Uniti delivered weak third-quarter results, with revenue down 10% on continued deterioration in the consumer business and slower fiber sales. While consumer weakness will likely persist, the firm expects very strong enterprise fiber sales in the fourth quarter as hyperscale demand materializes.
Completing the merger with Windstream has eliminated a significant financial risk and diversified the firm’s operations into the growing fiber broadband market.
Uniti's financial position is precarious. Debt leverage is already high and will only rise further as the firm burns cash to build out its fiber networks. Any would-be acquirer will wait for a bargain price.
Metric | UNIT | LUMN | VZ |
|---|---|---|---|
Price/Earnings (Normalized) | 9.10 | — | 12.02 |
Price/Book Value | — | — | 1.81 |
Price/Sales | 0.35 | 0.38 | 1.39 |
Price/Cash Flow | 1.89 | 4.24 | 4.74 |
Metric | UNIT | LUMN | VZ |
|---|---|---|---|
Quick Ratio | 0.82 | 0.53 | 0.47 |
Current Ratio | 1.22 | 0.71 | 0.63 |
Interest Coverage | 2.32 | −0.11 | 3.82 |
Metric | UNIT | LUMN | VZ |
|---|---|---|---|
Return on Assets (Normalized) | 1.11% | −2.56% | 4.05% |
Return on Equity (Normalized) | — | — | 15.88% |
Return on Invested Capital (Normalized) | 6.99% | −1.66% | 7.57% |
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United States