Lumen Technologies Inc. (CYTH)
Summary
CYTH Chart
Lumen: A Patient Buy Where The Entry Is Urgent But The Payoff Isn't
Lumen Technologies offers an asymmetric Buy setup after a 20% decline, with a strong downside floor and cheap upside optionality. LUMN's leverage is below 4x and falling, supported by a $13B PCF backlog and cost-cutting initiatives targeting ~$1B in annualized savings by 2027. EBITDA inflection is expected exiting 2026, with further upside from digital transformation and PCF monetization, though these drivers may take years to materialize.
Lumen: Enterprise-Focused Renaissance And 15% Forward FCF Yield Serve As Green Flags
Lumen Technologies, which has rejigged its business to a great extent since I last covered it in April 2022, has been outperforming its communication services peers by 7x over the past year. LUMN's forward FCF yield is poised to reach an impressive 15% by the end of this year, driven by robust PCF contract momentum and CAPEX discipline. Despite a doubling of the share price over the past year, LUMN trades at a compelling 6.18x forward EV/EBITDA, well below peers, with 300bps margin expansion projected by decade's end.
Why Is Lumen (LUMN) Up 1.7% Since Last Earnings Report?
Lumen (LUMN) reported earnings 30 days ago. What's next for the stock?
Lumen Technologies Inc. (CYTH) FAQ
What is the stock price today?
On which exchange is it traded?
What is its stock symbol?
Does it pay dividends? What is the current yield?
What is its market cap?
Has Lumen Technologies Inc. ever had a stock split?
Lumen Technologies Inc. Profile
| Diversified Telecommunication Services Industry | Communication Services Sector | Kathleen E. Johnson CEO | XDUS Exchange | US5502411037 ISIN |
| US Country | 24,000 Employees | 9 Sep 2022 Last Dividend | 1 Apr 1999 Last Split | 15 Dec 1972 IPO Date |
Overview
Lumen Technologies, Inc., originally known as CenturyLink, Inc., rebranded in September 2020, signifying its evolution into a facilities-based technology and communications company. With a foundation year of 1968 and headquartered in Monroe, Louisiana, Lumen Technologies extends a vast suite of integrated products and services tailored for both business and residential customers across the United States and globally. The organization is structured into two primary segments: Business and Mass Markets, encompassing an array of offerings from high-speed broadband to complex managed solutions, all delivered under the Lumen, Quantum Fiber, and CenturyLink brands.
Products and Services
- Dark Fiber: Provides unlit fiber-optic cables for customers requiring high levels of network control and scalability.
- Edge Cloud Services: Offers computing and storage solutions at the edge of the network, closer to where data is generated and consumed.
- Internet Protocol (IP) Services: Delivers a robust suite of global IP-based services, including IP transit and dedicated internet access.
- Managed Security: Provides comprehensive security solutions, including threat detection and response, to protect customers’ data and infrastructure.
- Software-Defined Wide Area Networks (SD-WAN): Offers the ability to manage network traffic dynamically across multiple WAN connections for optimized performance.
- Secure Access Service Edge (SASE): Combines network and security functions with WAN capabilities to support the dynamic, secure access needs of organizations.
- Unified Communications and Collaboration: Delivers a suite of services that facilitate seamless communication and collaboration, including voice, video, and shared workspaces.
- Optical Wavelengths Services: Provides high-speed optical networking solutions for businesses requiring large bandwidth capacity.
- Ethernet and VPN Data Networks Services: Offering secure, scalable Ethernet and VPN networking solutions for effective data communication.
- Legacy Services: Sustains cash flow through the provision of traditional services like time division multiplexing voice and private line.
- Communication Equipment and IT Solutions: Sells a wide range of communication devices and IT solutions to support customers' technology needs.
- High-Speed Internet Services: Delivers broadband service to residential and small business customers, leveraging federal broadband and state support programs.
- Local and Long-Distance Voice Services: Provides comprehensive voice communication solutions, including local and long-distance calling.
