CBEY  Cbeyond Inc.

Exchange

NASDAQ

Sector

Public Utilities

Industry

Telecommunications Equipment

Market Cap.

309.5M

Vuru Grade

46.00/100

Current Price

$9.99
+0.00 (+0.00%)

Growth Price

$7.28
Overvalued by 27.09%

Stability Price

$15.64
Undervalued by 56.51%

Company Metrics

  • P/E 327.44
  • P/S 0.68
  • P/B 1.91
  • EPS -0.53
  • Cash ROIC 6.59%
  • Cash Ratio 0.48
  • Dividend 0 / 0%
  • Avg. Vol. 698,425.00
  • Shares 30.98M
  • Market Cap. 309.5M

Company Description

Cbeyond, Inc. provides managed communications and information technology (IT) services to small businesses in the United States. Its services include local and long distance voice services, broadband Internet access, mobile voice and data, email, voicemail, Web hosting, backup and file sharing, fax-to-email, unified messaging, virtual private network, desktop security, hosted Microsoft Exchange, m... more


Download 10 Years of Financial Statements:
Income Statement   Balance Sheet   Cash Flow

News

There is no news available at this time.
Growth Rate Assumed by Market

We did a reverse valuation to calculate the growth rate the market is assuming for CBEY to be considered fairly valued at its current market price. It's useful to compare this to the growth rate we're assuming for the Growth Price.

Future Free Cash Flow Growth Rate

This is the annual growth rate we've applied to calculate CBEY's Free Cash Flow for the next 10 years. To calculate it, we looked at several time periods of the last 10 years. Feel free to adjust it, but we limit the initial growth rate to 20% and slow it down over the years. Otherwise, long-term sustainability issues come into play.

Discount Rate

The discount rate is the annual rate of return an investor requires to take the risk of investing in a single stock. To account for that risk, this should be above 8-10%, as this is the avg. annual rate of return for the S&P500 over the past 100 years.

$9.99 Current Price

$7.28 Growth Price (DCF)

Overvalued by 27.09%


Growth Rate Assumed by Market: 29.05%


Future Free Cash Flow Growth Rate: 7.8%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$15.64 Stability Price (EPV)

Undervalued by 56.51%


Discount Rate: 15.0%

$17.83 Book Price

Undervalued by 78.45%


Poor Cash Return on Invested Capital over the past 5 years

CBEY has been unable to consistently generate sufficient returns from its investments in buildings, projects and equipment. This could be due to poor management, lack of an economic moat or the capital intensive nature of the business.

CBEY has only created $6.59 of cash for every $100 invested.
Figures in USD. Fiscal year ends in December
20092010201120122013
Free Cash Flow 1.96M 17.19M -1.73M 27.69M 6.73M
divided by
Invested Capital 129.85M 163.22M 164.32M 155.94M 159.95M
Cash ROIC 1.51% 10.53% -1.05% 17.75% 4.20%

Very Poor Return on Equity over the past 5 years

CBEY has shown an inability to deliver results for shareholders. This could be due to poor management, CBEY operating in a highly competitive industry, or having a weak business in general.

CBEY has generated a $3.01 loss for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in December
20092010201120122013
Net Income -2.22M -1.65M -7.98M -2.32M -10.82M
divided by
Stockholders' Equity 158.61M 173.12M 163.99M 171.89M 166.61M
Return on Equity -1.40% -0.96% -4.87% -1.35% -6.50%

Good Business Performance over the past 10 years

It's likely CBEY has been unable to maintain profitability in tough economic times, making it a somewhat cyclical business. The other possibility is CBEY has expended significant capital on items such as property, plant and equipment in specific years. Look for correlations.

CBEY has created positive free cash flow for 7 or 8 of the past 10 years.
Figures in USD. Fiscal year ends in December
2004200520062007200820092010201120122013
Free Cash Flow 3.69M 8.32M 1.57M 6.84M -18.98M 1.96M 17.19M -1.73M 27.69M 6.73M

Good Balance Sheet

CBEY's Total Assets double Total Liabilities. Its financial position is adequate. Remember to check Shareholders' Equity to see if it's stable or growing. It's one of the best measures of whether a company is creating value for shareholders.
Figures in USD. Fiscal year ends in December
2004200520062007200820092010201120122013
Cash 37.19M 37.92M 44.11M 56.17M 36.98M 39.27M 26.37M 8.52M 30.62M 28.88M
Current Assets 45.02M 52.94M 68.53M 91.52M 76.83M 79.57M 64.81M 44.92M 66.37M 64.93M
Total Assets 99.20M 114.83M 144.39M 198.36M 212.49M 228.89M 257.97M 241.07M 255.05M 248.67M
Current Liabilities 36.24M 39.74M 52.63M 70.45M 59.15M 59.77M 68.38M 68.23M 68.49M 59.84M
Total Liabilities 172.78M 40.25M 53.29M 71.04M 68.95M 70.29M 84.85M 77.09M 83.16M 82.06M
Stockholder' Equity -73.57M 74.59M 91.11M 127.32M 143.54M 158.61M 173.12M 163.99M 171.89M 166.61M
Current Ratio 1.24 1.33 1.30 1.30 1.30 1.33 0.95 0.66 0.97 1.09
TL-to-TA 1.74 0.35 0.37 0.36 0.32 0.31 0.33 0.32 0.33 0.33

