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CenturyLink

NYSE:CTL
Snowflake Description

Fair value with moderate growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
CTL
NYSE
$15B
Market Cap
  1. Home
  2. US
  3. Telecom
Company description

CenturyLink, Inc. provides various communications services to residential, business, wholesale, and governmental customers in the United States and internationally. The last earnings update was 30 days ago. More info.


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CTL Share Price and Events
7 Day Returns
-2.3%
NYSE:CTL
1.8%
US Telecom
-0.3%
US Market
1 Year Returns
-18.9%
NYSE:CTL
14.5%
US Telecom
18.6%
US Market
CTL Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
CenturyLink (CTL) -2.3% -4.8% 20% -18.9% -41.3% -62.3%
US Telecom 1.8% -0.7% 4.4% 14.5% 2.3% 16.3%
US Market -0.3% 2.2% 5.6% 18.6% 36.2% 52.2%
1 Year Return vs Industry and Market
  • CTL underperformed the Telecom industry which returned 14.5% over the past year.
  • CTL underperformed the Market in United States of America which returned 18.6% over the past year.
Price Volatility
CTL
Industry
5yr Volatility vs Market

CTL Value

 Is CenturyLink undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of CenturyLink to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for CenturyLink.

NYSE:CTL Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 13 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.5%
Perpetual Growth Rate 10-Year US Government Bond Rate 1.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:CTL
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 1.7%
Equity Risk Premium S&P Global 5.4%
Telecom Unlevered Beta Simply Wall St/ S&P Global 0.37
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.374 (1 + (1- 21%) (238.49%))
1.053
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.05
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.74% + (1.053 * 5.44%)
7.47%

Discounted Cash Flow Calculation for NYSE:CTL using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for CenturyLink is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

NYSE:CTL DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 7.47%)
2020 3,366.14 Analyst x7 3,132.23
2021 3,352.00 Analyst x1 2,902.33
2022 3,200.00 Analyst x1 2,578.18
2023 3,085.00 Analyst x1 2,312.81
2024 3,034.93 Est @ -1.62% 2,117.17
2025 3,016.30 Est @ -0.61% 1,957.95
2026 3,019.08 Est @ 0.09% 1,823.57
2027 3,036.79 Est @ 0.59% 1,706.81
2028 3,065.11 Est @ 0.93% 1,603.01
2029 3,101.11 Est @ 1.17% 1,509.14
Present value of next 10 years cash flows $21,643.00
NYSE:CTL DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $3,101.11 × (1 + 1.74%) ÷ (7.47% – 1.74%)
$55,082.69
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $55,082.69 ÷ (1 + 7.47%)10
$26,805.76
NYSE:CTL Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $21,643.00 + $26,805.76
$48,448.76
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $48,448.76 / 1,090.23
$44.44
NYSE:CTL Discount to Share Price
Calculation Result
Value per share (USD) From above. $44.44
Current discount Discount to share price of $14.16
= -1 x ($14.16 - $44.44) / $44.44
68.1%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price CenturyLink is available for.
Intrinsic value
>50%
Share price is $14.16 vs Future cash flow value of $44.44
Current Discount Checks
For CenturyLink to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • CenturyLink's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • CenturyLink's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for CenturyLink's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are CenturyLink's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:CTL PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-09-30) in USD $-7.39
NYSE:CTL Share Price ** NYSE (2019-12-06) in USD $14.16
United States of America Telecom Industry PE Ratio Median Figure of 16 Publicly-Listed Telecom Companies 16.44x
United States of America Market PE Ratio Median Figure of 2,924 Publicly-Listed Companies 18.48x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of CenturyLink.

