CenturyTel, Inc., together with its subsidiaries, is an integrated communications company engaged primarily in providing an array of communications services, including local and long distance voice, Internet access and broadband services. The Company operates in 25 states located within the continental United States. CTL is a telco, most investors tune out at that point as the overwhelming consensus is that VOIP has, or will kill, the traditional phone. Centurylink appears aware of this reality and has taken a few steps to remain a healthy business:
Why We Are Reviewing
What I like about their story
The RatiosP/E: ideal less than 10, current 12.15
Book Value: ideal greater than 0, current greater than 0
Price/Book Ratio: ideal less than 1.5, current 1.12
Current Ratio: ideal more than 2, current .68
EPS Growth rate: ideal greater than 15% over 5yrs, current 8.62
Earnings: Positive in the past 10yrs, current yes
CommentsP/E is solid as is price to book, EPS is low, Current is likely low as a result of most recent acquisition.
Insider TradingHealthy insider trading can indicate the executive's belief in the health of the business and can indicate an undervalued stock.
In this case we see nothing but a history of selling, it appears that as soon as any of the exec get bonus stock they sell shortly there after.
Consumer PerceptionCTL is well regarded in the industry receiving a number of awards for customer service and satisfaction. CTL makes an effort to be socially aware at the local level involving itself in community fund raising, food drives and a united way partner program. All of this ultimately helps to increase its perception as a local business.
Stock ExpectationsThis company is not going to bust out and show massive stock appreciation. Based on some fundementals and a good story it may be undervalued. Simply put I expect that over the course of the next few years CTL will continue to grow its TV and internet business and with an ongoing focus on its shareholders will continue to pay a solid dividend.
At the time of writing stock has not yet been purchased in this business.
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CTL is a telco, most investors tune out at that point as the overwhelming consensus is that VOIP has, or will kill, the traditional phone. Centurylink appears aware of this reality and has taken a few steps to remain a healthy business: