Last Updated: 17 Sep 2024
Executive Summary
Frontier Communications Parent Inc. (FYBR) is a telecommunications company providing services to residential and business customers in 25 states. Despite strong revenue growth, the company faces profitability challenges, resulting in negative EPS and margins. Analysts remain cautiously optimistic, with a target price of $38.58.
Company Overview
Frontier Communications offers a range of services, including fiber optic and copper network connectivity, broadband internet, and voice services. The company serves a large geographic footprint, reaching customers in both urban and rural areas.
Fundamental Analysis
Revenue: FYBR reported revenue of $5.8 billion for the trailing twelve months (TTM), showing a 2.1% increase year-over-year.
Earnings: The company recorded a net loss of $1.4 billion in the TTM, with an EPS of -$0.38.
Profitability: Frontier Communications has struggled with profitability, with negative profit margins and a return on assets (ROA) of 2.35%.
Balance Sheet: The company has a market capitalization of $9.1 billion and total assets of $20.6 billion.
Technical Analysis
Trend: The stock price is currently trading within a range, between the 50-day and 200-day moving averages.
Support and Resistance: Key support levels are at $29.09 and $25.42, while resistance levels are at $38.58 and $39.21.
Momentum: The Relative Strength Index (RSI) is currently in the neutral zone, indicating a lack of strong momentum.
Short Term Outlook
In the short term, Frontier Communications faces challenges in improving profitability and maintaining revenue growth. The stock price is likely to remain range-bound until there are significant changes in the company's fundamentals.
Long Term Outlook
Analysts believe that Frontier Communications has the potential for long-term growth, driven by the increasing demand for broadband services. However, the company needs to address its profitability issues and invest in network upgrades to remain competitive.
Analyst Recommendations
Analysts have a mixed outlook on Frontier Communications. Out of 15 analysts, 5 rate the stock as a "Strong Buy," 9 as a "Buy," 0 as a "Hold," 1 as a "Sell," and 0 as a "Strong Sell." The average analyst target price is $38.58, representing a potential upside of 7.3%.