Low or No Reinvestment of Profits over the past 10 years

CBEY has either been retaining a small amount of their earnings or has done so inconsistently. A lack of consistency could be due to CBEY operating at a loss or them having such a strong economic moat they feel comfortable spending profits on growth. Be wary of future prospects and if applicable, inspect the moat's sustainability.
Figures in USD. Fiscal year ends in December
2004200520062007200820092010201120122013
Retained Earnings -150.96M -155.78M -148.00M -126.50M -122.80M -125.02M -126.68M -147.67M -152.00M -168.11M
Retained Earnings Growth - -3.19% 4.99% 14.53% 2.92% -1.81% -1.32% -16.57% -2.93% -10.60%

Loss Making Entity over the past 10 years

CBEY has been unable to maintain profitability. It's Costs of Sales have outstripped Revenue consistently. This is a huge red flag, unless the company has been investing heavily for the future. However, even that is dubious since accurately predicting the future of a company like that is extremely difficult.

$0.07 of every $100 of Revenue have been a loss, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2004200520062007200820092010201120122013
Net Income -11.46M 3.74M 7.78M 21.50M 3.70M -2.22M -1.65M -7.98M -2.32M -10.82M
divided by
Revenue 113.31M 159.10M 213.89M 280.03M 349.90M 413.77M 451.97M 485.42M 487.97M 463.41M
Net Profit Margin -10.11% 2.35% 3.64% 7.68% 1.06% -0.54% -0.37% -1.64% -0.48% -2.34%

Strong Pricing Power over the past 10 years

CBEY has maintained substantial gross margins, suggesting that they have been able to set prices without consideration of the cost of goods sold. This potentially leaves flexibility in inflationary environments to raise prices on consumers and maintain profitability.

$71.90 of every $100 worth of sales have been Gross Profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2004200520062007200820092010201120122013
Gross Profit 81.59M 111.94M 149.59M 195.58M 240.23M 275.68M 305.46M 485.42M 329.38M 308.22M
divided by
Revenue 113.31M 159.10M 213.89M 280.03M 349.90M 413.77M 451.97M 485.42M 487.97M 463.41M
Gross Margin 72.00% 70.36% 69.94% 69.84% 68.66% 66.63% 67.58% 100.00% 67.50% 66.51%

High Capital Intensity over the past 10 years

CBEY spends large amounts of capital buying new equipment or investing in new facilities to stay competitive. Over the long term, those costs may have to be fuelled by debt. Look at the growth of Shareholders' Equity to see if this strategy is having a positive or negative impact.

799.23% of Profits are being spent on Capital Expenditures, like Property, Plant, & Equipment, required to run the business.
Figures in USD. Fiscal year ends in December
2004200520062007200820092010201120122013
Capital Expenditure 10.19M 21.33M 42.09M 54.97M 67.61M 60.65M 61.96M 77.60M 61.61M 56.23M
divided by
Net Income -11.46M 3.74M 7.78M 21.50M 3.70M -2.22M -1.65M -7.98M -2.32M -10.82M
Capital Expenditure Ratio -88.97% 570.90% 541.03% 255.69% 1,829.30% -2,731.98% -3,746.19% -971.99% -2,653.10% -519.55%

No Dividend History over the past 10 years

CBEY has never distributed dividends or has recently suspended their dividend distribution.
Figures in USD. Fiscal year ends in December
2004200520062007200820092010201120122013
Dividend Paid - - - - - - - - - -
divided by
Shares Outstanding 129,000.00 4.16M 28.97M 29.99M 29.59M 28.75M 29.37M 29.22M 29.48M 30.20M
Dividend Paid Per Share - - - - - - - - - -
Price at Year End - 10.30 30.59 38.97 15.63 15.81 15.41 8.01 8.84 6.88
Dividend Yield - - - - - - - - - -

History of Stock Buybacks over the past 10 years

CBEY has some history of delivering increased value for shareholders in the form of stock buybacks. These have helped improve financial metrics and increase each shareholders' relative ownership stake in the company, due to fewer shares outstanding and holding the same number of shares.
Figures in USD. Fiscal year ends in December
2004200520062007200820092010201120122013
Shares Outstanding 129,000.00 4.16M 28.97M 29.99M 29.59M 28.75M 29.37M 29.22M 29.48M 30.20M
Stock Bought Back - -96.90% -85.64% -3.39% 1.35% 2.91% -2.09% 0.49% -0.88% -2.38%
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