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ZYBERNO

Stock Report

Updated Jun 10, 2026

QWEST CORP (CTDD)

Technology • NYSE

$19.55

Professional Investment Analysis

ZYBERNO SCORE →

Is it a great business? Is it getting better?

36.0/100

WEAK BUSINESS

QWEST CORP (CTDD) scores 36/100 — weak fundamentals with mixed indicators requiring careful analysis before acting.

📊 How is the Zyberno Score calculated? +

The Zyberno Score answers one question: "Is this a quality business worth owning?" It's a 0-100 investment grade that evaluates business fundamentals across four critical dimensions, based on principles from Warren Buffett, Benjamin Graham, Peter Lynch, and Charlie Munger.

The 4 Core Categories (25 points each):

1. PROFITABILITY (25 pts)

Metrics: ROE, ROIC, Net Margin, Operating Margin
Thresholds: ROE >20% excellent • ROIC >20% excellent • Net Margin >20% excellent • Operating Margin >25% excellent

2. FINANCIAL STRENGTH (25 pts)

Metrics: Debt-to-Equity, Current Ratio, Interest Coverage, Altman Z-Score
Thresholds: D/E <0.3 excellent • Current Ratio >2.5 excellent • Interest Coverage >10x excellent • Altman Z >3.0 safe

3. CASH FLOW QUALITY (25 pts)

Metrics: Free Cash Flow, OCF vs Net Income, FCF Margin
Thresholds: Positive & growing FCF excellent • OCF/NI >1.2x excellent (cash earnings exceed accounting)

4. GROWTH & CONSISTENCY (25 pts)

Metrics: Revenue Growth, Net Income Growth, FCF Growth, Piotroski F-Score
Thresholds: Growth via log-linear regression • Piotroski 8-9 excellent, 6-7 good

Score Interpretation:

75-100

GREAT BUSINESS

65-74

GOOD BUSINESS

50-64

AVERAGE BUSINESS

30-49

WEAK BUSINESS

0-29

POOR BUSINESS

→ View full CTDD quality analysis & detailed breakdown

VALUATION SIGNAL

MARGIN OF SAFETY

Is this stock cheap or expensive relative to what the business has historically generated for owners?

+100.0%

Undervalued

Growth gap unavailable — insufficient data for reverse DCF calculation.

🎯 Expected Annual Return →

2,899.5%

5-year annualised assuming price converges to intrinsic value

💰 How is Margin of Safety calculated? +

Margin of Safety measures how much discount or premium you're paying relative to a stock's intrinsic value. It's Benjamin Graham's core principle: the larger the margin, the lower your downside risk.

Formula: (Intrinsic Value − Current Price) ÷ Intrinsic Value × 100%

How We Calculate Intrinsic Value (DCF Method):

Step 1: Calculate current Owner Earnings (OCF − Maintenance CapEx)

Step 2: Calculate company-specific growth rate using log-linear regression on 16 quarters of Owner Earnings

Step 3: Project 10 years forward using the calculated growth rate

Step 4: Discount each year's cash flow to present value using 10% discount rate

Step 5: Calculate terminal value using 3% perpetual growth rate

Step 6: Sum all discounted cash flows = Intrinsic Value

What The Percentages Mean:

+50% or more

EXCELLENT — Very undervalued

+25% to +50%

GOOD — Attractive discount

0% to +25%

FAIR — Reasonable value

0% to -25%

CAUTION — Slight premium

-25% or worse

POOR — Overvalued

"Price is what you pay, value is what you get." — Warren Buffett

→ View full CTDD valuation analysis · → View full CTDD Brina Gap analysis

📈 How is Brina Gap calculated? +

Brina Gap measures the difference between the growth a business can fundamentally sustain and the growth the market is already pricing in.

Formula: Fundamental Growth Rate − Market-Implied Growth Rate

The Two Components:

Fundamental Growth Rate = ROIC × Reinvestment Rate

What the business can sustainably grow at based on how much it reinvests and what return it earns on that capital. Grounded in historical financials.

Market-Implied Growth Rate = Reverse DCF

The growth rate the current Enterprise Value implicitly assumes. Calculated by back-solving a 10-year DCF model (10% WACC, 3% terminal growth) until the present value of projected cash flows equals EV.

What The Gap Means:

Gap > +5% Market Underestimates — potential upside

+2% to +5% Slight Underestimate

-2% to +2% Fairly Priced — market consensus matches fundamentals

-5% to -2% Slight Overestimate

Gap < -5% Market Overestimates — price embeds optimism fundamentals don't support

A positive gap (market underestimates) combined with a positive Margin of Safety is the strongest combined signal — the business is both cheap historically and forward economics are stronger than the price suggests.

