Corporate Webpages NII Holdings, Inc.
The history of NII Holdings (NIHD) is a bit complicated and not
exactly what one would like to see in a company history. It was
formerly associated with Nextel Communications, Inc. The
predecessor to Nextel was "FleetCall," founded in 1987 and the
company changed its name to "Nextel Communications" in 1993.
The company bought frequencies used for fleet dispatch at a
substantial discount to cost for frequencies used for wireless
telephone service. These "non-cellular frequencies" were made
usable for consumer and business wireless voice telephone with
the "IDEN" (integrated digital enhanced network) technology,
developed by Motorola. This required a "push to talk" feature
in their phones. Nextel was the first company to provide unlimited
calling plans to a large customer base. It ran into some
problems with its unique frequencies with interferrence with
local radio stations and had to be "re-banded" by the FCC.
In the early 2000's Nextel began a venture to establish wireless
networks overseas, starting with the Philippines. They quickly
ran into problems with the Philippine Government protecting its
own local business interests which would continue to plague the
company in future Latin American ventures with somewhat unstable
or protective government environments that did not welcome foreigners.
Nextel's overseas unit filed for bankruptcy in 2002. While the
bankruptcy was "not expected to have much effect on Nextel
itself," Nextel was acquired by Sprint in 2005 and thereafter
became defunct. It's spinoff, its overseas unit emerging from
bankruptcy protection with debt restructuring, maintained its
headquarters in Reston, Virginia where Nextel's former
headquarters had been.
The "NII Holdings" where we presume the "NII" probably evolved
from somemthing like an unproud association with Nextel
International Inc. promptly continued to try to establish itself
as a totally overseas operator of cellular systems in Latin
American countries.
There are features of the NIHD stock chart which favor swing
trading and the use of oscillator indicators. Its trading range
has set up a nice channel and it is currently just outside the
bottom of that channel range suggesting a buy opportunity.
There were several things we did not like to see regarding the
company's financial presentations. There was no letter from the
CEO that we could detect, and information on executive
compensation was hard to come by. In some ways the company
seemed to make presentations more like one that was foreign
based rather than one that is domestically-based. The company
is definitely not touting its history, which is why that section
normally included in our format is omitted.
While this company is well-liked by Jim Cramer, who generally
sees investments in Latin America as the prime opportunity over
emerging markets in Asia and elsewhere, other researchers with
the exception of Standard & Poor's were not so sure. The
balance sheet was a problem with some of them. But often
companies emerge from bankruptcy leaner and meaner and better
regulated in terms of corporate governance. Executive
compensation and shareholder rights (poison pill) issues are a
concern with this company.
We give the company a negative news rating because of ongoing
problems with the Mexican and other Latin governments with local
corporations opposing their market entries, producing fines and
legal battles so typical of our "buddies" to the South who enjoy
robbing the Gringo blind. This is a lesson the company should have
learned in the tight-knit Philippines, where apparently it has no desire
to go back.
Is hope for success in countries like Mexico, El Salvador, Argentina and Brazil any
better? Well, maybe Brazil? Eight million subscribers can't be wrong, can they?
09-21-2011: NII Holdings, Inc. (NIHD): Robbing the Gringo Again?
(WAIT FOR PAGE TO LOAD COMPLETELY BEFORE LINKS WORK.)
Company Profile
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Comparison with Peers
Bond Issue
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Financial Statements
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Intrinsic Value (Disc. CashFlow)
Intrinsic Value (Proj. Earnings)
Scout Stock Rating
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Research Reports
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Sentiment
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Stock Report
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Moving Average Chart
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Recommendation
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Company Profile |
News |
Comparison |
Similar Companies Performance:
Bond Issue |
Zenith Index |
Under current market conditions, a Zenith Index Score of 1.20 or above is required for a positive rating on this factor. 1.21 -1.30 is considered acceptable, 1.30-1.40 is consider strong and > 1.40 is considered exceptionally strong. Accounting statements in this section often contain mistakes, especially in earlier years' totals, but data is deemed sufficient for us to give a rating. More accurate financial statements follow in the next section.
