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Frontier Communications Parent (FYBR)
NASDAQ:FYBR
US Market

Frontier Communications Parent (FYBR) AI Stock Analysis

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Frontier Communications Parent

(NASDAQ:FYBR)

Rating:53Neutral
Price Target:
$37.00
▲(2.13%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)

Frontier Communications Parent Business Overview & Revenue Model

Company DescriptionFrontier Communications Parent, Inc., together with its subsidiaries, provides communications services for consumer and business customers in 25 states in the United States. It offers data and Internet, voice, video, and other services. The company was formerly known as Frontier Communications Corporation and changed its name to Frontier Communications Parent, Inc. in April 2021. Frontier Communications Parent, Inc. was incorporated in 1935 and is based in Norwalk, Connecticut.
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
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: -0.08%|
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
45
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
55
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
50
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.
Breakdown
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
5.94B5.87B5.75B5.79B6.41B7.16B
Gross Profit
3.02B2.20B2.21B2.44B4.05B4.45B
EBIT
365.00M353.00M492.00M592.00M1.11B959.00M
EBITDA
2.06B2.08B2.19B2.27B6.52B1.87B
Net Income Common Stockholders
-269.12M-322.00M29.00M441.00M-402.00M-402.00M
Balance SheetCash, Cash Equivalents and Short-Term Investments
506.00M750.00M2.20B2.07B2.13B1.83B
Total Assets
20.90B20.61B20.69B18.62B16.48B16.80B
Total Debt
11.64B11.56B11.55B9.13B7.98B5.78B
Net Debt
11.14B10.81B10.43B8.80B5.86B3.95B
Total Liabilities
16.02B15.67B15.41B13.49B11.88B21.70B
Stockholders Equity
4.88B4.94B5.28B5.13B4.60B-4.90B
Cash FlowFree Cash Flow
-1.07B-1.16B-1.87B-1.34B-908.00M808.00M
Operating Cash Flow
1.80B1.62B1.34B1.40B797.00M1.99B
Investing Cash Flow
-2.62B-1.68B-2.56B-4.47B-1.68B-19.00M
Financing Cash Flow
200.00M-268.00M2.13B1.21B1.18B-893.00M

Frontier Communications Parent Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price36.23
Price Trends
50DMA
36.28
Negative
100DMA
36.05
Positive
200DMA
35.45
Positive
Market Momentum
MACD
-0.04
Positive
RSI
42.83
Neutral
STOCH
27.46
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 36.23 is below the 20-day moving average (MA) of 36.46, below the 50-day MA of 36.28, and above the 200-day MA of 35.45, indicating a neutral trend. The MACD of -0.04 indicates Positive momentum. The RSI at 42.83 is Neutral, neither overbought nor oversold. The STOCH value of 27.46 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
82
Outperform
$9.16B14.9213.18%0.45%-6.63%2.46%
TKTKC
79
Outperform
$5.41B13.026.74%3.27%14.09%-11.43%
SKSKM
73
Outperform
$8.35B9.2811.08%6.48%-2.34%12.31%
61
Neutral
$14.75B5.86-3.99%6.11%2.67%-30.24%
56
Neutral
$4.26B-78.94%-7.86%97.11%
TETEO
55
Neutral
$4.40B20.403.99%-12.77%40.80%
53
Neutral
$9.05B-7.64%3.69%-1514.85%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FYBR
Frontier Communications Parent
36.23
10.82
42.58%
LUMN
Lumen Technologies
4.20
3.01
252.94%
SKM
Sk Telecom
21.96
1.22
5.88%
TEO
Telecom Argentina
9.84
2.58
35.54%
TIMB
TIM
18.91
5.59
41.97%
TKC
Turkcell Iletisim
6.22
-0.95
-13.25%

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.

Executive/Board Changes
Frontier Communications Announces EVP John Harrobin’s Resignation
Neutral
Mar 14, 2025

On March 10, 2025, Frontier Communications Parent, Inc. announced the resignation of John Harrobin, the Executive Vice President, Consumer, effective March 14, 2025. The company expressed gratitude for Mr. Harrobin’s service and extended best wishes for his future endeavors, indicating a leadership change that may impact its consumer operations.

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.