AT&T INC (T) Stock Fundamental Analysis
NYSE:T - New York Stock Exchange, Inc. - US00206R1023 - Common Stock - Currency: USD
Taking everything into account, T scores 4 out of 10 in our fundamental rating. T was compared to 31 industry peers in the Diversified Telecommunication Services industry. While T belongs to the best of the industry regarding profitability, there are concerns on its financial health. T is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
T had positive earnings in the past year.
T had a positive operating cash flow in the past year.
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
T has a Return On Assets of 3.15%. This is in the better half of the industry: T outperforms 73.33% of its industry peers.
With an excellent Return On Equity value of 11.89%, T belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
With a decent Return On Invested Capital value of 5.43%, T is doing good in the industry, outperforming 73.33% of the companies in the same industry.
T had an Average Return On Invested Capital over the past 3 years of 5.09%. This is in line with the industry average of 5.65%.
The 3 year average ROIC (5.09%) for T is below the current ROIC(5.43%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.15% | ||
| ROE | 11.89% | ||
| ROIC | 5.43% |
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 10.25% is fine compared to the rest of the industry. T outperforms 80.00% of its industry peers.
In the last couple of years the Profit Margin of T has remained more or less at the same level.
T has a Operating Margin of 20.07%. This is in the better half of the industry: T outperforms 76.67% of its industry peers.
T's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 59.61%, T is in line with its industry, outperforming 56.67% of the companies in the same industry.
T's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.07% | ||
| PM (TTM) | 10.25% | ||
| GM | 59.61% |
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.
The number of shares outstanding for T has been increased compared to 1 year ago.
The number of shares outstanding for T has been reduced compared to 5 years ago.
T has about the same debt/assets ratio as last year.
2.2 Solvency
T has an Altman-Z score of 0.81. This is a bad value and indicates that T is not financially healthy and even has some risk of bankruptcy.
T has a Altman-Z score of 0.81. This is in the lower half of the industry: T underperforms 60.00% of its industry peers.
The Debt to FCF ratio of T is 6.22, which is on the high side as it means it would take T, 6.22 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 6.22, T is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
A Debt/Equity ratio of 1.19 is on the high side and indicates that T has dependencies on debt financing.
T has a Debt to Equity ratio of 1.19. This is comparable to the rest of the industry: T outperforms 53.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.19 | ||
| Debt/FCF | 6.22 | ||
| Altman-Z | 0.81 |
ROIC/WACC0.78
WACC6.98%
2.3 Liquidity
A Current Ratio of 0.70 indicates that T may have some problems paying its short term obligations.
T has a worse Current ratio (0.70) than 76.67% of its industry peers.
T has a Quick Ratio of 0.70. This is a bad value and indicates that T is not financially healthy enough and could expect problems in meeting its short term obligations.
T has a worse Quick ratio (0.66) than 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.7 | ||
| Quick Ratio | 0.66 |
3. Growth
3.1 Past
The earnings per share for T have decreased by -8.87% in the last year.
Measured over the past years, T shows a decrease in Earnings Per Share. The EPS has been decreasing by -7.30% on average per year.
T shows a small growth in Revenue. In the last year, the Revenue has grown by 0.26%.
The Revenue has been decreasing by -6.44% on average over the past years.
EPS 1Y (TTM)-8.87%
EPS 3Y-8.83%
EPS 5Y-7.3%
EPS Q2Q%-6.25%
Revenue 1Y (TTM)0.26%
Revenue growth 3Y-5.06%
Revenue growth 5Y-6.44%
Sales Q2Q%-0.45%
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 1.89% on average per year.
The Revenue is expected to grow by 1.40% on average over the next years.
EPS Next Y-5.91%
EPS Next 2Y-3.08%
EPS Next 3Y-1.45%
EPS Next 5Y1.89%
Revenue Next Year0.22%
Revenue Next 2Y0.71%
Revenue Next 3Y0.89%
Revenue Next 5Y1.4%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
T is valuated reasonably with a Price/Earnings ratio of 10.05.
Compared to the rest of the industry, the Price/Earnings ratio of T indicates a rather cheap valuation: T is cheaper than 90.00% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.58, T is valued rather cheaply.
A Price/Forward Earnings ratio of 10.04 indicates a reasonable valuation of T.
Compared to the rest of the industry, the Price/Forward Earnings ratio of T indicates a rather cheap valuation: T is cheaper than 93.33% of the companies listed in the same industry.
T's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.47.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.05 | ||
| Fwd PE | 10.04 |
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 70.00% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, T is valued a bit cheaper than 73.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.77 | ||
| EV/EBITDA | 6.59 |
4.3 Compensation for Growth
T has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-3.08%
EPS Next 3Y-1.45%
5. Dividend
5.1 Amount
T has a Yearly Dividend Yield of 4.93%, which is a nice return.
Compared to an average industry Dividend Yield of 5.32, T pays a bit more dividend than its industry peers.
T's Dividend Yield is rather good when compared to the S&P500 average which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.93% |
5.2 History
The dividend of T decreases each year by -10.62%.
T has been paying a dividend for at least 10 years, so it has a reliable track record.
T has decreased its dividend recently.
Dividend Growth(5Y)-10.62%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
T pays out 65.27% of its income as dividend. This is not a sustainable payout ratio.
