Liberty Global (LBTYA) Weak In Early Morning Trading

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified Liberty Global ( LBTYA) as a pre-market laggard candidate. In addition to specific proprietary factors, Trade-Ideas identified Liberty Global as such a stock due to the following factors:

  • LBTYA has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $257.4 million.
  • LBTYA traded 73,629 shares today in the pre-market hours as of 9:26 AM.
  • LBTYA is down 2.4% today from yesterday's close.

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More details on LBTYA:

Liberty Global plc, an international cable company, provides television, broadband Internet, and telephony services. Currently there are 8 analysts that rate Liberty Global a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Liberty Global has been 1.7 million shares per day over the past 30 days. Liberty Global has a market cap of $18.1 billion and is part of the services sector and media industry. The stock has a beta of 1.25 and a short float of 2.8% with 1.85 days to cover. Shares are down 6.8% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Liberty Global as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, good cash flow from operations and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including deteriorating net income and generally higher debt management risk.

Highlights from the ratings report include:
  • LBTYA's very impressive revenue growth greatly exceeded the industry average of 2.4%. Since the same quarter one year prior, revenues leaped by 73.5%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • Net operating cash flow has significantly increased by 159.63% to $1,119.80 million when compared to the same quarter last year. In addition, LIBERTY GLOBAL PLC has also vastly surpassed the industry average cash flow growth rate of 15.30%.
  • LBTYA's share price has surged by 26.18% over the past year, reflecting the market's general trend, despite their weak earnings growth during the last quarter. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Media industry. The net income has significantly decreased by 3605.8% when compared to the same quarter one year ago, falling from -$22.40 million to -$830.10 million.
  • Although LBTYA's debt-to-equity ratio of 3.70 is very high, it is currently less than that of the industry average. To add to this, LBTYA has a quick ratio of 0.52, this demonstrates the lack of ability of the company to cover short-term liquidity needs.

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