Critical Financial Health Indicators

Return on Equity (Profitability):CRITICAL (-15.5%)

Debt-to-Equity (Solvency Risk):EXCELLENT (0.16x)

Operating Margin (Operational Efficiency):CRITICAL (-29.5%)

Return on Capital (Capital Efficiency):CRITICAL (-5.4%)

📊 Valuation Trilogy

Three interconnected metrics for complete valuation analysis

Click any metric for full methodology and detailed analysis

Zyberno's Verdict

QWEST CORP (CTDD) stock report — Zyberno Score 36/100 (WEAK BUSINESS), Margin of Safety +100.0%, 2,900% expected annual return. Full financial analysis on Zyberno.

According to Zyberno's DCF model, QWEST CORP (CTDD) trades at $19.55 against an estimated intrinsic value per share of $2,170,694,201.73 — a +100.0% Margin of Safety based on Owner Earnings of $964.00M TTM, projected at -26.2% growth for 10 years with a 2.5% terminal growth rate. Zyberno's model translates this into a 5-year expected return of 2,899.5% annually.

Over the trailing twelve months, CTDD generated $964.00M in Owner Earnings. Capital was deployed as follows: $1.98B paid as dividends, $736.00M invested in capital expenditures. Reinvestment rate: 1,381.5%. Owner Earnings have declined at 26.2% annually over the trailing five years using log-linear regression.

DIVISION I: EXECUTIVE SUMMARY

A. Market Valuation

Market Price & Capitalization (2)

Current Price:19.55

Market Cap:$19.55

Valuation Multiples (3)

P/B Ratio:0.00x

P/S Ratio:0.00x

Peg Ratio:-999.00x

Enterprise Metrics (2)

Enterprise Value:$1.77B

Pfcf Ratio:0.00x

B. Profitability Assessment

Return Metrics (5)

ROE:

-15.5%

📊 Click to view full CTDD ROE analysis →

ROA:-10.9%

Roic:

-5.4%

📊 Click to view full CTDD ROIC analysis →

Reinvestment Rate:1,381.5%

Fundamental Growth Rate (g):-74.8%

Margin Analysis (3)

Operating Margin Ttm:-29.5%

Net Margin Ttm:-40.1%

Ebitda Margin:-14.0%

TTM Performance (3)

Gross Margin Ttm:69.7%

Operating Margin Ttm:-29.5%

Net Margin Ttm:-40.1%

Yield Metrics (3)

Earnings Yield:-$999.00

Owner Earnings Yield:$4.93B

Dividend Yield:10,127,877,237.9%

C. Log-Linear Regression Growth Trends

Revenue Growth (Linear) (1)

Revenue Growth Rate (Linear):-9.9%

Earnings Growth (Linear) (1)

Net Income Growth Rate (Linear):-20.0%

Cash Flow Growth (Linear) (2)

Free Cash Flow Growth Rate (Linear):-21.8%

Operating Cash Flow Growth Rate (Linear):-15.1%

Operating Growth (Linear) (1)

Operating Income Growth Rate (Linear):-33.3%

D. Financial Stability

Liquidity Ratios (3)

Current Ratio:6.96x

Quick Ratio:6.96x

Cash Ratio:0.09x

Leverage Analysis (3)

Debt To Equity Ttm:0.16x

Debt-to-Equity Ratio:0.16x

Debt To Ebitda:-999.00x

Coverage Ratios (2)

Interest Coverage Ratio:-11.09x

Times Interest Earned:-11.09

Capital Structure (4)

Working Capital:3,813,000,000.00

Cash And Cash Equivalents:56,000,000.00

Long Term Debt:$1.69B

Net Debt:$1.77B

DIVISION II: FINANCIAL STATEMENTS ANALYSIS

A. Income Statement Analysis

Revenue Components (2)

Revenue TTM: $4.58B

Linear Growth: -9.9%

📊 Click to view full CTDD Revenue analysis & methodology →

Cost Of Revenue Ttm:$1.39B

Profitability Breakdown (2)

Gross profit TTM: $3.19B

Linear Growth: -11.6%

📊 Click to view full CTDD Gross Profit analysis & methodology →

Operating income TTM: -$1.35B

Linear Growth: -33.3%

📊 Click to view full CTDD Operating Income analysis & methodology →

Bottom Line Performance (3)

Net income TTM: -$1.84B

Linear Growth: -20.0%

📊 Click to view full CTDD Net Income analysis & methodology →

Income Before Tax:-$1.30B

Ebitda Ttm:-641,000,000.00

Operating Expenses (5)

Operating Expenses:5,927,000,000.00

R And D Expense:0.00

Sga Expense:445,000,000.00

Income Tax Expense:$541.00M

Interest Expense:91,000,000.00

Expense Ratios (3)

R And D To Revenue Percentage:0.0%

Sga To Revenue Percentage:42.3%

Ebitda Margin:-14.0%

B. Balance Sheet Analysis

Asset Composition (5)

Total Assets:$15.72B

Current Assets:$4.45B

Ppe Net:7,395,000,000.00

Goodwill:3,638,000,000.00

Intangible Assets:$119.00M

Liability Structure (4)

