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21.85 (1y: -2%)
Market Cap 4.88 B P/E(ttm)
Enterprise Value 12.82 B P/B 4.08
LVLT- NYSE (USA)
Level 3 Communications Inc
  • Currently 1/5
Business Predictability Rank: 1-Star
Back Testing Results:
Average gain of all 1-Star stocks: 1.1% per year.
% of Stocks that are in still loss if held for 10yrs: 45%.
Read more:
What is Predictability Rank?
Performances of real portfolio
Top Ranked Predictable Companies
$21.85
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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 : 4/10

vs
industry		 vs
history
Cash to Debt 0.112
LVLT's Cash to Debt is ranked lower than
83% of the 326 Companies
in the Global Telecom Services industry.

( Industry Median: 0.66 vs. LVLT: 0.112 )
LVLT' s 10-Year Cash to Debt Range
Min: 0.1   Max: 0.87
Current: 0.11
0.1
0.87
Equity to Asset -0.125
LVLT's Equity to Asset is ranked lower than
80% of the 326 Companies
in the Global Telecom Services industry.

( Industry Median: 0.26 vs. LVLT: -0.125 )
LVLT' s 10-Year Equity to Asset Range
Min: -0.23   Max: 0.38
Current: -0.13
-0.23
0.38
Interest Coverage 0.8
LVLT's Interest Coverage is ranked lower than
77% of the 326 Companies
in the Global Telecom Services industry.

( Industry Median: 7.30 vs. LVLT: 0.8 )
LVLT' s 10-Year Interest Coverage Range
Min: 0   Max: No Debt
Current: 0.8
F-Score: 3
Z-Score: -0.92
M-Score: -3.11
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 : 2/10

vs
industry		 vs
history
Operating margin (%) 9.00
LVLT's Operating margin (%) is ranked lower than
51% of the 326 Companies
in the Global Telecom Services industry.

( Industry Median: 9.30 vs. LVLT: 9.00 )
LVLT' s 10-Year Operating margin (%) Range
Min: -324.9   Max: 9
Current: 9
-324.9
9
Net-margin (%) -6.6
LVLT's Net-margin (%) is ranked lower than
85% of the 326 Companies
in the Global Telecom Services industry.

( Industry Median: 5.00 vs. LVLT: -6.6 )
LVLT' s 10-Year Net-margin (%) Range
Min: -324.7   Max: -6.6
Current: -6.6
-324.7
-6.6
ROE (%) -36
LVLT's ROE (%) is ranked lower than
94% of the 326 Companies
in the Global Telecom Services industry.

( Industry Median: 8.40 vs. LVLT: -36 )
LVLT' s 10-Year ROE (%) Range
Min: -392.8   Max: -14.3
Current: -36
-392.8
-14.3
ROA (%) -3.2
LVLT's ROA (%) is ranked lower than
84% of the 326 Companies
in the Global Telecom Services industry.

( Industry Median: 3.80 vs. LVLT: -3.2 )
LVLT' s 10-Year ROA (%) Range
Min: -53.4   Max: -3
Current: -3.2
-53.4
-3
ROC (Joel Greenblatt) (%) 7.70
LVLT's ROC (Joel Greenblatt) (%) is ranked lower than
61% of the 326 Companies
in the Global Telecom Services industry.

( Industry Median: 14.20 vs. LVLT: 7.70 )
LVLT' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: -82.5   Max: 7.7
Current: 7.7
-82.5
7.7
Revenue Growth (%) -3.8
LVLT's Revenue Growth (%) is ranked lower than
82% of the 326 Companies
in the Global Telecom Services industry.

( Industry Median: 0.00 vs. LVLT: -3.8 )
LVLT' s 10-Year Revenue Growth (%) Range
Min: -17.2   Max: 49.6
Current: -3.8
-17.2
49.6
EBITDA Growth (%) -5.8
LVLT's EBITDA Growth (%) is ranked lower than
82% of the 326 Companies
in the Global Telecom Services industry.

