Frontier Communications Parent (FYBR) AI Stock Analysis

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Frontier Communications Parent

(NASDAQ:FYBR)

Rating:53Neutral

Price Target:

$37.00

▲(2.49%Upside)

The overall stock score is primarily impacted by financial challenges, including declining revenue and significant leverage. Technical analysis provides some support with no immediate overbought or oversold signals. However, negative valuations due to net losses further detract from the stock's attractiveness.

Positive Factors

Acquisition

The acquisition by Verizon at an attractive price is seen as a long-term positive for Frontier.

Earnings

Stellar fiber ARPU growth of $68.21 vs. expected $66.47 should bolster the bottom line.

Financial Performance

Fiber broadband customer base grew by 19.2%, indicating strong demand for Frontier's services.

Negative Factors

Deal Risk

If the deal were to break up, the downside for Frontier shares would be significant.

Stock Rating

Shares of Frontier (FYBR) have been downgraded to Market Underperform from Market Perform.

Stock Valuation

Little upside is seen for Frontier shares from current levels, with better opportunities available elsewhere.

Frontier Communications Parent (FYBR) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$9.03B

Dividend YieldN/A

Average Volume (3M)3.62M

Price to Earnings (P/E)―

Beta (1Y)0.35

Revenue Growth3.69%

EPS Growth-1514.85%

CountryUS

Employees12,738

SectorCommunication Services

Sector Strength85

IndustryTelecommunications Services

Share Statistics

EPS (TTM)-0.26

Shares Outstanding250,247,000

10 Day Avg. Volume2,883,457

30 Day Avg. Volume3,616,647

Financial Highlights & Ratios

PEG Ratio>-0.01

Price to Book (P/B)-0.64

Price to Sales (P/S)0.00

P/FCF Ratio9.95

Enterprise Value/Market Cap2.18

Enterprise Value/Revenue0.84

Enterprise Value/Gross Profit8.99

Enterprise Value/Ebitda2.28

Forecast

1Y Price Target

$38.50

Price Target Upside6.65% Upside

Rating ConsensusHold

Number of Analyst Covering2

Frontier Communications Parent Business Overview & Revenue Model

Company DescriptionFrontier Communications Parent (FYBR) is a telecommunications company that provides broadband, voice, and video services to residential and business customers across the United States. It operates primarily in the sector of telecommunications and focuses on delivering high-speed internet, digital television, and phone services. Frontier Communications aims to connect rural and suburban communities with advanced telecommunications infrastructure.

How the Company Makes MoneyFrontier Communications generates revenue through a variety of streams primarily centered around its broadband and telecommunications services. The company's core revenue comes from providing residential and business customers with high-speed internet services, including fiber-optic broadband. Additional income is derived from offering digital television and voice services. Frontier Communications also earns from business solutions and carrier services, which include providing network access and infrastructure to other telecommunications companies. Key factors contributing to its earnings include subscription fees for its services, customer retention, and strategic investments in expanding its fiber-optic network to increase market penetration.

Frontier Communications Parent Key Performance Indicators (KPIs)

Any

Total Customers

Total Customers
Indicates the overall customer base size, providing insight into market reach and potential for revenue growth through customer retention and acquisition.

Chart InsightsFrontier Communications Parent has reversed its declining customer trend, showing a steady increase in total customers since late 2023. This growth suggests successful strategic initiatives or improved service offerings, potentially boosting investor confidence. The upward trajectory, following years of decline, indicates a positive shift in customer acquisition and retention strategies, which could enhance revenue stability and market position.

Data provided by:

Main Street Data

Frontier Communications Parent Earnings Call Summary

Earnings Call Date:Apr 29, 2025

(Q2-2024)

% Change Since: -0.44%|

Next Earnings Date:Aug 01, 2025

Earnings Call Sentiment Positive

The earnings call reflects strong operational and financial performance with significant growth in fiber customers and revenue. However, it also highlights challenges such as a reported net loss due to noncash items and potential headwinds from the ACP program. Overall, the positive aspects of growth and strategic advancements outweigh the negatives.

