Qwest Corp (CTHH) stock analysis
Close on Oct 30, 2026Market cap $14P/E –Yield –
StockData Score
Prices as of Oct 30, 2026How the score works
Weak8 of 30 checks passed
Qwest passes 8 of the 30 checks behind our score; 13 could not be run for lack of data and count as not passed. Each dot in the shape is one check — hover it for the numbers.
- Valuation
- 3/6
- Growth
- 0/6
- Past performance
- 0/6
- Financial health
- 4/6
- Dividend
- 1/6
What stands out
Margin of safety over 20%
The price is 100.0% below fair value, more than the 20% cushion we look for.
Trading below fair value
The share price of $13.33 is below our fair value estimate of $13669844063.91.
Low debt
Debt is 15.8% of shareholders' equity, under the 40% we consider low.
Debt covered by cash flow
Operating cash flow over the last twelve months equals 93.1% of total debt.
What to watch
Return on capital under 10%
Return on invested capital was -8.0%, below the 10% that usually covers the cost of capital.
Revenue growing under 10% a year
Revenue grew -9.7% a year over the last three fiscal years, short of the 10% we look for.
Elevated bankruptcy risk
The Altman Z-score is 0.36; above 3 is the safe zone and below 1.8 the distress zone.
Growing slower than the industry
Revenue grew -14.3% over the last twelve months; the Telephone Communications median is 5.2%.
Valuation3/6
P/E against its history
Not enough price and earnings history to compare.
P/E against the industry
Needs positive earnings and enough profitable companies in the industry.
EV/EBITDA against its history
Needs positive EBITDA and price history.
P/B below the industry
Qwest's price-to-book of 0.00 is below the Telephone Communications median of 1.99.
Trading below fair value
The share price of $13.33 is below our fair value estimate of $13669844063.91.
Margin of safety over 20%
The price is 100.0% below fair value, more than the 20% cushion we look for.
Growth0/6
Revenue growing under 10% a year
Revenue grew -9.7% a year over the last three fiscal years, short of the 10% we look for.
EPS growth over 3 years
Needs positive EPS three years ago and today.
Earnings acceleration
Needs positive net income now, a year ago and five years ago.
Growing slower than the industry
Revenue grew -14.3% over the last twelve months; the Telephone Communications median is 5.2%.
Company guidance
No outlook found in earnings releases from the last twelve months.
Gross margin slipping
Gross margin was 69.7% over the last twelve months, against 72.1% a year earlier.
Past performance0/6
Return on equity
Needs positive equity and five years of results.
Return on capital under 10%
Return on invested capital was -8.0%, below the 10% that usually covers the cost of capital.
Return on equity below the industry
Qwest's return on equity of -15.8% is below the Telephone Communications median of 8.6%.
Earnings over 5 years
Needs positive net income five years ago and in the latest year.
Net margin against its history
Needs five years of revenue and net income.
Net margin below the industry
Qwest's net margin of -40.1% is below the Telephone Communications median of 6.6%.
Financial health4/6
Low debt
Debt is 15.8% of shareholders' equity, under the 40% we consider low.
Debt falling against equity
Debt to equity fell from 33.0% five years ago to 15.8%.
Debt covered by cash flow
Operating cash flow over the last twelve months equals 93.1% of total debt.
Interest coverage
Interest expense is not reported separately.
Short-term assets cover short-term debts
Current assets are 6.96 times current liabilities.
Elevated bankruptcy risk
The Altman Z-score is 0.36; above 3 is the safe zone and below 1.8 the distress zone.
Dividend1/6
Pays a dividend
Qwest paid dividends worth 2.7% of the share price over the last twelve months.
Yield below Treasuries
The 2.7% yield is below the 4.4% on a 1-year Treasury.
Yield below the top quarter
The top quarter of US dividend payers yield 4.0% or more; Qwest yields 2.7%.
Dividend stability
Fewer than five years of dividend history.
Earnings cover
Needs dividends paid and net income.
Cash-flow cover
Needs dividends paid and free cash flow.
Fair value
How we estimate itOur estimate per share
$13,669,844,063.91
The share price is 100% below this estimate.
| Method | Multiple used | Own 5Y median | Industry median | Value per share | Weight |
|---|---|---|---|---|---|
| P/B | 2.0× | – | 2.0× | $21,281,064,050.00 | 29% |
| P/S | 1.3× | – | 1.3× | $6,102,468,330.00 | 29% |
| Earnings power | 10.0% cost of equity | – | – | $13,640,614,562.46 | 43% |
| Fair value | $13,669,844,063.91 | 100% | |||
Valuation over time
Using the earnings and balance sheet published at each date, not today's.
An estimate from reported numbers and market multiples, not a price target or investment advice. It can be far off for companies whose profits are about to change sharply.
Market risk
From the past year of daily prices.
Liquidity
High risk
- Average value traded per day
- $844.52K
- Value traded per 1% price move
- $587.89K
Downside
- Typical loss in a bad month
- –
- Volatility (annualized)
- –
- Sharpe ratio, 1 year
- –
- Beta to the S&P 500 (5Y)
- –
Margins
Share of revenue, fiscal years 2011 to 2025
Gross margin
Operating margin
Net margin
Growth rates
Compound annual growth to fiscal 2025
| Per year | 1 year | 3 years | 5 years | 10 years | Five-year pace |
|---|---|---|---|---|---|
| Revenue | -13.8% | -9.7% | -8.3% | -6.2% | |
| Gross profit | -17.6% | -11.8% | -9.1% | -5.9% | |
| Free cash flow | -18.2% | -19.2% | -13.9% | -3.5% |
Returns and balance sheet
10 fiscal years. Hover a measure to see how it is calculated.
| Measure | FY2016 | FY2020 | FY2025 | Trend |
|---|---|---|---|---|
| Return on equity | – | – | -11.5% | |
| Return on assets | – | – | -8.0% | |
| Current ratio | 0.61 | 0.14 | 6.90 | |
| Debt to equity | 0.84 | 0.33 | 0.15 | |
| Net debt to EBITDA | 1.81× | 0.82× | -5.09× | |
| Interest coverage | 4.9× | 9.7× | -11.1× | |
| Capex to revenue | 14.1% | 14.9% | 17.4% |
Where the cash went
Fiscal 2021 to 2025, five years combined
Qwest generated $12.00B from operations and spent $7.13B on capital expenditure, dividends and share buybacks. 64% of that went back into the business.
DuPont analysis
Return on equity split into margin, efficiency and leverage
| Fiscal year | Net margin | Asset turnover | Equity multiplier | Return on equity |
|---|---|---|---|---|
| FY2025 | -27.9% | 0.29× | 1.43× | -11.5% |
| FY2024 | 27.0% | 0.33× | 1.47× | 12.9% |
| FY2023 | -14.0% | 0.34× | 1.45× | -6.8% |
| FY2018 | 19.8% | 0.41× | 2.16× | 17.3% |
Piotroski F-Score
Nine tests of profitability, balance sheet and efficiency, fiscal 2025 against fiscal 2024
- ProfitableNet income above zero-$1.33B
- Cash generatingOperating cash flow above zero$1.76B
- Return on assets improvedROA up on the prior year9.1% → -7.6%
- Earnings backed by cashOperating cash flow above net income$1.76B vs -$1.33B
- Less leverageLong-term debt to assets fell9.7% → 10.7%
- Better liquidityCurrent ratio rose1.35 → 6.90
- No dilutionShare count did not rise– → –
- Gross margin improvedGross margin up on the prior year72.68% → 69.48%
- More efficientAsset turnover rose0.34 → 0.27