Level 3 Communications IncFind Ratings Reports
LEVEL 3 COMMUNICATIONS INC's gross profit margin for the fourth quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Sales and net income have dropped, underperforming the average competitor within its industry. LEVEL 3 COMMUNICATIONS INC has strong liquidity. Currently, the Quick Ratio is 1.73 which shows the ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.
During the same period, stockholders' equity ("net worth") has increased by 7.81% from the same quarter last year. The key liquidity measurements indicate that the company is unlikely to face financial difficulties in the near future.
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|Income Statement||Q4 FY16||Q4 FY15|
|Net Sales ($mil)||2032.0||2053.0|
|Net Income ($mil)||250.0||3323.0|
|Balance Sheet||Q4 FY16||Q4 FY15|
|Cash & Equiv. ($mil)||1826.0||862.0|
|Total Assets ($mil)||24888.0||24145.0|
|Total Debt ($mil)||10884.0||11009.0|
|Profitability||Q4 FY16||Q4 FY15|
|Gross Profit Margin||66.54||65.51|
|Return on Assets||2.72||14.21|
|Return on Equity||6.2||33.9|
|Debt||Q4 FY16||Q4 FY15|
|Share Data||Q4 FY16||Q4 FY15|
|Shares outstanding (mil)||359.69||356.37|
|Div / share||0.0||0.0|
|Book value / share||30.35||28.41|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||2198290.0||4315033.0|
BUY. LEVEL 3 COMMUNICATIONS INC's P/E ratio indicates a premium compared to an average of 27.22 for the Diversified Telecommunication Services industry and a premium compared to the S&P 500 average of 26.35. To use another comparison, its price-to-book ratio of 1.89 indicates a discount versus the S&P 500 average of 2.94 and a significant discount versus the industry average of 3.72. The current price-to-sales ratio is above both the S&P 500 average and the industry average, indicating a premium. The valuation analysis reveals that, LEVEL 3 COMMUNICATIONS INC seems to be trading at a premium to investment alternatives within the industry.
|LVLT 30.66||Peers 27.22||LVLT 8.80||Peers 8.68|
Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.
LVLT is trading at a premium to its peers.
Average. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.
LVLT is trading at a valuation on par to its peers.
|LVLT 32.12||Peers 26.00||LVLT NM||Peers 0.69|
Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.
LVLT is trading at a significant premium to its peers.
Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.
LVLT's negative PEG ratio makes this valuation measure meaningless.
|LVLT 1.89||Peers 3.72||LVLT -80.42||Peers -6.66|
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.
LVLT is trading at a significant discount to its peers.
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
However, LVLT is expected to significantly trail its peers on the basis of its earnings growth rate.
|LVLT 2.52||Peers 2.06||LVLT -0.70||Peers 7.07|
Premium. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.
LVLT is trading at a premium to its industry on this measurement.
Lower. A sales growth rate that trails the industry implies that a company is losing market share.
LVLT significantly trails its peers on the basis of sales growth