I have finally updated my competitive telecom trends graphs both with new data and also with some new technology that makes them easier to read and interact with. Enhancements include: 1) the ability to hide/show each company's data interactively, 2) display of the numerical value when hovering over a datapoint, and 3) valuation projections that include the current stock price. I am still tweaking the style, let me know if you have any ideas to help improve the presentation. First up, let's take a quick look at how EBITDA margins have been evolving recently:
Adjusted EBITDA Margin for Competitive Network Operators
Note the steady rise of both Zayo and Cogent Communications (NASDAQ:CCOI, news, filings) lately. Cogent's improved margin performance has come entirely via organic means, while Zayo's include both organic and inorganic (e.g. AFS and AGL) components. PAETEC saw a small inorganic boost from the Cavalier deal in the last two quarters, while Global Crossing took a seasonal margin dip in Q1. Everyone else has been largely tracking within normal ranges lately.
And now let's take a quick look at EV/EBITDA valuation trends:
Relative Valuation (EV/EBITDA) for Competitive Network Operators
Here, note the big valuation boost Global Crossing got via the Level 3 deal announcement. For that matter, Level 3 has gotten a substantial valuation boost since then as well, continuing to lead the pack in this metric. Actually, just about everyone is up since last autumn, as the market has been turning a favorable eye toward competitive network operators.
As regular visitors probably know by now, you can find these graphs at any time via the Competitive Telecom Trends link up in the Resources box. Also found there are related plots of Capex/Revenue, EBITDA-Capex/Revenue, and Relative Revenue Growth.
XO's data will hopefully be in later today, I will add it soon thereafter and the plots will be automatically updated.
If you haven't already, please take our Reader Survey! Just 3 questions to help us better understand who is reading Telecom Ramblings so we can serve you better!Categories: CLEC · Financials · Metro fiber