Liberty Global Ltd. (NASDAQ: LBTYA)

Sector: Communication Services Industry: Telecom Services CIK: 0001570585
Market Cap 3.62 Bn
P/B 0.28
P/E -1.83
P/S 1.62
ROIC (Qtr) -0.35
Div Yield % 0.00
Rev 1y % (Qtr) 12.87
Total Debt (Qtr) 9.23 Bn
Debt/Equity (Qtr) 0.72
Add ratio to table...

About

Liberty Global Ltd., commonly referred to as Liberty Global, is a multinational telecommunications company that operates in the European and Latin American markets. Its ticker symbol is LBTYA. The company is a key player in the telecommunications industry, providing fixed-line, mobile, and broadband services to residential and business customers across various countries. Liberty Global's main business activities involve providing a range of telecommunications services, including television, internet, and fixed-line telephony, to customers in different...

Read more

Investment thesis

Bull case

  • Healthy cash reserves of 1.67B provide 2.47x coverage of short-term debt 678.50M, demonstrating strong liquidity position and minimal refinancing risk.
  • Tangible assets of 20.38B provide exceptional 71.40x coverage of deferred revenue 285.40M, showing strong service capability backing.
  • Operating cash flow of 1.37B provides exceptional 26.90x coverage of minority interest expenses 51M, showing strong core operations.
  • Strong operating cash flow of 1.37B provides 1.81x coverage of SG&A expenses 756M, showing efficient operational cost management.
  • Operating cash flow of 1.37B provides strong 4.81x coverage of deferred revenue 285.40M, indicating service delivery capability.

Bear case

  • Operating cash flow of 1.37B barely covers its investment activities of (258M), with a coverage ratio of -5.32, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Cash reserves of 1.67B provide limited coverage of acquisition spending of (185.40M), which is -9.03x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Operating cash flow of 1.37B provides minimal -5.83x coverage of tax expenses of (235.30M), suggesting potential tax planning inefficiencies or unsustainable tax positions.
  • Operating earnings of (2.01B) show weak coverage of depreciation charges of 248.20M, with a -8.11 ratio indicating high capital intensity and potential reinvestment needs.
  • High financing cash flow of (1.87B) relative to working capital of (128.80M), which is 14.54x suggests concerning dependence on external funding for operational needs.

Consolidation Items Breakdown of Revenue (2024)

Product and Service Breakdown of Revenue (2024)

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 0.49 0.87
EV to Cash from Ops. EV/CFO 8.99 7.73
EV to Debt EV to Debt 1.34 40.31
EV to EBIT EV/EBIT -6.13 2.24
EV to EBITDA EV/EBITDA 96.83 2.53
EV to Free Cash Flow [EV/FCF] EV/FCF 22.63 33.34
EV to Market Cap EV to Market Cap 3.41 1.71
EV to Revenue EV/Rev 5.52 5.12
Price to Book Value [P/B] P/B 0.28 2.16
Price to Earnings [P/E] P/E -1.83 76.35
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -0.17
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 2.05
Dividend per Basic Share Div per Share (Qtr) 0.00 0.79
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 8.04
Interest Coverage Int. cover (Qtr) -10.13 -2.53
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -59.74 19.27
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -28.95 61.85
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 -2.07
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 53.33 373.65
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 8,593.33 192.47
EBIT Growth (1y) % EBIT 1y % (Qtr) 46.45 814.56
EBT Growth (1y) % EBT 1y % (Qtr) 45.28 -29.03
EPS Growth (1y) % EPS 1y % (Qtr) 39.72 141.81
FCF Growth (1y) % FCF 1y % (Qtr) -65.13 78.17
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 17.87 -10.71
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.09 0.60
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.06
Cash Ratio Cash Ratio (Qtr) 0.58 0.68
Current Ratio Curr Ratio (Qtr) 0.96 1.56
Debt to Equity Ratio Debt/Equity (Qtr) 0.72 -0.46
Interest Cover Ratio Int Coverage (Qtr) -10.13 -2.53
Times Interest Earned Times Interest Earned (Qtr) -10.13 -2.53
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -79.00 46.49
EBIT Margin % EBIT Margin % (Qtr) -90.07 -51.60
EBT Margin % EBT Margin % (Qtr) -98.97 27.73
Gross Margin % Gross Margin % (Qtr) 61.60 55.49
Net Profit Margin % Net Margin % (Qtr) -88.40 26.33