GCI Liberty, Inc. (NASDAQ: GLIBA)

Sector: Communication Services Industry: Telecom Services CIK: 0002057463
Market Cap 1.22 Bn
P/B 0.72
P/E -3.94
P/S 1.16
ROIC (Qtr) -10.24
Div Yield % 7.33
Rev 1y % (Qtr) -0.38
Total Debt (Qtr) 1.05 Bn
Debt/Equity (Qtr) 0.62
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About

Investment thesis

Bull case

  • Healthy cash reserves of 416M provide 104x coverage of short-term debt 4M, demonstrating strong liquidity position and minimal refinancing risk.
  • Operating cash flow of 370M provides strong 28.46x coverage of stock compensation 13M, indicating sustainable incentive practices.
  • Tangible assets of 2.05B provide exceptional 13.40x coverage of deferred revenue 153M, showing strong service capability backing.
  • Strong operating cash flow of 370M provides 2.78x coverage of SG&A expenses 133M, showing efficient operational cost management.
  • Robust tangible asset base of 2.05B provides 4.89x coverage of working capital 419M, indicating strong operational backing.

Bear case

  • Operating cash flow of 370M barely covers its investment activities of (218M), with a coverage ratio of -1.70, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 370M provides minimal -4.81x coverage of tax expenses of (77M), suggesting potential tax planning inefficiencies or unsustainable tax positions.
  • Operating earnings of (341M) show weak coverage of depreciation charges of 262M, with a -1.30 ratio indicating high capital intensity and potential reinvestment needs.
  • High depreciation of 262M relative to operating cash flow of 370M, which is 0.71x suggests significant maintenance capital requirements affecting free cash flow.
  • Free cash flow of 146M represents just -1.66x of debt issuance (88M), suggesting concerning reliance on leverage rather than internal cash generation for growth.

Peer comparison

Companies in the Telecom Services
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 TMUS T-Mobile US, Inc. 247.58 Bn 22.52 2.80 118.74 Bn
2 T At&T Inc. 210.50 Bn 12.86 1.15 155.04 Bn
3 VZ Verizon Communications Inc 202.20 Bn 11.00 1.54 181.64 Bn
4 CMCSA Comcast Corp 180.83 Bn 58.43 5.08 98.94 Bn
5 VOD Vodafone Group Public Ltd Co 44.88 Bn 3.20 0.62 60.54 Bn
6 CHT Chunghwa Telecom Co Ltd 33.41 Bn 26.87 4.32 1.20 Bn
7 SATS EchoStar CORP 32.60 Bn -2.52 2.15 30.58 Bn
8 CHTR Charter Communications, Inc. /Mo/ 32.03 Bn 6.42 0.58 96.20 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.66 0.87
EV to Cash from Ops. EV/CFO 5.81 7.73
EV to Debt EV to Debt 2.04 40.31
EV to EBIT EV/EBIT -6.30 2.24
EV to EBITDA EV/EBITDA -25.27 2.53
EV to Free Cash Flow [EV/FCF] EV/FCF 14.71 33.34
EV to Market Cap EV to Market Cap 1.76 1.71
EV to Revenue EV/Rev 2.05 5.12
Price to Book Value [P/B] P/B 0.72 2.16
Price to Earnings [P/E] P/E -3.94 76.35
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -0.17
Dividend Payout Ratio % Div Payout % (Qtr) -28.90 2.05
Dividend per Basic Share Div per Share (Qtr) 2.88 0.79
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 56.58 8.04
Interest Coverage Int. cover (Qtr) -7.58 -2.53
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -16.06 19.27
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 462.16 61.85
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 -2.07
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -359.09 373.65
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -121.30 192.47
EBIT Growth (1y) % EBIT 1y % (Qtr) -333.56 814.56
EBT Growth (1y) % EBT 1y % (Qtr) -497.94 -29.03
EPS Growth (1y) % EPS 1y % (Qtr) -541.15 141.81
FCF Growth (1y) % FCF 1y % (Qtr) 71.76 78.17
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 9.64 -10.71
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.32 0.60
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.06
Cash Ratio Cash Ratio (Qtr) 2.12 0.68
Current Ratio Curr Ratio (Qtr) 3.14 1.56
Debt to Equity Ratio Debt/Equity (Qtr) 0.62 -0.46
Interest Cover Ratio Int Coverage (Qtr) -7.58 -2.53
Times Interest Earned Times Interest Earned (Qtr) -7.58 -2.53
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -7.60 46.49
EBIT Margin % EBIT Margin % (Qtr) -32.60 -51.60
EBT Margin % EBT Margin % (Qtr) -36.90 27.73
Gross Margin % Gross Margin % (Qtr) 50.00 55.49
Net Profit Margin % Net Margin % (Qtr) -29.50 26.33