S Investment Analysis Report & Stock Research, Sprint Nextel Corp.

Sprint Nextel Corporation (S)

S Stock Report

2-Year Price History

View Larger S Chart
NYSE:S
$3.51
(2/9 11:12AM)
Open$3.6 Mkt Cap$9.9 Billion
High$3.64 52Wk High$5.94
Low$3.51 52Wk Low$2.78
Volume10.2 Million Avg Vol 10D42.0 Million

Ockham's Rating/Recommendation Summary

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S 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 S through this framework, we can see that our weighted average historical high and low Price to Sales per share ratios over the last 10 years are 1.31x and 0.69x respectively.

Utilizing this range we can see that S’s current Price to Sales per share ratio of 0.30x is significantly below its average levels historically. In fact, with a current price of $3.43, S is a full 70% below its average Price to Sales ratio at comparable sales levels. This is a rare occurrence and, when taken in context of the other areas of our analysis, can be a strong positive for our outlook for S.

S 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 S, Ockham views their current Cash Earnings as significantly below their historical average multiples of Cash Earnings, as calculated by our proprietary analysis. It is incredibly important to understand that for S, the current level of Cash Earnings compared to its historical levels helps identify where S is in relation to what the investing community was willing to pay for this level of Cash Earnings in the past. With a historical high Cash Earnings per share ratio of 6.55 and a historical low Cash Earnings per share ratio of 3.16, an investor can relate where value becomes optimal.

So what does "significantly below" mean when we talk about Price to Cash Earnings numbers for S? From the Ockham perspective, we are looking specifically at S to see if the market is recognizing the huge disparity between S's past stock price to Cash Earnings ratio to today's levels. At a difference of 55% below the average historical Price to Cash Earnings ratio, our view would be quite positive at this point. However, as with all metrics, we need to also take other factors into account when looking at S. While we view better Cash Earnings metrics as very important, if the market is slow to identify this value, or if Cash Earnings were to fall from these levels, we would become more neutral in our stance.

S Dividends

While it is not necessary to pay an attractive dividend or a dividend at all, to receive a positive rating from Ockham, we view dividends as an additionally helpful measure in determining the future potential of any company.

Peer Comparison

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Sprint Nextel 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 S) 11.75 2.68 » 23.97 2.91 0.51 » 4.42 4.65% 38.27%
*10 year range does not include current year values
Crown Castle International Corp. CCI $10.4 Billion $35.66 27.14 2.63 » 38.54 6.09 0.24 » 9.24 10.41% 2.46%
CenturyTel Inc. CTL $10.2 Billion $34.35 8.90 2.29 » 9.78 2.66 0.78 » 2.62 1.78% 10.94%
Philippine Long Distance Telephone Company PHI $10.1 Billion $53.95 7.41 1.44 » 11.36 3.24 0.36 » 4.68 8.81% 44.66%
Sprint Nextel Corp. S $9.9 Billion $3.51 2.18 0.69 » 13.41 0.30 0.11 » 2.11 20.23% 0.89%
Portugal Telecom SGPS SA PT $8.7 Billion $9.96 10.10 4.92 » 51.00 0.96 0.51 » 2.76 5.21% 89.14%
Telefonos de Mexico SAB de C.V. TMX $8.1 Billion $15.42 5.22 2.11 » 9.16 1.60 0.65 » 2.81 -2.95% 44.16%
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1:32P, Feb. 07,2010 S $3.43 Sprint Nextel Corp.
Zero Hedge

Sprint Nextel Corporation News Appeared on Zero Hedge

Sprint Nextel Corporation is one of the thousands of companies that Ockham has news analytics on, and it was recently discussed on Zero Hedge.

The crowd at The Motley Fool does not like S and believes that it will Underperform. We consider S as Undervalued at the current price of $3.43. According to our methodology, this stock has appreciation potential based on current fundamentals which only improves if earnings or revenue surprise. As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, S has been less covered in the news compared to the rest of our universe of stocks.

“… Penney, SPRINT NEXTEL, Masco and Harrah’s Entertainment. The chart below demonstrates the sudden dramatic hiring interest by hedge funds in TMT analysts: of the top 10 issuers ... …”

5:53P, Jan. 19,2010 S $3.67 Sprint Nextel Corp.
Fast Money

Check Out Fast Money and News on S

The latest news from Fast Money on S is available through Ockham's news analytics platform RazorWire.