NII Holdings Inc. (NIHD ) Sector: Technology
1875 Explorer Street Industry: Wireless Communications
Suite 1000 Exchange: Nasdaq
Reston, VA 20190
NII Holdings, Inc., through its subsidiaries, provides wireless
communication services under the Nextel brand name to businesses and
individuals in Mexico, Brazil, Argentina, Peru, and Chile. Its services
include mobile telephone service; mobile broadband services; Nextel Direct
Connect service, which allows subscribers to talk to each other on a
push-to-talk basis for private one-to-one calls or on group calls; and
International Direct Connect service that allows subscribers to
communicate across national borders. The company also provides data
services, including text messaging services; mobile Internet services;
e-mail services; an Android-based open operating system; location-based
services, such as the use of global positioning system technologies,
digital media services, and Java enabled business applications; and
international roaming services. In addition, it offers two-way radio
services. NII Holdings, Inc. sells its products and services through
direct sales representatives, indirect sales agents, telesales, Nextel
retail stores, shopping center kiosks, and Website. The company was
formerly known as Nextel International, Inc. and changed its name to NII
Holdings, Inc. in December 2001. NII Holdings, Inc. was founded in 1995
and is based in Reston, Virginia.
Last Trade: 35.76 52-Week Range: 46.32 - 34.51
Trade Date: 09-19 Avg. Volume: 1,755,290 Shares
Index Membership: Employees: 13,500
Corporate Governance:
Audit (Low Concern), Board (Low Concern), Compensation
(Medium Concern), Shareholder Rights (Medium Concern).
EPS: 2.46 Dividend Amount: $ 0.00 Yield: 0.00%
Ex-Dividend Date: N/A Mkt Cap: $ 6,120,000K
Payout Ratio: 0.00%
Last Split Factor (new for old): 2:1 Split Date: Nov 22, 20
Key Statistics:
Enterprise Value: $ 8,130,000K Revenue (ttm) : $ 6,340,000K
Gross Profit: $ 3,370,000K
Earnings before Income Tax, Depreciation and Amortization: $ 1,660,000K
Enterprise Value/Revenue (ttm): 1.28 Revenue per Share: $ 37.40
Enterprise Value/EBITDA (ttm): 4.91 Qtrly Rev Growth (y to y): 29.50%
P/E Ratio (fwd projected): 12.82 P/E Ratio (current): 14.53
P/E Growth Ratio (5 yr expected): 0.69 Operating Margin: 16.21%
Price/Sales Ratio: 0.99 Profit Margin: 6.74%
Price/Book Value: 1.67 Book Value: $ 22.00/sh.
Return on Assets: 7.15% Net Income Avl to Common: $ 427,480K
Return on Equity: 12.86% Diluted Earnings/Share: $ 2.46
Qrtly Earnings Growth (yoy): 50.50%
Balance Sheet Items : Cash Flow Items (ttm):
(most recent qrtr) (trailing 12 mo.)
Total Cash: $ 2,940,000K Operating Cash Flow:$ 1,090,000K
Total Debt: $ 4,770,000K Lvgd Free Cash Flow:$ 204,270K
Total Debt/Equity: 126.90
Total Cash/Share: $ 17.20
Current Ratio: 1.69
Share Statistics: Stock Price History:
Shares Outstanding: 171,110K Stk 52-Week Change: -11.07%
Float: 168,280K S&P 500 52-Wk Chng: 5.37%
Sh. Short % of Float: 1.60% 50-Day Moving Avg: 37.77
Short Ratio: 1.00 200-Day Moving Avg: 40.25
% Held by Institutions: 97.70% Beta: 1.99
% Held by Insiders: 0.77%
Analysts' Estimates: Cur. Qtr Next Qtr Cur. Year Next Year
___________________________ Sep 11 Dec 11 Dec 11 Dec 12
Average Earnings Estimate 0.65 0.64 2.57 2.79
Average Revenue Estimate 810M 1,890M 7,010M 7,950M
Factors Comparing This Company to Its Industry Leader (1.0 = Average):
