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Level 3 Communications, Inc. (NYSE: LVLT) – Is this large market cap stock undervalued?

Level 3 Communications, Inc. (NYSE: LVLT), is firmly in the large market cap category with market cap of 17544.85. To be considered a large market cap stock companies have to be valued at more than $10 billion. The current price for Level 3 Communications, Inc. is 49.09 (with a change from open of 0.37%), this in conjunction with a target price of 60.85. Volume today has so far reached 774800, with an average volume of about 2486.68. The GAP for this stock, is 0.51%.

The P/E ratio is 4.97, bringing the forward P/E to a value of 23.48. The current EPS for Level 3 Communications, Inc., is 9.79, with a EPS growth for this year coming to a value of 688.10%. Performance has been interesting with performance year to date coming to -10.49%.

Looking further into the growth statistics for Level 3 Communications, Inc., EPS is looking like it will grow 24.74% in the next year. Looking even further it is projected to be 10.00%. Quarter over quarter is for EPS growth and for sales growth quarter over quarter it is -0.20%. Looking at past EPS growth statistics we see that for the past five years it has been 30.00%. Sales growth for the past five years has in fact been 18.00%.

Looking at the ownership, we see that the insider ownership is at 0.60% and institutional ownership is 87.70%. Shares outstanding is 360.56, while shares float is at a value of 357.84. Float short for Level 3 Communications, Inc. is 1.37% and the short ratio is 1.97.

In terms of debt, long term debt/equity is 1.04, while the total debt/equity comes to 1.04. The ability to meet these debts, means that the current ratio is 1.5, and the quick ratio is 1.5. The most recent gross margin is 49.20% and their operating margin is 13.80%. The profit margin is 43.70%.

Level 3 Communications, Inc. has seen returns on assets of 15.20%, and on investment, 19.50%. Return on equity is 38.10%. Price/Earnings to growth ratio is 0.5. Price/Sales ratio is at a value of 2.13, with Price/book ratio coming to 1.66 and Price/cash is 13.59, and finally Price/Free cash Flow is 18.47.

The simple moving averages are -4.03% and -3.98% for 20 day and 200 day simple moving average respectively. For the 52 week high and low the 52 week high is -14.76% and the 52 week low is 20.14%.

Level 3 Communications, Inc. has a dividend yield of , with a current price of 49.09. The ability to pay this means the payout ratio is 0.00%. This is in an industry, Diversified Communication Services, with equally high dividends from other companies in this sector, which it is Technology. Level 3 Communications, Inc. is based in USA.

Performance in the Diversified Communication Services industry means that Level 3 Communications, Inc. has seen performance for the past week of 0.64%, with performance for the month coming to 0.29%. Looking at the data for the quarter it is at a value of -5.00%, and for the half year the performance is 6.92%. Volatility for this week is 2.04% and for the month this is 1.59%.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

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Peter Clarke

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