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CTDD Stock Analysis - QWEST CORP AI Rating

CTDD NYSE Telephone Communications (No Radiotelephone) CO CIK: 0000068622
Recently Updated • Analysis: Mar 23, 2026 • SEC Data: 2025-12-31
AI Rating
SELL
92% Confidence

📊 CTDD Key Takeaways

Revenue: $4.7B
Net Margin: -27.9%
Free Cash Flow: $938.0M
Current Ratio: 6.90x
Debt/Equity: 0.16x
EPS: $0.00
AI Rating: SELL with 92% confidence

Investment Thesis

Qwest Corp faces severe operational distress with a $1.3B net loss and negative margins (-27.9% net margin) despite $4.7B in revenue. While strong free cash flow generation ($938M) and low leverage (0.16x debt/equity) provide some financial cushion, the company's inability to achieve profitability combined with deteriorating earnings (-189.2% YoY decline) signals fundamental business challenges that cannot be offset by balance sheet strength alone.

CTDD Strengths

  • + Strong free cash flow generation of $938M (19.8% FCF margin) demonstrates operational cash conversion despite accounting losses
  • + Solid balance sheet with low leverage ratio of 0.16x debt/equity and manageable long-term debt of $1.7B relative to $15.8B assets
  • + Excellent liquidity position with 6.90x current and quick ratios providing substantial financial flexibility

CTDD Risks

  • ! Severe profitability crisis with -$1.3B net loss and -27.9% net margin indicating structural business deterioration
  • ! Dramatic earnings collapse with -189.2% YoY decline in net income suggesting accelerating operational challenges
  • ! Negative interest coverage ratio of -16.3x indicates operating losses insufficient to service debt obligations, creating refinancing and solvency risk
  • ! Minimal cash reserves of only $39M despite $1.7B debt burden and negative profitability leaves limited operating buffer

Key Metrics to Watch

CTDD Financial Metrics

Revenue
$4.7B
Net Income
$-1.3B
EPS (Diluted)
$0.00
Free Cash Flow
$938.0M
Total Assets
$15.8B
Cash Position
$39.0M

💡 AI Analyst Insight

Strong liquidity with a 6.90x current ratio provides a solid financial cushion.

CTDD Profitability Ratios

Gross Margin N/A
Operating Margin -21.3%
Net Margin -27.9%
ROE -12.2%
ROA -8.4%
FCF Margin 19.8%

CTDD vs Default Sector

How QWEST CORP compares to Default sector averages

Net Margin
CTDD -27.9%
vs
Sector Avg 12.0%
CTDD Sector
ROE
CTDD -12.2%
vs
Sector Avg 15.0%
CTDD Sector
Current Ratio
CTDD 6.9x
vs
Sector Avg 1.8x
CTDD Sector
Debt/Equity
CTDD 0.2x
vs
Sector Avg 0.7x
CTDD Sector

Sector benchmarks are approximate industry averages. Actual sector performance may vary.

CTDD Balance Sheet & Liquidity

Current Ratio
6.90x
Quick Ratio
6.90x
Debt/Equity
0.16x
Debt/Assets
0.0%
Interest Coverage
-16.27x
Long-term Debt
$1.7B

CTDD 5-Year Financial Trend

CTDD 5-year financial data: Year 2021: Revenue $7.6B, Net Income N/A, EPS N/A. Year 2022: Revenue $6.8B, Net Income N/A, EPS N/A. Year 2023: Revenue $6.5B, Net Income N/A, EPS N/A. Year 2024: Revenue $6.1B, Net Income N/A, EPS N/A. Year 2025: Revenue $5.6B, Net Income -$831.0M, EPS N/A.
Revenue
Net Income
EPS (right axis)

5-Year Trend Summary: QWEST CORP's revenue has declined by 26% over the 5-year period, indicating business contraction.

CTDD Growth Metrics (YoY)

Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
19.8%
Free cash flow / Revenue

CTDD Quarterly Performance

Quarterly financial performance data for QWEST CORP including revenue, net income, and earnings per share.
Quarter Revenue Net Income EPS
Q3 2025 $1.1B $176.0M N/A
Q2 2025 $1.1B $277.0M N/A
Q1 2025 $1.2B $284.0M N/A
Q3 2024 $1.3B $341.0M N/A
Q2 2024 $1.3B $378.0M N/A
Q3 2023 $1.4B $341.0M N/A
Q2 2023 $1.4B $398.0M N/A
Q1 2023 $1.3B $353.0M N/A

Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.

CTDD Capital Allocation

Operating Cash Flow
$1.8B
Cash generated from operations
Capital Expenditures
$824.0M
Investment in assets
Dividends
None
No dividend program

CTDD SEC Filings

Access official SEC EDGAR filings for QWEST CORP (CIK: 0000068622)

📋 Recent SEC Filings

Date Form Document Action
Mar 17, 2026 8-K d106321d8k.htm View →
Feb 20, 2026 10-K lumn-20251231.htm View →
Feb 3, 2026 8-K d103058d8k.htm View →
Dec 5, 2025 8-K d18823d8k.htm View →
Oct 30, 2025 10-Q lumn-20250930.htm View →

Frequently Asked Questions about CTDD

What is the AI rating for CTDD?

QWEST CORP (CTDD) has an AI rating of SELL with 92% confidence, based on fundamental analysis of SEC EDGAR filings.

What are CTDD's key strengths?

Strong free cash flow generation of $938M (19.8% FCF margin) demonstrates operational cash conversion despite accounting losses. Solid balance sheet with low leverage ratio of 0.16x debt/equity and manageable long-term debt of $1.7B relative to $15.8B assets.

What are the risks of investing in CTDD?

Severe profitability crisis with -$1.3B net loss and -27.9% net margin indicating structural business deterioration. Dramatic earnings collapse with -189.2% YoY decline in net income suggesting accelerating operational challenges.

What is CTDD's revenue and growth?

QWEST CORP reported revenue of $4.7B.

Does CTDD pay dividends?

QWEST CORP does not currently pay dividends.

Where can I find CTDD SEC filings?

Official SEC filings for QWEST CORP (CIK: 0000068622) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.

What is CTDD's EPS?

QWEST CORP has a diluted EPS of $0.00.

How is the AI analysis conducted?

Our AI (Claude) analyzes publicly available SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports to evaluate financial health, profitability ratios, balance sheet strength, and growth metrics.

Disclaimer: This analysis is generated by Claude 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 and consult with a qualified financial advisor before making investment decisions.
Data Source: SEC EDGAR | Analysis Date: Mar 23, 2026 | Data as of: 2025-12-31 | Powered by Claude AI