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Lumen Technologies: 7% Yield, Lower Debt, Undervalued Vs. Peers

Apr. 03, 2021 9:15 AM ETLumen Technologies, Inc. (LUMN)136 Comments


  • LUMN yields 7.6%, with a 40% free cash flow payout ratio.
  • It's cheaper vs. Telecom industry averages on P/E, P/Book, P/Sales, and EV/EBITDA bases.
  • Interest expense fell by 17% in 2020, and management paid down 9% of debt.
  • There are also 2 high yield options trades at the end of this article.
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Photo by Sono Creative/iStock via Getty Images

Lumen Technologies (NYSE:LUMN) was formerly known as CenturyLink, a legacy telecom which has been transitioning into data services, in order to battle landline attrition. Management has invested in fiber cable assets, as a part of this

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Analyst’s Disclosure: I am/we are long LUMN. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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