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Frontier Communications Parent (FYBR)
NASDAQ:FYBR
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Frontier Communications Parent
(NASDAQ:FYBR)
57Neutral
Positive Factors
Acquisition
The acquisition by Verizon is viewed positively, with Frontier being acquired at an attractive price.
Financial Performance
Fiber broadband results showed strong growth, with consumer sales up 23.2% and a significant increase in fiber broadband customers.
Negative Factors
Deal Risk
If the deal were to break up, the downside for Frontier shares would be significant.
Share Performance
Shares of Frontier (FYBR) have been downgraded to Market Underperform from Market Perform.
Frontier Communications Parent (FYBR) vs. S&P 500 (SPY)
Market Cap
$8.94B
Dividend YieldN/A
Average Volume (3M)3.26M
Price to Earnings (P/E)―
Beta (1Y)0.49
Revenue Growth3.23%
EPS Growth-1196.02%
CountryUS
Employees13,025
SectorCommunication Services
Sector Strength84
IndustryTelecommunications Services
Share Statistics
EPS (TTM)-1.29
Shares Outstanding249,701,000
10 Day Avg. Volume5,308,973
30 Day Avg. Volume3,255,784
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)1.51
Price to Cash Flow (P/CF)7.60
P/FCF Ratio4.50
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$38.50Price Target Upside7.66% Upside
Rating ConsensusModerate Sell
Number of Analyst Covering3
Frontier Communications Parent Business Overview & Revenue Model
Company DescriptionFrontier Communications Parent, Inc. (FYBR) is a leading telecommunications company in the United States. It primarily operates in the broadband telecommunications sector, offering high-speed internet, voice, and video services. The company focuses on providing these services to residential, business, and wholesale customers across its extensive fiber-optic network, aiming to deliver reliable and fast internet connectivity solutions.
How the Company Makes MoneyFrontier Communications makes money through various revenue streams, primarily revolving around its broadband and telecommunications services. The company generates significant income from providing high-speed internet subscriptions to residential and business customers. Additionally, it earns revenue from offering voice and video services, although its core focus remains on expanding its fiber-optic network to enhance broadband internet offerings. Frontier also engages in wholesale services, leasing its network infrastructure to other telecommunications providers. Strategic partnerships and network expansion efforts play a crucial role in driving revenue growth, as the company seeks to increase its market penetration and improve service offerings to a broader customer base.
Frontier Communications Parent Financial Statement Overview
Summary
Frontier Communications is experiencing significant challenges with revenue decline and profitability issues, reflected in negative net income and free cash flow. The balance sheet has improved with a better equity position, yet past high leverage remains a concern. Cash flow management, particularly in controlling capital expenditures, is crucial for future stabilization.Income Statement
The company's revenue has been declining, with a negative revenue growth rate over the past years. Profitability margins such as the net profit margin are concerning, with significant net losses reported in recent years, indicating challenges in cost management or revenue generation.45
Neutral
Balance Sheet
Frontier Communications shows a strong equity position as of the latest report, with stockholders' equity exceeding total liabilities. However, the debt-to-equity ratio shows past high leverage, which has improved recently but still poses potential risks if profitability doesn't recover.60
Neutral
Cash Flow
While operating cash flow remains strong, the company is facing challenges in converting this into positive free cash flow due to high capital expenditures. The free cash flow has been consistently negative, which could impact future financial flexibility.50
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 5.87B | 5.75B | 5.79B | 7.16B | 7.16B | Gross Profit |
| 5.94B | 2.21B | 3.62B | 3.55B | 4.45B | EBIT |
| 353.00M | 565.00M | 592.00M | 162.00M | 959.00M | EBITDA |
| 2.08B | 2.19B | 2.27B | 6.52B | 1.87B | Net Income Common Stockholders |
| -322.00M | 29.00M | 441.00M | -402.00M | -402.00M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 750.00M | 2.20B | 2.07B | 2.13B | 1.83B | Total Assets |
| 20.61B | 20.69B | 18.62B | 16.48B | 16.80B | Total Debt |
| 11.56B | 11.55B | 9.13B | 7.98B | 5.78B | Net Debt |
| 10.81B | 10.43B | 8.80B | 5.86B | 3.95B | Total Liabilities |
| 15.67B | 15.41B | 13.49B | 11.88B | 21.70B | Stockholders Equity |
| 2.52B | 5.28B | 5.13B | 4.60B | -4.90B |
| Cash Flow | Free Cash Flow | |||
| -1.16B | -1.87B | -1.34B | -908.00M | 808.00M | Operating Cash Flow |
| 1.62B | 1.34B | 1.40B | 797.00M | 1.99B | Investing Cash Flow |
| -1.68B | -2.56B | -4.47B | -1.68B | -19.00M | Financing Cash Flow |
| -268.00M | 2.13B | 1.21B | 1.18B | -893.00M |
Frontier Communications Parent Technical Analysis
Neutral
35.76
Price Trends
35.77
Negative
35.33
Positive
32.83
Positive
Market Momentum
0.02
Positive
47.09
Neutral
52.43
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FYBR, the sentiment is Neutral. The current price of 35.76 is below the 20-day moving average (MA) of 35.88, below the 50-day MA of 35.77, and above the 200-day MA of 32.83, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 47.09 is Neutral, neither overbought nor oversold. The STOCH value of 52.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for FYBR.