NYSE:CTL PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:CTL Share Price ÷ EPS (both in USD)

= 14.16 ÷ -7.39

-1.92x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • CenturyLink is loss making, we can't compare its value to the US Telecom industry average.
  • CenturyLink is loss making, we can't compare the value of its earnings to the United States of America market.
Price based on expected Growth
Does CenturyLink's expected growth come at a high price?
Raw Data
NYSE:CTL PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -1.92x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 13 Analysts
79.1%per year
United States of America Telecom Industry PEG Ratio Median Figure of 8 Publicly-Listed Telecom Companies 2.01x
United States of America Market PEG Ratio Median Figure of 2,045 Publicly-Listed Companies 1.48x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for CenturyLink, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on CenturyLink's assets?
Raw Data
NYSE:CTL PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-09-30) in USD $12.54
NYSE:CTL Share Price * NYSE (2019-12-06) in USD $14.16
United States of America Telecom Industry PB Ratio Median Figure of 30 Publicly-Listed Telecom Companies 1.37x
United States of America Market PB Ratio Median Figure of 5,088 Publicly-Listed Companies 1.78x
NYSE:CTL PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:CTL Share Price ÷ Book Value per Share (both in USD)

= 14.16 ÷ 12.54

1.13x

* Primary Listing of CenturyLink.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • CenturyLink is good value based on assets compared to the US Telecom industry average.
X
Value checks
We assess CenturyLink's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Telecom industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Telecom industry average (and greater than 0)? (1 check)
  5. CenturyLink has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

CTL Future Performance

 How is CenturyLink expected to perform in the next 1 to 3 years based on estimates from 13 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
79.1%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is CenturyLink expected to grow at an attractive rate?
  • CenturyLink's earnings growth is expected to exceed the low risk savings rate of 1.7%.
Growth vs Market Checks
  • CenturyLink's earnings growth is expected to exceed the United States of America market average.
  • CenturyLink's revenues are expected to decrease over the next 1-3 years, this is below the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:CTL Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:CTL Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 13 Analysts 79.1%
NYSE:CTL Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 13 Analysts -2.4%
United States of America Telecom Industry Earnings Growth Rate Market Cap Weighted Average 9.6%
United States of America Telecom Industry Revenue Growth Rate Market Cap Weighted Average 1.1%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.2%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:CTL Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 13 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:CTL Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 20,510 6,517 1,053 2
2022-12-31 20,801 6,678 1,259 2
2021-12-31 21,126 6,879 1,337 6
2020-12-31 21,706 6,662 1,409 13
2019-12-31 22,373 6,801 -5,160 13
2019-12-07
NYSE:CTL Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-09-30 22,609 6,767 -7,904
2019-06-30 22,821 6,666 -7,934
2019-03-31 23,145 6,547 -8,013
2018-12-31 23,443 7,032 -1,733
2018-09-30 22,988 6,214 1,796
2018-06-30 21,204 5,385 1,616
2018-03-31 19,392 4,488 1,341
2017-12-31 17,656 3,878 1,389
2017-09-30 16,622 3,796 314
2017-06-30 16,970 3,749 374
2017-03-31 17,278 4,242 553
2016-12-31 17,470 4,608 626

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • CenturyLink's earnings are expected to grow significantly at over 20% yearly.
  • CenturyLink's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:CTL Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 13 Analyst Estimates (S&P Global) See Below

All data from CenturyLink Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:CTL Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31 0.97 0.97 0.97 1.00
2022-12-31 1.16 1.16 1.16 1.00
2021-12-31 1.19 1.35 1.03 4.00
2020-12-31 1.28 1.51 0.96 7.00
2019-12-31 -4.82 -4.78 -4.90 6.00
2019-12-07
NYSE:CTL Past Financials Data
Date (Data in USD Millions) EPS *
2019-09-30 -7.39
2019-06-30 -7.42
2019-03-31 -7.51
2018-12-31 -1.63
2018-09-30 1.76
2018-06-30 1.82
2018-03-31 1.77
2017-12-31 2.21
2017-09-30 0.58
2017-06-30 0.69
2017-03-31 1.02
2016-12-31 1.16

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • CenturyLink is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess CenturyLink's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
CenturyLink has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

