Liberty Broadband Corp. () Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Anterix, Inc.

AT&T, Inc.

United States Cellular Corp.

Telephone & Data Systems, Inc.

Verizon Communications, Inc.

Liberty Broadband Corp.

T-Mobile US, Inc.

Spok Holdings, Inc.

Gogo, Inc.

Globalstar, Inc.

Why is Liberty Broadband Corp. ?

Poor Management Efficiency with a low ROCE of 0.35%

The company has been able to generate a Return on Capital Employed (avg) of 0.35% signifying low profitability per unit of total capital (equity and debt)

Company has a low Debt to Equity ratio (avg) at times

Healthy long term growth as Net Sales has grown by an annual rate of 131.36% and Operating profit at 42.36%

The company has declared Positive results for the last 3 consecutive quarters

OPERATING CASH FLOW(Y) Highest at USD 194 MM
NET PROFIT(HY) At USD 617.69 MM has Grown at 58.45%
ROCE(HY) Highest at 10.76%

With ROCE of 0.79%, it has a expensive valuation with a 1.24 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -42.11%, its profits have risen by 38.3% ; the PEG ratio of the company is 0.3

High Institutional Holdings at 100%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Liberty Broadband Corp. should be less than 10%
Overall Portfolio exposure to Telecom - Equipment & Accessories should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Telecom - Equipment & Accessories)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Liberty Broadband Corp. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Liberty Broadband Corp.

-42.37%

-0.23

41.64%

S&P 500

13.22%

0.61

20.17%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

131.36%

EBIT Growth (5y)

42.36%

EBIT to Interest (avg)

0.08

Debt to EBITDA (avg)

28.81

Net Debt to Equity (avg)

0.32

Sales to Capital Employed (avg)

0.08

Tax Ratio

13.60%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

0.35%

ROE (avg)

8.66%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.32

EV to EBIT

156.41

EV to EBITDA

52.80

EV to Capital Employed

1.24

EV to Sales

16.14

PEG Ratio

0.33

Dividend Yield

ROCE (Latest)

0.79%

ROE (Latest)

10.67%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bullish

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

No Trend

Mildly Bearish

OBV

No Trend

Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

15What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 194 MM

NET PROFIT(HY)

At USD 617.69 MM has Grown at 58.45%

ROCE(HY)

Highest at 10.76%

DEBT-EQUITY RATIO (HY)

Lowest at 27.9 %

RAW MATERIAL COST(Y)

Fallen by -7.96% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 6.81 times

EPS(Q)

Highest at USD 2.68

0What is not working for the Company

NO KEY NEGATIVE TRIGGERS

Here's what is working for Liberty Broadband Corp.

Operating Cash Flow

Highest at USD 194 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Net Profit

At USD 617.69 MM has Grown at 58.45%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (USD MM)

Debt-Equity Ratio

Lowest at 27.9 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

EPS

Highest at USD 2.68

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (USD)

Debtors Turnover Ratio

Highest at 6.81 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -7.96% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales