WIN Investment Analysis Report & Stock Research, Windstream Corp.

Windstream Corporation (WIN)

WIN Stock Report

2-Year Price History

View Larger WIN Chart
NASDAQ:WIN
$10.19
(2/9 1:48PM)
+2.0%
Open$10.12 Mkt Cap$4.3 Billion
High$10.23 52Wk High$11.65
Low$10.06 52Wk Low$6.28
Volume2.2 Million Avg Vol 10D4.9 Million

Ockham's Rating/Recommendation Summary

Rating specific information requires Premium Access.
Buy Now or Learn More about Ockham's Features and Services.

WIN Revenue

For a long time, value investors have used the current share price relative to sales per share levels as an important valuation tool. We utilize a historical weighted average methodology that treats recent years more importantly in the calculation. When looking at WIN through this framework, we can see that our weighted average historical high and low Price to Sales per share ratios over the last 6 years are 2.03x and 1.26x respectively.

Utilizing this range we can see that WIN’s current Price to Sales per share ratio of 1.41x is below its historical average only slightly. So, while not a huge positive for our analysis, we do feel it is worth noting that WIN does look a bit undervalued on a Price to Sales basis, all other factors being equal. However, if the Price to Sales ratio drops further, Ockham Research is likely to become more bullish on this stock.

WIN Cash Earnings

As a value investment framework, Ockham Research is similar to a private equity firm in terms of our valuation methods. We are always on the lookout for value in the form of sales and cash numbers. In the case of WIN, Ockham views their current Cash Earnings as below its historical average multiple of cash earnings as calculated by Ockham. Similar to our analysis of sales per share, Ockham looks at the last 6 years of cash earnings levels for WIN to identify where the current high and low price levels have been historically in relation to profit per share. Again, we utilize a weighted average methodology which relies more heavily on recent years of data. This weighted average framework provides us with an average high Price to Cash Earnings ratio per share of 6.70 and a 4.08 low over the same period.

At its current price of $10.00, the Price to Cash Earnings ratio of 4.95 per share for WIN is relatively attractive. At current profitability levels, a drop in share price would only improve our future expectations. Again, Cash Earnings is an incredibly valuable metric, and management at WIN must continue on its generation to improve our overall outlook for the stock.

WIN Dividends

A positive Ockham rating does not require a company to pay out an inviting dividend or a dividend at all. However, we believe dividends provide a useful measure of a company's inherent expectations.

Comparable to our analysis of Sales and Cash Earnings per share, we examine dividend yields from WIN against the historic high and low levels over an available data range. Because WIN has an established history of paying a dividend to shareholders, there is value in comparing recent dividends to historical dividends. In WIN’s case, the estimated annual dividend is $1.00 producing a current dividend yield of 10.00%. The highest dividend yield from WIN in recent history was 15.92% while the lowest dividend yield was 5.57%. Given this range, the current dividend yield for WIN is below its historical median and not terribly attractive from this perspective.

Peer Comparison

:

Windstream Corp. Industry Grouping

(2/8/2010)
Company Ticker Market Cap (Ml) Latest
Price
Price/Cash Earnings Price/Sales 5-Yr. Rev.
Growth Rate
5-Yr.
Avg. ROE.
Current 10-Yr. Range* Current 10-Yr. Range*
Peer Company Averages (not including WIN) 8.07 1.30 » 49.64 2.53 0.27 » 3.93 23.83% 8.45%
*10 year range does not include current year values
TELUS Corp. TU $4.6 Billion $29.17 4.36 1.42 » 8.28 1.35 0.27 » 2.63 7.11% 13.68%
Tele Norte Leste Partticipacoes SA TNE $4.4 Billion $17.25 3.95 1.67 » 7.21 0.84 0.37 » 2.19 10.70% 14.42%
Windstream Corp. WIN $4.3 Billion $9.99 4.95 3.07 » 8.87 1.41 0.88 » 2.27 44.85% 78.28%
Brasil Telecom SA ADS Pfd Shs Sponsored American Deposit Receipt Repr 3 Pfd Shs BTM $4.2 Billion $20.82 4.88 1.22 » 26.30 2.59 0.36 » 1.68 12.13% 8.01%
TIM Participacoes S.A. TSU $4.0 Billion $25.80 5.36 1.78 » 10.36 1.06 0.31 » 2.97 71.73% 6.19%
SBA Communications Corp. SBAC $3.8 Billion $32.18 21.77 0.41 » 196.07 6.82 0.04 » 10.21 17.50% -0.03%
Ockham Coverflow

Sharpen Your Investing

  • Access to over 5,000 stock reports
  • Portfolio Analytics and Tracking
  • Business Television Tracking
  • CNBC and Fox Business Show Recaps
Get Started
The Latest Financial News
The most recent Stocks on Financial TV & Blogs from impactful financial news sources
10:45A, Dec. 10,2009 WIN $10.95 Windstream Corp.
Squawk On The Street

Squawk On The Street: Get Plugged into WIN News Regarding The CEO

CEO's are the strategic leaders of their companies, so any mention of them will garner special interest from us.

As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, WIN has been less covered in the news compared to the rest of our universe of stocks. The Motley Fool CAPS data suggests that investors believe Windstream Corporation will beat the market in the foreseeable future. After factoring in the current fundamentals versus their historically normal ranges, we have established a Fairly Valued stance on WIN.

“… meantime WINDSTREAM corporation one of the leading rural telecom carriers in the united states, a company making a switch to list on the nasdaq from the nyse. …”

9:30A, Dec. 10,2009 WIN $10.98 Windstream Corp.
Squawk On The Street

WIN News Mentioned on Squawk On The Street Recently

As always, the latest news on WIN is available to Ockham clients through RazorWire, and it was mentioned recently on Squawk On The Street.

As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, WIN has been less covered in the news compared to the rest of our universe of stocks. The Motley Fool CAPS data suggests that investors believe Windstream Corporation will beat the market in the foreseeable future. After factoring in the current fundamentals versus their historically normal ranges, we have established a Fairly Valued stance on WIN.

“… Time warner and listing on the our david faber will speak with the ceo tim armstrong in a few the nasdaq, WINDSTREAM. Ticker win, provider of telecom services, to world ... …”

6:10P, Dec. 07,2009 WIN $10.97 Windstream Corp.
Mad Money

Holding WIN Stock? See What Is Being Discussed on Mad Money

The latest news from business television and influential blogs is always available through Ockham's RazorWire, and this news is in relation to Windstream Corporation.

We noticed recently that in comparison to all other stocks we analyze in the news; WIN has received less coverage from the financial media in business television and blogs. Windstream Corporation receives our Fairly Valued rating in our latest report because the current price does not seem out of line with the fundamentals. Crowd sentiment is leaning to the bearish side, according to the robust data set collected by the Motley Fool CAPS survey.

“… cash and .8 shares of WINDSTREAM per share. It's a big hit. >> caller: I give you all the >> caller: I wanted to get your …”

6:43P, Nov. 17,2009 WIN $10.04 Windstream Corp.
Mad Money

Income Investors: A Discussion of WIN and Dividends on Mad Money

If WIN's dividends are important to you, take a look at the news as they were the topic of conversation on Mad Money.

Windstream Corporation receives our Fairly Valued rating in our latest report because the current price does not seem out of line with the fundamentals. From a news flow perspective, there is nothing out of the ordinary in where WIN ranks in comparison to other stocks we follow. Crowd sentiment is leaning to the bearish side, according to the robust data set collected by the Motley Fool CAPS survey.

“… Just like we did with WINDSTREAM, we need the ceo of alaska -- yeah, we had -- we need her back on. I can't make a judgment on a 12% yield. It's just too dicey for me. …”

3:54P, Nov. 09,2009 WIN $10.05 Windstream Corp.
Closing Bell

Closing Bell: A View Towards WIN's Valuation

Third-quarter profits rose 4%, $92 million, despite a wetter than usual summer. The company was able to increase customer rates. Telephone company WINDSTREAM increasing to $80 million, excludeing charges that missed wall street's estimates because of lower than expected revenue. Lexmark added to the sale list which says shares are overvalued given the weak competitive position. Cnbc is your home for earnings

“… r than expected revenue. Lexmark added to the sale list which says shares are overvalued given the weak competitive position. Cnbc is your home for earnings …”

6:44P, Nov. 03,2009 WIN $9.83 Windstream Corp.
Mad Money

Windstream Corporation (WIN) Discussed on CNBC's Mad Money

Windstream Corporation is in the news. Find out how this impacts WIN trading on Ockham Research.

