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Liberty Broadband Corp (LBRDA)
NASDAQ:LBRDA

Liberty Broadband (LBRDA) AI Stock Analysis

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Liberty Broadband

(NASDAQ:LBRDA)

Rating:77Outperform
Price Target:
$107.00
▲(17.21%Upside)
Liberty Broadband scores well due to its robust financial performance and positive corporate developments, such as the approved merger with Charter Communications. The strong technical indicators are partly offset by liquidity concerns and overbought technical signals. While the company is well-positioned in the telecommunications industry, investors should monitor cash flow and service disruptions.
Positive Factors
Alaskan economy
The Alaskan economy generally outperforms in any recession, and Alaska could benefit from new mineral and rare earth exploration and development.
Stock repurchase
Charter is undertaking approximately $100M in monthly purchases of its stock from Liberty Broadband to ensure the repayment of $2.6B in Liberty Broadband corporate debt.
Negative Factors
Price target
The price target for Liberty Broadband is being lowered to $115 from $130, reflecting current equity market conditions.
Sensitivity to energy prices
There is sensitivity to energy prices in Alaska, and potential changes to Alaskan healthcare user subsidies could materially affect GCI’s results.

Liberty Broadband (LBRDA) vs. SPDR S&P 500 ETF (SPY)

Liberty Broadband Business Overview & Revenue Model

Company DescriptionLiberty Broadband Corporation is a telecommunications company that primarily focuses on the cable, broadband, and wireless communications sectors. The company holds significant interests in Charter Communications, a major broadband connectivity and cable operator in the United States, and also in GCI Liberty, which provides telecommunications services in Alaska. Liberty Broadband leverages its investments to influence and participate in the management and strategic direction of its subsidiaries, aiming to drive growth and value creation.
How the Company Makes MoneyLiberty Broadband makes money primarily through its equity investments in Charter Communications and GCI Liberty. As a significant stakeholder in Charter Communications, Liberty Broadband benefits from Charter's revenues, which are generated through providing broadband internet, video, mobile, and voice services to residential and business customers. Additionally, GCI Liberty contributes to Liberty Broadband's earnings through its provision of wireless, data, and cable services in Alaska. The company's financial performance is closely tied to the operational success and profitability of these companies, and it may also receive dividends and appreciation in the value of its holdings. Furthermore, strategic partnerships and operational efficiencies within these subsidiaries can also enhance Liberty Broadband's overall earnings.

Liberty Broadband Earnings Call Summary

Earnings Call Date:May 07, 2025
(Q1-2025)
|
% Change Since: -1.08%|
Next Earnings Date:Aug 01, 2025
Earnings Call Sentiment Neutral
The call presented a strong performance for GCI with record revenue and strategic advancements in community connectivity and financial management. However, it also highlighted challenges such as customer declines and service disruptions due to fiber issues.
Q1-2025 Updates
Positive Updates
Record Revenue and OIBDA Growth for GCI
GCI reported its best quarter ever with revenue of $266 million and adjusted OIBDA of $111 million, reflecting an increase of 9% and 23% respectively over the prior year.
Successful Community Connectivity Project
GCI completed a major milestone by connecting Bethel, the largest community in Western Alaska, with fiber from Anchorage. This achievement will allow Bethel residents to access a 5G wireless network and high-speed broadband services.
Strategic Financial Moves
GCI refinanced its senior credit facility with a $450 million revolver maturing in 2030 and a $300 million Term Loan A maturing in 2031. This extends maturities at attractive rates and provides good liquidity.
Negative Updates
Customer Decline in GCI Consumer
GCI Consumer experienced a decline of 400 wireless subscribers and 5,000 cable modem customers, primarily due to postpaid growth being offset by losses in prepaid and lifeline, and the termination of the ACP program.
Service Disruptions Due to Fiber Break
A fiber break in the Quintillion Fiber under the ice in the Beaufort Sea caused service disruptions. Consumer services were partially restored but remain degraded until the repair, expected in late summer.
Company Guidance
During the Liberty Broadband 2025 Q1 Earnings Call, several key metrics and future guidance were discussed. Liberty Broadband reported consolidated cash and restricted cash of $565 million, with $149 million at GCI. GCI achieved its best quarter ever, with revenue reaching $266 million and adjusted OIBDA at $111 million, reflecting year-over-year increases of 9% and 23%, respectively, and an adjusted OIBDA margin of 42%. GCI's leverage was at 2.8 times, with $292 million of undrawn capacity in its credit facility. The value of Liberty Broadband’s investment in Charter was approximately $17.8 billion, based on 44.2 million shares. GCI's CapEx for Q1 was $49 million, with a full-year expectation of $250 million due to investments in rural Alaska under the Alaska Plan. Additionally, GCI has refinanced its credit facility, extending maturities to 2030 for its revolver and 2031 for its term loan. Future guidance includes the expected completion of Liberty Broadband's acquisition by Charter by June 2027, and the GCI spinoff is anticipated to be finalized this summer.

