LUMN Analysis — TradeApes

Lumen Technologies, Inc. (LUMN)

Communication Services Telecom Services

$6.77 close · Sep 05, 2026

Model Divergence 69 Health · Healthy

Above 50 SMA

52W -42.8% from High

Methodology Breakdown

Mature

The market price on this stock implies growth our normalized base can't support, so we're not putting a single fair-value dollar on it. At today's price the market is implying roughly -30% annual free-cash-flow growth in our DCF — well outside what the normalized base supports. The individual method outputs are shown below for transparency.

Method	Value	Role
DCF (Base Case)	$24.00	COMPUTED
DCF (TTM-anchored)	$24.20	COMPUTED
Peer Multiples	$33.19	COMPUTED
Earnings Power Value	$34.26	COMPUTED
Book Value Anchor	$1.64	COMPUTED
Cash Floor	$1.31	COMPUTED
NAV Anchor	$1.64	COMPUTED

Computed — every method is shown for transparency; none was published as our estimate for this stock.

Health Score

Out of 100

Healthy

Pillar Scores

Financial Strength

Operating Trend

Valuation

Undervalued 81

Capital Allocation

Risk Management

Positives

↑ free-cash-flow yield +4.8

↑ operating-margin trend + inflection +5.5

↑ margin expansion +2.2

Concerns

↓ EBIT / interest -3.0

↓ revenue YoY + 3yr CAGR -4.9

↓ Piotroski F (0–9) -1.1

Signal contribution: +39.6 from strengths -11.6 from concerns

Health Score Trend 9 snapshots

Financials

TTM Financials

Revenue ?Total sales generated from the company's primary business activities over the trailing twelve months.	11.83B
Gross Profit ?Revenue minus cost of goods sold. What remains before operating expenses — reflects pricing power and production efficiency.	—
Operating Income ?Profit from core business operations after all operating expenses (EBIT). Excludes interest and taxes.	198.0M
Net Income ?Bottom-line profit after all expenses, interest, and taxes are deducted from revenue.	-1.02B
Free Cash Flow ?Operating cash flow minus capital expenditures. The actual cash the business generates after maintaining its assets — the truest measure of profitability.	4.76B
EBITDA ?Earnings before interest, taxes, depreciation & amortization. A proxy for operating cash earnings that strips out accounting and financing differences.	2.88B
Total Debt ?Combined short-term and long-term interest-bearing debt obligations. Compare against cash and earnings to gauge leverage risk.	—
Cash & Equivalents ?Highly liquid assets on hand — cash, money market funds, and short-term securities. The company's immediate financial cushion.	1.88B

Valuation

Market Cap	6.80B
Enterprise Value	5.21B
EV / Revenue	0.4x
EV / EBITDA	1.8x
P/E (TTM)	-6.6x
Forward P/E	—
PEG	—
P/FCF	1.4x
FCF Yield	70.0%

EV/EBITDA vs history — 37% percentile (mid-range)

CheapMidExpensive

EV/Sales vs history — 67% percentile (historically expensive)

CheapMidExpensive

Relative Valuation

Using relative multiples

EV / Revenue

0.4x

Price / Book

Neg. equity · deficit

Price / Sales

0.6x

Key Metrics

Gross Margin ?Gross profit as a % of revenue. Measures how efficiently the company produces its goods or services — higher is better.	—
EBITDA Margin ?EBITDA as a % of revenue. Shows core operating profitability before accounting adjustments — useful for comparing across industries.	24.3%
Net Margin ?Net income as a % of revenue. The ultimate measure of overall profitability after every expense, interest payment, and tax is accounted for.	-8.7%
FCF Margin ?Free cash flow as a % of revenue. Shows how much of each dollar of revenue converts into real, spendable cash.	40.2%
Revenue Growth (YoY) ?Year-over-year change in total revenue. Measures business momentum — sustained growth above 15% is typically considered strong.	-7.7%
Net Income Growth (YoY) ?Year-over-year change in net income. Shows whether profits are growing faster or slower than revenue — a key indicator of improving or deteriorating quality.	13.1%
Piotroski F-Score ?Score from 0–9 measuring financial strength across profitability, leverage, and efficiency signals. 8–9 = strong, 0–2 = distressed.	3 / 9
Altman Z-Score ?Bankruptcy risk model. Above 2.99 = safe zone, 1.81–2.99 = grey zone, below 1.81 = distress signal. Most useful for manufacturing companies.	—

Community Sentiment

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Quarterly Financials

Metric	Q2 '26	Q1 '26	Q4 '25	Q3 '25	Q2 '25	Q1 '25	Q4 '25	Q3 '25	Q2 '25	Q1 '24	Q4 '24	Q3 '23
Revenue ?Total quarterly sales from primary business operations.	2.81B	2.90B	3.04B	3.09B	3.09B	3.18B	3.33B	3.22B	3.27B	3.29B	3.52B	3.64B
Gross Profit ?Quarterly revenue minus cost of goods sold.	—	—	—	—	—	—	—	—	—	—	—	—
Operating Income ?Quarterly profit from core operations before interest and taxes (EBIT).	-88.0M	602.0M	-200.0M	-116.0M	-603.0M	107.0M	154.0M	126.0M	135.0M	45.0M	-1.78B	223.0M
Net Income ?Quarterly bottom-line profit after all expenses and taxes.	-201.0M	-200.0M	-2.0M	-621.0M	-915.0M	-201.0M	85.0M	-148.0M	-49.0M	57.0M	-2.00B	-78.0M
FCF ?Quarterly free cash flow: operating cash minus capital expenditures.	1.04B	975.0M	388.0M	2.36B	601.0M	926.0M	440.0M	2.03B	511.0M	1.10B	510.0M	881.0M

Revenue & Free Cash Flow

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Disclaimer: This analysis is for informational purposes only and does not constitute investment advice. Scores and valuations are derived from SEC filings and publicly available data. Always do your own research before making investment decisions.