Frontier Communications Parent Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
64 Neutral | $3.94B | ― | -0.54% | 0.84% | -3.80% | 83.27% | |
59 Neutral | $29.40B | 0.71 | -18.77% | 4.01% | 2.13% | -47.15% | |
57 Neutral | $8.94B | ― | -6.30% | ― | 3.23% | -1196.02% | |
56 Neutral | $328.89M | ― | -5.13% | 4.21% | -4.35% | -78.64% | |
49 Neutral | $4.93B | ― | -12.49% | ― | -9.95% | 99.47% | |
41 Neutral | $701.06M | ― | -4.05% | 0.78% | 14.16% | -443.30% |
* Communication Services Sector Average
Performance Comparison
FYBR
Frontier Communications Parent
35.75
12.01
50.59%
ATNI
ATN International
20.91
-8.79
-29.60%
LUMN
Lumen Technologies
4.40
2.85
183.87%
SHEN
Shenandoah Telecommunications Co
12.66
-4.41
-25.83%
TDS
Telephone & Data Systems
38.32
22.68
145.01%
Frontier Communications Parent Earnings Call Summary
Earnings Call Date: Feb 20, 2025 | % Change Since: -0.06% | Next Earnings Date: May 2, 2025
Earnings Call Sentiment Positive
The earnings call reflects strong operational and financial performance with significant growth in fiber customers and revenue. However, it also highlights challenges such as a reported net loss due to noncash items and potential headwinds from the ACP program. Overall, the positive aspects of growth and strategic advancements outweigh the negatives.Highlights
Record Fiber Broadband Customer Additions
Frontier added a record 92,000 new fiber broadband customers in Q2, which is a 37% increase from last year. The fiber customer base grew by 19% in the first half of the year.
Strong Revenue Growth
Frontier achieved its second consecutive quarter of revenue growth, with company revenue increasing by 2% year-over-year and fiber revenue growing by 13%.
Expansion of Fiber Network
The company exceeded 7 million locations with fiber passings and added a record 388,000 fiber passings in Q2, on track for 1.3 million passings this year.
Improved EBITDA and Margins
The company reported a 5% growth in adjusted EBITDA, marking the fourth consecutive quarter of growth. EBITDA margins were also expanded.
Strategic Capital Management
Frontier completed its second fiber securitization, raising $750 million, and used part of the proceeds to refinance a portion of its term loan, extending its maturity to 2031.
Improved Customer Satisfaction
Net Promoter Scores (NPS) improved by approximately 20 points over the past year, with fiber NPS now 6x higher than the closest legacy cable competitor.
Lowlights
Net Loss in Q2
Frontier reported a net loss of $123 million, primarily due to a noncash pension remeasurement and a $25 million one-time legal settlement.
Potential Impact of ACP on Customer Base
The Affordable Connectivity Program (ACP) affects about 4% of the customer base, with expected impacts to be larger in Q3 and Q4 due to voluntary disconnects.
Flat Consumer Fiber ARPU Growth
Consumer fiber ARPU growth was 3.5% year-over-year, with expectations of flat ARPU sequentially in Q3 due to ACP transition plans affecting pricing.
Challenges from Increased Competition
Increased competition from other fiber build-outs in the industry may impact future growth strategies.
Company Guidance
During the Frontier Communications Q2 2024 earnings call, Scott Beasley, CFO, provided updated guidance reflecting strong performance. The company raised the lower end of its EBITDA guidance to a range of $2.22 billion to $2.25 billion, indicating a 5% growth at the midpoint compared to the previous year. This adjustment came after a robust first half, with Q2 revenue reaching $1.48 billion, marking a 2% increase year-over-year, and adjusted EBITDA of $560 million, representing continuous growth. The quarter also saw record operational achievements, such as adding 388,000 fiber passings and 92,000 new fiber broadband customers. Despite the challenges, the company maintained its commitment to cost management, achieving $580 million in savings since 2021, and completed a $750 million fiber securitization to support strategic financial positioning.Frontier Communications Parent Corporate Events
Executive/Board Changes
Frontier Communications Announces EVP John Harrobin’s Resignation
Neutral
Mar 14, 2025
On March 10, 2025, Frontier Communications Parent, Inc. announced the resignation of John Harrobin, the Executive Vice President, Consumer, effective March 14, 2025. The company expressed gratitude for Mr. Harrobin’s service and extended best wishes for his future endeavors, indicating a leadership change that may impact its consumer operations.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.