Lumen Tech – Stock Price Prediction

This report provides a summary of key financial metrics and growth estimates for Lumen Technologies Inc. (LUMEN) over the period from 2016 to 2023. The analysis covers Earnings per Share (EPS), Net Profits, Revenue, Shareholders’ Equity, and Long-Term Debt. Additionally, projections are provided for future EPS and stock price growth over the next 10 years.


1. Earnings per Share (EPS):

  • Initial EPS (2016): $1.16
  • Current EPS (2023): $-10.00
  • Annual EPS Growth Rate (CAGR): -29.54%
  • Projected EPS in 10 Years: $0.00
  • Estimated Stock Price in 10 Years: $0.02
  • Annual Stock Price Growth Rate (CAGR): -45.62%

2. Net Profits:

  • Initial Net Profits (2016): $626 million
  • Current Net Profits (2023): $-10 billion
  • Annual Net Profits Growth Rate (CAGR): -96.01%

3. Revenue:

  • Initial Revenue (2016): $17 billion
  • Current Revenue (2023): $14 billion
  • Annual Revenue Growth Rate (CAGR): -2.74%

4. Shareholders’ Equity:

  • Initial Equity (2016): $13 billion
  • Current Equity (2023): $417 million
  • Annual Equity Growth Rate (CAGR): -38.82%

5. Long-Term Debt:

  • Initial Long-Term Debt (2016): $18 billion
  • Current Long-Term Debt (2023): $19 billion
  • Annual Long-Term Debt Growth Rate (CAGR): 0.78%
  • Years to Pay Off Long-Term Debt Using Net Profit: -1.90 years

Key Insights:

  • EPS Decline: Lumen has seen a dramatic decline in earnings per share, dropping from $1.16 to -$10.00, representing a significant negative growth rate of -29.54%.
  • Net Profit Collapse: Net profits have plummeted at a staggering rate of -96.01%, indicating severe financial struggles.
  • Revenue Decline: Revenue has decreased slightly at a -2.74% CAGR, reflecting operational challenges.
  • Equity Erosion: Shareholders’ equity has significantly eroded, shrinking by 38.82% annually, leaving a minimal equity base of $417 million.
  • Debt Burden: Lumen’s long-term debt has grown modestly, but given its negative profitability, the company would not be able to pay off its long-term debt with current net profits, indicating severe financial stress.
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