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Liberty Broadband Corp (LBRDK)
NASDAQ:LBRDK
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Liberty Broadband
(NASDAQ:LBRDK)
66Neutral
Positive Factors
Merger Potential
There is a belief that a merger deal will inevitably be reached with CHTR, enhancing the value proposition for LBRDK.
Stock Valuation
A reduction in the public NAV discount from 15% to 8% led to a material $40 increase in the LBRDK target price to $145.
Negative Factors
Market Volatility
Market volatility can drive a widening of the NAV gap, posing a risk to investors.
Liberty Broadband (LBRDK) vs. S&P 500 (SPY)
Market Cap
$12.10B
Dividend YieldN/A
Average Volume (3M)884.07K
Price to Earnings (P/E)13.9
Beta (1Y)0.91
Revenue Growth3.57%
EPS Growth28.42%
CountryUS
Employees1,900
SectorCommunication Services
Sector Strength79
IndustryTelecommunications
Share Statistics
EPS (TTM)6.08
Shares Outstanding123,023,476
10 Day Avg. Volume1,138,823
30 Day Avg. Volume884,067
Financial Highlights & Ratios
PEG Ratio0.49
Price to Book (P/B)N/A
Price to Sales (P/S)16.47
Price to Cash Flow (P/CF)124.70
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$109.00Price Target Upside28.93% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Liberty Broadband Business Overview & Revenue Model
Company DescriptionLiberty Broadband Corporation (LBRDK) is a telecommunications company primarily involved in the cable and broadband services sector. The company, through its subsidiaries, provides video, internet, and voice services to residential and commercial customers in the United States. Liberty Broadband's core focus is on its investment in Charter Communications, a leading provider of broadband connectivity and cable services.
How the Company Makes MoneyLiberty Broadband makes money primarily through its significant equity stake in Charter Communications, which is a major source of its revenue. The company benefits financially from Charter's operations, including subscription fees from video, internet, and voice services offered to customers. Additionally, Liberty Broadband may generate earnings from potential dividends and equity appreciation associated with its investment in Charter Communications. The company's financial performance is closely tied to that of Charter Communications, making this investment a critical factor in Liberty Broadband's revenue model.
Liberty Broadband Financial Statement Overview
Summary
Liberty Broadband showcases strong revenue and profit margins, reflecting efficient operations. However, the company faces challenges in cash flow management and high leverage, which are concerning for long-term financial stability.Income Statement
Liberty Broadband has shown a significant increase in total revenue from 2023 to 2024, primarily due to the large acquisition or consolidation reflected in the 2024 data. Despite this, the gross profit margin remains stable at 100%, indicating strong pricing power or efficiency. The net profit margin for 2024 is approximately 9.23%, which is a decrease from previous years, suggesting increased costs or expenditures. EBIT and EBITDA margins reflect strong operational performance. However, the revenue growth displays volatility, which could be a concern for consistent earnings quality.65
Positive
Balance Sheet
The company has a strong equity position relative to its total assets, with an equity ratio of 100% in 2024, indicating no liabilities reported, which may be due to reporting peculiarities. The debt-to-equity ratio is high in prior years, indicating significant leverage, which poses financial risk. However, overall asset growth supports the balance sheet's stability. The ROE has been high in earlier years, revealing effective use of equity despite high leverage.70
Positive
Cash Flow
Liberty Broadband's cash flow statements indicate challenges in generating consistent operating cash flows, with significant fluctuations in free cash flow. The inability to produce positive free cash flow consistently raises concerns about the company's cash generation capabilities and long-term financial sustainability. The lack of positive operating cash flow relative to net income further underscores potential liquidity issues.55
Neutral
| 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
Positive
84.54
Price Trends
78.98
Positive
81.97
Positive
71.31
Positive
Market Momentum
1.90
Negative
58.33
Neutral
75.84
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LBRDK, the sentiment is Positive. The current price of 84.54 is above the 20-day moving average (MA) of 82.16, above the 50-day MA of 78.98, and above the 200-day MA of 71.31, indicating a bullish trend. The MACD of 1.90 indicates Negative momentum. The RSI at 58.33 is Neutral, neither overbought nor oversold. The STOCH value of 75.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LBRDK.
