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What: Did you think the old Ma Bell had been virtually reconstituted with AT&T's
So what: Cincinnati Bell
Now what: That sounds pretty good, but remember to read the fine print on your wireless agreement. While C-Bell claims to have earned adjusted earnings before interest, taxes, depreciation, and amortization of $530 million, the devil is in the BITDA details. Ex-out the ITDA, and C-Bell actually netted only $0.08 per share in GAAP profit, down 20% from last year -- and a mere $5 million in free cash flow.
What that means is that this $640 million telecom, pegged for 2.5% long-term growth, is selling for about 27 times GAAP earnings today. It's a bit cheaper when valued on free cash flow (5.3). But considering that, unlike its larger telecom siblings, C-Bell doesn't pay any dividend at all, it's still no bargain for the growth rate.
Want to learn more about Cincinnati Bell? Add it to your watchlist.