Liberty Global Plc – Value Analysis (NASDAQ:LBTYA) : June 30, 2017

Capitalcube gives Liberty Global Plc a score of 31.

Our analysis is based on comparing Liberty Global Plc with the following peers – Shaw Communications Inc. Class B, Charter Communications, Inc. Class A, DISH Network Corporation Class A and Rogers Communications Inc. Class B (SJR-US, CHTR-US, DISH-US and RCI-US).

Investment Outlook

Liberty Global Plc has a fundamental score of 31 and has a relative valuation of UNDERVALUED.

Fundamental Score

Access our research and ratings on Liberty Global Plc

Company Overview

  • From a peer analysis angle, relative underperformance over the last year has improved more recently.
  • It trades at a lower Price/Book multiple (0.55) than its peer median (2.37).
  • The market expects LBTYA-US to grow more slowly than its peers and for its median ROE to decline.
  • LBTYA-US employs relatively high amounts of assets while generating relatively median profit margins.
  • The company’s year-on-year change in revenues and earnings are better than the median among its peer group.
  • LBTYA-US‘s return on assets currently and over the past five years has trailed the peer median and suggests the company might be operationally challenged relative to its peers.
  • Company appears to give away relatively high gross margins to relatively high operating costs suggesting a differentiated product portfolio with low pre-tax margins relative to peers.
  • While LBTYA-US‘s revenue growth in recent years has been above the peer median, the stock’s P/E ratio is less than the peer median suggesting that the company’s earnings may be peaking and the market expects a decline in its growth expectations.
  • The company’s relatively low level of capital investment and below peer median returns on capital suggest that the company is in maintenance mode.
  • LBTYA-US seems too levered to raise additional debt.

Access our research and ratings on Liberty Global Plc

Leverage & Liquidity

LBTYA-US would seem to have a hard time raising additional debt.

  • With debt at a relatively high 55.49% of its enterprise value compared to an overall benchmark of 25% (Note: The peer median is currently 39.86%), and relatively tight interest coverage level of 1.22x, LBTYA-US would have a hard time raising much additional debt. The company has a Constrained profile in terms of its ability to take on further debt.
  • All 4 peers for the company have an outstanding debt balance.

LBTYA-US has maintained its Limited Flexibility profile from the recent year-end.

  • LBTYA-US‘s interest coverage is upward trending and is now similar to its five-year average interest coverage of 1.10x.
  • Compared to 2016, interest coverage has remained relatively stable for both the company (1.22x) and the peer median (3.63x).
  • LBTYA-US‘s debt-EV is less than (but within one standard deviation of) its five-year average debt-EV of 58.21%.
  • The decrease in its debt-EV to 55.49% from 57.86% (in 2016) was also accompanied by a decrease in its peer median during this period to 39.86% from 41.76%.

Access the detailed analysis for Liberty Global Plc

Key Liquidity Items

Company Debt/Enterprise Value (%) Current Ratio Interest Coverage (x) Cash Flow To Total Debt (%)
Shaw Communications Inc. Class B 27.94 0.54 3.79 27.85
Charter Communications, Inc. Class A 39.86 0.49 1.51 15.07
DISH Network Corporation Class A 42.75 2.1 27.71 17.82
Rogers Communications Inc. Class B 36.21 0.52 3.63 23.69
Liberty Global Plc Class A 55.49 0.63 1.22 17.59
Peer Median 39.86 0.54 3.63 17.82
Best In Class 27.94 2.1 27.71 27.85

Looking for more metrics and analysis for Liberty Global Plc?

Company Profile

Liberty Global Plc is an international cable company that provides cable television and Internet services. It connects people to the digital world and enables them to discover and experience its endless possibilities. The company’s television, broadband Internet, and telephony services are provided through next-generation networks and innovative technology platforms that connect customers who subscribe to services. Its consumer brands include Virgin Media, Ziggo, UPC, Unitymedia, Telenet, and VTR. The company was founded on June 7, 2013 and is headquartered in London, the United Kingdom.


The information presented in this report has been obtained from sources deemed to be reliable, but AnalytixInsight does not make any representation about the accuracy, completeness, or timeliness of this information. This report was produced by AnalytixInsight for informational purposes only and nothing contained herein should be construed as an offer to buy or sell or as a solicitation of an offer to buy or sell any security or derivative instrument. This report is current only as of the date that it was published and the opinions, estimates, ratings and other information may change without notice or publication. Past performance is no guarantee of future results. Prior to making an investment or other financial decision, please consult with your financial, legal and tax advisors. AnalytixInsight shall not be liable for any party’s use of this report. AnalytixInsight is not a broker-dealer and does not buy, sell, maintain a position, or make a market in any security referred to herein. One of the principal tenets for us at AnalytixInsight is that the best person to handle your finances is you. By your use of our services or by reading any our reports, you’re agreeing that you bear responsibility for your own investment research and investment decisions. You also agree that AnalytixInsight, its directors, its employees, and its agents will not be liable for any investment decision made or action taken by you and others based on news, information, opinion, or any other material generated by us and/or published through our services. For a complete copy of our disclaimer, please visit our website