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Liberty Global C (LBTYK)
NASDAQ:LBTYK
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Liberty Global C
(NASDAQ:LBTYK)
58Neutral
Positive Factors
Asset Monetization
Liberty Global is taking steps to simplify and monetize certain assets, which should help crystalize its undervaluation and provide capital.
Asset Sales
Liberty has a long history of successful asset sales regularly at valuation levels well above analyst's expectations.
Negative Factors
Competitive Environment
Liberty operates in competitive environments exacerbated by relatively high leverage and slight overall revenue growth.
High Leverage
High leverage in a period of rising interest rates and muted to modestly negative EBITDA growth can lead to equity volatility.
Regulatory Risks
Increasing competition and regulatory risks are potential challenges for Liberty Global.
Liberty Global C (LBTYK) vs. S&P 500 (SPY)
Market Cap
$4.09B
Dividend YieldN/A
Average Volume (3M)1.93M
Price to Earnings (P/E)―
Beta (1Y)0.34
Revenue Growth3.53%
EPS Growth3.23%
CountryUS
Employees6,820
SectorCommunication Services
Sector Strength74
IndustryTelecommunications Services
Share Statistics
EPS (TTM)-11.04
Shares Outstanding162,728,940
10 Day Avg. Volume1,795,026
30 Day Avg. Volume1,929,479
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.98
Price to Cash Flow (P/CF)1.30
P/FCF Ratio1.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$16.00Price Target Upside34.34% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Liberty Global C Business Overview & Revenue Model
Company DescriptionLiberty Global C (LBTYK) is a leading international telecommunications and television services company. Operating primarily in Europe and Latin America, the company offers a diverse range of services including broadband internet, television, fixed-line telephony, and mobile services. With a focus on delivering innovative and high-quality communication solutions, Liberty Global serves millions of residential and business customers through its various regional brands.
How the Company Makes MoneyLiberty Global C makes money primarily through subscription-based services, which include broadband internet, cable television, and fixed-line telephony. The company generates significant revenue from monthly fees paid by residential and commercial customers for these services. Additionally, Liberty Global earns money from advertising on its television platforms, as well as from offering premium content and on-demand services. Partnerships with content providers and technology companies also enhance its service offerings and contribute to its revenue. The company's extensive network infrastructure and continual investment in technology upgrades help maintain a competitive edge in the telecommunications industry, driving customer retention and acquisition.
Liberty Global C Financial Statement Overview
Summary
Liberty Global C faces challenges with revenue and profit stability, impacted by fluctuating income and a reliance on debt financing. While the company maintains strong cash flows and a solid equity base, it must address its profitability issues to enhance overall financial health.Income Statement
Liberty Global C shows a declining trend in revenue and profitability. The gross profit margin is relatively strong, but the net profit margin is inconsistent due to significant fluctuations in net income, swinging from a loss in 2023 to a profit in 2024. The company experienced a sharp decline in revenue from 2021 to 2022, contributing to negative EBIT and EBITDA margins in recent years.45
Neutral
Balance Sheet
The balance sheet reflects a strong equity position, with a positive equity ratio. However, the debt-to-equity ratio is relatively high, indicating a potential risk due to reliance on debt financing. Return on equity has been volatile, impacted by inconsistent net income figures.55
Neutral
Cash Flow
The cash flow statement demonstrates stable operating cash flows, but the free cash flow growth rate has been inconsistent. The company has managed to maintain a reasonable free cash flow to net income ratio, which is essential for covering its financial obligations and investments.60
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 4.34B | 7.49B | 7.20B | 10.31B | 11.98B | Gross Profit |
| 2.89B | 5.11B | 5.11B | 7.29B | 8.54B | EBIT |
| -60.10M | -244.50M | -901.50M | 12.27B | 2.12B | EBITDA |
| 3.42B | -420.50M | 4.20B | 3.65B | 1.73B | Net Income Common Stockholders |
| 1.59B | -4.05B | 1.11B | 13.43B | -1.47B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 2.15B | 3.41B | 4.35B | 3.18B | 2.93B | Total Assets |
| 25.44B | 42.09B | 42.90B | 46.92B | 59.09B | Total Debt |
| 9.78B | 17.42B | 15.41B | 16.05B | 15.00B | Net Debt |
| 7.96B | 16.00B | 13.68B | 15.14B | 13.67B | Total Liabilities |
| 12.90B | 23.08B | 20.32B | 21.32B | 45.79B | Stockholders Equity |
| 12.54B | 19.06B | 22.44B | 25.93B | 13.66B |
| Cash Flow | Free Cash Flow | |||
| 1.33B | 779.90M | 1.53B | 2.14B | 2.84B | Operating Cash Flow |
| 1.33B | 2.17B | 2.84B | 3.55B | 4.19B | Investing Cash Flow |
| 0.00 | -1.84B | 1.28B | -5.80B | -8.87B | Financing Cash Flow |
| -2.25B | -645.50M | -3.28B | -1.55B | 1.08B |
Liberty Global C Technical Analysis
Negative
11.91
Price Trends
11.90
Positive
12.44
Negative
11.45
Positive
Market Momentum
0.02
Positive
47.43
Neutral
27.35
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LBTYK, the sentiment is Negative. The current price of 11.91 is below the 20-day moving average (MA) of 12.09, above the 50-day MA of 11.90, and above the 200-day MA of 11.45, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 47.43 is Neutral, neither overbought nor oversold. The STOCH value of 27.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LBTYK.
