AT&T INC - T 5.35 11/01/66 (TBB) Stock Fundamental Analysis
NYSE:TBB - New York Stock Exchange, Inc. - US00206R3003 - Currency: USD
We assign a fundamental rating of 4 out of 10 to TBB. TBB was compared to 31 industry peers in the Diversified Telecommunication Services industry. While TBB has a great profitability rating, there are quite some concerns on its financial health. TBB has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
TBB had positive earnings in the past year.
In the past year TBB had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: TBB reported negative net income in multiple years.
TBB had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.15%, TBB is in the better half of the industry, outperforming 70.00% of the companies in the same industry.
The Return On Equity of TBB (11.89%) is better than 80.00% of its industry peers.
TBB has a Return On Invested Capital of 5.43%. This is in the better half of the industry: TBB outperforms 70.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TBB is in line with the industry average of 5.65%.
The 3 year average ROIC (5.09%) for TBB 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
With a decent Profit Margin value of 10.25%, TBB is doing good in the industry, outperforming 76.67% of the companies in the same industry.
In the last couple of years the Profit Margin of TBB has remained more or less at the same level.
TBB's Operating Margin of 20.07% is fine compared to the rest of the industry. TBB outperforms 73.33% of its industry peers.
TBB's Operating Margin has improved in the last couple of years.
TBB's Gross Margin of 59.61% is in line compared to the rest of the industry. TBB outperforms 53.33% of its industry peers.
TBB'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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), TBB is destroying value.
Compared to 1 year ago, TBB has more shares outstanding
The number of shares outstanding for TBB has been reduced compared to 5 years ago.
Compared to 1 year ago, TBB has about the same debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.83, we must say that TBB is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of TBB (0.83) is comparable to the rest of the industry.
The Debt to FCF ratio of TBB is 6.22, which is on the high side as it means it would take TBB, 6.22 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 6.22, TBB is doing good in the industry, outperforming 76.67% of the companies in the same industry.
TBB has a Debt/Equity ratio of 1.19. This is a high value indicating a heavy dependency on external financing.
TBB has a Debt to Equity ratio of 1.19. This is comparable to the rest of the industry: TBB outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.19 | ||
| Debt/FCF | 6.22 | ||
| Altman-Z | 0.83 |
ROIC/WACC0.77
WACC7.05%
2.3 Liquidity
TBB has a Current Ratio of 0.70. This is a bad value and indicates that TBB is not financially healthy enough and could expect problems in meeting its short term obligations.
TBB's Current ratio of 0.70 is on the low side compared to the rest of the industry. TBB is outperformed by 80.00% of its industry peers.
TBB has a Quick Ratio of 0.70. This is a bad value and indicates that TBB is not financially healthy enough and could expect problems in meeting its short term obligations.
TBB has a Quick ratio of 0.66. This is amonst the worse of the industry: TBB underperforms 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.7 | ||
| Quick Ratio | 0.66 |
3. Growth
3.1 Past
TBB shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -8.87%.
The Earnings Per Share has been decreasing by -7.30% on average over the past years.
Looking at the last year, TBB shows a small growth in Revenue. The Revenue has grown by 0.26% in the last year.
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
TBB is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 1.89% yearly.
TBB is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.40% yearly.
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.
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
Based on the Price/Earnings ratio of 10.65, the valuation of TBB can be described as reasonable.
Based on the Price/Earnings ratio, TBB is valued cheaper than 83.33% of the companies in the same industry.
When comparing the Price/Earnings ratio of TBB to the average of the S&P500 Index (28.58), we can say TBB is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 10.63, the valuation of TBB can be described as reasonable.
TBB's Price/Forward Earnings ratio is rather cheap when compared to the industry. TBB is cheaper than 86.67% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 24.47. TBB is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.65 | ||
| Fwd PE | 10.63 |
4.2 Price Multiples
66.67% of the companies in the same industry are more expensive than TBB, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, TBB is valued a bit cheaper than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.23 | ||
| EV/EBITDA | 6.8 |
4.3 Compensation for Growth
The decent profitability rating of TBB 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
TBB has a Yearly Dividend Yield of 4.93%, which is a nice return.
Compared to an average industry Dividend Yield of 5.32, TBB pays a bit more dividend than its industry peers.
TBB'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 TBB decreases each year by -10.62%.
TBB has been paying a dividend for over 5 years, so it has already some track record.
Dividend Growth(5Y)-10.62%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
65.27% of the earnings are spent on dividend by TBB. This is not a sustainable payout ratio.
DP65.27%
EPS Next 2Y-3.08%
EPS Next 3Y-1.45%
AT&T INC - T 5.35 11/01/66
NYSE:TBB (1/27/2025, 11:31:24 AM)
24.0601
+0.03 (+0.13%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners61.02%
Inst Owner ChangeN/A
Ins Owners0.06%
Ins Owner ChangeN/A
Market Cap172.64B
Analysts74.86
Price Target26.83 (11.51%)
Short Float %0.01%
Short Ratio2.95
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 Years0
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)11.64%
PT rev (3m)6.44%
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 | 10.65 | ||
| Fwd PE | 10.63 | ||
| P/S | 1.41 | ||
| P/FCF | 8.23 | ||
| P/OCF | 4.5 | ||
| P/B | 1.64 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.8 |
EPS(TTM)2.26
EY9.39%
EPS(NY)2.26
Fwd EY9.41%
FCF(TTM)2.93
FCFY12.16%
OCF(TTM)5.35
OCFY22.22%
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 | 0.83 |
F-Score8
WACC7.05%
ROIC/WACC0.77
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%