DP65.27%
EPS Next 2Y-3.08%
EPS Next 3Y-1.45%
AT&T INC
NYSE:T (1/24/2025, 8:09:47 PM)
Premarket: 23.51 +0.79 (+3.48%)22.72
+0.19 (+0.84%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners61.02%
Inst Owner Change-0.07%
Ins Owners0.06%
Ins Owner Change5.43%
Market Cap163.02B
Analysts74.86
Price Target25.23 (11.05%)
Short Float %1.47%
Short Ratio3.05
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.93% |
Yearly Dividend1.14
Dividend Growth(5Y)-10.62%
DP65.27%
Div Incr Years0
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.93%
Min EPS beat(2)-2.25%
Max EPS beat(2)0.39%
EPS beat(4)2
Avg EPS beat(4)-1.34%
Min EPS beat(4)-4.82%
Max EPS beat(4)1.32%
EPS beat(8)6
Avg EPS beat(8)1.42%
EPS beat(12)9
Avg EPS beat(12)1.89%
EPS beat(16)12
Avg EPS beat(16)2.53%
Revenue beat(2)0
Avg Revenue beat(2)-2.97%
Min Revenue beat(2)-3.57%
Max Revenue beat(2)-2.37%
Revenue beat(4)0
Avg Revenue beat(4)-1.91%
Min Revenue beat(4)-3.57%
Max Revenue beat(4)-0.26%
Revenue beat(8)0
Avg Revenue beat(8)-1.93%
Revenue beat(12)0
Avg Revenue beat(12)-7.25%
Revenue beat(16)0
Avg Revenue beat(16)-11.58%
PT rev (1m)6.99%
PT rev (3m)12.29%
EPS NQ rev (1m)-0.18%
EPS NQ rev (3m)-0.18%
EPS NY rev (1m)0%
EPS NY rev (3m)1%
Revenue NQ rev (1m)-0.07%
Revenue NQ rev (3m)-0.07%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)-0.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.05 | ||
| Fwd PE | 10.04 | ||
| P/S | 1.33 | ||
| P/FCF | 7.77 | ||
| P/OCF | 4.25 | ||
| P/B | 1.55 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.59 |
EPS(TTM)2.26
EY9.95%
EPS(NY)2.26
Fwd EY9.96%
FCF(TTM)2.93
FCFY12.87%
OCF(TTM)5.35
OCFY23.53%
SpS17.03
BVpS14.68
TBVpS-13.25
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.15% | ||
| ROE | 11.89% | ||
| ROCE | 6.9% | ||
| ROIC | 5.43% | ||
| ROICexc | 5.48% | ||
| ROICexgc | 12.69% | ||
| OM | 20.07% | ||
| PM (TTM) | 10.25% | ||
| GM | 59.61% | ||
| FCFM | 17.18% |
ROA(3y)1.64%
ROA(5y)1.28%
ROE(3y)5.58%
ROE(5y)4.19%
ROIC(3y)5.09%
ROIC(5y)4.8%
ROICexc(3y)5.23%
ROICexc(5y)4.92%
ROICexgc(3y)11.75%
ROICexgc(5y)11.95%
ROCE(3y)6.46%
ROCE(5y)6.09%
ROICexcg growth 3Y7.02%
ROICexcg growth 5Y-0.4%
ROICexc growth 3Y11.41%
ROICexc growth 5Y4.62%
OM growth 3Y7.62%
OM growth 5Y5.58%
PM growth 3YN/A
PM growth 5Y0.43%
GM growth 3Y2.96%
GM growth 5Y2%
F-Score8
Asset Turnover0.31
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.19 | ||
| Debt/FCF | 6.22 | ||
| Debt/EBITDA | 2.84 | ||
| Cap/Depr | 88.65% | ||
| Cap/Sales | 14.21% | ||
| Interest Coverage | 3.31 | ||
| Cash Conversion | 86.94% | ||
| Profit Quality | 167.64% | ||
| Current Ratio | 0.7 | ||
| Quick Ratio | 0.66 | ||
| Altman-Z | 0.81 |
F-Score8
WACC6.98%
ROIC/WACC0.78
Cap/Depr(3y)97.02%
Cap/Depr(5y)85.03%
Cap/Sales(3y)14.14%
Cap/Sales(5y)12.69%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-8.87%
EPS 3Y-8.83%
EPS 5Y-7.3%
EPS Q2Q%-6.25%
EPS Next Y-5.91%
EPS Next 2Y-3.08%
EPS Next 3Y-1.45%
EPS Next 5Y1.89%
Revenue 1Y (TTM)0.26%
Revenue growth 3Y-5.06%
Revenue growth 5Y-6.44%
Sales Q2Q%-0.45%
Revenue Next Year0.22%
Revenue Next 2Y0.71%
Revenue Next 3Y0.89%
Revenue Next 5Y1.4%
EBIT growth 1Y1.31%
EBIT growth 3Y2.18%
EBIT growth 5Y-1.22%
EBIT Next Year83.63%
EBIT Next 3Y25.04%
EBIT Next 5Y15.65%
FCF growth 1Y37%
FCF growth 3Y-10.39%
FCF growth 5Y-2.18%
OCF growth 1Y17.08%
OCF growth 3Y-3.87%
OCF growth 5Y-2.55%