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RISK CONCERN
Investment Strategy, Risk Analysis, and Insights by Chartered Professionals
Liberty Broadband Corporation (XNAS:LBRDK) In-Depth Stock/Fundamental/Options Analysis Today
Primary Facts
LBRDK
Name:
LIBERTY BROADBAND CORPORATION (XNAS:LBRDK)
Sector:
58.00M
Industry:
Telecom Services
CEO:
Mr. Gregory B. Maffei
Total Employees:
1,900
Our Technological Advancement Rating
Our Rating:
D
Technological advancement compared to industry is -118.03% lower
ANALYSIS OF ALL CRITICAL FACTORS & RISKS RELATED TO THE STOCK & FUNDAMENTAL/LONG-TERM ANALYSIS OF LIBERTY BROADBAND CORPORATION(LBRDK) AS PER DATA ANALYSIS OF LAST 3 YEARS AND COMPARISON WITH COMPETITORS/PEERS, AND TELECOM SERVICES INDUSTRY. DATE: 07/09/2022
Primary Targets/Price Insights
Previous Close ($) :
99.73
One Month Price Target:
$100.27
Six Month Price Target :
$102.98
Likely Price in One Year's Time:
Ticker:
$106.22
Likely Trading Range Today Under (Normal Volatility)
$99.38
Price Upper limit ($) :
$100.06
Price Lower limit ($) :
Crash Risk Prep/Key Price Levels (High Volatility/Risk)
Price, as per data analysis, isn't likely to fall below:
Today:
$95.62
This week:
$90.53
This month :
$81.33
Other Primary facts
Market Cap:
15.34B
Market Cap Classification:
Mid Cap
Number of Shares
IPO Date:
153.78M
Best/Worst Daily Performance (Last 3+ Years)
Highest Daily Appreciation:
11.76%
-15.84%
Worst Daily Decline:
Our Options Trading Entry Points
Iron Condor entry points for options expiring in 1 week's time
Low risk (<2%) entry points
Buy Call:
Sell Call:
Buy Put:
Sell Put:
$118.84
$110.17
$80.62
$89.29
Medium risk (<10%) entry points
Buy Call
Sell Call
$107.35
Buy Put:
Sell Put:
$105.49
$92.09
$93.97
These entry points can be used for other strategies, such as butterflies, straddles, etc.
Risk-Adjusted returns (Sharpe Ratio) of
LBRDK
Sharpe Ratio:
-0.77%
Comparison:
LBRDK, is amongst the top 40% stocks with lowest risk-adjusted returns
Sharpe ratio is -178.90% lower than the industry
& is -133.66% lower than the market/S&P 500 average
Average Returns/Yield of
LBRDK
Daily returns:
-0.01%
Weekly returns:
-0.03%
Monthly returns:
-0.13%
Yearly returns:
17.77%
Comparison of returns:
Average annual returns/yield (last 3 years) is -108.83% below industry average
Classification:
LBRDK, is amongst the top 40% lowest yielding stocks in terms of daily returns
Results of T-Test of Returns:
0.79
Statistical test of Returns:
LBRDK has yielded returns statistically similar to the market
Volatility (measured by Standard Deviation)
Daily Volatility:
2.01%
Weekly Volatility:
4.48%
Monthly Volatility:
8.97%
Yearly Volatility:
31.07%
Volitlilty of last five days (Measured by Standard Deviation)
Average Volatility of this Week:
2.54%
Volatility in last five trading days has been 26.55% above long-term volatility
Value at Risk Analysis (VaR)
Daily VaR:
-4.13%
Weekly VaR:
-9.23%
Monthly VaR:
-18.45%
How Much Can the price of
LBRDK
Decline in a Recession?
Likely price decline in a recession:
Base case (decline):
-16%
Worst case (decline):
-63.91%
This translates to price declining to:
$83.38
This translates to price declining to:
$35.99
Severe Crash Probability
Risk of crash in next 6/12 months: Low (<25%)
What is Value at Risk (VaR)?