Long Term EPS Growth Rate (5 yr): 19.182 EPS Growth (Qrtly YoY): 11.722
PEG Ratio (ttm, 5 yr expected): 5.861 P/E Ratio (ttm): 14.517
Revenue Growth (Qrtly YoY): 10.550
Annual Income Statements: All numbers in thousands)
Period Ending Dec31,2010 Dec31,2009 Dec31,2008
Total Revenue 5,601,316 4,397,599 4,269,380
Cost of Revenue 2,229,134 1,848,955 1,696,318
Gross Profit 3,372,182 2,548,644 2,573,062
Operating Expenses:
Research & Development 0 0 0
Selling, General & Administrative 1,941,789 1,438,463 1,400,642
Non-Recurring Expenses 0 0 0
Other Operating Expenses 552,980 433,304 404,479
Total Operating Expenses 0 0 0
Operating Income or Loss 877,413 676,877 767,941
Income from Continuing Operations:
Total Other Income/Expenses Net 62,529 128,144 -80,967
Earnings Before Interest & Taxes 939,942 805,021 686,974
Interest Expense 342,204 218,844 162,614
Income Before Taxes 597,738 586,177 524,360
Income Tax Expense 256,686 204,686 155,255
Minority Interest 0 0 0
Net Income from Continuing Op.s 341,052 381,491 369,105
Non-recurring Events:
Discontinued Operations 0 0 0
Extraordinary Items 0 0 0
Effect of Accounting Changes 0 0 0
Other Items 0 0 0
Net Income 341,052 381,491 369,105
Preferred Stock & Other Adjustmnts 0 0 0
Net Income Avail To Common Shares 341,052 381,491 369,105
Quarterly Income Statements: All numbers in thousands)
Period Ending Jun30,2011 Mar31,2011 Dec31,2010 Sep30,2010
Total Revenue 1,750,113 1,622,837 1,520,098 1,446,151
Cost of Revenue 658,931 656,380 596,734 581,588
Gross Profit 1,091,182 966,457 923,364 864,563
Operating Expenses:
Research & Development 0 0 0 0
Selling, General & Adminis. 618,092 535,557 544,793 502,312
Non-Recurring Expenses 0 0 0 0
Other Operating Expenses 172,120 155,919 149,403 139,700
Total Operating Expenses 0 0 0 0
Operating Income or Loss 300,970 274,981 229,168 222,551
Income from Continuing Operations:
Total Other Income/Expenses Net 21,215 10,338 22,796 34,726
Earnings Before Int. & Taxes 322,185 285,319 251,964 257,277
Interest Expense 95,715 81,159 79,746 83,458
Income Before Taxes 226,470 204,160 172,218 173,819
Income Tax Expense 112,851 107,402 73,631 55,307
Minority Interest 0 0 0 0
Net Income from Continuing Op.s 113,619 96,758 98,587 118,512
Non-recurring Events:
Discontinued Operations 0 0 0 0
Extraordinary Items 0 0 0 0
Effect of Accounting Changes 0 0 0 0
Other Items 0 0 0 0
Net Income 113,619 96,758 98,587 118,512
Preferred Stock & Other Adj.s 0 0 0 0
Net Income Avail To Common Shs 113,619 96,758 98,587 118,512
Annual Balance Sheets: All Numbers in Thousands
Period Ending Dec31,2010 Dec31,2009 Dec31,2008
Current Assets:
Cash & Cash Equivalents 1,767,501 2,504,064 1,243,251
Short Term Investments 537,539 116,289 82,002
Net Receivables 974,988 762,089 588,327
Inventory 227,191 188,476 139,285
Other Current Assets 393,658 220,210 130,705
Total Current Assets 3,900,877 3,791,128 2,183,570
Long-Term Investments 0 0 0
Property, Plant & Equipt 2,960,046 2,502,189 1,887,315
Goodwill 0 0 0
Intangible Assets 433,208 337,233 317,878
Accumulated Amortization 0 0 0
Other Assets 410,458 429,800 268,399
Deferred Long Term Asset Charges 486,098 494,343 430,958
Total Assets 8,190,687 7,554,693 5,088,120
Current Liabilities:
Accounts Payable 1,127,283 828,620 202,526
Short/Current Long Term Debt 446,995 564,544 99,054
Other Current Liabilities 158,690 136,533 509,619
