Liberty Global C (LBTYK) AI Stock Analysis

• Market Cap: $4.02B
• Dividend Yield: N/A
• Average Volume (3M): 898.71K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.34
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 6,820
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): -8.09
• Shares Outstanding: 153,409,400
• 10 Day Avg. Volume: 730,324
• 30 Day Avg. Volume: 898,705
• 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: 2.80
• Enterprise Value/Revenue: 3.80
• Enterprise Value/Gross Profit: 10.28
• Enterprise Value/Ebitda: -4.65
• 1Y Price Target: $16.00
• Price Target Upside: 34.79% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 56 Neutral
• Price Target: $11.50 ▼(-3.12% Downside)

Liberty Global C's overall stock score reflects significant financial challenges, particularly in profitability and cash flow generation, which weigh heavily on the score. Technical analysis provides some positive momentum, but valuation concerns due to negative earnings and lack of dividends further impact the score. The earnings call offers a mixed outlook with strategic initiatives but also highlights ongoing market challenges.

Positive Factors

Strategic Asset Monetization

Liberty Global's strategy to monetize assets and rotate capital into higher return investments can enhance long-term financial stability and shareholder value.

Network Upgrades

Continued investment in fiber and 5G upgrades positions Liberty Global to meet increasing demand for high-speed internet, supporting future revenue growth.

Cash Position and Share Buyback

A strong cash position and share buybacks indicate financial resilience and a commitment to enhancing shareholder value, providing a buffer against market volatility.

Negative Factors

Subscriber Growth Challenges

Intense competition in key markets, particularly in the U.K., poses challenges to subscriber growth, potentially impacting long-term revenue stability.

Revenue Decline

Declining revenues in key markets like VodafoneZiggo signal potential structural issues, which may affect the company's ability to sustain growth.

Profitability Challenges

Significant profitability challenges, as evidenced by a negative net profit margin, highlight operational inefficiencies and threaten long-term financial health.

Liberty Global C Business Overview & Revenue Model

Company Description

Liberty Global plc, together with its subsidiaries, provides broadband internet, video, fixed-line telephony, and mobile communications services to residential and business customers. It offers value-added broadband services, such as intelligent WiFi features; security; smart home, online storage solutions, and Web spaces; Connect Box, a set-top or Horizon box that delivers in-home Wi-Fi service; community Wi-Fi via routers in home, which provides access to the internet; and public Wi-Fi access points in train stations, hotels, bars, restaurants, and other public places. The company also provides various tiers of digital video programming and audio services, as well as digital video recorders and multimedia home gateway systems; and channels, including general entertainment, sports, movies, series, documentaries, lifestyles, news, adult, children, and ethnic and foreign channels. In addition, it offers postpaid and prepaid mobile services; circuit-switched telephony services; and personal call manager, unified messaging, and a second or third phone line at an incremental cost. Further, the company offers business services comprising voice, advanced data, video, wireless, cloud-based services, and mobile and converged fixed-mobile services to small or home office, small business, and medium and large enterprises, as well as on a wholesale basis to other operators. It operates in the United Kingdom, Belgium, Switzerland, Ireland, Poland, Slovakia, and internationally. Liberty Global plc was founded in 2004 and is based in London, the United Kingdom.

How the Company Makes Money

Liberty Global C generates revenue primarily through subscription fees for its broadband internet, television, and mobile services. The company has multiple key revenue streams, including residential broadband services, which provide high-speed internet access to households; video services, which include cable television subscriptions and on-demand content; and mobile services, offering voice and data plans. Additionally, Liberty Global earns revenue from advertising through its television platforms and content distribution agreements. The company has established partnerships with various content providers and technology firms, which enhance its service offerings and contribute to its earnings. Factors such as customer retention, expansion of its service footprint, and the increasing demand for high-speed internet and digital entertainment are crucial for driving revenue growth.

Liberty Global C Financial Statement Overview

Summary

Liberty Global C faces significant financial challenges, particularly in terms of profitability and cash flow generation. The company has experienced declining revenues and increased losses, impacting its income statement negatively. While the balance sheet shows moderate leverage, the negative return on equity is concerning. Cash flow metrics indicate difficulties in generating sufficient cash, although there is some resilience in free cash flow relative to net income.

Income Statement

Liberty Global C's income statement shows significant challenges. The TTM data reveals a negative net profit margin of -112.04%, indicating substantial losses. Revenue has decreased by 16.95% compared to the previous period, highlighting declining sales. The EBIT and EBITDA margins are also negative, reflecting operational inefficiencies. Historically, the company had positive net profit margins in 2021, but recent trends show a downturn.

Balance Sheet

The balance sheet presents a mixed picture. The debt-to-equity ratio of 0.81 in the TTM period suggests a moderate level of leverage, which is manageable but has increased slightly from previous years. The return on equity is negative at -23.28%, indicating that the company is not generating returns for shareholders. However, the equity ratio remains stable, suggesting a solid asset base.

Cash Flow

Cash flow analysis shows some concerns. The free cash flow growth rate is negative at -27.27% in the TTM period, indicating a decline in cash generation. The operating cash flow to net income ratio is 0.19, suggesting that cash flow from operations is not sufficient to cover net losses. However, the free cash flow to net income ratio is positive at 1.39, indicating some ability to generate cash relative to net losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.96B	4.34B	7.49B	7.20B	10.31B	11.98B
Gross Profit	1.09B	2.89B	5.11B	5.11B	7.29B	8.54B
EBITDA	-2.42B	3.42B	-420.50M	4.20B	3.65B	1.73B
Net Income	-3.32B	1.59B	-4.05B	1.11B	13.43B	-1.47B
Balance Sheet
Total Assets	27.17B	25.44B	42.09B	42.90B	46.92B	59.09B
Cash, Cash Equivalents and Short-Term Investments	3.14B	2.15B	3.41B	4.35B	3.18B	2.93B
Total Debt	10.54B	9.78B	17.42B	15.41B	16.05B	15.00B
Total Liabilities	13.96B	12.90B	23.08B	20.32B	21.32B	45.79B
Stockholders Equity	12.99B	12.54B	19.06B	22.44B	25.93B	13.66B
Cash Flow
Free Cash Flow	1.14B	1.12B	779.90M	1.53B	2.14B	2.84B
Operating Cash Flow	817.80M	2.03B	2.17B	2.84B	3.55B	4.19B
Investing Cash Flow	127.10M	0.00	-1.84B	1.28B	-5.80B	-8.87B
Financing Cash Flow	-1.97B	-2.25B	-645.50M	-3.28B	-1.55B	1.08B

Liberty Global C Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 11.87
• 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 LBTYK, the sentiment is Positive. The current price of 11.87 is above the 20-day moving average (MA) of 11.84, above the 50-day MA of 11.54, and above the 200-day MA of 11.30, indicating a bullish trend. The MACD of 0.05 indicates Positive momentum. The RSI at 54.40 is Neutral, neither overbought nor oversold. The STOCH value of 61.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LBTYK.

Liberty Global C Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PHI	70 Neutral	$4.18B	7.35	27.07%	8.76%	0.35%	19.08%
VEON	69 Neutral	$3.61B	3.67	89.94%	―	8.66%	―
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
LBTYK	56 Neutral	$4.02B	―	-20.95%	―	―	―
LUMN	55 Neutral	$6.73B	―	-78.94%	―	-6.50%	43.47%
TDS	55 Neutral	$4.27B	―	-0.81%	0.40%	-5.62%	80.09%
TEO	53 Neutral	$3.44B	22.47	-0.27%	2.72%	3.89%	-107.44%