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Liberty Broadband Corp (LBRDA)
NASDAQ:LBRDA
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Liberty Broadband
(NASDAQ:LBRDA)60Neutral
Liberty Broadband (LBRDA) vs. S&P 500 (SPY)
Market Cap
$12.50B
Dividend YieldN/A
Average Volume (3M)94.06K
Price to Earnings (P/E)14.2
Beta (1Y)0.90
Revenue Growth3.57%
EPS Growth28.42%
CountryUS
Employees1,900
SectorCommunication Services
Sector Strength85
IndustryTelecommunications
Share Statistics
EPS (TTM)6.08
Shares Outstanding18,251,013
10 Day Avg. Volume106,170
30 Day Avg. Volume94,057
Financial Highlights & Ratios
PEG Ratio0.50
Price to Book (P/B)N/A
Price to Sales (P/S)16.54
Price to Cash Flow (P/CF)124.70
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$95.00Price Target Upside9.74% Upside
Rating ConsensusHold
Number of Analyst Covering0
Liberty Broadband Business Overview & Revenue Model
Company DescriptionLiberty Broadband Corporation is a holding company primarily engaged in the cable communications sector. It focuses on providing high-speed internet, video, voice, and related services through its subsidiaries. The company is known for its significant ownership interest in Charter Communications, Inc., one of the largest cable operators in the United States, as well as its investments in other technology and telecommunications entities.
How the Company Makes MoneyLiberty Broadband generates revenue primarily through its equity ownership in Charter Communications, which is a major source of income due to Charter's large customer base and extensive service offerings in the cable communications market. Additionally, Liberty Broadband may receive dividends and other financial benefits from its investments in other technology and telecommunications companies. Its financial performance is closely tied to Charter's operational success and market position, which influences Liberty Broadband's overall earnings.
Liberty Broadband Financial Statement Overview
Summary
Liberty Broadband demonstrates strong profit margins and a stable equity position, but faces risks from revenue volatility and high leverage. Cash flow issues indicate operational inefficiencies that could impede sustainable growth.Income Statement
Liberty Broadband shows strong gross profit margins consistently above 100%, highlighting a unique revenue recognition method, possibly indicating revenue from other sources. However, net profit margin shows inconsistency, displaying a recent decline. Revenue growth is erratic with substantial fluctuations, impacting stability and predictability. EBIT and EBITDA margins are strong, contributing to overall profitability despite revenue volatility.45
Neutral
Balance Sheet
The balance sheet exhibits a stable equity ratio, indicating sound financial health, with stockholders' equity significantly covering total assets. However, the debt-to-equity ratio is high, suggesting a leveraged position, which could pose risks in volatile markets. Return on equity has been inconsistent, reflecting fluctuating net income, which impacts investor confidence.55
Neutral
Cash Flow
Cash flow statements reveal irregularities, with negative free cash flow observed in numerous periods, signaling operational inefficiencies. The operating cash flow to net income ratio is often negative, reflecting insufficient cash generation relative to reported earnings. Free cash flow growth is inconsistent, which may hinder future investment and debt servicing capabilities.30
Negative
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 1.02B | 981.00M | 920.98M | 988.00M | 50.71M | Gross Profit |
| 1.02B | 736.00M | 639.98M | 659.00M | 50.65M | EBIT |
| 92.00M | 73.00M | 1.28B | 1.20B | 655.97M | EBITDA |
| 1.48B | 1.32B | 290.00M | 264.00M | 671.20M | Net Income Common Stockholders |
| 869.00M | 688.00M | 1.26B | 732.00M | 398.00M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 163.00M | 158.00M | 375.00M | 191.00M | 1.42B | Total Assets |
| 150.02B | 15.64B | 15.14B | 16.97B | 21.37B | Total Debt |
| 92.13B | 3.82B | 3.89B | 3.85B | 4.91B | Net Debt |
| 92.13B | 3.66B | 3.51B | 3.66B | 3.49B | Total Liabilities |
| 6.88B | 6.62B | 6.64B | 6.83B | 7.86B | Stockholders Equity |
| 150.02B | 9.00B | 8.48B | 10.13B | 13.50B |
| Cash Flow | Free Cash Flow | |||
| -143.00M | -206.00M | -212.00M | -131.00M | -97.56M | Operating Cash Flow |
| 104.00M | 16.00M | -56.00M | 3.00M | -95.74M | Investing Cash Flow |
| 130.00M | 150.00M | 3.05B | 4.06B | 575.51M | Financing Cash Flow |
| -181.00M | -390.00M | -2.80B | -5.29B | 903.80M |
Liberty Broadband Technical Analysis
Positive
86.57
Price Trends
77.96
Positive
81.18
Positive
70.37
Positive
Market Momentum
1.83
Negative
70.85
Negative
87.50
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LBRDA, the sentiment is Positive. The current price of 86.57 is above the 20-day moving average (MA) of 80.64, above the 50-day MA of 77.96, and above the 200-day MA of 70.37, indicating a bullish trend. The MACD of 1.83 indicates Negative momentum. The RSI at 70.85 is Negative, neither overbought nor oversold. The STOCH value of 87.50 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LBRDA.