Total Current Liabilities 1,732,968 1,529,697 811,199
Long Term Debt 2,818,423 3,016,244 2,193,240
Other Liabilities 211,179 145,912 158,652
Deferred LT Liability Charges 108,544 116,003 138,142
Minority Interest 0 0 0
Negative Goodwill 0 0 0
Total Liabilities 4,871,114 4,807,856 3,301,233
Stockholder Equity:
Misc. Stocks Options Warrants 0 0 0
Redeemable Perferred Stock 0 0 0
Preferred Stock 0 0 0
Common Stock 169 166 166
Retained Earnings 2,015,950 1,674,898 1,372,904
Treasury Stock 0 0 0
Capital Surplus 1,364,705 1,239,541 954,192
Other Stockholder Equity -61,251 -167,768 -540,375
Total Stockholder Equity 3,319,573 2,746,837 1,786,887
Net Tangible Assets 2,886,365 2,409,604 1,469,009
Quarterly Balance Sheets: All Numbers in Thousands
Period Ending Jun30,2011 Mar31,2011 Dec31,2010 Sep30,2010
Current Assets:
Cash & Cash Equivalents 2,533,753 2,428,251 1,767,501 1,666,077
Short Term Investments 408,652 355,730 537,539 559,118
Net Receivables 1,218,201 1,083,524 974,988 902,760
Inventory 234,603 227,137 227,191 162,832
Other Current Assets 313,986 349,954 393,658 344,122
Total Current Assets 4,709,195 4,444,596 3,900,877 3,634,909
Long-Term Investments 0 254,484 0 0
Property, Plant & Equipt 3,318,245 3,092,450 2,960,046 2,727,834
Goodwill 0 0 0 0
Intangible Assets 1,370,976 449,389 433,208 408,806
Accumulated Amortization 0 0 0 0
Other Assets 396,979 371,280 410,458 494,137
Deferred LT Asset Charges 450,501 455,049 486,098 497,981
Total Assets 10,245,896 9,067,248 8,190,687 7,763,667
Current Liabilities:
Accounts Payable 1,190,189 999,623 1,127,283 920,848
Current Portion LT Debt 1,413,614 491,975 446,995 417,034
Other Current Liabilities 177,830 167,650 158,690 153,099
Total Current Liabilities 2,781,633 1,659,248 1,732,968 1,490,981
Long Term Debt 3,360,681 3,576,499 2,818,423 2,806,888
Other Liabilities 240,351 219,472 211,179 207,190
Deferred LT Liab. Charges 101,027 105,127 108,544 95,540
Minority Interest 0 0 0 0
Negative Goodwill 0 0 0 0
Total Liabilities 6,483,692 5,560,346 4,871,114 4,600,599
Stockholder Equity:
Misc. Options, WarrantS 0 0 0 0
Redeemable Perferred Stock 0 0 0 0
Preferred Stock 0 0 0 0
Common Stock 170 169 169 168
Retained Earnings 2,226,327 2,112,708 2,015,950 1,917,363
Treasury Stock 0 0 0 0
Capital Surplus 1,419,296 1,380,014 1,364,705 1,336,476
Other Stockholder Equity 116,411 14,011 -61,251 -90,939
Total Stockholder Equity 3,762,204 3,506,902 3,319,573 3,163,068
Net Tangible Assets 2,391,228 3,057,513 2,886,365 2,754,262
Annual Cash Flow: All Numbers in Thousands
Period Ending Dec31,2010 Dec31,2009 Dec31,2008
Net Income 341,052 96,758 369,105
Operating Activites:
Depreciation 616,116 491,706 421,063
Adjustments to Net Income 85,776 22,690 229,252
Changes in Accounts Recv'bls -223,259 -184,640 -207,630
Changes in Liabilities 176,073 203,382 148,654
Changes in Inventories 37,299 -7,284 -58,623
Changes in Other Op'ing Actv's 0 -42,590 -107,462
Total Cash Flow fr Operations 890,814 864,755 794,359
Investing Activities:
Capital Expenditures -691,759 -649,578 -804,546
Investments -423,648 -5,121 126,855
Other Cash Flows fr Investing 0 0 0
Total Cash Flows fr Investing -1,176,737 -796,360 -688,477
Financing Acitivies:
Dividends Paid 0 0 0
Sale or Purchase of Stock 57,685 15,671 -208,893
Net Borrowings -438,242 1,205,170 102,712
Other Cash Flows fr Financing 0 -5,535 0
Total Cash Flows fr Financing -461,163 1,215,306 -106,181