When taking into account the amount of news coverage each stock normally sees as a percentage of the total, Sprint Nextel Corporation has actually sunk a bit in comparison to the others. Based on our methodology, Sprint Nextel Corporation should hold some appeal to value investors as we view it as Undervalued. While bearish sentiment on a stock is not always a bad thing, it is something you need to be aware of. The Motley Fool survey of crowd sentiment shows that many investors believe this stock will underperform.

“… SPRINT NEXTEL was a drop today. 4%, joe. > > got to downgrade to underperform. You now know the upside is limited. Next move higher around $4. Be a sellerment. > > …”

3:13P, Jan. 05,2010 S $4.15 Sprint Nextel Corp.
Closing Bell

Notice a Discussion Covering S Appeared Recently in the Financial News

Staying informed on the news is invaluable for investors, and RazorWire has captured a recently discussion on S from Closing Bell.

As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, S has been less covered in the news compared to the rest of our universe of stocks. We consider S as Undervalued at the current price of $4.15. According to our methodology, this stock has appreciation potential based on current fundamentals which only improves if earnings or revenue surprise. The crowd at The Motley Fool does not like S and believes that it will Underperform.

“… first the most active stocks on the new york stock exchange led by citigroup, bank of america, ford, great sales numbers out of ford, motorola and SPRINT NEXTEL. …”

3:14P, Dec. 30,2009 S $3.76 Sprint Nextel Corp.
Closing Bell

The Latest News for S Was Just on Closing Bell

As always, the latest news on S is available to Ockham clients through RazorWire, and it was mentioned recently on Closing Bell.

Based on our methodology, Sprint Nextel Corporation should hold some appeal to value investors as we view it as Undervalued. Ranking all stocks in terms of news coverage offers some interesting data. In the case of S, it is getting significantly more attention in recent news coverage than we are used to seeing. While bearish sentiment on a stock is not always a bad thing, it is something you need to be aware of. The Motley Fool survey of crowd sentiment shows that many investors believe this stock will underperform.

“… exchange led by, citigroup. Lower by five cents. $3.32. Bank of america, ge, ford, SPRINT NEXTEL on the backside of that. …”

3:36P, Dec. 09,2009 S $4.14 Sprint Nextel Corp.
Countdown to the Closing Bell

Interested in S? See What the Pundits Said on Countdown to the Closing Bell

Staying informed on the news is invaluable for investors, and RazorWire has captured a recently discussion on S from Countdown to the Closing Bell.

Based on our methodology, Sprint Nextel Corporation should hold some appeal to value investors as we view it as Undervalued. We noticed recently that in comparison to all other stocks we analyze in the news; S has received less coverage from the financial media in business television and blogs. While bearish sentiment on a stock is not always a bad thing, it is something you need to be aware of. The Motley Fool survey of crowd sentiment shows that many investors believe this stock will underperform. The latest news on S has created quite a stir as the stock is trading $0.23 higher in today's session.

“… SPRINT NEXTEL was a winner and steel prices doing well the stocks doing well on positive forecast from the analyst. There you have it. Moving higherhigher. > > …”

2:02P, Dec. 09,2009 S $4.15 Sprint Nextel Corp.
Fox Business

Fox Business: What is Happening with Sprint Nextel Corporation Now?

Sprint Nextel Corporation is one of the thousands of companies that Ockham has news analytics on, and it was recently discussed on Fox Business.

At present, Ockham has a valuation stance of Undervalued on S, as we could see significant price appreciation based on current fundamentals like cash earnings and revenue. When taking into account the amount of news coverage each stock normally sees as a percentage of the total, Sprint Nextel Corporation has actually sunk a bit in comparison to the others. Interestingly, overall sentiment looks bearish according to the Motley Fool's CAPS survey, as most of their users see Sprint Nextel Corporation underperforming. Take notice of the news on this stock because it is up $0.24 since the close of trading yesterday.

“… You can see SPRINT NEXTEL is up 6% at this moment. Then, number six on the list so go ahead, do to the next I can tell you that 3m is number six with the best performer of the ... …”

8:52A, Dec. 09,2009 S $4.12 Sprint Nextel Corp.
Imus In The Morning

Interested in S? See What the Pundits Said on Imus In The Morning

News has broken via the television and viral blogs regarding S, so investors should take an interest in learning what was said.

