Level 3 Communications IncFind Ratings Reports
LEVEL 3 COMMUNICATIONS INC's gross profit margin for the first quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. Sales and net income have dropped, although the growth in net income underperformed the average competitor within the industry, the revenue growth did not. LEVEL 3 COMMUNICATIONS INC has strong liquidity. Currently, the Quick Ratio is 1.54 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 7.14% 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||Q1 FY17||Q1 FY16|
|Net Sales ($mil)||2048.0||2051.0|
|Net Income ($mil)||95.0||128.0|
|Balance Sheet||Q1 FY17||Q1 FY16|
|Cash & Equiv. ($mil)||1954.0||1841.0|
|Total Assets ($mil)||25071.0||25039.0|
|Total Debt ($mil)||10888.0||11651.0|
|Profitability||Q1 FY17||Q1 FY16|
|Gross Profit Margin||66.26||66.16|
|Return on Assets||2.56||13.73|
|Return on Equity||5.81||33.25|
|Debt||Q1 FY17||Q1 FY16|
|Share Data||Q1 FY17||Q1 FY16|
|Shares outstanding (mil)||360.86||357.01|
|Div / share||0.0||0.0|
|Book value / share||30.71||28.97|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||2251491.0||2224981.0|
BUY. The current P/E ratio indicates a discount compared to an average of 34.09 for the Diversified Telecommunication Services industry and a premium compared to the S&P 500 average of 25.54. To use another comparison, its price-to-book ratio of 1.94 indicates a discount versus the S&P 500 average of 3.06 and a significant discount versus the industry average of 3.51. The price-to-sales ratio is well above the S&P 500 average, but well below the industry average. Upon assessment of these and other key valuation criteria, LEVEL 3 COMMUNICATIONS INC proves to trade at a discount to investment alternatives within the industry.
|LVLT 33.71||Peers 34.09||LVLT 9.08||Peers 8.19|
Average. An average P/E ratio can signify an industry neutral price for a stock and an average growth expectation.
LVLT is trading at a valuation on par with its peers.
Premium. 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 premium to its peers.
|LVLT 34.10||Peers 16.04||LVLT NM||Peers 1.30|
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 1.94||Peers 3.51||LVLT -81.49||Peers 30.86|
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 2.64||Peers 10.09||LVLT -0.71||Peers 2.56|
Discount. 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 significant discount 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