Frontier Communications Parent (FYBR) AI Stock Analysis

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Frontier Communications Parent

(NASDAQ:FYBR)

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Neutral 46 (OpenAI - 4o)

Rating:46Neutral

Price Target:

$37.00

▼(-3.04% Downside)

Frontier Communications' overall stock score is primarily impacted by its financial performance, which highlights significant challenges in profitability and cash flow. Technical analysis provides some positive signals, but the overbought condition suggests caution. Valuation metrics are weak due to negative earnings and the absence of a dividend yield. The company needs to address its financial weaknesses and improve profitability to enhance its stock appeal.

Positive Factors

Revenue Growth

Exceeding revenue expectations indicates strong market demand and effective sales strategies, supporting long-term growth potential.

Customer Growth

Record customer growth suggests increasing market penetration and brand strength, which can drive sustained revenue and business expansion.

Operational Efficiency

Strong EBITDA growth reflects improved operational efficiency and cost management, enhancing profitability and competitive positioning.

Negative Factors

High Leverage

High leverage can increase financial risk and limit strategic flexibility, potentially impacting long-term financial stability.

Profitability Challenges

Ongoing profitability issues highlight difficulty in translating revenue into net income, which can hinder growth and investment capacity.

Cash Flow Issues

Negative cash flow growth suggests potential liquidity constraints, affecting the company's ability to invest in growth opportunities.

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

Market Cap

$9.55B

Dividend YieldN/A

Average Volume (3M)2.69M

Price to Earnings (P/E)―

Beta (1Y)-0.14

Revenue Growth4.25%

EPS Growth-103.14%

CountryUS

Employees12,738

SectorCommunication Services

Sector Strength97

IndustryTelecommunications Services

Share Statistics

EPS (TTM)-0.30

Shares Outstanding250,338,000

10 Day Avg. Volume1,784,845

30 Day Avg. Volume2,694,406

Financial Highlights & Ratios

PEG Ratio0.02

Price to Book (P/B)1.74

Price to Sales (P/S)1.47

P/FCF Ratio-7.41

Enterprise Value/Market Cap2.14

Enterprise Value/Revenue3.35

Enterprise Value/Gross Profit5.15

Enterprise Value/Ebitda9.26

Forecast

1Y Price Target

$38.50

Price Target Upside0.89% Upside

Rating ConsensusHold

Number of Analyst Covering2

EPS Forecast (FY)N/A

Revenue Forecast (FY)N/A

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 multiple streams, primarily from its broadband internet services, which include fiber-optic and DSL offerings. The company charges monthly subscription fees for these services, with pricing tiers based on speed and bandwidth. Additionally, Frontier earns revenue from its digital TV services and voice services, such as traditional landline telephony and VoIP solutions. Key partnerships with content providers and technology firms help enhance its service offerings, while governmental initiatives aimed at expanding broadband access in underserved areas can also provide funding and incentives that contribute to its earnings. Furthermore, Frontier may experience additional revenue from installation fees and ancillary services related to its core offerings.

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 has reversed a multi-year decline in customer numbers, showing consistent growth since early 2024. This turnaround suggests successful strategic initiatives, possibly including enhanced service offerings or improved customer retention efforts. The recent uptick in total customers could indicate strengthening market position and potential revenue growth, which may attract investor interest as the company continues to recover from previous declines.

Data provided by:

The Fly

Frontier Communications Parent Earnings Call Summary

Earnings Call Date:Aug 02, 2024

(Q2-2024)

% Change Since: |

Next Earnings Date:Feb 20, 2026

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

Frontier Communications faces several financial challenges. While there is modest revenue growth, profitability remains a significant concern with negative net income and declining EBIT margins. The balance sheet shows high leverage, which could pose risks in a volatile market. Cash flow issues are evident, with negative free cash flow growth and a negative free cash flow to net income ratio. The company needs to address these financial weaknesses to improve its overall financial health.