Q2-2024 Updates

Positive Updates

Record Fiber Broadband Customer Additions

Frontier added a record 92,000 new fiber broadband customers in Q2, which is a 37% increase from last year. The fiber customer base grew by 19% in the first half of the year.

Strong Revenue Growth

Frontier achieved its second consecutive quarter of revenue growth, with company revenue increasing by 2% year-over-year and fiber revenue growing by 13%.

Expansion of Fiber Network

The company exceeded 7 million locations with fiber passings and added a record 388,000 fiber passings in Q2, on track for 1.3 million passings this year.

Improved EBITDA and Margins

The company reported a 5% growth in adjusted EBITDA, marking the fourth consecutive quarter of growth. EBITDA margins were also expanded.

Strategic Capital Management

Frontier completed its second fiber securitization, raising $750 million, and used part of the proceeds to refinance a portion of its term loan, extending its maturity to 2031.

Improved Customer Satisfaction

Net Promoter Scores (NPS) improved by approximately 20 points over the past year, with fiber NPS now 6x higher than the closest legacy cable competitor.

Negative Updates

Net Loss in Q2

Frontier reported a net loss of $123 million, primarily due to a noncash pension remeasurement and a $25 million one-time legal settlement.

Potential Impact of ACP on Customer Base

The Affordable Connectivity Program (ACP) affects about 4% of the customer base, with expected impacts to be larger in Q3 and Q4 due to voluntary disconnects.

Flat Consumer Fiber ARPU Growth

Consumer fiber ARPU growth was 3.5% year-over-year, with expectations of flat ARPU sequentially in Q3 due to ACP transition plans affecting pricing.

Challenges from Increased Competition

Increased competition from other fiber build-outs in the industry may impact future growth strategies.

Company Guidance

During the Frontier Communications Q2 2024 earnings call, Scott Beasley, CFO, provided updated guidance reflecting strong performance. The company raised the lower end of its EBITDA guidance to a range of $2.22 billion to $2.25 billion, indicating a 5% growth at the midpoint compared to the previous year. This adjustment came after a robust first half, with Q2 revenue reaching $1.48 billion, marking a 2% increase year-over-year, and adjusted EBITDA of $560 million, representing continuous growth. The quarter also saw record operational achievements, such as adding 388,000 fiber passings and 92,000 new fiber broadband customers. Despite the challenges, the company maintained its commitment to cost management, achieving $580 million in savings since 2021, and completed a $750 million fiber securitization to support strategic financial positioning.

Frontier Communications Parent Financial Statement Overview

Summary

The company faces financial challenges with declining revenue, negative profitability, high leverage, and negative free cash flow. Despite generating good operating cash flow, the negative net income and high debt levels are concerning for financial sustainability.

Income Statement

Neutral

The income statement shows a decline in revenue from the previous year and negative net income, indicating profitability challenges. The gross profit margin is relatively healthy at 46.05% for TTM, but the net profit margin is negative due to a net loss. Revenue growth has been inconsistent, with a noticeable decrease in recent periods.

Balance Sheet

Neutral

The balance sheet reflects a high debt-to-equity ratio of 2.39 for TTM, suggesting significant leverage. However, the company's equity ratio is 23.33%, indicating a reasonable proportion of equity financing. Return on equity is negative due to net losses, which is a concern for financial sustainability.