The crowd at The Motley Fool does not like S and believes that it will Underperform. As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, S has been less covered in the news compared to the rest of our universe of stocks. We consider S as Undervalued at the current price of $4.12. According to our methodology, this stock has appreciation potential based on current fundamentals which only improves if earnings or revenue surprise. Take notice of the news on this stock because it is up $0.21 since the close of trading yesterday.

“… Citigroup from buy to hold, based partially on the idea that they could sprint could come together with deutsche telekom and subscribers in 2010, SPRINT NEXTEL as you can see in ... …”

3:18P, Dec. 07,2009 S $4.11 Sprint Nextel Corp.
Countdown to the Closing Bell

Holding S Stock? See What Is Being Discussed on Countdown to the Closing Bell

The latest news on Countdown to the Closing Bell in regards to S came through on RazorWire recently.

The crowd at The Motley Fool does not like S and believes that it will Underperform. We considered S as Undervalued as of our latest report at $3.69. According to our methodology, this stock has appreciation potential based on current fundamentals which only improves if earnings or revenue surprise. That being said, the recent price appriciation does make it slightly less attractive to value investors as they may have missed the boat. When looking at our entire coverage universe and ranking stocks by the attention they receive on RazorWire, it is clear that Sprint Nextel Corporation has been talked about more than normal recently. Check the news on this stock because there is a catalyst that has allowed this stock to advance 11.36% today.

“… SPRINT NEXTEL. Mike santol I giving a boost to the stock. Saying shares of the number three wireless could have up side of 50%. Guess what? They're up about 11 is% now. …”

9:39A, Dec. 07,2009 S $3.84 Sprint Nextel Corp.
The Opening Bell on Fox Business

Stay Current on S's News on The Opening Bell on Fox Business

As always, the latest news on S is available to Ockham clients through RazorWire, and it was mentioned recently on The Opening Bell on Fox Business.

The crowd at The Motley Fool does not like S and believes that it will Underperform. We consider S as Undervalued at the current price of $3.84. According to our methodology, this stock has appreciation potential based on current fundamentals which only improves if earnings or revenue surprise. When looking at our entire coverage universe and ranking stocks by the attention they receive on RazorWire, it is clear that Sprint Nextel Corporation has been talked about more than normal recently.

“… Number two, SPRINT NEXTEL. This is the third largest u. S. Wireless carrier out there. It may rise as much as 50% on the purchase of virgin mobile usa, that was in barron's ... …”

7:50A, Nov. 25,2009 S $3.79 Sprint Nextel Corp.
Imus In The Morning

Merger Talk with S on Imus In The Morning

News broke today regarding mergers and acquisitions and Sprint Nextel Corporation was discussed as well on Imus In The Morning. Other sources will be required to know exactly what the context was in the discussion.

Based on our methodology, Sprint Nextel Corporation should hold some appeal to value investors as we view it as Undervalued. Ranking all stocks in terms of news coverage offers some interesting data. In the case of S, it is getting significantly more attention in recent news coverage than we are used to seeing. While bearish sentiment on a stock is not always a bad thing, it is something you need to be aware of. The Motley Fool survey of crowd sentiment shows that many investors believe this stock will underperform.

“… All right, now your fox business SPRINT NEXTEL's purchase of virgin mobile is a done deal. Stockholders have voted in favor of the 483 million dollars acquisition. …”

View All Sprint Nextel Corp. Stock News

Key Fundamentals

S - Sprint Nextel Corporation Fundamentals
Price (2/9 11:12AM) $3.51
Volume (2/9 11:12AM) 10.2 Million
Last Close Price $3.51
10 Day Average Volume 42.0 Million
13 Week Price Range $3.25 - $4.41
52 Week Price Range $2.78 - $5.94
LTM Revenue $32.8 Billion
 
Shares Outstanding (12/2008) 2.9 Billion
Market Capitalization $9.9 Billion
Shares Held By Institutions 2.6 Billion
Institutional Holders 686
% Shares Held By Institutions 91.20%
Earnings Per Share (EPS) ($0.98)
P/E Ratio n/a
Book Value Per Share $6.34
 
Gross Margin 49.80%
Annual Dividend 0.00
Dividend Yield 0.00%
Beta 1.19
Fiscal Year Ends December

About Sprint Nextel Corp.

Sprint Nextel Corporation is considered to operate in the Technology sector. They specifically operate in the Wireless Communications business segment contained within the Telecommunications industry.

A communications company, which offers a comprehensive range of wireless and wireline communications products and services that are designed to meet the needs of individual consumers, businesses, government subscribers and resellers.