CTL Past Performance

  How has CenturyLink performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare CenturyLink's growth in the last year to its industry (Telecom).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • CenturyLink does not make a profit and their year on year earnings growth rate was negative over the past 5 years.
  • Unable to compare CenturyLink's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare CenturyLink's 1-year growth to the US Telecom industry average as it is not currently profitable.
Earnings and Revenue History
CenturyLink's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from CenturyLink Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:CTL Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-09-30 22,609.00 -7,904.00 4,088.00
2019-06-30 22,821.00 -7,934.00 4,185.00
2019-03-31 23,145.00 -8,013.00 4,300.00
2018-12-31 23,443.00 -1,733.00 4,435.00
2018-09-30 22,988.00 1,796.00 4,486.00
2018-06-30 21,204.00 1,616.00 4,249.00
2018-03-31 19,392.00 1,341.00 4,055.00
2017-12-31 17,656.00 1,389.00 3,802.00
2017-09-30 16,622.00 314.00 3,805.00
2017-06-30 16,970.00 374.00 3,921.00
2017-03-31 17,278.00 553.00 3,908.00
2016-12-31 17,470.00 626.00 3,859.00
2016-09-30 17,657.00 922.00 3,823.00
2016-06-30 17,829.00 975.00 3,834.00
2016-03-31 17,850.00 922.00 3,789.00
2015-12-31 17,900.00 878.00 3,821.00
2015-09-30 17,862.00 728.00 3,823.00
2015-06-30 17,822.00 711.00 3,790.00
2015-03-31 17,944.00 761.00 3,740.00
2014-12-31 18,031.00 772.00 3,776.00
2014-09-30 18,135.00 823.00 3,717.00
2014-06-30 18,136.00 -410.00 3,708.00
2014-03-31 18,120.00 -334.00 3,709.00
2013-12-31 18,095.00 -239.00 3,684.00
2013-09-30 18,136.00 -245.00 3,620.00
2013-06-30 18,192.00 1,070.00 3,554.00
2013-03-31 18,279.00 874.00 3,575.00
2012-12-31 18,376.00 776.00 3,628.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if CenturyLink has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • It is difficult to establish if CenturyLink has efficiently used its assets last year compared to the US Telecom industry average (Return on Assets) as it is loss-making.
  • It is difficult to establish if CenturyLink improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess CenturyLink's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Telecom industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
CenturyLink has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

CTL Health

 How is CenturyLink's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up CenturyLink's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • CenturyLink's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • CenturyLink's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of CenturyLink's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from CenturyLink Company Filings, last reported 2 months ago.

NYSE:CTL Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-09-30 13,674.00 34,913.00 1,404.00
2019-06-30 13,692.00 34,568.00 410.00
2019-03-31 13,543.00 35,264.00 441.00
2018-12-31 19,828.00 35,827.00 488.00
2018-09-30 22,803.00 36,527.00 390.00
2018-06-30 22,989.00 37,315.00 700.00
2018-03-31 23,443.00 37,377.00 501.00
2017-12-31 23,491.00 37,726.00 551.00
2017-09-30 12,960.00 24,978.00 160.00
2017-06-30 13,086.00 25,077.00 342.00
2017-03-31 13,306.00 19,679.00 214.00
2016-12-31 13,399.00 19,688.00 222.00
2016-09-30 13,892.00 19,718.00 140.00
2016-06-30 13,985.00 19,616.00 191.00
2016-03-31 14,036.00 20,025.00 438.00
2015-12-31 14,060.00 20,225.00 126.00
2015-09-30 14,250.00 20,414.00 355.00
2015-06-30 14,587.00 20,353.00 155.00
2015-03-31 14,765.00 20,456.00 155.00
2014-12-31 15,023.00 20,503.00 128.00
2014-09-30 16,445.00 21,151.00 734.00
2014-06-30 16,598.00 20,959.00 181.00
2014-03-31 16,798.00 20,940.00 219.00
2013-12-31 17,191.00 20,966.00 168.00
2013-09-30 16,714.00 20,582.00 266.00
2013-06-30 18,400.00 20,585.00 214.00
2013-03-31 18,856.00 20,788.00 476.00
2012-12-31 19,289.00 20,605.00 211.00
  • CenturyLink's level of debt (255.3%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (128.7% vs 255.3% today).
CASH RUNWAY ANALYSIS

