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Liberty Global Ltd Ordinary Shares - Class A LBTYA

Morningstar Rating
$16.74 +0.10 (0.60%)
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Company Report

Liberty Earnings: Flattish Revenue and EBITDA in the First Quarter; Maintaining Fair Value Estimate

We are maintaining our $28 fair value estimate for Liberty Global after the company reported its first-quarter results. Shares remain deeply undervalued, although we do not see any nearby catalysts, given the company’s announcement two months ago of the spinoff of the Sunrise division in Switzerland has done little to the share price. Our thesis continues to be that Liberty still has a lot of work to do to reduce the complexity of its corporate holding to highlight the value of its assets and reduce its conglomerate discount.

Price vs Fair Value

LBTYA is trading at a 41% discount.
Price
$16.64
Fair Value
$62.00
Uncertainty
High
1-Star Price
$59.30
5-Star Price
$18.40
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

All of Liberty’s markets are stable and show rational behavior, something to like in a highly competitive and commoditized industry.

Bears

Liberty's debt leverage ratios are above European peer averages, with a non-investment-grade credit rating (BB). A worsening of competitive market dynamics in any geography could be problematic.

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News

Trading Information

Previous Close Price
$16.64
Day Range
$16.4817.03
52-Week Range
$15.0120.03
Bid/Ask
$16.75 / $17.30
Market Cap
$6.24 Bil
Volume/Avg
1.9 Mil / 1.7 Mil

Key Statistics

Price/Earnings (Normalized)
Price/Sales
0.90
Dividend Yield (Trailing)
Dividend Yield (Forward)
Total Yield
38.58%

Company Profile

Liberty Global is a holding company with interests in several telecom companies in the U.K., Netherlands, Belgium, Switzerland, Ireland, and Slovakia. Liberty is the owner of the main cable network in each of these geographies and has pursued a strategy since 2016 to merge or partner with mobile-network-operators to be able to offer converged services. Liberty also owns minority stakes in other media, entertainment, and cloud companies.
Sector
Communication Services
Industry
Telecom Services
Stock Style Box
Mid Value
Total Number of Employees
9,860

Competitors

Valuation

Metric
LBTYA
KKPNY
SCMN
Price/Earnings (Normalized)
16.5615.04
Price/Book Value
0.344.972.10
Price/Sales
0.902.422.32
Price/Cash Flow
3.346.076.09
Price/Earnings
LBTYA
KKPNY
SCMN

Financial Strength

Metric
LBTYA
KKPNY
SCMN
Quick Ratio
0.960.700.62
Current Ratio
1.280.750.86
Interest Coverage
−2.354.9816.74
Quick Ratio
LBTYA
KKPNY
SCMN

Profitability

Metric
LBTYA
KKPNY
SCMN
Return on Assets (Normalized)
−6.10%7.01%6.85%
Return on Equity (Normalized)
−12.67%33.31%14.88%
Return on Invested Capital (Normalized)
−6.35%10.23%13.45%
Return on Assets
LBTYA
KKPNY
SCMN
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Telecom Services Industry Comparables

Ticker
Name
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
TMUS
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VZ
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CMCSA
Comcast Corp Class AHvxkxcxhVfm$150.5 Bil
T
AT&T IncQckdXjflxx$120.6 Bil
DTEGY
Deutsche Telekom AG ADRVlpcrqcfJfypmk$114.1 Bil
AMX
America Movil SAB de CV ADR - Series BLbmjvppvPrfsy$58.5 Bil
KDDIY
KDDI Corp ADRHxjlkxpChtshgb$58.1 Bil
CHTR
Charter Communications Inc Class AJsgbhmxVysmw$37.4 Bil
BCE
BCE IncSlkgrwhrbGqlvgcm$30.3 Bil
ORAN
Orange SA ADRNzgqbfxylQgjf$29.6 Bil

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