T-MOBILE US INC (TMUS)
US8725901040 - Common Stock
Overall TMUS gets a fundamental rating of 4 out of 10. We evaluated TMUS against 22 industry peers in the Wireless Telecommunication Services industry. TMUS has an excellent profitability rating, but there are concerns on its financial health. TMUS is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
TMUS had positive earnings in the past year.
In the past year TMUS had a positive cash flow from operations.
TMUS had positive earnings in each of the past 5 years.
Each year in the past 5 years TMUS had a positive operating cash flow.
1.2 Ratios
The Return On Assets of TMUS (4.24%) is comparable to the rest of the industry.
TMUS has a better Return On Equity (14.10%) than 66.67% of its industry peers.
Looking at the Return On Invested Capital, with a value of 6.49%, TMUS is in the better half of the industry, outperforming 61.90% of the companies in the same industry.
TMUS had an Average Return On Invested Capital over the past 3 years of 5.36%. This is below the industry average of 7.95%.
The 3 year average ROIC (5.36%) for TMUS is below the current ROIC(6.49%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.24% | ||
| ROE | 14.1% | ||
| ROIC | 6.49% |
ROA(3y)2.23%
ROA(5y)2.44%
ROE(3y)6.98%
ROE(5y)7.54%
ROIC(3y)5.36%
ROIC(5y)5.33%
1.3 Margins
TMUS has a better Profit Margin (11.14%) than 61.90% of its industry peers.
TMUS's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 19.98%, TMUS is in the better half of the industry, outperforming 76.19% of the companies in the same industry.
In the last couple of years the Operating Margin of TMUS has grown nicely.
Looking at the Gross Margin, with a value of 62.97%, TMUS is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
TMUS's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.98% | ||
| PM (TTM) | 11.14% | ||
| GM | 62.97% |
OM growth 3Y14.03%
OM growth 5Y9.67%
PM growth 3Y33.2%
PM growth 5Y9.69%
GM growth 3Y1.52%
GM growth 5Y1.6%
2. Health
2.1 Basic Checks
TMUS has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
TMUS has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, TMUS has more shares outstanding
Compared to 1 year ago, TMUS has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.48, we must say that TMUS is in the distress zone and has some risk of bankruptcy.
With a decent Altman-Z score value of 1.48, TMUS is doing good in the industry, outperforming 66.67% of the companies in the same industry.
The Debt to FCF ratio of TMUS is 9.21, which is on the high side as it means it would take TMUS, 9.21 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of TMUS (9.21) is comparable to the rest of the industry.
TMUS has a Debt/Equity ratio of 1.34. This is a high value indicating a heavy dependency on external financing.
TMUS's Debt to Equity ratio of 1.34 is on the low side compared to the rest of the industry. TMUS is outperformed by 61.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.34 | ||
| Debt/FCF | 9.21 | ||
| Altman-Z | 1.48 |
ROIC/WACC0.88
WACC7.4%
2.3 Liquidity
A Current Ratio of 0.94 indicates that TMUS may have some problems paying its short term obligations.
TMUS's Current ratio of 0.94 is on the low side compared to the rest of the industry. TMUS is outperformed by 66.67% of its industry peers.
A Quick Ratio of 0.86 indicates that TMUS may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.86, TMUS is doing worse than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.94 | ||
| Quick Ratio | 0.86 |
3. Growth
3.1 Past
TMUS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 104.74%, which is quite impressive.
Measured over the past years, TMUS shows a quite strong growth in Earnings Per Share. The EPS has been growing by 15.44% on average per year.
The Revenue has decreased by -0.71% in the past year.
Measured over the past years, TMUS shows a quite strong growth in Revenue. The Revenue has been growing by 12.65% on average per year.
EPS 1Y (TTM)104.74%
EPS 3Y31.04%
EPS 5Y15.44%
EPS growth Q2Q26.58%
Revenue 1Y (TTM)-0.71%
Revenue growth 3Y4.73%
Revenue growth 5Y12.65%
Revenue growth Q2Q-0.19%
3.2 Future
The Earnings Per Share is expected to grow by 21.25% on average over the next years. This is a very strong growth
Based on estimates for the next years, TMUS will show a small growth in Revenue. The Revenue will grow by 3.51% on average per year.
EPS Next Y30.75%
EPS Next 2Y27.56%
EPS Next 3Y23.9%
EPS Next 5Y21.25%
Revenue Next Year3.47%
Revenue Next 2Y3.52%
Revenue Next 3Y3.48%
Revenue Next 5Y3.51%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 22.31 indicates a rather expensive valuation of TMUS.
TMUS's Price/Earnings is on the same level as the industry average.
TMUS's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.60.
With a Price/Forward Earnings ratio of 14.54, TMUS is valued correctly.
TMUS's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of TMUS to the average of the S&P500 Index (20.15), we can say TMUS is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.31 | ||
| Fwd PE | 14.54 |
4.2 Price Multiples
TMUS's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. TMUS is more expensive than 76.19% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TMUS indicates a rather expensive valuation: TMUS more expensive than 80.95% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.96 | ||
| EV/EBITDA | 9.22 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
TMUS has a very decent profitability rating, which may justify a higher PE ratio.
TMUS's earnings are expected to grow with 23.90% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.73
PEG (5Y)1.44
EPS Next 2Y27.56%
EPS Next 3Y23.9%
5. Dividend
5.1 Amount
TMUS has a Yearly Dividend Yield of 1.59%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 5.77, TMUS has a dividend in line with its industry peers.
TMUS's Dividend Yield is slightly below the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.59% |
5.2 History
On average, the dividend of TMUS grows each year by 55.47%, which is quite nice.
TMUS has been paying a dividend for less than 5 years, so it still needs to build a track record.
Dividend Growth(5Y)55.47%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
TMUS pays out 17.32% of its income as dividend. This is a sustainable payout ratio.
The dividend of TMUS is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP17.32%
EPS Next 2Y27.56%
EPS Next 3Y23.9%
T-MOBILE US INC
NASDAQ:TMUS (5/17/2024, 7:00:01 PM)
After market: 162.79 -1.21 (-0.74%)164
+0.42 (+0.26%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap192.18B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.59% |
Dividend Growth(5Y)
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Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
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EPS NQ rev (1m)
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EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.31 | ||
| Fwd PE | 14.54 | ||
| 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)0.73
PEG (5Y)1.44
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.24% | ||
| ROE | 14.1% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 19.98% | ||
| PM (TTM) | 11.14% | ||
| GM | 62.97% | ||
| 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 Turnover0.38
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.34 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.94 | ||
| Quick Ratio | 0.86 | ||
| 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)104.74%
EPS 3Y31.04%
EPS 5Y
EPS growth Q2Q
EPS Next Y30.75%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-0.71%
Revenue growth 3Y4.73%
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