Deceptive dividend, these guys are paying out twice what they're taking I >> and jim, that's why you're going to sell the stock I think it's dangerous. If you want to have a high-yielding telco i'll send you to WINDSTREAM which dp a pretty good acquisition today. You're playing the wrong table at the mohegan sun, my friend. How about we go to scott in texas? Scott. >> caller: boo-yah, jim. >> yeah, this way. Poke 'em horns. >> caller: I just got your book. It's very, very good reading. I'm only into the third chapter --

“… n today. You're playing the wrong table at the mohegan sun, my friend. How about we go to scott in texas? Scott. >> caller: boo-yah, jim. >> yeah, this way. Poke 'em horns. >> caller: I just got your book. It's very, very good reading. I'm only into the third chapter -- …”

6:36P, Oct. 27,2009 WIN $9.75 Windstream Corp.
Mad Money

Windstream Corporation (WIN) Discussed on CNBC's Mad Money

Windstream Corporation is in the news. Find out how this impacts WIN trading on Ockham Research.

>> disappointing, disappointing, if we're going to get disappointing we're going to go with verizon. It wasn't that bad. It's got a 6% yield. We're not going to fool around. Now, also, don't forget we like WINDSTREAM, win. Boy, has he been right. That stock is at a 52-week high almost but it still yields 10%. That's a better play. We're going to get telco we want let's go to todd in hawaii. >> caller: hey, jim. Big boo-yah from the aloha >> how much -- all of our callers have tremendous, tremendous brainpower that we've

“… ck is at a 52-week high almost but it still yields 10%. That's a better play. We're going to get telco we want let's go to todd in hawaii. >> caller: hey, jim. Big boo-yah from the aloha >> how much -- all of our callers have tremendous, tremendous brainpower that we've …”

6:44P, Oct. 19,2009 WIN $10.18 Windstream Corp.
Mad Money

Windstream Corporation (WIN) Discussed on CNBC's Mad Money

Windstream Corporation is in the news. Find out how this impacts WIN trading on Ockham Research.

Be worried about companies that have that kind of mid-market that's been dangerous so far. If the company disagrees with me and wants to tell me why the dividend's good, like the WINDSTREAM guys, boy, are we making money there, I welcome them onto the show and not just the guy can come to the book george in north carolina. Georgie. >> caller: jim. A first and slight north carolina boo-yah to you. >> wright brothers boo-yah. Wright brothers boo-yah.

“… w and not just the guy can come to the book george in north carolina. Georgie. >> caller: jim. A first and slight north carolina boo-yah to you. >> wright brothers boo-yah. Wright brothers boo-yah. …”

6:08P, Oct. 05,2009 WIN $10.15 Windstream Corp.
Mad Money

Windstream Corporation (WIN) Discussed on CNBC's Mad Money

Windstream Corporation is in the news. Find out how this impacts WIN trading on Ockham Research.

30-year bonds with a 5.7% yield. That is well below att's yield. That is ridiculously overpriced. I mean, how do we know we'll even be using oil 30 years from now? Att a much better deal. So is verizon. Hey, so is WINDSTREAM, we had them on last week. And don't forget those all give you the povlt a dividend raise, way more up side. Let's go down the whole aisle. What else do big money managers have to choose from? Let's take look. Forget it. It's a blownup class entirely. That is ten-day-old lettuce. You know, it's brown and don't believe me? Check out college endowment and come back to me. Gold? Gold's kind of this, right? I mean, gold's like red leaf. I mean, with inflation these big buyers don't want gold. How about real estate? Oh, man. That's like baby arugula. I'm not kidding. This lettuce should be given instead it's priced like baby you see, the big institutional money managers have cash to buy something, and there's simply nothing else that makes sense for them to buy. Stocks, the andy boy of the supermarket, are really the only game in town when you think about it. You cannot justify anything else when you're just making a portfolio sandwich. That's why good dividend-paying stocks with the possibility of a dividend boost, there again i'm thinking about boeing, procter & gamble which I own for actionalertsplus.Com, the WINDSTREAM, the kinder morgan energy, literally those are the only games in town. Oh, by the way, if you want to know more about picking the right lettuce, i've got a whole chapter about it in "getting back to even," comes out next all about notoriously b.I.G. Here's the bottom line. Now you know how the big money managers who buy and sell pretty much, that they determine the and they have no choice but to buy the stocks that they think are the cheapest asset class in the big supermarket. In this case we're using lettuce as the analogy. And that's why we can't sweat the program about employment or retail sales or cash for clunkers or the $8,000 new home buyer tax credit that's going in the end, given how much lettuce ultimately tastes the same and gets the job done, the big portfolio managers are going lettuce. The rest, it's going begging. Oh, one more point? The post-sweet 16 party they made the sandwiches. They forgot to put on the larry in new jersey. >> caller: boo-yah. >> caller: last week in new york

“… don't forget those all give you the povlt a dividend raise, way more up side. Let's go down the whole aisle. What else do big money managers have to choose from? Let's take look. Forget it. It's a blownup class entirely. That is ten-day-old lettuce. You know, it's brown and don't believe me? Check out college endowment and come back to me. Gold? Gold's kind of this, right? I mean, gold's like red leaf. I mean, with inflation these big buyers don't want gold. How about real estate? Oh, man. That's like baby arugula. I'm not kidding. This lettuce should be given instead it's priced like baby you see, the big institutional money managers have cash to buy something, and there's simply nothing else that makes sense for them to buy. Stocks, the andy boy of the supermarket, are really the only game in town when you think about it. You cannot justify anything else when you're just making a portfolio sandwich. That's why good dividend-paying stocks with the possibility of a dividend boost, there again i'm thinking about boeing, procter & gamble which I own for actionalertsplus.Com, the WINDSTREAM, the kinder morgan energy, literally those are the only games in town. Oh, by the way, if you want to know more about picking the right lettuce, i've got a whole chapter about it in "getting back to even," comes out next all about notoriously b.I.G. Here's the bottom line. Now you know how the big money managers who buy and sell pretty much, that they determine the and they have no choice but to buy the stocks that they think are the cheapest asset class in the big supermarket. In this case we're using lettuce as the analogy. And that's why we can't sweat the program about employment or retail sales or cash for clunkers or the $8,000 new home buyer tax credit that's going in the end, given how much lettuce ultimately tastes the same and gets the job done, the big portfolio managers are going lettuce. The rest, it's going begging. Oh, one more point? The post-sweet 16 party they made the sandwiches. They forgot to put on the larry in new jersey. >> caller: boo-yah. >> caller: last week in new york …”

6:40P, Sep. 29,2009 WIN $10.06 Windstream Corp.
Mad Money

Windstream Corporation (WIN) Discussed on CNBC's Mad Money

Windstream Corporation is in the news. Find out how this impacts WIN trading on Ockham Research.

>> great to see you again, jim. >> the guy is doing everything you want. You get a 10% yield. How do I get yield, my tv is 1.5%. Listen, the guy is money good. We've got to start trusting some I trust mr. Gardener. I trust WINDSTREAM. Stay with cramer. >> next -- try to keep up with cramer as he takes your calls rapid-fire in an all-new e-mail us at madmoney@cnbc.Com and jim could answer you on the air. >>> starting october 1st, you can enter to win the great you could win a trip to see a live taping of the show, meet jim cramer and take on the

“… next -- try to keep up with cramer as he takes your calls rapid-fire in an all-new e-mail us at madmoney@cnbc.Com and jim could answer you on the air. >>> starting october 1st, you can enter to win the great you could win a trip to see a live taping of the show, meet jim cramer and take on the …”

View All Windstream Corp. Stock News

Key Fundamentals

WIN - Windstream Corporation Fundamentals
Price (2/9 1:48PM) $10.19
Volume (2/9 1:48PM) 2.2 Million
Last Close Price $9.99
10 Day Average Volume 4.9 Million
13 Week Price Range $9.88 - $11.65
52 Week Price Range $6.28 - $11.65
LTM Revenue $3.0 Billion
 
Shares Outstanding (12/2008) 427.4 Million
Market Capitalization $4.3 Billion
Shares Held By Institutions 288.5 Million
Institutional Holders 561
% Shares Held By Institutions 66.10%
Earnings Per Share (EPS) $0.93
P/E Ratio 13.00
Book Value Per Share $0.44
 
Gross Margin 62.90%
Annual Dividend 1.00
Dividend Yield 10.00%
Beta 1.01
Fiscal Year Ends December

About Windstream Corp.

Windstream Corporation is considered to operate in the Technology sector. They specifically operate in the Telecom Services/Domestic business segment contained within the Telecommunications industry.

The Company is a provider of telecommunications services in rural communities in the United States.