Frontier Communications Parent (FYBR) AI Stock Analysis

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Frontier Communications Parent

(NASDAQ:FYBR)

55Neutral

Frontier Communications Parent's overall score is driven primarily by its financial challenges, including declining profitability and high leverage, which weigh heavily on its financial performance score. The technical analysis provides a more positive outlook with upward momentum, but valuation concerns due to a negative P/E ratio and lack of dividend yield limit attractiveness. Addressing key financial weaknesses is crucial for improving the stock's overall appeal.

Positive Factors

Acquisition

The acquisition by Verizon is viewed positively, with Frontier being acquired at an attractive price.

Broadband Growth

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

Revenue Growth

Frontier posted revenue of $1.489 billion, which exceeded both analyst and the Street's estimates.

Negative Factors

Deal Risk

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

Share Performance

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

Shareholder Sentiment

Some shareholders clamoring for a higher bid, but this was offset by ISS and Glass Lewis recommending shareholders abstain from voting for the bid.

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

Market Cap

$9.07B

Dividend YieldN/A

Average Volume (3M)3.11M

Price to Earnings (P/E)―

Beta (1Y)0.40

Revenue Growth3.69%

EPS Growth-1514.85%

CountryUS

Employees13,025

SectorCommunication Services

Sector Strength85

IndustryTelecommunications Services

Share Statistics

EPS (TTM)-1.55

Shares Outstanding250,247,000

10 Day Avg. Volume1,768,623

30 Day Avg. Volume3,106,489

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)0.00

Price to Cash Flow (P/CF)0.00

P/FCF Ratio0.00

Enterprise Value/Market Cap2.19

Enterprise Value/RevenueN/A

Enterprise Value/Gross Profit3.35

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$38.50

Price Target Upside5.74% Upside

Rating ConsensusHold

Number of Analyst Covering4

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 makes money through various revenue streams, primarily revolving around its broadband and telecommunications services. The company generates significant income from providing high-speed internet subscriptions to residential and business customers. Additionally, it earns revenue from offering voice and video services, although its core focus remains on expanding its fiber-optic network to enhance broadband internet offerings. Frontier also engages in wholesale services, leasing its network infrastructure to other telecommunications providers. Strategic partnerships and network expansion efforts play a crucial role in driving revenue growth, as the company seeks to increase its market penetration and improve service offerings to a broader customer base.

Frontier Communications Parent Key Performance Indicators (KPIs)

Any

Total Customers

Total Customers
Counts the total number of subscribers, offering a clear picture of market presence and customer base expansion over time.

Chart InsightsFrontier Communications Parent has reversed a multi-year decline in customer numbers, showing a positive trend from 2023 onwards. This recent growth suggests successful strategic initiatives or improved market conditions, potentially enhancing revenue stability. The absence of earnings call commentary leaves the reasons for this turnaround open to interpretation, but the upward trajectory could signal renewed consumer interest or effective retention strategies.

Data provided by:

Main Street Data

Frontier Communications Parent Financial Statement Overview

Summary

Frontier Communications is experiencing significant challenges with revenue decline and profitability issues, reflected in negative net income and free cash flow. The balance sheet has improved with a better equity position, yet past high leverage remains a concern. Cash flow management, particularly in controlling capital expenditures, is crucial for future stabilization.

Income Statement

Neutral

The company's revenue has been declining, with a negative revenue growth rate over the past years. Profitability margins such as the net profit margin are concerning, with significant net losses reported in recent years, indicating challenges in cost management or revenue generation.

Balance Sheet

Neutral

Frontier Communications shows a strong equity position as of the latest report, with stockholders' equity exceeding total liabilities. However, the debt-to-equity ratio shows past high leverage, which has improved recently but still poses potential risks if profitability doesn't recover.

Cash Flow

Neutral

While operating cash flow remains strong, the company is facing challenges in converting this into positive free cash flow due to high capital expenditures. The free cash flow has been consistently negative, which could impact future financial flexibility.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
5.87B	5.75B	5.79B	7.16B	7.16B
	Gross Profit
5.94B	2.21B	3.62B	3.55B	4.45B
	EBIT
353.00M	565.00M	592.00M	162.00M	959.00M
	EBITDA
2.08B	2.19B	2.27B	6.52B	1.87B
	Net Income Common Stockholders
-322.00M	29.00M	441.00M	-402.00M	-402.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
750.00M	2.20B	2.07B	2.13B	1.83B
	Total Assets
20.61B	20.69B	18.62B	16.48B	16.80B
	Total Debt
11.56B	11.55B	9.13B	7.98B	5.78B
	Net Debt
10.81B	10.43B	8.80B	5.86B	3.95B
	Total Liabilities
15.67B	15.41B	13.49B	11.88B	21.70B
	Stockholders Equity
2.52B	5.28B	5.13B	4.60B	-4.90B
Cash Flow		Free Cash Flow
-1.16B	-1.87B	-1.34B	-908.00M	808.00M
	Operating Cash Flow
1.62B	1.34B	1.40B	797.00M	1.99B
	Investing Cash Flow
-1.68B	-2.56B	-4.47B	-1.68B	-19.00M
	Financing Cash Flow
-268.00M	2.13B	1.21B	1.18B	-893.00M

Frontier Communications Parent Technical Analysis

Technical Analysis Sentiment

Positive

Last Price36.41

Price Trends

50DMA

35.92

Positive

100DMA

35.60

Positive

200DMA

34.21

Positive

Market Momentum

MACD

0.13

Negative

RSI

69.79

Neutral

STOCH

94.19

Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FYBR, the sentiment is Positive. The current price of 36.41 is above the 20-day moving average (MA) of 36.00, above the 50-day MA of 35.92, and above the 200-day MA of 34.21, indicating a bullish trend. The MACD of 0.13 indicates Negative momentum. The RSI at 69.79 is Neutral, neither overbought nor oversold. The STOCH value of 94.19 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FYBR.

Frontier Communications Parent Peers Comparison

Overall Rating

UnderperformOutperform

Sector (59)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TIMB	82 Outperform	$8.06B	13.67	12.04%	3.25%	-0.91%	1.51%
TKC	75 Outperform	$5.10B	11.53	6.76%	2.60%	8.78%	-21.85%
SKM	73 Outperform	$8.04B	9.04	11.19%	5.58%	-2.34%	12.31%
TEO	64 Neutral	$4.20B	4.30	23.27%	―	-26.74%	―
Sector *	59 Neutral	$13.50B	7.28	-2.06%	3.86%	2.39%	-36.82%
FYBR	55 Neutral	$9.07B	―	-7.64%	―	3.69%	-1514.85%
LUMN	49 Neutral	$3.61B	―	-12.49%	―	-9.95%	99.47%

* Communication Services Sector Average

Performance Comparison

FYBR

Frontier Communications Parent

36.41

10.79

42.12%

LUMN

Lumen Technologies

3.52

2.20

166.67%

SKM

Sk Telecom

21.28

0.48

2.31%

TEO

Telecom Argentina

9.22

0.83

9.89%

TIMB

TIM

16.53

-0.20

-1.20%

TKC

Turkcell Iletisim

5.89

-0.24

-3.92%

Frontier Communications Parent Earnings Call Summary

Earnings Call Date:Apr 29, 2025

(Q2-2024)

% Change Since: 0.41%|

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 Corporate Events

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

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.