Liberty Broadband Financial Statement Overview

Summary
Liberty Broadband demonstrates strong profitability and a stable financial position. While revenue growth and profitability margins are commendable, cash flow challenges persist, notably in free cash flow generation. The company maintains a healthy balance sheet with manageable leverage, supporting its financial resilience.
Income Statement
75
Positive
Liberty Broadband shows a strong net profit margin of 86.4% TTM, and a commendable revenue growth rate of 2.1% from the previous year. The gross profit margin of 67.2% TTM highlights efficient cost management. However, the EBIT margin of 10.3% indicates room for improvement in operational efficiency compared to industry standards.
Balance Sheet
80
Positive
The debt-to-equity ratio is stable at 0.39, showcasing a conservative leverage strategy. The equity ratio is robust at 59.1%, indicating financial stability. ROE is impressive at 8.9%, suggesting effective utilization of equity. Overall, the balance sheet is solid, reflecting a sound financial structure.
Cash Flow
65
Positive
Free cash flow remains negative at -$121 million TTM, limiting reinvestment capabilities. However, operating cash flow shows positive growth with a significant increase from the previous year. The operating cash flow to net income ratio of 0.15 indicates low cash generation relative to earnings, suggesting potential liquidity concerns.
Breakdown
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
1.04B1.02B981.00M920.98M988.00M50.71M
Gross Profit
697.00M552.00M736.00M639.98M659.00M50.65M
EBIT
107.00M92.00M73.00M1.28B1.20B655.97M
EBITDA
1.36B1.48B1.32B290.00M264.00M671.20M
Net Income Common Stockholders
896.00M869.00M688.00M1.26B732.00M398.00M
Balance SheetCash, Cash Equivalents and Short-Term Investments
226.00M163.00M158.00M375.00M191.00M1.42B
Total Assets
17.00B16.85B15.64B15.14B16.97B21.37B
Total Debt
3.88B3.83B3.82B3.89B3.85B4.91B
Net Debt
3.66B3.67B3.66B3.51B3.66B3.49B
Total Liabilities
6.93B6.88B6.62B6.64B6.83B7.86B
Stockholders Equity
10.05B9.99B9.00B8.48B10.13B13.50B
Cash FlowFree Cash Flow
-121.00M-143.00M-206.00M-212.00M-131.00M-97.56M
Operating Cash Flow
130.00M104.00M16.00M-56.00M3.00M-95.74M
Investing Cash Flow
369.00M130.00M150.00M3.05B4.06B575.51M
Financing Cash Flow
-48.00M-181.00M-390.00M-2.80B-5.29B903.80M

Liberty Broadband Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price91.29
Price Trends
50DMA
88.04
Positive
100DMA
84.58
Positive
200DMA
80.91
Positive
Market Momentum
MACD
0.73
Positive
RSI
46.49
Neutral
STOCH
42.49
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LBRDA, the sentiment is Neutral. The current price of 91.29 is below the 20-day moving average (MA) of 94.64, above the 50-day MA of 88.04, and above the 200-day MA of 80.91, indicating a neutral trend. The MACD of 0.73 indicates Positive momentum. The RSI at 46.49 is Neutral, neither overbought nor oversold. The STOCH value of 42.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for LBRDA.