Risk Fundamentals
LBRDK is a 30.22% riskier investment compared to the market/S&P 500 & is 11.56% riskier than Nasdaq (IXIC)
Risk (measured by volatility) is -41.15% below industry average
Overall, it is amongst the top 50% most risky stocks
Beta Examination of
LBRDK
Beta in relation to market/S&P 500--0.97
Expected beta in 1 year's time:
0.595
Expected beta in 3 year's time:
0.841
Unlevered (debt free) Beta:
0.707
Beta in relation to Nasdaq (XNAS):
0.438
Beta in relation to all global stocks::
0.608
Beta Comparison & Analysis
Beta of competitors/peers::
1.135
Beta is -14.64% lower than peers
Average Industry Beta:
0.819
Beta is 18.32% above industry average
Sustainable Growth Rate Analysis
Sustainable growth rate for this stock/firm:
4.95%
Sustainable growth rate is -51.29% below industry average
Alpha provided | Alpha Analysis
Alpha provided:
-0.114
Alpha is -225.94% below industry average alpha yield
Alpha is -723% below the market average
Analysis of Cost of Capital of
LBRDK
Equity cost of capital:
0.098
Equity cost of capital is 11.73% above industry mean WACC
Unlevered (without debt) cost of capital:
7.14%
Before-tax cost of debt:
2.68%
After-tax cost of debt:
2.12%
Overall debt rating:
High AA grade (second highest grade)
Weighted average cost of capital (WACC):
2.12%
WACC is 40.90% above industry mean WACC
Key Per-Share Metrics & Analysis
Revenue per share:
$6.37
Revenue growth rate per share of (3Y):
1.6
Annual revenue growth rate is 929.63% above the industry average
EPS:
$5.55
Expected Annual growth rate of EPS (3Y):
82.18%
Expected future EPS growth rate is 231.80% higher than the Telecom Services industry
Free cash flow (FCF) per share:
-
-
-
Debt per share
$26.51
EBITDA per share
$9.87
Valuation Analysis Today of
LBRDK
P/E Ratio:
46.71
P/E Ratio of Competitors/Peers:
43.45
P/E ratio is 7.51% higher than main peers & is 58.30% higher than the industry
Stock price/value with industry average P/E ratio: $163.77
LBRDK is -39.10% undervalued if valued using industry average P/E ratio
-
-
P/S (Price to Sales ratio):
15.66
Price to sales ratio is 150.34% above the industry mean
P/B (Price to book value ratio):
1.6
-
-
Net income growth rate (3Y):
875.87%
Net income growth rate is 115.22% higher than the average industry net income growth rate
Dividend Analysis
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Dividend History:
--$0.00
--$0.00
--$0.00
--$0.00
--$0.00
--$0.00
-
In-depth Debt & Leverage Analysis
Debt to equity ratio:
42.54%
Net debt to equity ratio:
39.67%
Debt to assets ratio:
24.52%
Net debt to assets ratio:
22.86%
Debt-to-asset ratio is -67.93% below industry average
Ability to repay debt:
Interest coverage ratio:
13.81
Interest coverage ratio is 779.65% more than industry average
Looking forward:
Debt growth rate:
0.00%
-
Debt repayment rate in last quarter: 0.05%
Analysis of Key Statistics
Correlation of price movement with the market:
0.453
Statistical significance of correlation:
LBRDK has a statistically significant correlation with the market
Average Correlation of the industry with the market:
0.461
Stock price is -1.78% less correlated with the market compared to the industry average correlation
R Squared (percentage of price movement explained by movement of the market):
0.461
Correlation of price movement with Nasdaq (^IXIC):
-0.05
Covariance of price movement with the market:
-0.059
Kurtosis
10.405
Returns have a significant fat-tails (leptokurtic), i.e., returns considerably higher or lower than the mean returns are more probable, compared to assets with normally distributed returns
Skewness of returns:
-0.583
Returns are left (negative) skewed; mean returns are lower than median and mode returns
Fundamental Analysis & Dupont Analysis of
LBRDK
Gross Profit Margin Ratio:
100%
Operating Profit Margin Ratio:
1.01%
Operating profit margin is -67.77% lower than the industry
Net Profit Margin Ratio:
100%
Effective Tax Rate:
13.11%
Effective tax rate is -59.39% lower than the industry
Dupont Method
Net Profit Margin
Return on Equity Ratio (ROE):
×
ROA
=
×
10.21%
Return on equity (ROE) is -365.99% lower than the industry
