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GuruFocus Financial Strength Rank measures how strong a company’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 5/10

vs
industry
vs
history
Cash to Debt 0.08
LVLT's Cash to Debt is ranked higher than
59% of the 802 Companies
in the Global Telecom Services industry.

( Industry Median: 0.40 vs. LVLT: 0.08 )
LVLT' s 10-Year Cash to Debt Range
Min: 0.08   Max: 5.46
Current: 0.08

0.08
5.46
Equity to Asset 0.11
LVLT's Equity to Asset is ranked higher than
59% of the 794 Companies
in the Global Telecom Services industry.

( Industry Median: 0.40 vs. LVLT: 0.11 )
LVLT' s 10-Year Equity to Asset Range
Min: -0.06   Max: 0.8
Current: 0.11

-0.06
0.8
Interest Coverage 1.03
LVLT's Interest Coverage is ranked higher than
58% of the 545 Companies
in the Global Telecom Services industry.

( Industry Median: 7.87 vs. LVLT: 1.03 )
LVLT' s 10-Year Interest Coverage Range
Min: 0.05   Max: 1.03
Current: 1.03

0.05
1.03
F-Score: 4
Z-Score: -0.63
M-Score: -2.81
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 3/10

vs
industry
vs
history
Operating margin (%) 10.55
LVLT's Operating margin (%) is ranked higher than
77% of the 768 Companies
in the Global Telecom Services industry.

( Industry Median: 12.93 vs. LVLT: 10.55 )
LVLT' s 10-Year Operating margin (%) Range
Min: -324.92   Max: 12.95
Current: 10.55

-324.92
12.95
Net-margin (%) -1.73
LVLT's Net-margin (%) is ranked higher than
64% of the 768 Companies
in the Global Telecom Services industry.

( Industry Median: 7.37 vs. LVLT: -1.73 )
LVLT' s 10-Year Net-margin (%) Range
Min: -324.72   Max: 205.1
Current: -1.73

-324.72
205.1
ROE (%) -7.73
LVLT's ROE (%) is ranked higher than
62% of the 743 Companies
in the Global Telecom Services industry.

( Industry Median: 12.53 vs. LVLT: -7.73 )
LVLT' s 10-Year ROE (%) Range
Min: -392.82   Max: 37.14
Current: -7.73

-392.82
37.14
ROA (%) -0.85
LVLT's ROA (%) is ranked higher than
64% of the 772 Companies
in the Global Telecom Services industry.

( Industry Median: 5.13 vs. LVLT: -0.85 )
LVLT' s 10-Year ROA (%) Range
Min: -53.43   Max: 14.56
Current: -0.85

-53.43
14.56
ROC (Joel Greenblatt) (%) 8.08
LVLT's ROC (Joel Greenblatt) (%) is ranked higher than
67% of the 764 Companies
in the Global Telecom Services industry.

( Industry Median: 22.84 vs. LVLT: 8.08 )
LVLT' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: -72.29   Max: 27.82
Current: 8.08

-72.29
27.82
Revenue Growth (%) -4.30
LVLT's Revenue Growth (%) is ranked higher than
70% of the 684 Companies
in the Global Telecom Services industry.

( Industry Median: 3.30 vs. LVLT: -4.30 )
LVLT' s 10-Year Revenue Growth (%) Range
Min: 0   Max: 87.5
Current: -4.3

0
87.5
EBITDA Growth (%) -2.60
LVLT's EBITDA Growth (%) is ranked higher than
76% of the 611 Companies
in the Global Telecom Services industry.

( Industry Median: 1.70 vs. LVLT: -2.60 )
LVLT' s 10-Year EBITDA Growth (%) Range
Min: 0   Max: 19.6
Current: -2.6

0
19.6
EPS Growth (%) -55.60
LVLT's EPS Growth (%) is ranked higher than
62% of the 552 Companies
in the Global Telecom Services industry.