Liberty Broadband Risk Analysis
Liberty Broadband disclosed 58 risk factors in its most recent earnings report. Liberty Broadband reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Liberty Broadband Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $137.14B | 8.75 | 19.24% | 3.42% | 1.78% | 11.62% | |
74 Outperform | $59.96B | 10.88 | 38.11% | ― | 0.88% | 16.44% | |
60 Neutral | $12.50B | 14.25 | 9.05% | ― | 3.57% | 28.42% | |
59 Neutral | $30.54B | 0.25 | -13.23% | 4.04% | 2.36% | -49.53% | |
55 Neutral | $5.23B | ― | -12.49% | ― | -9.95% | 99.47% | |
52 Neutral | $274.02M | ― | -5.13% | 5.29% | -1.03% | -204.03% | |
51 Neutral | $406.07M | ― | -35.57% | ― | -7.35% | 64.18% |
* Communication Services Sector Average
Performance Comparison
LBRDA
Liberty Broadband
86.57
27.61
46.83%
ATNI
ATN International
19.89
-11.79
-37.22%
LUMN
Lumen Technologies
5.30
3.54
201.14%
CHTR
Charter Communications
379.52
81.27
27.25%
CMCSA
Comcast
37.59
-4.61
-10.92%
WOW
Wideopenwest
4.54
1.03
29.34%
Liberty Broadband Earnings Call Summary
Earnings Call Date: Feb 27, 2025 | % Change Since: 9.93% | Next Earnings Date: May 2, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted significant achievements such as record revenue and strategic advancements with Charter, but also faced operational challenges, including a decrease in adjusted OIBDA and competition from Starlink. The outlook includes continued investment in infrastructure and the potential for increased competition.Highlights
Record Revenue Achievement
GCI achieved record revenue that crossed the $1 billion mark for the first time in 2024.
Revenue Growth
Revenue increased 5% in the fourth quarter and 4% for the full year, driven by strength in data revenue.
Transaction with Charter
Liberty Broadband is set to be acquired by Charter, with the transaction expected to close on June 30, 2027. Shareholders of Liberty Broadband have approved the transaction.
Positive Cash Flow
GCI generated solid adjusted OIBDA and free cash flow, distributing $150 million of dividends to Liberty Broadband in the year.
Lowlights
Adjusted OIBDA Decrease
Adjusted OIBDA decreased 4% in the fourth quarter, primarily due to higher SG&A expenses from increased labor-related costs.
Subscriber Decline
GCI Consumer saw a decline of 300 wireless subs and cable modem subscribers declined by 4,900, largely due to the expiration of the ACP program.
CapEx Shortfall
2024 capital expenditures were $193 million, slightly below the expected $200 million, due to delays in rural fiber projects.
Competitive Pressure from Starlink
GCI lost wired subs to Starlink in rural areas due to service disruptions from multiple breaks in the backbone fiber.
Company Guidance
During the Liberty Broadband 2024 Year-end Earnings Call, significant guidance and metrics were discussed. The company announced a definitive agreement to be acquired by Charter, with the transaction expected to close by June 30, 2027. Liberty Broadband shareholders will receive $0.236 of a Charter share for each Liberty share they own, and the transaction has received shareholder approval. Prior to the acquisition, Liberty Broadband plans to spin off GCI, which achieved record revenue of over $1 billion in 2024, with a 4% annual revenue increase driven by data revenue growth. GCI's adjusted OIBDA for the year was $362 million, with a 4% decrease in Q4 due to higher SG&A expenses. Capital expenditures for 2024 were $193 million, and are projected to rise to $250 million in 2025, focusing on rural connectivity projects. Liberty Broadband had $229 million in consolidated cash and restricted cash, and $3.7 billion in debt, with Charter committed to repurchasing $100 million of its stock monthly to help reduce this debt.Liberty Broadband Corporate Events
M&A TransactionsShareholder Meetings
Liberty Broadband and Charter Merger Approved by Stockholders
Positive
Feb 27, 2025
On February 26, 2025, Liberty Broadband and Charter Communications announced the approval of their merger agreement by stockholders at special meetings. The transaction, expected to close on June 30, 2027, is contingent upon the spin-off of Liberty Broadband’s subsidiary GCI and other conditions. This merger positions Charter to expand its market presence and operational capabilities, potentially impacting stakeholders by enhancing service offerings and network infrastructure.
Shareholder Meetings
Liberty Broadband Announces Advanced Annual Meeting Date
Neutral
Feb 24, 2025
On February 21, 2025, Liberty Broadband Corporation announced that its virtual Annual Meeting of Stockholders will be held on May 12, 2025. The meeting date has been advanced by over 20 days compared to the previous year, requiring stockholder proposals and board nominations to be submitted by March 3, 2025. This change in schedule may impact stockholder engagement and planning.
Business Operations and StrategyFinancial Disclosures
Liberty Broadband to Discuss Q4 2024 Results
Neutral
Jan 30, 2025
On January 30, 2025, Liberty Broadband Corporation announced it will host a conference call on February 27, 2025, to discuss its fourth-quarter results for 2024. This event will include discussions on the company’s financial performance and future outlook, potentially impacting stakeholders’ perceptions and the company’s market positioning as it continues to invest in its network infrastructure and expand its services in Alaska.
M&A TransactionsShareholder Meetings
Liberty Broadband Plans Merger with Charter Communications
Neutral
Jan 22, 2025
On January 22, 2025, Liberty Broadband Corporation announced a virtual special meeting on February 26, 2025, for its stockholders to vote on a merger with Charter Communications. If approved, the transaction will result in Liberty Broadband combining with Charter, expected to close by June 30, 2027, following the divestiture of its subsidiary GCI, LLC and fulfillment of other closing conditions.
Dividends
Liberty Broadband Declares Quarterly Cash Dividend
Positive
Dec 10, 2024
Liberty Broadband Corporation has announced a quarterly cash dividend for its Series A Cumulative Redeemable Preferred Stock, payable on January 15, 2025, to shareholders recorded by December 31, 2024. This move reflects the company’s ongoing commitment to rewarding its investors, leveraging its robust interests in Charter Communications and Alaska’s leading provider, GCI, to deliver consistent returns.
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.