( Industry Median: 0.00 vs. LVLT: -5.8 )
LVLT' s 10-Year EBITDA Growth (%) Range
Min: -16.8   Max: 71.5
Current: -5.8
-16.8
71.5
EPS Growth (%) -23.4
LVLT's EPS Growth (%) is ranked lower than
90% of the 326 Companies
in the Global Telecom Services industry.

( Industry Median: 0.00 vs. LVLT: -23.4 )
LVLT' s 10-Year EPS Growth (%) Range
Min: -52.6   Max: 17.9
Current: -23.4
-52.6
17.9
» LVLT's 10-Y Financials

Financials


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

» Details

Guru Trades
Q2 2012

LVLT Guru Trades in Q2 2012

Jim Simons 825,121 sh (+404.91%)
Mason Hawkins 48,704,217 sh (+9.3%)
Howard Marks 650,000 sh (unchged)
Prem Watsa 12,931,094 sh (unchged)
George Soros Sold Out
Pioneer Investments Sold Out
Steven Cohen 2,540,803 sh (-10.93%)
Jeremy Grantham 10,816 sh (-95.23%)
» More
Q3 2012

LVLT Guru Trades in Q3 2012

Prem Watsa 12,931,094 sh (unchged)
Howard Marks 650,000 sh (unchged)
Jim Simons Sold Out
Mason Hawkins 48,195,212 sh (-1.05%)
Jeremy Grantham 10,300 sh (-4.77%)
Steven Cohen 1,888,981 sh (-25.65%)
» More
Q4 2012

LVLT Guru Trades in Q4 2012

Prem Watsa 12,931,094 sh (unchged)
Howard Marks 650,000 sh (unchged)
Mason Hawkins 46,689,490 sh (-3.12%)
Steven Cohen 1,420,086 sh (-24.82%)
» More
Q1 2013

LVLT Guru Trades in Q1 2013

Bruce Kovner 80,000 sh (New)
Chris Davis 15,400 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
» Details

Insider Trades

Latest Guru Trades with LVLT

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
Mason Hawkins 2012-06-30 Add 9.3%0.39%$19.41 - $26.96 $ 21.85-5%48704217
George Soros 2012-06-30 Sold Out 0.25%$19.41 - $26.96 $ 21.85-5%0
John Griffin 2012-03-31 Sold Out 2.5%$16.87 - $27.53 $ 21.856%0
Mason Hawkins 2012-03-31 Add 11.36%0.5%$16.87 - $27.53 $ 21.856%44559941
George Soros 2012-03-31 New Buy0.25%$16.87 - $27.53 $ 21.856%666200
Mason Hawkins 2011-12-31 Add 31.65%0.75%$16.72 - $27.4 $ 21.853%40013107
John Griffin 2011-12-31 Add 39.08%0.7%$16.72 - $27.4 $ 21.853%7714937
Prem Watsa 2011-09-30 Add 40.17%4.03%$21.5892 - $39.2804 $ 21.85-25%193966419
Mason Hawkins 2011-09-30 Add 6.07%0.18%$21.5892 - $39.2804 $ 21.85-25%455682193
John Griffin 2011-06-30 Add 354.32%2.39%$21.29 - $35.98 $ 21.85-24%83164130
John Griffin 2011-03-31 Add 135.13%0.26%$14.69 - $22.04 $ 21.8514%18305000
Mario Gabelli 2011-03-31 Sold Out $14.69 - $22.04 $ 21.8514%0
John Griffin 2010-09-30 New Buy0.11%$13.94 - $17.99 $ 21.8536%7785000
Mario Gabelli 2010-09-30 Add 75%$13.94 - $17.99 $ 21.8536%35000
Mason Hawkins 2010-06-30 Add 4.86%0.12%$16.64 - $25.79 $ 21.856%484231646
Mario Gabelli 2010-06-30 New Buy$16.64 - $25.79 $ 21.856%20000
Mason Hawkins 2010-03-31 Add 7.17%0.23%$19.04 - $26.24 $ 21.85-4%461797456
Premium More recent guru trades are included for Premium Members only!!