Cash Flow

Neutral

Cash flow analysis shows negative free cash flow, which highlights liquidity concerns. The operating cash flow to net income ratio is high, suggesting good cash generation relative to net income. However, the free cash flow to net income ratio is negative, indicating challenges in covering capital expenditures.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
5.94B	5.87B	5.75B	5.79B	6.41B	7.16B
	Gross Profit
2.19B	2.20B	2.21B	2.44B	4.05B	4.45B
	EBIT
339.00M	353.00M	492.00M	592.00M	1.11B	959.00M
	EBITDA
2.06B	2.08B	2.19B	2.27B	6.52B	1.87B
	Net Income Common Stockholders
-387.00M	-322.00M	29.00M	441.00M	-402.00M	-402.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
506.00M	750.00M	2.20B	2.07B	2.13B	1.83B
	Total Assets
20.90B	20.61B	20.69B	18.62B	16.48B	16.80B
	Total Debt
11.64B	11.56B	11.55B	9.13B	7.98B	5.78B
	Net Debt
11.14B	10.81B	10.43B	8.80B	5.86B	3.95B
	Total Liabilities
16.02B	15.67B	15.41B	13.49B	11.88B	21.70B
	Stockholders Equity
4.88B	4.94B	5.28B	5.13B	4.60B	-4.90B
Cash Flow		Free Cash Flow
-1.07B	-1.16B	-1.87B	-1.34B	-908.00M	808.00M
	Operating Cash Flow
1.80B	1.62B	1.34B	1.40B	797.00M	1.99B
	Investing Cash Flow
-2.62B	-1.68B	-2.56B	-4.47B	-1.68B	-19.00M
	Financing Cash Flow
200.00M	-268.00M	2.13B	1.21B	1.18B	-893.00M

Frontier Communications Parent Technical Analysis

Technical Analysis Sentiment

Neutral

Last Price36.10

Price Trends

50DMA

36.28

Negative

100DMA

36.05

Positive

200DMA

35.48

Positive

Market Momentum

MACD

-0.06

Positive

RSI

37.38

Neutral

STOCH

22.02

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FYBR, the sentiment is Neutral. The current price of 36.1 is below the 20-day moving average (MA) of 36.43, below the 50-day MA of 36.28, and above the 200-day MA of 35.48, indicating a neutral trend. The MACD of -0.06 indicates Positive momentum. The RSI at 37.38 is Neutral, neither overbought nor oversold. The STOCH value of 22.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for FYBR.

Frontier Communications Parent Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TIMB	82 Outperform	$8.98B	14.73	13.18%	0.46%	-6.63%	2.46%
TKC	79 Outperform	$5.12B	12.10	6.74%	3.48%	14.09%	-11.43%
SKM	73 Outperform	$8.46B	9.41	11.08%	6.39%	-2.34%	12.31%
Sector *	61 Neutral	$14.55B	5.81	-3.99%	6.41%	2.71%	-31.56%
TEO	55 Neutral	$4.15B	20.06	3.99%	―	-12.77%	40.80%
FYBR	53 Neutral	$9.03B	―	-7.64%	―	3.69%	-1514.85%
LUMN	52 Neutral	$4.14B	―	-78.94%	―	-7.86%	97.11%

* Communication Services Sector Average

Performance Comparison

FYBR

Frontier Communications Parent

36.10

11.39

46.09%

LUMN

Lumen Technologies

4.04

2.96

274.07%

SKM

Sk Telecom

21.94

1.22

5.89%

TEO

Telecom Argentina

9.43

2.19

30.25%

TIMB

TIM

18.59

5.41

41.05%

TKC

Turkcell Iletisim

5.87

-1.31

-18.25%

Frontier Communications Parent Corporate Events

Executive/Board ChangesShareholder MeetingsBusiness Operations and Strategy

Frontier Communications Confirms Key Votes at Annual Meeting

Neutral

May 23, 2025

At Frontier Communications Parent, Inc.’s 2025 Annual Meeting of Stockholders held on May 21, 2025, several key votes took place. The election of ten directors was confirmed, the appointment of KPMG LLP as the independent registered public accounting firm for 2025 was ratified, and the advisory vote on executive compensation was approved. These decisions reflect the company’s ongoing governance and operational strategies, potentially impacting its market positioning and stakeholder relations.

The most recent analyst rating on (FYBR) stock is a Buy with a $33.00 price target. To see the full list of analyst forecasts on Frontier Communications Parent stock, see the FYBR Stock Forecast page.

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.