( Industry Median: 1.50 vs. LVLT: -55.60 )
LVLT' s 10-Year EPS Growth (%) Range
Min: 0   Max: 223.7
Current: -55.6

0
223.7
» LVLT's 10-Y Financials

Financials


Revenue & Net Income
Cash & Debt
Oprt. Cash Flow & Free Cash Flow

» Details

Guru Trades

Q1 2013

LVLT Guru Trades in Q1 2013

Chris Davis 15,400 sh (New)
Caxton Associates 80,000 sh (New)
Howard Marks 1,000,000 sh (+53.85%)
Prem Watsa 12,931,094 sh (unchged)
Steven Cohen Sold Out
Mason Hawkins 46,158,237 sh (-1.14%)
» More
Q2 2013

LVLT Guru Trades in Q2 2013

Steven Cohen 125,243 sh (New)
Ray Dalio 10,189 sh (New)
Mason Hawkins 48,223,036 sh (+4.47%)
Chris Davis 15,400 sh (unchged)
Howard Marks 1,000,000 sh (unchged)
Caxton Associates Sold Out
Prem Watsa 12,071,803 sh (-6.65%)
» More
Q3 2013

LVLT Guru Trades in Q3 2013

Steven Cohen 1,354,368 sh (+981.39%)
Howard Marks 1,528,500 sh (+52.85%)
Mason Hawkins 48,850,066 sh (+1.3%)
Chris Davis 15,400 sh (unchged)
Ray Dalio Sold Out
Prem Watsa Sold Out
» More
Q4 2013

LVLT Guru Trades in Q4 2013

Jeremy Grantham 11,300 sh (New)
Chuck Royce 5,100 sh (New)
Jim Simons 625,021 sh (New)
Howard Marks 1,564,100 sh (+2.33%)
Chris Davis 15,400 sh (unchged)
Mason Hawkins 48,481,997 sh (-0.75%)
Steven Cohen 1,177,097 sh (-13.09%)
» More
» Details

Insider Trades

Latest Guru Trades with LVLT

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
Prem Watsa 2013-09-30 Sold Out 10.2%$20.34 - $27.36 $ 38.2966%0
Ray Dalio 2013-09-30 Sold Out $20.34 - $27.36 $ 38.2966%0
Prem Watsa 2013-06-30 Reduce -6.65%0.65%$19.34 - $23.99 $ 38.2980%12071803
Mason Hawkins 2013-06-30 Add 4.47%0.21%$19.34 - $23.99 $ 38.2980%48223036
Ray Dalio 2013-06-30 New Buy$19.34 - $23.99 $ 38.2980%10189
Mason Hawkins 2012-06-30 Add 9.3%0.39%$19.41 - $26.96 $ 38.2966%48704217
George Soros 2012-06-30 Sold Out 0.25%$19.41 - $26.96 $ 38.2966%0
John Griffin 2012-03-31 Sold Out 2.5%$16.87 - $27.53 $ 38.2986%0
Mason Hawkins 2012-03-31 Add 11.36%0.5%$16.87 - $27.53 $ 38.2986%44559941
George Soros 2012-03-31 New Buy0.25%$16.87 - $27.53 $ 38.2986%666200
Mason Hawkins 2011-12-31 Add 31.65%0.75%$16.72 - $27.4 $ 38.2980%40013107
John Griffin 2011-12-31 Add 39.08%0.7%$16.72 - $27.4 $ 38.2980%7714937
Prem Watsa 2011-09-30 Add 40.17%4.03%$21.5892 - $39.2804 $ 38.2932%193966419
Mason Hawkins 2011-09-30 Add 6.07%0.18%$21.5892 - $39.2804 $ 38.2932%455682193
John Griffin 2011-06-30 Add 354.32%2.39%$21.29 - $35.98 $ 38.2933%83164130
John Griffin 2011-03-31 Add 135.13%0.26%$14.69 - $22.04 $ 38.29100%18305000
Mario Gabelli 2011-03-31 Sold Out $14.69 - $22.04 $ 38.29100%0
Premium More recent guru trades are included for Premium Members only!!
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Guru Investment Theses on Level 3 Communications Inc