Financial Leverage
Asset Turnover Ratio (ROA):
5.89%
Return on assets (ROA) is -3329.46% lower than the industry
Financial Leverage:
1.3x
Current Ratio:
1.02
Current ratio is -37.03% below industry average
Cash Conversion Cycle (days):
0
-
The remaining useful life of property plant & equipment is: 0.4 years
Stock based compensation to net income ratio:
0.92%
In-depth Efficiency Analysis
Revenue generated per employee:
515.5K
Each employee generates -49% less revenue than industry average revenue per employee
EBITDA generated per employee:
798.5K
Each employee generates 131% more EBITDA than industry average revenue per employee
Profit generated per employee:
515.1K
Each employee generates 395% more net income/profit than industry average revenue per employee
Free cash flow (FCF) generated per employee:
30.5K
Each employee generates -47% less free cash flow than industry average revenue per employee
Assets/Capital per employee
8.5M
Each employee generates -47% less free cash flow than industry average revenue per employee
Research & Development (R&D) Analysis
-
-
Competitors/Peer firms of
LBRDK
LIBERTY BROADBAND CORPORATION (XNAS:LBRDA)
SIRIUS XM HOLDINGS INC. (XNAS:SIRI)
ROKU, INC. (XNAS:ROKU)
PARAMOUNT GLOBAL (XNAS:PARA)
FOX CORPORATION (XNAS:FOX)
FOX CORPORATION (XNAS:FOXA)
WARNER MUSIC GROUP CORP. (XNAS:WMG)
Yandex NV (XNAS:YNDX)
TAKE-TWO INTERACTIVE SOFTWARE, INC. (XNAS:TTWO)
Current Analyst Ratings
Strong buy�4%
Buy�0%
Hold�4%
Sell�0%
Strong sell�0%
Overall analyst sentiment is: Strong buy
Income Statement
Period:
TTM
Date:
3/31/22
Revenue:
979.47M
Cost of Revenue:
Gross Profit:
R&D Expense
General & Admin Expenses:
Selling, General & Admin Expenses
Sales and Marketing Expenses
Other Expenses :
Operating Expenses :
Cost & Expenses :
Interest Income:
Interest Expenses:
Depreciation & Amortization:
EBITDA:
Operating Income:
Other Income Expenses:
Income Before Tax:
Income Tax Expense:
Net Income:
Balance Sheet
Date:
Calendar Year:
Period:
Cash & Cash Equivalents:
Short Term Investments:
Cash & Short Term Investments:
Net Receivables:
Inventory:
Other Current Assets:
Total Current Assets:
PP&E:
Goodwill:
Intangible Assets:
Long Term Investments:
Tax Assets:
Other Non-Current Assets:
Total Non-Current Assets:
Other Assets:
Total Assets:
Accounts Payable:
Short Term Debt:
Tax Payables:
Deferred Revenue:
Other Current Liabilities:
Total Current Liabilities:
Long Term Debt:
Other Non-Current Liabilities:
Total Non Current Liabilities:
Other Liabilities:
Total Liabilities:
Common Stock:
Retained Earnings:
Accumulated Other Comprehensive Loss:
Other Total Stockholders' Equity:
Total Stockholders' Equity:
Total Liabilities and Stockholders' Equity:
Total Investments:
Total Debt:
Net Debt:
-
238.00M
-
-
438.53M
-
416.06M
854.59M
-
109.86M
267.24M
1.52B
9.88M
978.78M
1.23B
161.22M
978.78M
Statement of Cash Flow
Date:
Period:
64.00M
Differed Income Tax :
6.00M
Stock Based Compensation :
9.00M
Change in Working Capital :
- 288000.00K
Accounts Receivables:
-
Other Working Capital:
-
Other Non-Cash Items:
-
Net Cash Provided by Operating Activities:
90.00M
Investments in PP&E:
-
Net Acquisitions:
-
Purchases of Investments:
-
Sales/Maturities of Investments:
Other Investing Activities:
Net Cash Used for Investing Activities:
Debt Repayment:
Common Stock Issued:
Common Stock Repurchased:
Dividend Paid:
Other Financing Activities:
Net Cash Used Provided by Financing Activities:
Effect of FOREX on Changes in Cash:
Net Changes in Cash:
Cash at End of Period:
Cash at Beginning of Period:
Operating Cash Flow:
Capital Expenditure:
Free Cash Flow (FCF):
3/31/22
2022
Q1
300.00M
-
300.00M
169.00M
-
77.00M
546.00M
1.01B
762.00M
559.00M
-
-
13.75B
16.08B
-
16.63B
-
25.00M
-
22.00M
490.00M
537.00M
4.08B
380.00M
6.49B
-
7.03B
1.00M
4.20B
10.0M
5.38B
March 31, 2022 at 6:00:00 AM
753.59M
9.58B
16.61B
-
4.10B
3.8B
-
574.00M
574.00M
- 2000.00K
-
- 843000.00K
-
297.00M
- 548000.00K
-
116.00M
322.00M
206.00M
90.00M
- 32000.00K
58.00M
Our Proprietary Portfolio Rating
Our Rating:
A+
Price Forecast/Expected Price in Next 5 Years of
LBRDK
2023
2024
2025
2026
2027
$106.75
$313.45
$333.85
$355.58
$378.73