Liberty Broadband (LBRDA) AI Stock Analysis

• Market Cap: $10.97B
• Dividend Yield: N/A
• Average Volume (3M): 137.36K
• Price to Earnings (P/E): 12.7
• Beta (1Y): 0.78
• Revenue Growth: 3.57%
• EPS Growth: 28.42%
• Country: US
• Employees: 1,900
• Sector: Communication Services
• Sector Strength: 80
• Industry: Telecommunications Services
• EPS (TTM): 6.08
• Shares Outstanding: 18,252,413
• 10 Day Avg. Volume: 149,443
• 30 Day Avg. Volume: 137,357
• PEG Ratio: 0.45
• Price to Book (P/B): N/A
• Price to Sales (P/S): 11.76
• Price to Cash Flow (P/CF): 124.70
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $115.00
• Price Target Upside: 50.33% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

Liberty Broadband's overall score reflects the balance between strong strategic prospects, such as the Charter acquisition, and current operational challenges. While the company exhibits solid financial health in some areas, high leverage and cash flow issues pose significant risks. The technical indicators suggest a bearish outlook, though valuation metrics indicate reasonable pricing. The strategic merger with Charter could drive future growth, but current financial weaknesses need addressing.

Positive Factors

Market Position

Liberty Broadband Corp. remains an attractive discounted play on Charter Communications, with GCI Alaskan asset thrown in for free.

Regional Economic Performance

The Alaskan economy generally outperforms in any recession, and Alaska could benefit from new mineral and rare earth exploration and development.

Strategic Investments

Charter is undertaking approximately $100M in monthly purchases of its stock from Liberty Broadband, ensuring the repayment of $2.6B in Liberty Broadband corporate debt.

Negative Factors

Equity Market Conditions

The price target for Liberty Broadband is being lowered to $115 from $130, reflecting current equity market conditions.

Merger and Acquisition Risks

Liberty Broadband is downgraded to Hold following the merger announcement with Charter and recent appreciation in Charter's stock price.

Regulatory and Tax Risks

Risks to the price target include changes in the tax law that could make a monetization of the CHTR investment less tax-efficient.

Liberty Broadband Business Overview & Revenue Model

Company Description

Liberty Broadband Corporation is a holding company primarily engaged in the cable communications sector. It focuses on providing high-speed internet, video, voice, and related services through its subsidiaries. The company is known for its significant ownership interest in Charter Communications, Inc., one of the largest cable operators in the United States, as well as its investments in other technology and telecommunications entities.

How the Company Makes Money

Liberty Broadband generates revenue primarily through its equity ownership in Charter Communications, which is a major source of income due to Charter's large customer base and extensive service offerings in the cable communications market. Additionally, Liberty Broadband may receive dividends and other financial benefits from its investments in other technology and telecommunications companies. Its financial performance is closely tied to Charter's operational success and market position, which influences Liberty Broadband's overall earnings.

Liberty Broadband Financial Statement Overview

Summary

Liberty Broadband demonstrates strong profit margins and a stable equity position, but faces risks from revenue volatility and high leverage. Cash flow issues indicate operational inefficiencies that could impede sustainable growth.

Income Statement

Liberty Broadband shows strong gross profit margins consistently above 100%, highlighting a unique revenue recognition method, possibly indicating revenue from other sources. However, net profit margin shows inconsistency, displaying a recent decline. Revenue growth is erratic with substantial fluctuations, impacting stability and predictability. EBIT and EBITDA margins are strong, contributing to overall profitability despite revenue volatility.

Balance Sheet

The balance sheet exhibits a stable equity ratio, indicating sound financial health, with stockholders' equity significantly covering total assets. However, the debt-to-equity ratio is high, suggesting a leveraged position, which could pose risks in volatile markets. Return on equity has been inconsistent, reflecting fluctuating net income, which impacts investor confidence.