Mason Hawkins Comments on Level 3 Communications - Feb 17, 2014

Level 3 Communications (LVLT) was a key contributor in the fourth quarter, adding 24% and boosting 2013 gains to 44%. The company reported strong results following the appointment of Jeff Storey as CEO in April. Revenue growth and significant cost reductions improved margins. The company also refinanced $2.6 billion in debt. Large internet-based companies looking to control their customer connections highlighted the value of Level 3's dark fiber, which is not reflected in revenues. As management continues to execute, value growth should be meaningful. Growing revenues will especially benefit Level 3 given its fixed-cost asset base, lower-than-average maintenance capital spending, and minimal tax liability.

From Mason Hawkins (Trades, Portfolio)' 2013 Longleaf Partners Fund management discussion.

Check out Mason Hawkins latest stock trades

Mason Hawkins' Longleaf Partners Comments on Level 3 - Aug 14, 2013

Level 3 (LVLT) was a detractor in the first half, with price falling 9%. The stock declined in the first quarter after reporting lower-than-expected operating income and 2013 guidance. However, the price rebounded 2% in the second quarter after former COO Jeff Storey was appointed the new CEO. We believe he has the right set of skills and experience to deliver solid revenue growth and cash flow.

From Mason Hawkins' semi-annual 2013 report.
Check out Mason Hawkins latest stock trades

Mason Hawkins' Southeastern Asset Management Comments on Level 3 Communications - May 23, 2012

Summary: Southeastern is as well-positioned at Level 3 (LVLT) as they have ever been. The debt is very conservatively positioned. The growing operating cash and free cash generation more than takes care of any creditor concerns that even the critics had. The tailwind is blowing even stronger today as more people share video on all devices. The company is in a critical and enviable position. They are in discussion with them on how to leverage that correctly. Units are growing nicely. Pricing is stronger than it has ever been and will get even better. At the next meeting they think their thesis will be even better. Their complaints about Level 3 have only been a function of sales and pricing where they thought they were a little bit short. New discipline in the boardroom is helping that and results are positive. Shorts are going to hammer the company though. Will not be a straight line or clean thing PR-wise. They have owner-operators on the board also.

Listen to the complete audio here.


Check out Mason Hawkins latest stock trades

Top Ranked Articles about Level 3 Communications Inc

Mason Hawkins Comments on Level 3 Communications
Level 3 Communications (LVLT) was a key contributor in the fourth quarter, adding 24% and boosting 2013 gains to 44%. The company reported strong results following the appointment of Jeff Storey as CEO in April. Revenue growth and significant cost reductions improved margins. The company also refinanced $2.6 billion in debt. Large internet-based companies looking to control their customer connections highlighted the value of Level 3's dark fiber, which is not reflected in revenues. As management continues to execute, value growth should be meaningful. Growing revenues will especially benefit Level 3 given its fixed-cost asset base, lower-than-average maintenance capital spending, and minimal tax liability. Read more...
Mason Hawkins' Longleaf Partners Comments on Level 3
Level 3 (LVLT) was a detractor in the first half, with price falling 9%. The stock declined in the first quarter after reporting lower-than-expected operating income and 2013 guidance. However, the price rebounded 2% in the second quarter after former COO Jeff Storey was appointed the new CEO. We believe he has the right set of skills and experience to deliver solid revenue growth and cash flow. Read more...

Ratios

vs
industry
vs
history
P/B 6.10
LVLT's P/B is ranked lower than
52% of the 735 Companies
in the Global Telecom Services industry.

( Industry Median: 2.26 vs. LVLT: 6.10 )
LVLT' s 10-Year P/B Range
Min: 1.01   Max: 135
Current: 6.1

1.01
135
P/S 1.35
LVLT's P/S is ranked higher than
63% of the 823 Companies
in the Global Telecom Services industry.

( Industry Median: 1.47 vs. LVLT: 1.35 )
LVLT' s 10-Year P/S Range
Min: 0.23   Max: 2.17
Current: 1.35

0.23
2.17
EV-to-EBIT 25.00
LVLT's EV-to-EBIT is ranked lower than
51% of the 713 Companies
in the Global Telecom Services industry.