Effect of Exchange Rate Change 10,523 -22,888 -126,615
Change in Cash & Cash Equiv.s -736,563 1,260,813 -126,914
Quarterly Cash Flow: All Numbers in Thousands
Period Ending Jun30,2011 Mar31,2011 Dec31,2010 Sep30,2010
Net Income 113,619 96,758 98,587 118,512
Operating Activites:
Depreciation 185,724 170,819 212,539 106,602
Adjustments to Net Income 52,406 39,576 -40,320 54,519
Changes in Accounts Recv'bls -135,326 -76,915 -60,303 -54,915
Changes in Liabilities 187,995 -22,911 68,326 63,293
Changes in Inventories 9,229 21,262 -30,880 19,415
Changes in Other Oper'g Acts 0 -24,626 -107,812 43,029
Total Cash Flow f Operations 400,285 203,963 140,137 350,455
Investing Activities:
Capital Expenditures -226,411 -226,131 -185,374 -170,514
Investments 113,861 -71,976 147,836 -24,276
Other Cash Flows fr Investing 0 82,327 -4,107 54,078
Total Cash Flows fr Investing -109,713 -215,780 -41,645 -140,712
Financing Acitivies:
Dividends Paid 0 0 0 0
Sale or Purchase of Stock 0 0 57,685 0
Net Borrowings -246,337 688,307 -3,524 -278,118
Other Cash Flows fr Financing 59,164 -12,412 -52,092 -87,558
Total Cash Flows fr Financing -187,173 675,895 2,069 -365,676
Effect of Exchange Rate Chg 0 0 0 -3,328
Change in Cash & Cash Equiv. 105,502 660,750 101,424 -153,858
NIHD NII Holdings Inc. [Indices near +3.0 or near zero,
or < zero bear special attention.]
P/E Ratio Tests:
Current P/E Ratio < 28? 1.9270 P/E Ratio > 5? 1.0000
P/E Ratio Vs Growth Rate: 0.0700 Forward P/E Ratio < 28? 2.1841
Sales Tests:
Price/Sales Ratio < 2.3? 2.3232 Inventory/Sales < 5%? 1.2327
Sales < $1 billion? 0.1785 Operating Margin < 7.5%? 0.4627
Balance Sheet Tests:
Debt/Equity < 0.40? 0.0032 Long-Term Debt Service: 1.1778
LTD Being Reduced? 1.2000 Short-Term Debt Service: 3.0000
Current Ratio > 2? 0.8450 Working Capital >= 1.5? 1.1814
Leverage Ratio < 20%? 0.6073 Debt / Assets < 1? 2.9061
Quick Ratio > 1? 1.3488 Inventory Turnover > 1? 0.2969
Shares Out Decreasing? 0.6000 Market Cap.> 1.5 Billion? 0.2451
Profit Margin > 7.5%? 0.8986
Income Tests:
Dividend Yield > 2.0%? 0.0000 EPS Annual Growth > 10%? 2.9100
Enterprise Value/Revenue: 0.8533 EPS 5-yr Growth > 20%? 1.0880
Enterprise Value/EBITDA: 0.7014 EPS Growth Consistent? 1.2000
EPS Qrtly Growth > 10%? 3.0000 Collection < 45 days? 0.7083
Rev. Qtrly Growth > 15%? 3.0000 Gross Pft/Cur. LTD < 1? 1.8112
EPS Annual Growth > 10%? 2.9100 Borrowing Int. Rate< 6%? 0.8466
Stock Performance Tests:
Volatility > 25%? 1.1689 % Held by Insiders < 5%? 3.0000
Beta > 1.25? 1.5920 % Held by Institut. < 50? 0.5118
50 Da MA > 200 Da MA? -0.2081 % Held by Institut. > 30? 3.0000
52-Wk Change vs. S&P 500: 0.3580 Short Ratio > 5? 0.2000
Price/Book Value < 3? 2.3300 Short % of Float > 20? 0.0800
Return on Assets > 17%? 0.4206 Average Volume > 100,000? 3.0000
Cash Flow Tests:
Oper. C.F. > Lever'd C.F: 3.0000 Positive Free Cash Flow? 1.0000
Positive Oper. Cash Flow? 1.0000 Price to C.F./sh. Ratio: 2.1400
Cash Flow / Assets >.10? 0.1994
NIHD NII Holdings Inc. Overall Zenith Index: 1.3388
Financial Statements |
Financial Ratios |
. . . . . . . . . . . . 1 = Highest , 10 = Lowest
Market Grader |
Intrinsic Value (DCF) |
Intrinsic Value by Discounted Cash Flow Method:
Intrinsic Value (PEG) |
Intrinsic Value by Projected Earnings Growth Method:
Stock Scout |
We find "Scout" to be a bit biased toward the high end, so anything under a 6 is considered a negative, 6 and above, positive.
