Lumen Technologies LUMN
United StatesCommunication Services · Telecom ServicesUSD
7.64 USD (+35.9%)
10 analysts
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Lumen Technologies is a U.S. telecommunications company that provides network, communications, and cloud solutions to enterprises and carriers, managing an extensive fiber optic infrastructure.
Key points
from its scores- ✓High-quality business8.1
- ✕Weak growth1.3
- ✕Unfavourable risk and backdrop1.9
- ✕Little or no dividend4.3
AI analysis
bottom line, main risk, context and newsIts high leverage and business contraction make it vulnerable to a rising rate environment, with no visibility of near-term improvement.
Lumen presents a highly deteriorated financial profile: net debt of 5.2x EBITDA, negative operating margin (-2.89%), and a revenue decline of -9.3%, making it a high-risk company with a valuation that already discounts these weaknesses (FCF yield of 36.55%).
The main risk is its unsustainable debt level (5.2x EBITDA) combined with negative operating margins, which could lead to solvency issues if high rates persist and it fails to reverse the revenue decline.
Context and risks
Lumen operates in the U.S. telecom sector with very high leverage (Net Debt/EBITDA of 5.2x) and negative operating margins, exposing it to tighter financial conditions. Its high beta (2.54) and 4th percentile position in the 52-week range reflect a high-risk profile, exacerbated by the need to refinance significant debt in a rising rate environment.
Is Lumen Technologies stock cheap or expensive?
at the analysis dateOn EV / EBITDA, it trades 17% below the Communication Services median.
| Multiple | Company | Sector | Difference |
|---|---|---|---|
| EV / EBITDA | 7.9 | 9.6 | −17% |
| Price / sales | 0.5 | 1.9 | −75% |
Sector: median of the 102 Communication Services companies analysed. In bold, the multiples used for the comparison.
Valuation score: 5.0 out of 10 (median for Communication Services: 6.3).
Average analyst target: 7.64 USD, +35.9% versus the price.
A discount may reflect more risk or slower growth than its sector: Financial health 4.4 (sector 6.6), Growth 1.3 (sector 5.4).
Classic formulas with standard assumptions (5.0% growth, 8-9% discount rate). Indicative only: they change a lot with the assumptions and are not a recommendation.
Work out its fair value yourself →How much would you have made investing every month? →
Comparing it with its sector does not say whether it is a good buy: this is not investment advice.
Score by category
0 to 10 · hover overtap each one to see what it measuresKey metrics
at the analysis date · compared with the Communication Services medianValuation
- Forward P/E
- −19.0
- EV / EBITDA
- 7.9
- Price / book
- −3.9
- Price / sales
- 0.5
- PEG
- 17.14
- Market cap
- 5.8B USD
- Enterprise value
- 17.7B USD
Profitability
- ROA
- −0.9%
- Gross margin
- 47.8%
- Operating margin
- −2.9%
- Net margin
- −8.7%
- Free cash flow
- 2.1B USD
- FCF yield
- 36.5%
- Cash conversion
- 95%
Solvency
- Total debt
- 13.5B USD
- Net debt
- 11.6B USD
- Cash
- 1.9B USD
- EBITDA
- 2.2B USD
- Net debt / EBITDA
- 5.20
- Current ratio
- 0.96
- Quick ratio
- 0.77
Growth
- Revenue growth
- −9.3%
- EPS (TTM)
- −1.02 USD
- EPS (forward)
- −0.30 USD
Dividend
- Dividend yield
- 0.0%
- Payout
- 50.0%
Risk and market
- Beta
- 1.86
- Analyst consensus
- Hold (10)
- Target price
- 7.64 USD
- 52-week range
- 5.38 – 11.95
Recent news
All LUMN news →Compare it with its sector
All 102 in Communication Services →Frequently asked questions about Lumen Technologies
Is Lumen Technologies stock cheap or expensive?
On EV / EBITDA, it trades 17% below the Communication Services median. Valuation score: 5.0 out of 10 (median for Communication Services: 6.3). Average analyst target: 7.64 USD, +35.9% versus the price. This is not investment advice.
What score does Lumen Technologies get on MeridIAn Screener?
It scores 4.5 out of 10, rank 1,878 of 2,130 (better than 11% of the companies analysed). Its strongest category is Quality / Moat (8.1) and its weakest, Growth (1.3). Analysis of 08/10/2026.
How much is Lumen Technologies worth on the stock market?
Its market capitalisation is 5.8B USD and its enterprise value, debt included, is 17.7B USD.
How much debt does Lumen Technologies have?
Its net debt (debt minus cash) is 11.6B USD. That is 5.20 times its EBITDA; the Communication Services median is 2.19.
Does Lumen Technologies pay a dividend?
It pays no dividend, or almost none.
How has Lumen Technologies stock performed over the last year?
It has fallen 14.6% over the last year, excluding dividends. Over the last 52 weeks it has traded between 5.38 and 11.95 USD. Past performance does not guarantee future results.
What do analysts think of Lumen Technologies?
10 analysts cover it; their average recommendation is “Hold” and their average target is 7.64 USD (+35.9% versus the price). It is an estimate, not market data.