Liberty Broadband Risk Analysis
Liberty Broadband disclosed 58 risk factors in its most recent earnings report. Liberty Broadband reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Liberty Broadband Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $136.53B | 9.07 | 19.24% | 3.43% | 1.78% | 11.62% | |
74 Outperform | $59.18B | 10.61 | 38.11% | ― | 0.88% | 16.44% | |
73 Outperform | $195.71B | 11.11 | 18.27% | 5.78% | 0.61% | 50.39% | |
66 Neutral | $12.10B | 13.91 | 9.05% | ― | 3.57% | 28.42% | |
60 Neutral | $12.10B | 13.87 | 9.05% | ― | 3.57% | 28.42% | |
60 Neutral | $1.05B | ― | 21.93% | ― | -3.06% | -290.86% | |
59 Neutral | $29.20B | 0.14 | -13.78% | 4.02% | 2.18% | -51.50% |
* Communication Services Sector Average
Performance Comparison
LBRDK
Liberty Broadband
81.18
22.90
39.29%
CHTR
Charter Communications
355.87
61.17
20.76%
CMCSA
Comcast
35.95
-5.90
-14.10%
VZ
Verizon
43.43
5.84
15.54%
LBRDA
Liberty Broadband
81.16
23.10
39.79%
ATUS
Altice Usa
2.36
-0.30
-11.28%
Liberty Broadband Earnings Call Summary
Earnings Call Date: Feb 27, 2025 | % Change Since: 6.35% | Next Earnings Date: May 2, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted significant achievements such as record revenue and a strategic transaction with Charter, providing positive long-term outlook. However, challenges like subscriber declines, increased expenses, and project delays presented notable concerns.Highlights
Record Revenue Achievement
GCI achieved record revenue in 2024, crossing the $1 billion mark for the first time, driven by strong performance in data revenue.
Transaction with Charter
Liberty Broadband entered into a definitive agreement to be acquired by Charter, providing certainty and trading liquidity for shareholders, with the transaction expected to close in June 2027.
Strong Cash Position
Liberty Broadband had consolidated cash and restricted cash of $229 million at quarter-end, with significant contributions from Charter share sales.
Proactive Rural Connectivity Projects
GCI is focused on rural connectivity projects, with a proactive approach to securing government funding, and plans to increase CapEx to $250 million in 2025.
Lowlights
Decline in Wireless and Cable Modem Subscribers
GCI Consumer saw a decline of 300 wireless subs and a loss of 4,900 cable modem subscribers, largely due to the expiration of the ACP program.
Increased SG&A Expenses
Adjusted OIBDA decreased 4% in Q4 due to higher SG&A expenses from increased labor-related costs, partially offsetting revenue growth.
Delays in Rural Fiber Projects
Capital expenditures were slightly below expectations due to delays in rural fiber projects, impacting network improvements.
Company Guidance
In the Liberty Broadband 2024 Year-end Earnings Call, significant guidance was provided regarding both corporate transactions and financial performance metrics. Liberty Broadband announced a definitive agreement for its acquisition by Charter, with the transaction expected to close on June 30, 2027. Each Liberty Broadband share will be exchanged for $0.236 of a Charter share, following shareholder approval on February 26, 2025. The company plans to spin off GCI prior to the transaction, incurring a corporate-level tax liability exceeding $420 million, to be borne by Charter. GCI achieved record revenue surpassing $1 billion, with a 5% increase in fourth-quarter revenue driven by data revenue, despite a 4% decrease in adjusted OIBDA due to higher SG&A expenses. GCI's capital expenditure for 2024 was $193 million, slightly below the expected $200 million, and is projected to be approximately $250 million in 2025 to enhance connectivity in rural Alaska. Liberty Broadband reported consolidated cash of $229 million and a total debt of $3.7 billion, with Charter agreeing to repurchase $100 million of its Class A common stock monthly to aid in debt servicing.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.