Frontier Communications Rated High on Value Investor Model

A report highlights Frontier Communications Parent Inc (FYBR) as an appealing mid-cap value stock, scoring 57% on the Value Investor model of Benjamin Graham. Despite this rating, concerns about its current ratio and long-term EPS growth could impact investor confidence.

Date: 08-10-2024

AI Rating: 5

The report provides a detailed evaluation of FRONTIER COMMUNICATIONS PARENT INC (FYBR) under the Value Investor strategy attributed to Benjamin Graham, a reputed figure in value investing.

First, FYBR has achieved a 57% rating based on its underlying fundamentals and valuation, indicating a moderate level of attractiveness. However, the absence of a score above 80% suggests that the stock does not meet stronger criteria set forth by the Value Investor method.

Regarding specific metrics:

Current Ratio: The stock has failed this test, indicating potential liquidity issues that may hinder its ability to cover short-term liabilities.
Long-term Debt in Relation to Net Current Assets: Another failure suggests that the company may have a concerning debt load relative to its current assets.
Long-Term EPS Growth: This also failed, indicating that there may be doubts about the company's ability to grow its earnings consistently over the long term.
P/E Ratio and Price/Book Ratio: Both metrics passed, which points towards the stock being undervalued relative to its earnings and book value.

Overall, these insights indicate a mixed picture. While the positive ratings in the P/E and Price/Book ratios hint at valuation appeal, the failures in liquidity and growth metrics raise red flags for potential investors.

Stocks: FYBR