Liberty Global C 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 | $139.52B | 8.91 | 19.24% | 3.36% | 1.78% | 11.62% | |
76 Outperform | $203.00B | 18.96 | 10.54% | 3.92% | -0.08% | -24.48% | |
74 Outperform | $58.39B | 10.54 | 38.11% | ― | 0.88% | 16.44% | |
73 Outperform | $190.95B | 10.94 | 18.27% | 5.92% | 0.61% | 50.39% | |
59 Neutral | $27.83B | 1.88 | -18.16% | 4.00% | 2.13% | -44.45% | |
58 Neutral | $4.09B | ― | -20.95% | ― | 3.53% | 3.23% | |
47 Neutral | $4.02B | ― | -12.49% | ― | -9.95% | 99.47% |
* Communication Services Sector Average
Performance Comparison
LBTYK
Liberty Global C
11.93
2.78
30.38%
T
AT&T
28.48
11.84
71.15%
LUMN
Lumen Technologies
4.02
2.60
183.10%
CHTR
Charter Communications
370.91
95.22
34.54%
CMCSA
Comcast
36.72
-3.82
-9.42%
VZ
Verizon
45.38
5.25
13.08%
Liberty Global C Earnings Call Summary
Earnings Call Date: Feb 18, 2025 | % Change Since: 5.87% | Next Earnings Date: Apr 30, 2025
Earnings Call Sentiment Neutral
The call had a mix of significant achievements, such as the successful spin-off of Sunrise and growth in Liberty Growth and Formula E, alongside challenges like revenue and EBITDA declines in key markets and ongoing high capital expenditures impacting free cash flow. The company remains optimistic about future growth and value realization strategies.Highlights
Record Shareholder Remuneration
Over $4 billion in shareholder remuneration was delivered on a market of $7 billion just twelve months ago.
Sunrise Spin-Off Success
The spin-off of Sunrise, a Swiss subsidiary, was completed on time, delivering a $9 per share tax-free dividend and showing a valuable lesson on unlocking value.
Liberty Growth Portfolio Expansion
The Liberty Growth portfolio grew to a fair market value of $3.1 billion from $2.1 billion in net invested capital, with $1 billion in unrealized gains.
Formula E Growth
Formula E, now 66% owned, is growing rapidly with 400 million fans globally, and is expected to continue expanding with technological advancements.
Lowlights
Revenue Declines in Key Markets
Telenet, Virgin Media O2, and VodafoneZiggo all reported revenue declines in Q4, with Telenet down 0.4%, Virgin Media O2 down 2.8%, and VodafoneZiggo down 2.5%.
EBITDA Decreases Across Operations
Telenet's EBITDA decreased by 3.9%, Virgin Media O2's by 5.9%, and VodafoneZiggo's by 4.8% in Q4, driven by increased costs and lower revenues.
Challenges in Revenue Growth
VodafoneZiggo's revenue was flat due to slower mobile net adds and lower mobile handset sales, failing to meet growth expectations.
CapEx and Free Cash Flow Concerns
High capital expenditures, especially in 5G and fiber, are impacting free cash flow, with Telenet expecting negative free cash flow due to network CapEx.
Company Guidance
During Liberty Global's fourth quarter 2024 investor call, the company provided guidance on several key metrics for the upcoming fiscal year. Liberty Global aims to continue its strategic focus on generating shareholder value, having delivered over $4 billion in shareholder remuneration in 2024 on a market capitalization of $7 billion. For 2025, Liberty Global plans to repurchase up to 10% of its outstanding shares and expects to sell non-core assets amounting to $500 million to $750 million. The company also intends to creatively finance its infrastructure projects, particularly in the UK, Belgium, and Ireland, where fiber plans are underway. Liberty Global forecasts growing revenues for Virgin Media O2, with adjusted free cash flow expected between £350 million to £400 million. VodafoneZiggo projects stable revenue growth, while Telenet anticipates a low to mid-single-digit decline in adjusted EBITDA. Liberty Global's cash balance stood at $2.2 billion at the end of 2024, and it remains committed to maintaining a robust capital allocation model. Additionally, the company is targeting a reduction in negative EBITDA for its Liberty Services and Corporate segment to no more than $200 million.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.