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

  • Whilst loss making CenturyLink has sufficient cash runway for more than 3 years if it maintains the current positive free cash flow level.
  • Whilst loss making CenturyLink has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -45.3% per year.
X
Financial health checks
We assess CenturyLink's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. CenturyLink has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

CTL Dividends

 What is CenturyLink's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
7.06%
Current annual income from CenturyLink dividends. Estimated to be 7.06% next year.
If you bought $2,000 of CenturyLink shares you are expected to receive $141 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • CenturyLink's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.42%).
  • CenturyLink's dividend is above the markets top 25% of dividend payers in United States of America (3.7%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:CTL Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 13 Analyst Estimates (S&P Global) See Below
United States of America Telecom Industry Average Dividend Yield Market Cap Weighted Average of 9 Stocks 4.8%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 1959 Stocks 2.3%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:CTL Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31 1.00 2.00
2022-12-31 1.00 2.00
2021-12-31 1.00 7.00
2020-12-31 1.00 9.00
2019-12-31 1.00 9.00
2019-12-07
NYSE:CTL Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-11-21 1.000 6.883
2019-08-22 1.000 7.898
2019-05-23 1.000 8.904
2019-03-01 1.000 8.552
2019-02-13 1.000 7.446
2018-11-14 2.160 13.351
2018-08-21 2.160 10.090
2018-05-23 2.160 11.314
2018-02-21 2.160 12.189
2017-11-14 2.160 13.183
2017-08-22 2.160 11.571
2017-05-24 2.160 9.188
2017-02-21 2.160 8.906
2016-11-15 2.160 8.741
2016-08-23 2.160 7.986
2016-05-18 2.160 7.497
2016-02-23 2.160 6.994
2015-11-10 2.160 8.320
2015-08-25 2.160 8.128
2015-05-20 2.160 7.166
2015-02-23 2.160 6.087
2014-11-11 2.160 5.502
2014-08-19 2.160 5.357
2014-05-28 2.160 5.736
2014-02-24 2.160 6.427
2013-11-12 2.160 7.059
2013-08-27 2.160 6.639
2013-05-22 2.160 6.147
2013-02-27 2.160 5.978
2012-11-13 2.900 7.490
2012-08-21 2.900 7.181
2012-05-24 2.900 7.270
2012-05-10 2.900 7.469
2012-05-09 2.900 7.472
2011-11-15 2.900 7.686
2011-08-23 2.900 8.394
2011-05-18 2.900 7.533
2011-01-25 2.900 7.019
2010-11-09 2.900 6.572
2010-08-24 2.900 7.421
2010-05-21 2.900 8.316
2010-02-25 2.900 8.347
2009-11-18 2.800 7.917
2009-08-24 2.800 8.513
2009-05-28 2.800 9.003
2009-02-26 2.800 10.215

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have fallen over the past 10 years.
Current Payout to shareholders
What portion of CenturyLink's earnings are paid to the shareholders as a dividend.
  • The company is paying a dividend however it is incurring a loss.
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.2x coverage).
X
Income/ dividend checks
We assess CenturyLink's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can CenturyLink afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. CenturyLink has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

CTL Management

 What is the CEO of CenturyLink's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Jeff Storey
COMPENSATION $35,655,646
AGE 58
TENURE AS CEO 1.6 years
CEO Bio

