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Liberty Broadband Corp (LBRDA)
NASDAQ:LBRDA
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Liberty Broadband
(NASDAQ:LBRDA)
64Neutral
Positive Factors
Earnings
Liberty Broadband Corp. remains an attractive discounted play on Charter Communications with the GCI Alaskan asset included for free.
Stock Buyback
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 Adjustment
The price target for Liberty Broadband is being lowered to $115 from $130, reflecting current equity market conditions.
Tax Law Risks
Risks to the price target include changes in the tax law that could make a monetization of the CHTR investment less tax-efficient.
Liberty Broadband (LBRDA) vs. S&P 500 (SPY)
Market Cap
$13.29B
Dividend YieldN/A
Average Volume (3M)163.54K
Price to Earnings (P/E)14.7
Beta (1Y)0.81
Revenue Growth5.82%
EPS Growth5.40%
CountryUS
Employees1,900
SectorCommunication Services
Sector Strength81
IndustryTelecommunications Services
Share Statistics
EPS (TTM)1.87
Shares Outstanding18,254,690
10 Day Avg. Volume136,934
30 Day Avg. Volume163,543
Financial Highlights & Ratios
PEG Ratio1.35
Price to Book (P/B)1.34
Price to Sales (P/S)0.00
P/FCF Ratio-92.99
Enterprise Value/Market Cap1.28
Enterprise Value/Revenue4.26
Enterprise Value/Gross Profit30.08
Enterprise Value/Ebitda5.99
Forecast
1Y Price Target
$115.00Price Target Upside25.11% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
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 shows strong gross profit margins and a solid equity position. However, revenue volatility, high leverage, and cash flow issues present risks. Cash flow irregularities indicate operational challenges needing attention.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 |
| 552.00M | 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 |
| 16.85B | 15.64B | 15.14B | 16.97B | 21.37B | Total Debt |
| 3.83B | 3.82B | 3.89B | 3.85B | 4.91B | Net Debt |
| 3.67B | 3.66B | 3.51B | 3.66B | 3.49B | Total Liabilities |
| 6.88B | 6.62B | 6.64B | 6.83B | 7.86B | Stockholders Equity |
| 9.79B | 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
91.92
Price Trends
83.07
Positive
80.26
Positive
77.21
Positive
Market Momentum
3.35
Negative
66.34
Neutral
81.47
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 91.92 is above the 20-day moving average (MA) of 84.34, above the 50-day MA of 83.07, and above the 200-day MA of 77.21, indicating a bullish trend. The MACD of 3.35 indicates Negative momentum. The RSI at 66.34 is Neutral, neither overbought nor oversold. The STOCH value of 81.47 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 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 (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
64 Neutral | $13.29B | 14.67 | 9.15% | ― | 5.82% | 5.40% | |
60 Neutral | $13.44B | 7.15 | -2.73% | 3.79% | 2.11% | -39.64% | |
55 Neutral | $9.14B | ― | -7.64% | ― | 3.69% | -1514.85% | |
52 Neutral | $4.50B | ― | -78.94% | ― | -7.86% | 97.11% | |
50 Neutral | $3.24B | ― | -20.95% | ― | 3.53% | 3.23% |
* Communication Services Sector Average
Performance Comparison
LBRDA
Liberty Broadband
92.24
38.92
72.99%
LUMN
Lumen Technologies
4.40
3.15
252.00%
LBTYA
Liberty Global A
9.23
0.59
6.83%
FYBR
Frontier Communications Parent
36.51
10.44
40.05%
Liberty Broadband Earnings Call Summary
Earnings Call Date:May 07, 2025
(Q1-2025)
| % Change Since: -0.40%|
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 Corporate Events
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.
Spark’s Take on LBRDA Stock
According to Spark, TipRanks’ AI Analyst, LBRDA is a Neutral.
Liberty Broadband’s stock score reflects a balance of robust profit margins and strategic merger prospects against the backdrop of revenue volatility, high leverage, and cash flow challenges. The technical indicators show a positive trend, but potential risks from operational inefficiencies and competitive pressures remain significant concerns.
To see Spark’s full report on LBRDA stock, click here.
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.
Spark’s Take on LBRDA Stock
According to Spark, TipRanks’ AI Analyst, LBRDA is a Neutral.
Liberty Broadband scores a 60, reflecting solid technical trends and strategic merger prospects. However, financial performance is hindered by cash flow issues and high leverage, and valuation is moderate. Earnings call insights highlight strategic growth but also underline competitive and operational challenges.
To see Spark’s full report on LBRDA stock, click here.
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.
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.