Liberty Broadband Risk Analysis

Liberty Broadband disclosed 9 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 (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
$13.53B14.869.15%5.82%5.40%
61
Neutral
$14.64B5.81-3.99%6.03%2.71%-31.56%
53
Neutral
$9.07B-7.64%3.69%-1514.85%
52
Neutral
$4.26B-78.94%-7.86%97.11%
50
Neutral
$3.50B-20.95%3.53%3.23%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
LBRDA
Liberty Broadband
91.29
39.81
77.33%
LUMN
Lumen Technologies
4.04
2.96
274.07%
LBTYA
Liberty Global A
9.75
0.73
8.09%
FYBR
Frontier Communications Parent
36.10
11.39
46.09%

Liberty Broadband Corporate Events

M&A TransactionsBusiness Operations and Strategy
Liberty Broadband Announces GCI Spin-Off Plans
Neutral
May 29, 2025

On May 27, 2025, Liberty Broadband Corporation announced a planned spin-off of its GCI business into a new entity, GCI Liberty, Inc., with an Investor Conference Call scheduled for June 3, 2025, to discuss the financial performance and outlook of GCI Liberty. The spin-off is expected to occur in summer 2025, and the event will include a Q&A session with key executives, providing insights into the company’s future operations and potential impacts on stakeholders.

The most recent analyst rating on (LBRDA) stock is a Buy with a $115.00 price target. To see the full list of analyst forecasts on Liberty Broadband stock, see the LBRDA Stock Forecast page.

Executive/Board ChangesDividends
Liberty Broadband Appoints Derek Chang to Board
Neutral
May 22, 2025

On May 22, 2025, Liberty Broadband Corporation announced the appointment of Derek Chang to its board of directors, expanding the board to a total of eight directors. Chang will serve as a Class I director with a term expiring in 2027. Additionally, the company declared a quarterly cash dividend of $0.43750001 per share for its Series A Cumulative Redeemable Preferred Stock, payable on July 15, 2025. These announcements may impact the company’s governance structure and provide financial returns to preferred stockholders.

The most recent analyst rating on (LBRDA) stock is a Buy with a $115.00 price target. To see the full list of analyst forecasts on Liberty Broadband stock, see the LBRDA Stock Forecast page.

M&A Transactions
Liberty Broadband Accelerates Acquisition by Charter Communications
Neutral
May 19, 2025

On May 16, 2025, Liberty Broadband Corporation announced an update regarding its pending acquisition by Charter Communications, which will now occur alongside Charter’s combination with Cox Communications. Liberty Broadband has agreed to accelerate the closing of its acquisition by Charter and provide voting support for the Charter-Cox combination. The acquisition is contingent upon the completion of Liberty Broadband’s GCI business spin-off and other customary conditions.

The most recent analyst rating on (LBRDA) stock is a Buy with a $115.00 price target. To see the full list of analyst forecasts on Liberty Broadband stock, see the LBRDA Stock Forecast page.

Executive/Board ChangesShareholder Meetings
Liberty Broadband Re-elects Directors, Approves Auditors
Neutral
May 14, 2025

At Liberty Broadband Corporation’s annual meeting of stockholders on May 12, 2025, two key proposals were addressed. The stockholders re-elected Richard R. Green and Sue Ann R. Hamilton as Class II members of the board of directors, and approved KPMG LLP as the independent auditors for the fiscal year ending December 31, 2025. These decisions reinforce the company’s governance structure and ensure continuity in its auditing processes.

The most recent analyst rating on (LBRDA) stock is a Buy with a $115.00 price target. To see the full list of analyst forecasts on Liberty Broadband stock, see the LBRDA Stock Forecast page.

Private Placements and FinancingBusiness Operations and Strategy
Liberty Broadband Announces Preferred Stock Purchase Agreement
Neutral
May 6, 2025

On May 5, 2025, Liberty Broadband Corporation announced a Series A Preferred Stock Purchase Agreement with GCI Liberty, Inc. and several investment funds. The agreement involves selling 10,000 shares of GCI Liberty’s preferred stock for $10 million. This transaction is part of a broader reorganization where Liberty Broadband will transfer assets and liabilities to GCI Liberty, impacting the company’s operational structure and potentially its market positioning.

Business Operations and StrategyFinancial Disclosures
Liberty Broadband Schedules Q1 2025 Earnings Call
Neutral
Apr 9, 2025

On April 9, 2025, Liberty Broadband Corporation announced that it will host a conference call on May 7, 2025, to discuss its first-quarter results for 2025. The call will cover the company’s financial performance and future outlook, with a press release issued before market trading. This event is part of the company’s ongoing efforts to maintain transparency with stakeholders and provide insights into its operational strategies.

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.