Mr. Jeffrey K. Storey, also known as Jeff, has been Chief Executive Officer of CenturyLink Inc. since May 2018. Mr. Storey serves as Chief Executive Officer and President of Qwest Corporation. Mr. Storey has been the President of CenturyLink, Inc. since November 1, 2017 and served as its Chief Operating Officer from November 01, 2017 to May 2018. He serves as the Chief Executive Officer and President of Level 3 Parent, LLC from April 11, 2013 December 8, 2008 respectively. He served as Chief Operating Officer at Level 3 Communications, Inc. since December 8, 2008. Mr. Storey served as the Chief Executive Officer and President of WilTel Communications Group Inc. from 2002 to December 2005. He served at Leucadia National Corporation as President of Leucadia Telecommunications Group. He began his career in telecommunications in 1983 at Southwestern Bell Telephone, where he held various engineering and operations positions. He has many years of telecommunications experience. Mr. Storey served as Vice President and General Manager of Operations of WilTel Communications Group Inc., from May 2002 to October 2002 and as Senior Vice President of Operations from September 2000 to July 2002 and was responsible for all its network operations. From January 2000 to September 2000 he served at WilTel Communications Group Inc. as Vice President of Local Access and responsible for developing and implementing its access strategy. From May 1999 to January 2000, he served as Executive Director of WilTel Communications Group Inc.'s voice services. Before joining WilTel Communications Group Inc. From 1994 to 1999, he served as Vice President of Commercial Services of Cox Communications from March 1998 to May 1999. From 1994 to 1998 he served as Vice President and General Manager of Cox Fibernet. Mr. Storey has been a Director of Level 3 Communications, Inc. since May 23, 2013. He served as Director of WilTel Communications Group Inc. since October 31, 2002. He delivered the keynote address for the 2005 CompTel/ALTS Spring Conference. Mr. Storey holds a Master’s degree in Telecommunications Systems from Southern Methodist University and a Bachelor’s degree in Engineering Physics and Mathematics from the Northeastern State University.

CEO Compensation
  • Jeff's compensation has increased whilst company is loss making.
  • Jeff's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the CenturyLink management team in years:

1.6
Average Tenure
54.5
Average Age
  • The average tenure for the CenturyLink management team is less than 2 years, this suggests a new team.
Management Team

Jeff Storey

TITLE
President
COMPENSATION
$36M
AGE
58
TENURE
1.6 yrs

Neel Dev

TITLE
Executive VP & CFO
COMPENSATION
$3M
AGE
47
TENURE
1.3 yrs

Stacey Goff

TITLE
Executive VP
COMPENSATION
$4M
AGE
53
TENURE
5.1 yrs

Scott Trezise

TITLE
Executive Vice President of Human Resources
COMPENSATION
$2M
AGE
50
TENURE
6.3 yrs

Eric Mortensen

TITLE
Principal Accounting Officer
AGE
59
TENURE
1.7 yrs

Andrew Dugan

TITLE
Chief Technology Officer

Valerie Finberg

TITLE
Vice President of Investor Relations

Mark Stoutenberg

TITLE
Senior Director of Investor Relations
TENURE
1.5 yrs

Bryan Taylor

TITLE
Vice President of Corporate Development
TENURE
13.4 yrs

Shaun Andrews

TITLE
Executive VP & Chief Marketing Officer
AGE
56
TENURE
0.9 yrs
Board of Directors Tenure

Average tenure and age of the CenturyLink board of directors in years:

6.4
Average Tenure
64
Average Age
  • The tenure for the CenturyLink board of directors is about average.
Board of Directors

Harvey Perry

TITLE
Chairman of the Board
COMPENSATION
$476K
AGE
74
TENURE
2.6 yrs

Jeff Storey

TITLE
President
COMPENSATION
$36M
AGE
58
TENURE
2.1 yrs

W. Hanks

TITLE
Vice Chairman & Lead Independent Director
COMPENSATION
$414K
AGE
64
TENURE
2.6 yrs

