the same quarter last year. In addition, FRONTIER COMMUNICATIONS CORP has also modestly surpassed the industry average cash flow growth rate of 4.60%.
- 46.88% is the gross profit margin for FRONTIER COMMUNICATIONS CORP which we consider to be strong. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, FTR's net profit margin of 5.74% significantly trails the industry average.
- Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. We feel that the combination of its price rise over the last year and its current price-to-earnings ratio relative to its industry tend to reduce its upside potential.
- The debt-to-equity ratio is very high at 2.01 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Even though the debt-to-equity ratio is weak, FTR's quick ratio is somewhat strong at 1.05, demonstrating the ability to handle short-term liquidity needs.
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Diversified Telecommunication Services industry and the overall market, FRONTIER COMMUNICATIONS CORP's return on equity significantly trails that of both the industry average and the S&P 500.
- You can view the full analysis from the report here: FTR Ratings Report