Previously in this series, we covered some recent updates on Windstream (WIN). In this article, we will look at some value-centric metrics of the wireline company and its select peers in the US telecommunication industry. Let’s start with the size of Windstream compared to some peers with operations in the US wireline space.
As we can see in the above chart, as of December 28, 2015, Windstream had a market capitalization of ~$0.69 billion. Looking at the other players in the wireline space, CenturyLink’s (CTL) market capitalization was ~$14.2 billion. Additionally, the market capitalization of Frontier Communications was ~$5.7 billion on the same date.
In terms of enterprise value (or EV), this figure for Windstream was ~$11.5 billion on December 29, 2015. Meanwhile, the same figure for CenturyLink and Frontier was ~$34.3 billion and ~$20.9 billion respectively. The enterprise values of AT&T and Verizon were ~$337.4 billion and ~$298.1 billion, respectively, on the same date.
Windstream’s dividend yield versus its peers
As of December 28, 2015, Windstream had a forward annual dividend yield of ~8.3%. Meanwhile, the same metric for both Frontier and CenturyLink was ~8.6%. In addition, the forward dividend yields of Verizon and AT&T were ~4.9% and ~5.6%, respectively, as of the same date.
Instead of taking direct exposures to the stocks of players in the US wireline industry, you may consider taking a diversified exposure to this space by investing in the SPDR S&P 500 ETF (SPY). SPY held ~2.4% in AT&T, Verizon, CenturyLink, Frontier Communications, and Level 3 Communications (LVLT) as of the end of October 2015.