Investment Thesis
GCI Liberty operates in a structurally declining cable/pay television industry with extremely poor capital efficiency (ROE 1.1%, ROA 0.6%), indicating inefficient shareholder capital deployment. The massive EPS decline of 541% despite flat net earnings signals significant shareholder dilution, while modest 3% revenue growth is insufficient to offset industry headwinds and operational stagnation.
Strengths
- Strong liquidity position with 3.31x current ratio and $435M cash reserves
- Moderate leverage at 0.57x debt-to-equity ratio with manageable debt service
- Positive free cash flow generation of $22M supporting dividend or debt reduction
Risks
- Operates in structurally declining cable/pay television industry with ongoing cord-cutting pressures
- Critically poor capital returns: ROE 1.1% and ROA 0.6% indicate severe operational inefficiency
- Catastrophic shareholder dilution: 541% EPS decline with flat net income signals capital structure deterioration
Key Metrics to Watch
- Return on Equity trajectory (currently unsustainable at 1.1%)
- Free cash flow sustainability relative to capital intensity
- Revenue decline acceleration and subscriber base trends
Financial Metrics
Revenue
256.0M
Net Income
18.0M
EPS (Diluted)
$0.45
Free Cash Flow
22.0M
Total Assets
3.3B
Cash
435.0M
Profitability Ratios
Gross Margin
N/A
Operating Margin
11.7%
Net Margin
7.0%
ROE
1.1%
ROA
0.6%
FCF Margin
8.6%
Balance Sheet & Liquidity
Current Ratio
3.31x
Quick Ratio
3.31x
Debt/Equity
0.57x
Debt/Assets
46.8%
Interest Coverage
N/A
Long-term Debt
981.0M
Disclaimer: This analysis is generated by AI based on publicly available SEC EDGAR filings.
It does not include stock price data and should not be considered financial advice.
All fundamental data is sourced from SEC public domain filings.
Always conduct your own research before making investment decisions.
Data Source: SEC EDGAR |
Analysis Date: 2026-05-09T10:50:49.552027 |
Data as of: 2026-03-31 |
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