Income Statement

Frontier Communications shows a mixed performance in its income statement. The TTM data indicates a slight revenue growth of 1.32%, but the company is struggling with profitability, as evidenced by a negative net profit margin of -6.74%. The gross profit margin is relatively healthy at 64.90%, suggesting good control over direct costs. However, the EBIT margin has decreased to 5.68%, indicating challenges in managing operating expenses. Overall, the income statement reflects moderate revenue growth but significant profitability issues.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 2.56, indicating significant leverage and potential financial risk. The return on equity is negative at -12.65%, reflecting the company's inability to generate profit from shareholders' equity. The equity ratio stands at 21.72%, suggesting a moderate reliance on equity financing. Overall, the balance sheet highlights high leverage and poor returns on equity, posing financial stability concerns.

Cash Flow

Cash flow analysis shows a concerning trend with a negative free cash flow growth rate of -57.90% in the TTM period. The operating cash flow to net income ratio is strong at 93.48, indicating efficient cash generation relative to net income. However, the free cash flow to net income ratio is negative, reflecting cash flow challenges. Overall, the cash flow statement indicates significant cash flow issues, despite strong operating cash flow generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.11B	5.94B	5.75B	5.79B	6.41B	7.16B
Gross Profit	3.97B	3.83B	3.63B	3.62B	4.05B	4.45B
EBITDA	2.21B	2.13B	2.19B	2.40B	2.38B	2.76B
Net Income	-381.00M	-322.00M	29.00M	441.00M	4.96B	-402.00M
Balance Sheet
Total Assets	21.63B	21.89B	21.61B	19.34B	17.14B	18.43B
Cash, Cash Equivalents and Short-Term Investments	420.00M	806.00M	2.24B	2.07B	2.14B	1.89B
Total Debt	12.07B	12.03B	11.66B	9.47B	7.98B	6.19B
Total Liabilities	16.93B	16.95B	16.33B	14.21B	12.54B	23.32B
Stockholders Equity	4.70B	4.94B	5.28B	5.13B	4.60B	-4.90B
Cash Flow
Free Cash Flow	-1.42B	-1.16B	-1.87B	-1.34B	-908.00M	808.00M
Operating Cash Flow	1.79B	1.62B	1.34B	1.40B	797.00M	1.99B
Investing Cash Flow	-3.20B	-1.68B	-2.56B	-4.47B	-1.68B	-19.00M
Financing Cash Flow	351.00M	-268.00M	2.13B	1.21B	1.18B	-893.00M

Frontier Communications Parent Technical Analysis

Technical Analysis Sentiment

Positive

Last Price38.16

Price Trends

50DMA

37.96

Positive

100DMA

37.63

Positive

200DMA

37.02

Positive

Market Momentum

MACD

0.06

Positive

RSI

58.24

Neutral

STOCH

52.78

Neutral

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 38.16 is above the 20-day moving average (MA) of 38.11, above the 50-day MA of 37.96, and above the 200-day MA of 37.02, indicating a bullish trend. The MACD of 0.06 indicates Positive momentum. The RSI at 58.24 is Neutral, neither overbought nor oversold. The STOCH value of 52.78 is Neutral, 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 (60)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TIMB	81 Outperform	$9.89B	14.14	14.93%	7.82%	-4.90%	14.83%
AD	70 Outperform	$4.56B	17.80	4.11%	42.91%	-25.64%	―
KT	68 Neutral	$8.58B	13.62	5.26%	4.13%	0.63%	-21.51%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
SKM	60 Neutral	$7.65B	19.68	4.72%	5.02%	-8.16%	-52.52%
LUMN	53 Neutral	$8.38B	-4.92	―	―	-4.56%	23.46%
FYBR	46 Neutral	$9.55B	-25.03	-7.80%	―	4.25%	-103.14%

* Communication Services Sector Average

Performance Comparison

FYBR

Frontier Communications Parent

38.16

2.83

8.01%

LUMN

Lumen Technologies

8.17

2.81

52.43%

18.97

2.96

18.49%

SKM

Sk Telecom

20.48

-0.98

-4.57%

TIMB

TIM

20.43

10.19

99.53%

Array Digital Infrastructure

52.08

9.63

22.69%

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.Date of analysis: Oct 30, 2025