Lumen Technologies (LUMN) AI Stock Analysis

• Market Cap: $4.44B
• Dividend Yield: N/A
• Average Volume (3M): 9.83M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.58
• Revenue Growth: -7.86%
• EPS Growth: 97.11%
• Country: US
• Employees: 24,000
• Sector: Communication Services
• Sector Strength: 72
• Industry: Telecommunications Services
• EPS (TTM): -0.13
• Shares Outstanding: 1,025,907,700
• 10 Day Avg. Volume: 7,882,478
• 30 Day Avg. Volume: 9,831,031
• PEG Ratio: 0.03
• Price to Book (P/B): 15.73
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 4.63
• Enterprise Value/Market Cap: 4.65
• Enterprise Value/Revenue: 0.39
• Enterprise Value/Gross Profit: 3.75
• Enterprise Value/Ebitda: 1.73
• 1Y Price Target: $4.79
• Price Target Upside: 10.62% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 8

• Rating: 54 Neutral
• Price Target: $4.50 ▲(3.93%Upside)

The overall stock score reflects a company facing significant financial challenges and valuation issues, offset by positive corporate events and strategic initiatives. While technical indicators suggest mixed market momentum, the strategic focus on enterprise and financial restructuring offers potential for future improvement.

Positive Factors

Asset Sale

The company is in the process of selling its FTTH assets and customers, which could improve leverage and drive equity value.

Future Growth

Lumen is set to begin growing consolidated EBITDA significantly on an annual basis in 2026.

Strategic Development

New service innovations that bypass costly cross-connects could be unmatched and game-changing for customers.

Negative Factors

Market Risks

Capex and hyperscaler upfront fees and subsequent free cash flow will remain volatile and lumpy through the year.

Operational Challenges

Lumen needs to improve Business segment financials, which is likely to take time.

Valuation Concerns

The stock reacted negatively to the news because the valuation seemed low compared to previous reports.

Lumen Technologies Business Overview & Revenue Model

Company Description

Lumen Technologies, Inc., a facilities-based technology and communications company, provides various integrated products and services under the Lumen, Quantum Fiber, and CenturyLink brands to business and residential customers in the United States and internationally. The company operates in two segments, Business and Mass Markets. It offers compute and application services, such as cloud services, IT solutions, unified communication and collaboration solutions, colocation and data center services, content delivery services, and managed security services; and IP and data services, including VPN data network, Ethernet, internet protocol (IP), and voice over internet protocol. The company also provides fiber infrastructure services comprising high bandwidth optical wavelength networks; and unlit optical fiber and related professional services. In addition, it offers voice and other services, including private line services, a direct circuit or channel specifically dedicated for connecting two or more organizational sites; a portfolio of traditional time division multiplexing voice services; and synchronous optical network-based Ethernet, legacy data hosting services, and conferencing services. As of December 31, 2021, the company served approximately 4.5 million broadband subscribers. The company was formerly known as CenturyLink, Inc. and changed its name to Lumen Technologies, Inc. in September 2020. Lumen Technologies, Inc. was incorporated in 1968 and is headquartered in Monroe, Louisiana.

How the Company Makes Money

Lumen Technologies generates revenue through a variety of streams, primarily by providing network and data services to enterprise customers. Its key revenue streams include fiber-optic internet services, voice and data communication solutions, managed services, and cloud infrastructure services. Lumen also earns income from partnerships with technology companies and government contracts. The company focuses on enterprise clients, offering tailored solutions that integrate their communication and IT needs, which plays a significant role in its earnings.

Lumen Technologies Financial Statement Overview

Summary

Lumen Technologies faces financial challenges with declining revenues, negative net income, and high leverage. Despite improvements in operating efficiency and positive cash flow ratios, significant leverage and equity depletion are substantial risks.

Income Statement

Lumen Technologies has experienced declining revenue over the years, with TTM revenue of $13.0 billion compared to $20.7 billion in 2020. The gross profit margin for TTM is approximately 55.43%, which is strong, but the net profit margin is negative due to a net loss. EBIT and EBITDA margins have improved in the TTM compared to 2023's negative figures, indicating some recovery in operating efficiency.

Balance Sheet

The company's balance sheet shows high leverage, with a debt-to-equity ratio of approximately 62.05 in TTM. Stockholders' equity has significantly decreased over time, impacting the equity ratio, which stands at about 0.86% for TTM, indicating a highly leveraged financial structure with potential solvency risks.

