AT&T INC (T)
US00206R1023 - Common Stock
Overall T gets a fundamental rating of 5 out of 10. We evaluated T against 36 industry peers in the Diversified Telecommunication Services industry. T has an excellent profitability rating, but there are concerns on its financial health. T has a bad growth rate and is valued cheaply.
1. Profitability
1.1 Basic Checks
T had positive earnings in the past year.
In the past year T had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: T reported negative net income in multiple years.
In the past 5 years T always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 3.49%, T belongs to the best of the industry, outperforming 80.56% of the companies in the same industry.
T's Return On Equity of 13.74% is amongst the best of the industry. T outperforms 86.11% of its industry peers.
The Return On Invested Capital of T (5.46%) is better than 77.78% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for T is in line with the industry average of 5.65%.
The last Return On Invested Capital (5.46%) for T is above the 3 year average (5.09%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.49% | ||
| ROE | 13.74% | ||
| ROIC | 5.46% |
ROA(3y)1.64%
ROA(5y)1.28%
ROE(3y)5.58%
ROE(5y)4.19%
ROIC(3y)5.09%
ROIC(5y)4.8%
1.3 Margins
T's Profit Margin of 11.59% is amongst the best of the industry. T outperforms 83.33% of its industry peers.
T's Profit Margin has been stable in the last couple of years.
Looking at the Operating Margin, with a value of 20.15%, T belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
T's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 59.06%, T is in the better half of the industry, outperforming 61.11% of the companies in the same industry.
T's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.15% | ||
| PM (TTM) | 11.59% | ||
| GM | 59.06% |
OM growth 3Y7.62%
OM growth 5Y5.58%
PM growth 3YN/A
PM growth 5Y0.43%
GM growth 3Y2.96%
GM growth 5Y2%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so T is destroying value.
Compared to 1 year ago, T has more shares outstanding
The number of shares outstanding for T has been reduced compared to 5 years ago.
The debt/assets ratio for T has remained at the same level compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.69, we must say that T is in the distress zone and has some risk of bankruptcy.
T has a worse Altman-Z score (0.69) than 61.11% of its industry peers.
The Debt to FCF ratio of T is 6.71, which is on the high side as it means it would take T, 6.71 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 6.71, T belongs to the best of the industry, outperforming 80.56% of the companies in the same industry.
T has a Debt/Equity ratio of 1.24. This is a high value indicating a heavy dependency on external financing.
T has a Debt to Equity ratio of 1.24. This is comparable to the rest of the industry: T outperforms 47.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.24 | ||
| Debt/FCF | 6.71 | ||
| Altman-Z | 0.69 |
ROIC/WACC0.83
WACC6.54%
2.3 Liquidity
A Current Ratio of 0.71 indicates that T may have some problems paying its short term obligations.
The Current ratio of T (0.71) is worse than 77.78% of its industry peers.
A Quick Ratio of 0.67 indicates that T may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.67, T is doing worse than 77.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.71 | ||
| Quick Ratio | 0.67 |
3. Growth
3.1 Past
T shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -7.09%.
The Earnings Per Share has been decreasing by -7.30% on average over the past years.
The Revenue has been growing slightly by 0.95% in the past year.
Measured over the past years, T shows a decrease in Revenue. The Revenue has been decreasing by -6.44% on average per year.
EPS 1Y (TTM)-7.09%
EPS 3Y-8.83%
EPS 5Y-7.3%
EPS growth Q2Q-8.33%
Revenue 1Y (TTM)0.95%
Revenue growth 3Y-5.06%
Revenue growth 5Y-6.44%
Revenue growth Q2Q-0.37%
3.2 Future
Based on estimates for the next years, T will show a small growth in Earnings Per Share. The EPS will grow by 1.22% on average per year.
The Revenue is expected to grow by 1.42% on average over the next years.
EPS Next Y-6.36%
EPS Next 2Y-1.38%
EPS Next 3Y0.04%
EPS Next 5Y1.22%
Revenue Next Year1.55%
Revenue Next 2Y1.19%
Revenue Next 3Y1.05%
Revenue Next 5Y1.42%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 7.37 indicates a rather cheap valuation of T.
T's Price/Earnings ratio is rather cheap when compared to the industry. T is cheaper than 94.44% of the companies in the same industry.
T is valuated cheaply when we compare the Price/Earnings ratio to 28.60, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 7.42, which indicates a rather cheap valuation of T.
T's Price/Forward Earnings ratio is rather cheap when compared to the industry. T is cheaper than 97.22% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.15. T is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.37 | ||
| Fwd PE | 7.42 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of T indicates a somewhat cheap valuation: T is cheaper than 72.22% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, T is valued cheaply inside the industry as 97.22% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.1 | ||
| EV/EBITDA | 5.88 |
4.3 Compensation for Growth
The excellent profitability rating of T may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-1.38%
EPS Next 3Y0.04%
5. Dividend
5.1 Amount
T has a Yearly Dividend Yield of 6.42%, which is a nice return.
Compared to an average industry Dividend Yield of 5.04, T pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.32, T pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.42% |
5.2 History
The dividend of T decreases each year by -10.62%.
T has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-10.62%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
T pays out 57.33% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP57.33%
EPS Next 2Y-1.38%
EPS Next 3Y0.04%
AT&T INC
NYSE:T (5/17/2024, 7:04:00 PM)
After market: 17.4 0 (0%)17.4
+0.1 (+0.58%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap124.76B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.42% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.37 | ||
| Fwd PE | 7.42 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.49% | ||
| ROE | 13.74% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 20.15% | ||
| PM (TTM) | 11.59% | ||
| GM | 59.06% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.3
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.24 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.71 | ||
| Quick Ratio | 0.67 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-7.09%
EPS 3Y-8.83%
EPS 5Y
EPS growth Q2Q
EPS Next Y-6.36%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)0.95%
Revenue growth 3Y-5.06%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y