Frontier Communications Return On Equity vs. Current Valuation

FYBR Stock  USD 34.49  0.02  0.06%   
Based on Frontier Communications' profitability indicators, Frontier Communications Parent is performing exceptionally good at this time. It has a great probability to showcase excellent profitability results in January. Profitability indicators assess Frontier Communications' ability to earn profits and add value for shareholders.
 
Return On Equity  
First Reported
2010-12-31
Previous Quarter
0.00549346
Current Value
0.005219
Quarterly Volatility
0.43357201
 
Credit Downgrade
 
Yuan Drop
 
Covid
At this time, Frontier Communications' Price To Sales Ratio is relatively stable compared to the past year. As of 12/05/2024, Days Sales Outstanding is likely to grow to 37.82, while EV To Sales is likely to drop 1.62. At this time, Frontier Communications' Net Income Per Share is relatively stable compared to the past year. As of 12/05/2024, Income Quality is likely to grow to 48.66, while Interest Income is likely to drop slightly above 74.1 M.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.580.3845
Way Up
Slightly volatile
For Frontier Communications profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Frontier Communications to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Frontier Communications Parent utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Frontier Communications's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Frontier Communications Parent over time as well as its relative position and ranking within its peers.
  

Frontier Communications' Revenue Breakdown by Earning Segment

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Is Diversified Telecommunication Services space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Frontier Communications. If investors know Frontier will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Frontier Communications listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.59)
Earnings Share
(0.75)
Revenue Per Share
23.68
Quarterly Revenue Growth
0.037
Return On Assets
0.0209
The market value of Frontier Communications is measured differently than its book value, which is the value of Frontier that is recorded on the company's balance sheet. Investors also form their own opinion of Frontier Communications' value that differs from its market value or its book value, called intrinsic value, which is Frontier Communications' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Frontier Communications' market value can be influenced by many factors that don't directly affect Frontier Communications' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Frontier Communications' value and its price as these two are different measures arrived at by different means. Investors typically determine if Frontier Communications is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Frontier Communications' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Frontier Communications Current Valuation vs. Return On Equity Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Frontier Communications's current stock value. Our valuation model uses many indicators to compare Frontier Communications value to that of its competitors to determine the firm's financial worth.
Frontier Communications Parent is rated below average in return on equity category among its peers. It is rated below average in current valuation category among its peers . At this time, Frontier Communications' Return On Equity is relatively stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value Frontier Communications by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

Frontier Current Valuation vs. Return On Equity

Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.

Frontier Communications

Return On Equity

 = 

Net Income

Total Equity

 = 
-0.0363
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.

Frontier Communications

Enterprise Value

 = 

Market Cap + Debt

-

Cash

 = 
18.83 B
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.

Frontier Current Valuation vs Competition

Frontier Communications Parent is rated below average in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Communication Services industry is currently estimated at about 992.46 Billion. Frontier Communications claims roughly 18.83 Billion in current valuation contributing just under 2% to stocks in Communication Services industry.

Frontier Communications Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Frontier Communications, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Frontier Communications will eventually generate negative long term returns. The profitability progress is the general direction of Frontier Communications' change in net profit over the period of time. It can combine multiple indicators of Frontier Communications, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income96 M100.8 M
Operating Income565 M539 M
Interest Income78 M74.1 M
Income Before Tax117 M122.8 M
Net Income Applicable To Common Shares507.1 M532.5 M
Net Income29 M30.4 M
Income Tax Expense88 M92.4 M
Net Interest Income-518 M-543.9 M
Net Income From Continuing Ops167 M175.3 M
Total Other Income Expense Net-448 M-470.4 M
Change To Netincome244.8 M391.7 M
Net Income Per Share 0.12  0.12 
Income Quality 46.34  48.66 
Net Income Per E B T 0.25  0.24 

Frontier Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Frontier Communications. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Frontier Communications position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Frontier Communications' important profitability drivers and their relationship over time.

Use Frontier Communications in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Frontier Communications position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Frontier Communications will appreciate offsetting losses from the drop in the long position's value.

Frontier Communications Pair Trading

Frontier Communications Parent Pair Trading Analysis

The ability to find closely correlated positions to Frontier Communications could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Frontier Communications when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Frontier Communications - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Frontier Communications Parent to buy it.
The correlation of Frontier Communications is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Frontier Communications moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Frontier Communications moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Frontier Communications can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Frontier Communications position

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Latest Gainers
Latest Gainers Theme
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Additional Tools for Frontier Stock Analysis

When running Frontier Communications' price analysis, check to measure Frontier Communications' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Frontier Communications is operating at the current time. Most of Frontier Communications' value examination focuses on studying past and present price action to predict the probability of Frontier Communications' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Frontier Communications' price. Additionally, you may evaluate how the addition of Frontier Communications to your portfolios can decrease your overall portfolio volatility.