Total Liabilities:5,027,000,000.00

Current Liabilities:640,000,000.00

Long Term Debt:$1.69B

Short Term Debt:$138.00M

Equity & Capital (3)

Equity:$10.69B

Retained Earnings:$640.00M

Common Stock:10,050,000,000.00

Working Capital Items (3)

Accounts Receivable:185,000,000.00

Inventory:0.00

Accounts Payable:115,000,000.00

Special Items (2)

Contract Liabilities:245,000,000.00

Stock Based Compensation:0.00

C. Cash Flow Analysis

Operating Activities (2)

Operating cash flow TTM: $1.57B

Linear Growth: -15.1%

Free cash flow TTM: $837.00M

Linear Growth: -21.8%

📊 Click to view full CTDD Free Cash Flow analysis & methodology →

Investment Activities (2)

Investing Cash Flow:-$247.00M

Capital Expenditures Ttm:736,000,000.00

Financing Activities (3)

Financing Cash Flow:-$1.00M

Dividends Paid Ttm:1,980,000,000.00

Stock Repurchase:0.00

Capital Transactions (3)

Common Stock Issuance:0.00

Long Term Debt Issuance:$0.00

Long Term Debt Repayments:$2.00M

Non-Cash Items (1)

Depreciation Amortization Ttm:709,000,000.00

DIVISION III: OPERATIONAL METRICS

A. Per Share Analysis

Earnings Per Share (1)

Earnings Per Share Ttm:-$1.84B

Revenue & Cash Per Share (3)

Sales Per Share Ttm:4,577,000,000.00

Operating Cash Flow Per Share:$1.76B

Fcf Per Share Ttm:837,000,000.00

Book Value & Capital (2)

Book Value Per Share:$10.69B

Cash Per Share:56,000,000.00

Dividend Policy (1)

Dividend Payout Ratio:-999.00x

B. Operational Efficiency

Asset Utilization (2)

Asset Turnover Ttm:0.27x

Working Capital Turnover Ttm:1.20x

Receivables Management (2)

Receivables Turnover Ttm:24.74x

Days Sales Outstanding Ttm:14.75

Inventory Management (2)

Inventory Turnover Ttm:-999.00x

Days Inventory Outstanding Ttm:-999.00

Payables & Cash Cycle (2)

Days Payable Outstanding:30.22

Cash Conversion Cycle:-1,014.47

C. Quality & Risk Metrics

Financial Quality Scores (2)

Financial Strength Score:100.00

Quality Score:55.00

Market Metrics (2)

Beta:0.00x

Volatility Category:unknown

DIVISION IV: INVESTMENT ANALYSIS

A. Value Investment Framework

Owner Earnings Analysis (3)

Owner earnings TTM: $964.00M

Linear Growth: -26.2%

📊 Click to view full CTDD Owner Earnings analysis & methodology →

Owner Earnings Per Share:$964.00M

Owner Earnings Yield:$4.93B

Growth Assessment (1)

Owner Earnings Growth Rate:-$26.22

Damodaran Growth Analysis (2)

Reinvestment Rate:1,381.5%

Fundamental Growth Rate (g):-74.8%

Intrinsic Value Models (1)

Intrinsic Value:

$2.17B

📊 Click to view full CTDD DCF valuation →

Margin of Safety (1)

Margin Of Safety:

100.0%

📊 Click to view full CTDD valuation analysis →

Return Scenarios (1)

Theoretical 5-Year Return:

2,899.5%

📊 Click to view full CTDD expected return analysis →

Investment Assessment (1)

Buffett Assessment:Excellent margin of safety

B. Log-Linear Regression Growth Analysis

Growth Rates (Log-Linear Regression) (3)

Revenue Growth Rate (Linear):-9.9%

Net Income Growth Rate (Linear):-20.0%

Operating Income Growth Rate (Linear):-33.3%

Cash Flow Growth Rates (2)

Free Cash Flow Growth Rate (Linear):-21.8%

Operating Cash Flow Growth Rate (Linear):-15.1%

Other Growth Rates (3)

Gross Profit Growth Rate (Linear):-11.6%

Book Value Growth Rate (Linear):0.9%

Owner Earnings Growth Rate:-$26.22

C. Company Profile & Context

Corporate Information (6)

Symbol:CTDD

Company Name:QWEST CORP

Sector:Technology

Industry:Telecommunications

Exchange:NYSE

Country:United States

Market Classification (3)

Market Cap Category:N/A

Price Category:medium

Volume Category:N/A

Share Structure (3)

Shares Outstanding:1

Shares Outstanding Basic:1

Shares Outstanding Diluted:0

Data Processing Info (3)

Processing Version:v3.0

Last Updated:2026-06-10 23:08:54 UTC

Data Timestamp:2026-06-10T23:08:54.568518