Why Windstream Will Underperform in 2013

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Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, rural telecommunications company Windstream has received a distressing two-star ranking.

With that in mind, let's take a closer look at Windstream and see what CAPS investors are saying about the stock right now.

Windstreamfacts

Headquarters

Little Rock, Ark.

Market Cap

$5.1 billion

Industry

Integrated telecommunication services

Trailing-12-Month Revenue

$5.9 billion

Management

CEO Jeffery Gardner (since 2006)

CFO Anthony Thomas (since 2009)

Return on Capital (average, past 3 years)

8.8%

Cash/Debt

$114.8 million / $9.2 billion

Dividend Yield

11.5%

Competitors

AT&T

Sprint Nextel

Verizon Communications


Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 10% of the 3,846 members who have rated Windstream believe the stock will underperform the S&P 500 going forward.

Just last month, one of those Fools, NHWeston, succinctly summed up the Windstream bear case for our community:

I don't see happy things for this company. Their technology is behind the times, they don't do anything others don't do better, their dividend is probably unsustainable, and I can't see them being bought out until they ratched down to yard sale level. Worrisome.

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The article Why Windstream Will Underperform in 2013 originally appeared on Fool.com.

Fool contributor Brian Pacampara has no positions in the stocks mentioned above. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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