Virginia Boulet

TITLE
Independent Director
COMPENSATION
$295K
AGE
65
TENURE
24.9 yrs

Peter Brown

TITLE
Independent Director
COMPENSATION
$277K
AGE
60
TENURE
10.4 yrs

Laurie Siegel

TITLE
Independent Director
COMPENSATION
$322K
AGE
63
TENURE
10.4 yrs

Chili Chilton

TITLE
Independent Director
COMPENSATION
$302K
AGE
64
TENURE
2.1 yrs

Glen Post

TITLE
Director
COMPENSATION
$11M
AGE
66
TENURE
34.9 yrs

Mike Roberts

TITLE
Independent Director
COMPENSATION
$303K
AGE
68
TENURE
8.7 yrs

Mary Landrieu

TITLE
Independent Director
COMPENSATION
$276K
AGE
63
TENURE
4.1 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
30. May 19 Buy W. Hanks Individual 30. May 19 30. May 19 10,000 $10.63 $106,300
24. May 19 Buy T. Glenn Individual 23. May 19 23. May 19 20,000 $9.83 $196,600
23. May 19 Buy Jeffrey Storey Individual 23. May 19 23. May 19 50,000 $9.83 $491,480
23. May 19 Buy Indraneel Dev Individual 23. May 19 23. May 19 15,000 $9.85 $147,155
15. May 19 Buy Harvey Perry Individual 15. May 19 15. May 19 10,000 $10.92 $109,192
13. May 19 Buy Steven Clontz Individual 10. May 19 10. May 19 37,000 $11.00 $404,250
14. Mar 19 Buy Kevin Chilton Individual 12. Mar 19 12. Mar 19 2,000 $12.30 $24,608
07. Mar 19 Buy Steven Clontz Individual 06. Mar 19 06. Mar 19 8,000 $11.95 $95,600
06. Mar 19 Buy Indraneel Dev Individual 06. Mar 19 06. Mar 19 50,000 $11.75 $587,500
06. Mar 19 Buy Jeffrey Storey Individual 06. Mar 19 06. Mar 19 83,000 $11.94 $991,261
19. Feb 19 Sell Southeastern Asset Management, Inc. Company 17. Dec 18 15. Feb 19 -1,093,383 $16.61 $-18,161,092
19. Feb 19 Buy Southeastern Asset Management, Inc. Company 20. Dec 18 15. Feb 19 4,795,598 $16.18 $77,592,776
18. Jan 19 Sell Temasek Holdings (Private) Limited Company 16. Jan 19 16. Jan 19 -16,000,000 $15.90 $-254,400,000
13. Dec 18 Buy Steven Clontz Individual 11. Dec 18 11. Dec 18 8,207 $17.20 $141,160
X
Management checks
We assess CenturyLink's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. CenturyLink has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

CTL News

Simply Wall St News

Zooming in on NYSE:CTL's 8.7% Dividend Yield

Dividend paying companies with growing earnings can be highly rewarding in the long term. … Conclusion To summarise, shareholders should always check that CenturyLink's dividends are affordable, that its dividend payments are relatively stable, and that it has decent prospects for growing its earnings and dividend. … Earnings per share have been falling, and the company has cut its dividend at least once in the past.

Simply Wall St -

Investors Who Bought CenturyLink (NYSE:CTL) Shares Five Years Ago Are Now Down 72%

(NYSE:CTL) share price managed to fall 72% over five long years. … We also note that the stock has performed poorly over the last year, with the share price down 49%. … Generally speaking long term share price weakness can be a bad sign, though contrarian investors might want to research the stock in hope of a turnaround.

Simply Wall St -

These 4 Measures Indicate That CenturyLink (NYSE:CTL) Is Using Debt Extensively

Debt and other liabilities become risky for a business when it cannot easily fulfill those obligations, either with free cash flow or by raising capital at an attractive price. … When we examine debt levels, we first consider both cash and debt levels, together. … If you're interested in investing in businesses that can grow profits without the burden of debt, then check out this free list of growing businesses that have net cash on the balance sheet.

Simply Wall St -

Could CenturyLink, Inc.'s (NYSE:CTL) Investor Composition Influence The Stock Price?

Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. … It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. … Insider Ownership Of CenturyLink The definition of company insiders can be subjective, and does vary between jurisdictions.

Simply Wall St -

Should You Be Worried About Insider Transactions At CenturyLink, Inc. (NYSE:CTL)?

So shareholders might well want to know whether insiders have been buying or selling shares in CenturyLink, Inc. … But logic dictates you should pay some attention to whether insiders are buying or selling shares. … All up, insiders sold more shares in CenturyLink than they bought, over the last year.

Simply Wall St -

Here's How P/E Ratios Can Help Us Understand CenturyLink, Inc. (NYSE:CTL)

The goal of this article is to teach you how to use price to earnings ratios (P/E ratios). … CenturyLink has a price to earnings ratio of 8.08, based on the last twelve months. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

What Does CenturyLink, Inc.'s (NYSE:CTL) Share Price Indicate?

received a lot of attention from a substantial price movement on the NYSE over the last few months, increasing to $21.99 at one point, and dropping to the lows of $14.52. … Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price? … A question to answer is whether CenturyLink's current trading price of $15.39 reflective of the actual value of the?

Simply Wall St -

Did CenturyLink, Inc. (NYSE:CTL) Insiders Sell Shares?

We often see insiders buying up shares in companies that perform well over the long term. … So it may not tell us anything about how insiders feel about the current share price. … Over the last year we saw more insider selling of CenturyLink shares, than buying.

Simply Wall St -

Do Directors Own CenturyLink Inc (NYSE:CTL) Shares?

Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. … Companies that used to be publicly owned tend to have lower insider ownership. … Taking a look at the our data on the ownership groups (below), it's seems that.

Simply Wall St -

With A 7.0% Return On Equity, Is CenturyLink Inc (NYSE:CTL) A Quality Stock?

With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … Another way to think of that is that for every $1 worth of equity in the company, it was able to earn $0.070. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

CTL Company Info

Description

CenturyLink, Inc. provides various communications services to residential, business, wholesale, and governmental customers in the United States and internationally. The company operates in two segments, Business and Consumer. It offers VPN data network services; Ethernet services; Internet protocol (IP) services; facilities-based Prism TV service, as well as satellite digital television services; CDN services; and Vyvx broadcast services. The company also provides broadband services, which allow customers to connect to the Internet through their existing telephone lines or fiber-optic cables; private line services for transmission of data between sites; wavelength services; and colocation and data center services, such as hosting, cloud, and managed solutions. In addition, it offers network management, installation and maintenance of data equipment, and building of fiber-optic broadband networks; professional services; and network security services, as well as sells equipment. Further, the company offers voice services; voice over IP services; and managed services comprising network, hosting, cloud, and information technology services, as well as leases and subleases space in its office buildings, warehouses, and other properties. As of December 31, 2018, it served approximately 4.8 million broadband subscribers. CenturyLink, Inc. was founded in 1968 and is headquartered in Monroe, Louisiana.

Details
Name: CenturyLink, Inc.
CTL
Exchange: NYSE
Founded: 1968
$15,470,350,929
1,090,229,100
Website: http://www.centurylink.com
Address: CenturyLink, Inc.
100 CenturyLink Drive,
Monroe,
Louisiana, 71203,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE CTL Common Stock New York Stock Exchange US USD 14. Dec 1972
DB CYT Common Stock Deutsche Boerse AG DE EUR 14. Dec 1972
LSE 0HVP Common Stock London Stock Exchange GB USD 14. Dec 1972
BMV CTL * Common Stock Bolsa Mexicana de Valores MX MXN 14. Dec 1972
ETLX CYT Common Stock Eurotlx IT EUR 14. Dec 1972
Number of employees
Current staff
Staff numbers
43,000
CenturyLink employees.
Industry
Alternative Carriers
Telecom
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/12/07 23:34
End of day share price update: 2019/12/06 00:00
Last estimates confirmation: 2019/12/04
Last earnings filing: 2019/11/07
Last earnings reported: 2019/09/30
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.