Frontier Communications Parent (FYBR) AI Stock Analysis

• Market Cap: $9.07B
• Dividend Yield: N/A
• Average Volume (3M): 3.61M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.35
• Revenue Growth: 3.69%
• EPS Growth: -1514.85%
• Country: US
• Employees: 12,738
• Sector: Communication Services
• Sector Strength: 79
• Industry: Telecommunications Services
• EPS (TTM): -0.26
• Shares Outstanding: 250,247,000
• 10 Day Avg. Volume: 4,198,966
• 30 Day Avg. Volume: 3,609,703
• PEG Ratio: >-0.01
• Price to Book (P/B): -0.64
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 9.95
• Enterprise Value/Market Cap: 2.18
• Enterprise Value/Revenue: 0.84
• Enterprise Value/Gross Profit: 8.99
• Enterprise Value/Ebitda: 2.28
• 1Y Price Target: $38.50
• Price Target Upside: 6.65% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 53 Neutral
• 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 Business Overview & Revenue Model

Company Description

Frontier 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 Money

Frontier 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 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

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

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

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
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
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 Price: 36.10
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TIMB	82 Outperform	$9.13B	14.73	13.18%	0.45%	-6.63%	2.46%
TKC	79 Outperform	$5.30B	12.10	6.74%	3.28%	14.09%	-11.43%
SKM	73 Outperform	$8.39B	9.41	11.08%	6.39%	-2.34%	12.31%
Sector *	61 Neutral	$14.64B	5.81	-3.99%	6.03%	2.71%	-31.56%
TEO	55 Neutral	$4.24B	20.06	3.99%	―	-12.77%	40.80%
FYBR	53 Neutral	$9.07B	―	-7.64%	―	3.69%	-1514.85%
LUMN	52 Neutral	$4.26B	―	-78.94%	―	-7.86%	97.11%

Frontier Communications Parent Corporate Events

Frontier Communications Confirms Key Votes at Annual Meeting

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.

Frontier Communications Announces EVP John Harrobin’s Resignation

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.