Cash Flow

Cash flow statements reveal irregularities, with negative free cash flow observed in numerous periods, signaling operational inefficiencies. The operating cash flow to net income ratio is often negative, reflecting insufficient cash generation relative to reported earnings. Free cash flow growth is inconsistent, which may hinder future investment and debt servicing capabilities.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.02B	981.00M	920.98M	988.00M	50.71M
	Gross Profit
1.02B	736.00M	639.98M	659.00M	50.65M
	EBIT
92.00M	73.00M	1.28B	1.20B	655.97M
	EBITDA
1.48B	1.32B	290.00M	264.00M	671.20M
	Net Income Common Stockholders
869.00M	688.00M	1.26B	732.00M	398.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
163.00M	158.00M	375.00M	191.00M	1.42B
	Total Assets
150.02B	15.64B	15.14B	16.97B	21.37B
	Total Debt
92.13B	3.82B	3.89B	3.85B	4.91B
	Net Debt
92.13B	3.66B	3.51B	3.66B	3.49B
	Total Liabilities
6.88B	6.62B	6.64B	6.83B	7.86B
	Stockholders Equity
150.02B	9.00B	8.48B	10.13B	13.50B
Cash Flow		Free Cash Flow
-143.00M	-206.00M	-212.00M	-131.00M	-97.56M
	Operating Cash Flow
104.00M	16.00M	-56.00M	3.00M	-95.74M
	Investing Cash Flow
130.00M	150.00M	3.05B	4.06B	575.51M
	Financing Cash Flow
-181.00M	-390.00M	-2.80B	-5.29B	903.80M

Liberty Broadband Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 76.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LBRDA, the sentiment is Negative. The current price of 76.5 is below the 20-day moving average (MA) of 79.90, below the 50-day MA of 80.85, and above the 200-day MA of 74.91, indicating a neutral trend. The MACD of -1.85 indicates Positive momentum. The RSI at 43.90 is Neutral, neither overbought nor oversold. The STOCH value of 58.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LBRDA.

Liberty Broadband Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	58 Neutral	$13.61B	6.75	-2.45%	3.85%	2.33%	-35.55%
FYBR	57 Neutral	$9.02B	―	-6.30%	―	3.23%	-1196.02%
LBTYA	53 Neutral	$3.73B	―	-20.95%	―	3.53%	3.23%
LBRDA	51 Neutral	$10.97B	12.74	9.05%	―	3.57%	28.42%
LUMN	47 Neutral	$3.28B	―	-12.49%	―	-9.95%	99.47%

Liberty Broadband Corporate Events

Liberty Broadband Schedules Q1 2025 Earnings Call

On April 9, 2025, Liberty Broadband Corporation announced that it will host a conference call on May 7, 2025, to discuss its first-quarter results for 2025. The call will cover the company’s financial performance and future outlook, with a press release issued before market trading. This event is part of the company’s ongoing efforts to maintain transparency with stakeholders and provide insights into its operational strategies.

Spark’s Take on LBRDA Stock

According to Spark, TipRanks’ AI Analyst, LBRDA is a Neutral.

Liberty Broadband scores a 60, reflecting solid technical trends and strategic merger prospects. However, financial performance is hindered by cash flow issues and high leverage, and valuation is moderate. Earnings call insights highlight strategic growth but also underline competitive and operational challenges.

To see Spark’s full report on LBRDA stock, click here.

Liberty Broadband and Charter Merger Approved by Stockholders

On February 26, 2025, Liberty Broadband and Charter Communications announced the approval of their merger agreement by stockholders at special meetings. The transaction, expected to close on June 30, 2027, is contingent upon the spin-off of Liberty Broadband’s subsidiary GCI and other conditions. This merger positions Charter to expand its market presence and operational capabilities, potentially impacting stakeholders by enhancing service offerings and network infrastructure.

Liberty Broadband Announces Advanced Annual Meeting Date

On February 21, 2025, Liberty Broadband Corporation announced that its virtual Annual Meeting of Stockholders will be held on May 12, 2025. The meeting date has been advanced by over 20 days compared to the previous year, requiring stockholder proposals and board nominations to be submitted by March 3, 2025. This change in schedule may impact stockholder engagement and planning.

Liberty Broadband to Discuss Q4 2024 Results

On January 30, 2025, Liberty Broadband Corporation announced it will host a conference call on February 27, 2025, to discuss its fourth-quarter results for 2024. This event will include discussions on the company’s financial performance and future outlook, potentially impacting stakeholders’ perceptions and the company’s market positioning as it continues to invest in its network infrastructure and expand its services in Alaska.