( Industry Median: 14.19 vs. LVLT: 25.00 )
LVLT' s 10-Year EV-to-EBIT Range
Min: 20   Max: 2072
Current: 25

20
2072

Valuation & Return

vs
industry
vs
history
Price/DCF (Projected) 17.80
LVLT's Price/DCF (Projected) is ranked lower than
53% of the 486 Companies
in the Global Telecom Services industry.

( Industry Median: 1.00 vs. LVLT: 17.80 )
LVLT' s 10-Year Price/DCF (Projected) Range
Min: 15.43   Max: 15.43
Current: 17.8

Price/Median PS Value 1.80
LVLT's Price/Median PS Value is ranked lower than
54% of the 724 Companies
in the Global Telecom Services industry.

( Industry Median: 1.00 vs. LVLT: 1.80 )
LVLT' s 10-Year Price/Median PS Value Range
Min: 0.34   Max: 70.91
Current: 1.8

0.34
70.91
Earnings Yield (Greenblatt) 4.00
LVLT's Earnings Yield (Greenblatt) is ranked higher than
55% of the 719 Companies
in the Global Telecom Services industry.

( Industry Median: 6.90 vs. LVLT: 4.00 )
LVLT' s 10-Year Earnings Yield (Greenblatt) Range
Min: 0.1   Max: 5
Current: 4

0.1
5
Forward Rate of Return (Yacktman) -14.58
LVLT's Forward Rate of Return (Yacktman) is ranked higher than
65% of the 626 Companies
in the Global Telecom Services industry.

( Industry Median: 8.68 vs. LVLT: -14.58 )
LVLT' s 10-Year Forward Rate of Return (Yacktman) Range
Min: -72.6   Max: 2.8
Current: -14.58

-72.6
2.8

Business Description

Industry: Communication Services » Telecom Services
Compare:CHU, VOD, T, VZ, AMOV » details
Traded in other countries:LVCN.Germany
Level 3 Communications, Inc. is a Delaware corporation, incorporated in 1941 as Peter Kiewit Sons', Inc. It is a facilities based provider of a broad range of integrated communications services. The Company has created its communications network generally by constructing its own assets, but also through a combination of purchasing and leasing other companies and facilities. The Company's network is a, facilities based communications network. The Company designed its network to provide communications services, which employ and take advantage of rapidly improving underlying optical, Internet Protocol, computing and storage technologies. The Company's reportable segments include: communications and coal mining. The Company's communications service offerings include: Internet Protocol and data services including Internet access and IP and Ethernet Virtual Private Networks and) broadband transport services such as wavelengths, dark fiber and private line services includes transoceanic, backhaul, intercity, metro and unprotected private line services; content distribution services including caching and downloading, streaming as well as video broadcast services; colocation services; and Softswitch and voice services including wholesale VoIP component services, enterprise or business voice services, wholesale voice origination and termination services and managed modem for the dial-up access business. The Company is also engaged in coal mining through its two 50% owned joint-venture surface mines, one each in Montana and Wyoming. It is engaged in coal mining through its subsidiary, KCP, Inc. or KCP. KCP has a 50% interest in two mines, which are operated by a subsidiary of Peter Kiewit Sons', Inc. or PKS. Decker Coal Company or Decker is a joint venture with Western Minerals, Inc., which is a subsidiary of Cloud Peak Energy Inc. Black Butte Coal Company or Black Butte is a joint venture with Bitter Creek Coal Company, a subsidiary of Anadarko Petroleum Corporation. The Decker mine is located in southeastern Montana and the Black Butte mine is in southwestern Wyoming. The coal mines use the surface mining method. The coal produced from the KCP mines is sold primarily to electric utilities, which burn coal to produce steam to generate electricity. The Company's main competitors are long distance carriers, incumbent local exchange carriers, competitive local exchange carriers, PTTs, Content Delivery Network companies and other companies that provide communications services. The Federal Communications Commission or the FCC has jurisdiction over interstate and international communications services.

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