Lumen Technologies (LUMN) AI Stock Analysis

• Market Cap: $6.07B
• Dividend Yield: N/A
• Average Volume (3M): 17.85M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.64
• Revenue Growth: -6.50%
• EPS Growth: 43.47%
• Country: US
• Employees: 24,000
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): -0.03
• Shares Outstanding: 1,026,140,900
• 10 Day Avg. Volume: 21,888,198
• 30 Day Avg. Volume: 17,850,010
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 3.45
• Enterprise Value/Revenue: 1.63
• Enterprise Value/Gross Profit: 3.43
• Enterprise Value/Ebitda: 8.14
• 1Y Price Target: $5.65
• Price Target Upside: -4.56% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 11

• Rating: 55 Neutral
• Price Target: $6.50 ▲(9.80% Upside)

Lumen Technologies' overall stock score is primarily impacted by its weak financial performance, which presents significant risks. However, positive technical indicators and strategic moves highlighted in the earnings call provide some optimism. The valuation remains unattractive due to negative earnings, but the company's efforts to improve its financial position could lead to future improvements.

Positive Factors

Debt Refinancing

The successful debt refinancing reduces interest expenses and extends debt maturities, enhancing financial flexibility and stability.

Sale of Consumer Business

This strategic divestiture strengthens the balance sheet by reducing debt and interest expenses, allowing focus on core enterprise services.

Increased Free Cash Flow Guidance

Higher free cash flow guidance indicates improved cash generation, supporting investments in growth and debt reduction.

Negative Factors

Declining Revenue

Continued revenue decline in key business segments suggests challenges in maintaining market share and competitive positioning.

High Leverage

High financial leverage poses risks to solvency and limits the company's ability to invest in growth or weather economic downturns.

Negative Free Cash Flow

Negative free cash flow indicates challenges in covering operational expenses and capital investments, impacting long-term sustainability.

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 multiple streams, primarily by offering telecommunications services, including local and long-distance voice services, broadband internet, and data networking solutions. The company earns significant income from its enterprise segment, which serves large businesses with customized solutions for data transport, cloud services, and cybersecurity. Additionally, Lumen has developed partnerships with various technology firms to enhance its service offerings, such as integrating cloud solutions with its network infrastructure. The company also leverages its extensive fiber-optic network to provide high-capacity data transport services, which are crucial for businesses seeking reliable connectivity. Overall, its revenue model is built on a combination of subscription-based services, usage-based billing for data services, and long-term contracts with enterprise clients.

Lumen Technologies Financial Statement Overview

Summary

Lumen Technologies faces significant financial challenges, with declining revenues and profitability issues. The balance sheet shows high leverage and potential solvency risks, while cash flow generation remains a concern. The company needs to address these issues to improve its financial health and stability.

Income Statement

Lumen Technologies has experienced declining revenue over recent periods, with a negative revenue growth rate of -1.35% in the TTM. The company has struggled with profitability, as indicated by negative net profit margins and EBIT margins. The gross profit margin has also decreased slightly over time, reflecting challenges in maintaining cost efficiency.

Balance Sheet

The balance sheet reveals significant financial leverage, with a negative stockholders' equity leading to an undefined debt-to-equity ratio in the TTM. This indicates potential solvency issues. The return on equity is negative, reflecting ongoing losses. The equity ratio is also concerning, suggesting a high reliance on debt financing.

Cash Flow

Cash flow analysis shows a decline in free cash flow growth, with a negative growth rate of -7.77% in the TTM. However, the operating cash flow to net income ratio is positive, indicating that the company generates cash from operations despite net losses. The free cash flow to net income ratio is low, reflecting limited cash available after capital expenditures.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	12.82B	13.11B	14.56B	17.48B	19.69B	20.71B
Gross Profit	6.12B	6.41B	7.41B	9.61B	11.20B	11.78B
EBITDA	2.57B	4.10B	-6.09B	3.58B	8.52B	5.90B
Net Income	-1.18B	-55.00M	-10.30B	-1.55B	2.03B	-1.23B
Balance Sheet
Total Assets	32.98B	33.50B	34.02B	45.58B	57.99B	59.39B
Cash, Cash Equivalents and Short-Term Investments	1.57B	1.89B	2.23B	1.25B	354.00M	406.00M
Total Debt	18.17B	18.16B	20.26B	20.92B	29.37B	32.22B
Total Liabilities	33.57B	33.03B	33.60B	35.14B	46.15B	48.23B
Stockholders Equity	-595.00M	464.00M	417.00M	10.44B	11.84B	11.16B
Cash Flow
Free Cash Flow	938.00M	1.10B	-940.00M	1.72B	3.60B	2.79B
Operating Cash Flow	4.38B	4.33B	2.16B	4.74B	6.50B	6.52B
Investing Cash Flow	-3.28B	-2.83B	-1.20B	5.48B	-2.71B	-3.56B
Financing Cash Flow	-1.03B	-1.85B	-18.00M	-9.31B	-3.81B	-4.25B

Lumen Technologies Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5.92
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 5.92 is above the 20-day moving average (MA) of 5.56, above the 50-day MA of 4.82, and above the 200-day MA of 4.65, indicating a bullish trend. The MACD of 0.32 indicates Positive momentum. The RSI at 59.50 is Neutral, neither overbought nor oversold. The STOCH value of 33.65 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LUMN.

Lumen Technologies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TKC	79 Outperform	$5.09B	11.75	11.17%	5.45%	19.25%	5.69%
PHI	70 Neutral	$4.07B	7.37	25.78%	8.74%	0.35%	19.08%
LUMN	55 Neutral	$6.07B	―	-78.94%	―	-6.50%	43.47%
TDS	55 Neutral	$4.05B	-39.28	-0.82%	0.43%	-5.62%	80.09%
TEO	54 Neutral	$3.49B	-225.23	18.66%	2.75%	3.89%	-107.44%
AD	53 Neutral	$4.14B	-157.28	-0.54%	47.95%	-3.65%	-134.04%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%

Lumen Technologies Corporate Events

Lumen Technologies Completes $425M Note Offering

On September 8, 2025, Level 3 Financing, a subsidiary of Lumen Technologies, completed an offering of $425 million in additional 7.000% First Lien Notes due 2034. The proceeds will be used to redeem existing higher-interest notes and cover related expenses, potentially improving the company’s financial structure by lowering interest obligations and enhancing its debt profile.

The most recent analyst rating on (LUMN) stock is a Hold with a $4.09 price target. To see the full list of analyst forecasts on Lumen Technologies stock, see the LUMN Stock Forecast page.

Lumen Technologies Announces $425M Note Offering

On September 4, 2025, Lumen Technologies announced that its subsidiary, Level 3 Financing, plans to offer an additional $425 million of 7.000% First Lien Notes due 2034 in a private offering. The proceeds will be used to redeem existing notes and cover related expenses. Additionally, Lumen expects to amend its New Credit Agreement to establish a new tranche of term loans and make other adjustments, though this is subject to market conditions.

The most recent analyst rating on (LUMN) stock is a Hold with a $4.09 price target. To see the full list of analyst forecasts on Lumen Technologies stock, see the LUMN Stock Forecast page.