Level 3 Communications IncFind Ratings Reports
LEVEL 3 COMMUNICATIONS INC's gross profit margin for the second quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased. LEVEL 3 COMMUNICATIONS INC has strong liquidity. Currently, the Quick Ratio is 1.70 which shows the ability to cover short-term cash needs. The company's liquidity has increased from the same period last year.
During the same period, stockholders' equity ("net worth") has increased by 7.76% from the same quarter last year. The key liquidity measurements indicate that the company is unlikely to face financial difficulties in the near future.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. To learn more visit www.TheStreetRatings.com.
|Income Statement||Q2 FY17||Q2 FY16|
|Net Sales ($mil)||2061.0||2056.0|
|Net Income ($mil)||154.0||156.0|
|Balance Sheet||Q2 FY17||Q2 FY16|
|Cash & Equiv. ($mil)||2188.0||1299.0|
|Total Assets ($mil)||25287.0||24534.0|
|Total Debt ($mil)||10890.0||10878.0|
|Profitability||Q2 FY17||Q2 FY16|
|Gross Profit Margin||67.25||67.12|
|Return on Assets||2.53||14.7|
|Return on Equity||5.67||34.36|
|Debt||Q2 FY17||Q2 FY16|
|Share Data||Q2 FY17||Q2 FY16|
|Shares outstanding (mil)||361.48||358.04|
|Div / share||0.0||0.0|
|Book value / share||31.3||29.33|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||2227069.0||2369462.0|
BUY. The current P/E ratio indicates a discount compared to an average of 34.08 for the Diversified Telecommunication Services industry and a premium compared to the S&P 500 average of 24.88. To use another comparison, its price-to-book ratio of 1.69 indicates a discount versus the S&P 500 average of 3.10 and a significant discount versus the industry average of 3.46. The price-to-sales ratio is 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 30.07||Peers 34.08||LVLT 8.32||Peers 6.94|
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.
LVLT is trading at a discount to 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 29.90||Peers 15.35||LVLT NM||Peers 0.66|
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 1.69||Peers 3.46||LVLT -82.46||Peers 55.53|
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 2.34||Peers 11.15||LVLT -0.59||Peers 0.91|
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