New Lifetime High Reached: Liberty Global (LBTYK)

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.

Trade-Ideas LLC identified Liberty Global ( LBTYK) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Liberty Global as such a stock due to the following factors:

  • LBTYK has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $199.9 million.
  • LBTYK has traded 107,477 shares today.
  • LBTYK is trading at a new lifetime high.

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More details on LBTYK:

Liberty Global plc, together with its subsidiaries, provides video, broadband Internet, fixed-line telephony, and mobile services in Europe, Chile, Puerto Rico, and internationally.

The average volume for Liberty Global has been 2.6 million shares per day over the past 30 days. Liberty Global has a market cap of $31.4 billion and is part of the services sector and media industry. Shares are up 8.9% year-to-date as of the close of trading on Wednesday.

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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 revenue growth, expanding profit margins and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, generally higher debt management risk and feeble growth in the company's earnings per share.

Highlights from the ratings report include:
  • Despite its growing revenue, the company underperformed as compared with the industry average of 4.2%. Since the same quarter one year prior, revenues slightly increased by 3.3%. 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.
  • The gross profit margin for LIBERTY GLOBAL PLC is rather high; currently it is at 62.46%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of -11.34% is in-line with the industry average.
  • Net operating cash flow has slightly increased to $1,542.70 million or 5.28% when compared to the same quarter last year. Despite an increase in cash flow, LIBERTY GLOBAL PLC's average is still marginally south of the industry average growth rate of 15.01%.
  • 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 331.8% when compared to the same quarter one year ago, falling from -$121.20 million to -$523.40 million.
  • Although LBTYK's debt-to-equity ratio of 3.14 is very high, it is currently less than that of the industry average. Along with this, the company manages to maintain a quick ratio of 0.29, which clearly demonstrates the inability to cover short-term cash needs.

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