Cash Flow

Lumen's cash flow analysis reveals a positive operating cash flow to net income ratio, suggesting effective cash generation despite net losses. The free cash flow growth is negative compared to prior years, but the free cash flow to net income ratio is positive, indicating some level of cash flow stability despite financial challenges.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	13.11B	14.56B	17.48B	19.69B	20.71B
Gross Profit	6.41B	7.41B	9.61B	11.20B	11.78B
EBITDA	4.10B	-6.09B	3.58B	8.52B	5.90B
Net Income	-55.00M	-10.30B	-1.55B	2.03B	-1.23B
Balance Sheet
Total Assets	33.50B	34.02B	45.58B	57.99B	59.39B
Cash, Cash Equivalents and Short-Term Investments	1.89B	2.23B	1.25B	354.00M	406.00M
Total Debt	18.16B	20.26B	20.92B	29.37B	32.22B
Total Liabilities	33.03B	33.60B	35.14B	46.15B	48.23B
Stockholders Equity	464.00M	417.00M	10.44B	11.84B	11.16B
Cash Flow
Free Cash Flow	1.10B	-940.00M	1.72B	3.60B	2.79B
Operating Cash Flow	4.33B	2.16B	4.74B	6.50B	6.52B
Investing Cash Flow	-2.83B	-1.20B	5.48B	-2.71B	-3.56B
Financing Cash Flow	-1.85B	-18.00M	-9.31B	-3.81B	-4.25B

Lumen Technologies Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4.33
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LUMN, the sentiment is Negative. The current price of 4.33 is below the 20-day moving average (MA) of 4.47, above the 50-day MA of 4.22, and below the 200-day MA of 5.17, indicating a neutral trend. The MACD of 0.05 indicates Positive momentum. The RSI at 48.38 is Neutral, neither overbought nor oversold. The STOCH value of 37.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LUMN.

Lumen Technologies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TKC	77 Outperform	$4.98B	11.70	6.74%	1.71%	14.09%	-11.43%
PHI	74 Outperform	$4.90B	9.15	28.10%	0.31%	-0.91%	11.25%
USM	66 Neutral	$6.08B	―	-0.84%	―	-4.11%	-163.81%
Sector *	66 Neutral	¥381.65B	15.28	2.24%	2.38%	5.42%	-14.79%
TEO	62 Neutral	$4.14B	19.98	3.99%	―	-12.77%	40.80%
TDS	55 Neutral	$4.29B	―	-0.97%	0.40%	-5.14%	78.63%
LUMN	54 Neutral	$4.44B	―	-78.94%	―	-7.86%	97.11%

Lumen Technologies Corporate Events

Lumen Technologies Completes $2 Billion Notes Offering

On June 30, 2025, Lumen Technologies‘ subsidiary, Level 3 Financing, completed a $2 billion upsized offering of 6.875% First Lien Notes due 2033. The proceeds were used to redeem existing notes and reduce interest expenses, aligning with Lumen’s strategy to simplify its capital structure and enhance financial flexibility. This move is part of Lumen’s broader effort to reposition itself as a leader in digital network services, crucial for supporting AI-driven business transformations.

The most recent analyst rating on (LUMN) stock is a Sell with a $2.00 price target. To see the full list of analyst forecasts on Lumen Technologies stock, see the LUMN Stock Forecast page.

Lumen Technologies Increases Private Offering to $2 Billion

On June 16, 2025, Lumen Technologies announced that its subsidiary, Level 3 Financing, planned a private offering of $2.0 billion in First Lien Notes due 2033, an increase from the initially planned $1.0 billion. The proceeds will be used to redeem existing senior secured notes and pay related expenses, with the offering expected to close by June 30, 2025, subject to customary conditions.

The most recent analyst rating on (LUMN) stock is a Sell with a $2.00 price target. To see the full list of analyst forecasts on Lumen Technologies stock, see the LUMN Stock Forecast page.

Lumen Technologies Sells Fiber Business to AT&T

On May 21, 2025, Lumen Technologies announced a definitive agreement to sell its Mass Markets fiber-to-the-home business to AT&T for $5.75 billion in cash. This transaction is expected to close in the first half of 2026, subject to regulatory approvals and other conditions. The sale will allow Lumen to focus on its enterprise market and reduce its debt, enhancing its financial flexibility and enabling further investment in its enterprise offerings. Lumen will retain its core infrastructure, including its fiber backbone and consumer copper broadband services, to continue innovating for enterprise customers. The deal is anticipated to improve Lumen’s cash flow and position it for additional refinancing opportunities, while AT&T will gain a significant consumer-focused asset with potential for growth.

The most recent analyst rating on (LUMN) stock is a Sell with a $2.00 price target. To see the full list of analyst forecasts on Lumen Technologies stock, see the LUMN Stock Forecast page.

Lumen Technologies Approves Reverse Stock Split at Meeting

At Lumen Technologies‘ Annual Meeting on May 13, 2025, shareholders voted on several key items. The board of directors was elected, KPMG LLP was ratified as the independent auditor for 2025, and a reverse stock split was approved. Additionally, amendments to the Articles of Incorporation were made, including lowering the threshold for calling special meetings and removing references to an unstaggered board. The approval of a reverse stock split allows the company to implement it before May 13, 2026, potentially impacting its stock structure and shareholder value.

The most recent analyst rating on (LUMN) stock is a Sell with a $2.00 price target. To see the full list of analyst forecasts on Lumen Technologies stock, see the LUMN Stock Forecast page.

Lumen Technologies Partners with Google for Fiber Access

Lumen Technologies reported its first quarter 2025 results, highlighting progress in key areas such as operational excellence, AI backbone development, and telecom cloudification. Despite a net loss of $201 million, the company showed growth in North American business revenue and signed a significant partnership with Google for direct fiber access to Google Cloud. The adoption of Network-as-a-Service (NaaS) ports increased, supporting a shift towards a consumption-based model.