Guru Investment Theses on Level 3 Communications Inc

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

Ratios

vs
industry		 vs
history
P/B 4.08
LVLT's P/B is ranked lower than
71% of the 303 Companies
in the Global Telecom Services industry.

( Industry Median: 2.13 vs. LVLT: 4.08 )
LVLT' s 10-Year P/B Range
Min: 0.24   Max: 135
Current: 4.08
0.24
135
P/S 0.75
LVLT's P/S is ranked higher than
73% of the 325 Companies
in the Global Telecom Services industry.

( Industry Median: 1.40 vs. LVLT: 0.75 )
LVLT' s 10-Year P/S Range
Min: 0.23   Max: 75.6
Current: 0.75
0.23
75.6
EV-to-EBIT 20.87
LVLT's EV-to-EBIT is ranked lower than
69% of the 275 Companies
in the Global Telecom Services industry.

( Industry Median: 14.70 vs. LVLT: 20.87 )
LVLT' s 10-Year EV-to-EBIT Range
Min: 20   Max: 5179.1
Current: 20.87
20
5179.1

Valuation & Return

vs
industry		 vs
history
Price/Net Current Asset Value 9.9
LVLT's Price/Net Current Asset Value is ranked higher than
66% of the 235 Companies
in the Global Telecom Services industry.

( Industry Median: 18.50 vs. LVLT: 9.9 )
LVLT' s 10-Year Price/Net Current Asset Value Range
Min: 4.5   Max: 57.2
Current: 9.9
4.5
57.2
Price/Median PS Value 1.1
LVLT's Price/Median PS Value is ranked lower than
54% of the 312 Companies
in the Global Telecom Services industry.

( Industry Median: 1.10 vs. LVLT: 1.1 )
LVLT' s 10-Year Price/Median PS Value Range
Min: 0.4   Max: 14.2
Current: 1.1
0.4
14.2
Earnings Yield (Greenblatt) 4.80
LVLT's Earnings Yield (Greenblatt) is ranked lower than
57% of the 326 Companies
in the Global Telecom Services industry.

( Industry Median: 5.70 vs. LVLT: 4.80 )
LVLT' s 10-Year Earnings Yield (Greenblatt) Range
Min: 0.4   Max: 5
Current: 4.8
0.4
5
Forward Rate of Return (Yacktman) -11.4
LVLT's Forward Rate of Return (Yacktman) is ranked lower than
92% of the 326 Companies
in the Global Telecom Services industry.

( Industry Median: 0.00 vs. LVLT: -11.4 )
LVLT' s 10-Year Forward Rate of Return (Yacktman) Range
Min: -58.4   Max: -8.1
Current: -11.4
-58.4
-8.1

Business Description

Level 3 Communications, Inc. is a Delaware corporation. 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 an advanced, international, 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 offers a broad range of communications services, which currently include the following services. 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.
Company Website
SEC Reports
Industry: Telecom Services
Compare:CHU, VOD, T, VZ, AMOV
Traded in other countries:LVCN.Germany
» More Articles for LVLT

Headlines

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Prem Watsa’s RFP Stake Gets Bigger Dec 19 2012 
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Prem Watsa’s Temporary Hedging Losses Could Lead to Outsized Gains Again Oct 30 2012 
Mason Hawkins of Longleaf Partners Interview with GuruFocus Sep 17 2012 
New Picks from Prem Watsa: INMD, JAKK, PBNY, TWN, Adds to RIMM Aug 15 2012 
Mason Hawkins of Southeastern Asset Management Answering Readers' Questions Now Jul 17 2012 
Stocks Trading for Less Than David Einhorn and Prem Watsa Paid for Them Jun 19 2012 
Mason Hawkins' Southeastern Asset Management Level 3 Communications May 23 2012 
The 6 Stocks Prem Watsa Discusses in His Annual Letter Mar 14 2012 

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