Projected Earnings |
Research Reports |
Analysts' Opinions |
Insider Activity |
Institutional Activity |
Institutional Orders to Buy or Sell:
Sentiment |
Zenith uses the "sentiment" score above or below 50 to award a positive or negative point in the Decision Matrix.
Short Interest Ratio |
As the short interest rises as a percentage of average daily share volume (Days to Cover), this is considered a measure of negative sentiment. Similarly, a decrease in that percentage is considered positive sentiment.
Stock Report |
Management's Discussion of Results of Operations Excerpts |
Moving Average Chart |
Right Time Study |
Channeling Potential |
The summary below includes a value for `Degree,' which refers on a
scale of 1 to 10 the range of a channel in the period under consi-
deration compared to the total range of price movement. It also looks
for the last closing price to be within the channel, otherwise zeroed.
The `Index' is the `Degree' weighted for volatility. Generally, the
the higher the index, the more suitable is the stock for trading as
a `rolling stock' between channel high and low points.
Results for NII Holdings:
Symbol? NIHD
Total Months Available: 106
Months in Cycle? 4
Months Covered by Periods: 12
Period 1 Period 2 Period 3
H1 L1 H2 L2 H3 L3
46.32 35.64 44.21 37.03 44.05 34.51
RANGE = 46.32 TO 34.51 Close = 36.80
CHANNEL = 44.05 TO 37.03 Degree = 6
Volatility = 19.08% Index = 11
Intraday Chart |
20 Days:
Stock Fetcher |
Point & Figure Chart |
Wall Street Analyzer |
Marketspace Chart |
Time Series Forecast |
Neural Network Prediction |
"Neurostock" can only track long trades. Therefore its performance, as tracked by itself on stocks which are consistently falling, may not appear as good as it could if each "sell" signal were a "short sale."
Ultimate Trading Systems |
The corresponding trades for the above chart are shown in tabular form below.
Recommendation |
| Factors | Weighted Points |
|---|---|
| News | - 1 |
| Comparison | + 1 |
| Industry | - 1 |
| Bond Issue | 0 |
| Zenith Index | + 1 |
| Non-GAAP vs. GAAP Earnings < 1% | + 1 |
| Cash Flow | + 1 |
| Ratios | + 1 |
| Market Grader | - 1 |
| Intrinsic Value DCF | + 1 |
| Intrinsic Value DDM | + 1 |
| Stock Scout | + 1 |
| Projected Earnings | + 1 |
| Research Reports | - 1 |
| Analysts | + 1 |
| Executive Perquisites | - 1 |
| Insider Activity | - 1 |
| Institutional Activity | - 1 |
| Management Reporting | + 1 |
| Short Interest | - 1 |
| Sentiment | - 1 |
| Standard & Poor's | + 1 |
| Moving Average | + 1 |
| Right Time Study | - 1 |
| Stock Fetcher | + 1 |
| Point & Figure | - 1 |
| Wall Street Analyzer | - 1 |
| Marketspace Chart | + 1 |
| Time Series Chart | + 1 |
| Neural Network | - 1 |
| Stock Options | + 1 |
| Ultimate Trading Systems | + 1 |
| Total | + 5 |
Place 860 shares of NII Holdings Inc. (NIHD) on the Active List.
