Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.
NEW YORK (
) has been reiterated by TheStreet Ratings as a buy with a ratings score of B . The company's strengths can be seen in multiple areas, such as its increase in net income, good cash flow from operations, growth in earnings per share, expanding profit margins and notable return on equity. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.
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Highlights from the ratings report include:
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Diversified Telecommunication Services industry. The net income increased by 92.8% when compared to the same quarter one year prior, rising from $140.00 million to $270.00 million.
- Net operating cash flow has increased to $1,887.00 million or 29.69% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 15.38%.
- CENTURYLINK INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, CENTURYLINK INC reported lower earnings of $1.29 versus $3.13 in the prior year. This year, the market expects an improvement in earnings ($2.66 versus $1.29).
- The gross profit margin for CENTURYLINK INC is rather high; currently it is at 57.60%. Regardless of CTL'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 5.90% trails the industry average.
- CTL, with its decline in revenue, slightly underperformed the industry average of 8.7%. Since the same quarter one year prior, revenues slightly dropped by 0.5%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
CenturyLink, Inc. operates as an integrated telecommunications company in the United States. The company provides local and long-distance, network access, private line, public access, broadband, data, managed hosting, colocation, wireless, and video services to consumers and businesses. CenturyLink has a market cap of $24.39 billion and is part of the technology sector and telecommunications industry. The company has a P/E ratio of 37.9, above the S&P 500 P/E ratio of 17.7. Shares are up 5% year to date as of the close of trading on Thursday.
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--Written by a member of TheStreet Ratings Staff.
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