Frontier Communications Corp Class B

Dividend Yield: 9.40%

Frontier Communications Corp Class B (NASDAQ: FTR) shares currently have a dividend yield of 9.40%.

Frontier Communications Corporation, a communications company, provides regulated and unregulated voice, data, and video services to business, residential, and wholesale customers in the United States. The company has a P/E ratio of 28.43.

The average volume for Frontier Communications Corp Class B has been 8,360,700 shares per day over the past 30 days. Frontier Communications Corp Class B has a market cap of $4.3 billion and is part of the telecommunications industry. Shares are down 0.4% year to date as of the close of trading on Friday.

TheStreet Ratings rates Frontier Communications Corp Class B as a hold. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, reasonable valuation levels and increase in stock price during the past year. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow and generally higher debt management risk.

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 79.8% when compared to the same quarter one year prior, rising from $26.77 million to $48.14 million.
  • Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. Looking ahead, our view is that this company's fundamentals will not have much impact in either direction, allowing the stock to generally move up or down based on the push and pull of the broad market.
  • The debt-to-equity ratio is very high at 2.07 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Regardless of the company's weak debt-to-equity ratio, FTR has managed to keep a strong quick ratio of 1.51, which demonstrates the ability to cover short-term cash needs.
  • Net operating cash flow has declined marginally to $359.29 million or 6.07% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.

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