TELEPHONE AND DATA SYSTEMS (TDS) Stock Fundamental Analysis
NYSE:TDS - New York Stock Exchange, Inc. - US8794338298 - Common Stock
Taking everything into account, TDS scores 2 out of 10 in our fundamental rating. TDS was compared to 22 industry peers in the Wireless Telecommunication Services industry. TDS may be in some trouble as it scores bad on both profitability and health. TDS does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
TDS had negative earnings in the past year.
TDS had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: TDS reported negative net income in multiple years.
Each year in the past 5 years TDS had a positive operating cash flow.
1.2 Ratios
TDS has a worse Return On Assets (-4.43%) than 76.19% of its industry peers.
The Return On Equity of TDS (-11.98%) is worse than 76.19% of its industry peers.
The Return On Invested Capital of TDS (1.27%) is worse than 80.95% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TDS is significantly below the industry average of 6.49%.
The last Return On Invested Capital (1.27%) for TDS is above the 3 year average (1.27%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.43% | ||
| ROE | -11.98% | ||
| ROIC | 1.27% |
ROA(3y)-1.09%
ROA(5y)-0.07%
ROE(3y)-3.03%
ROE(5y)-0.36%
ROIC(3y)1.27%
ROIC(5y)1.46%
1.3 Margins
The Operating Margin of TDS (4.03%) is worse than 80.95% of its industry peers.
TDS's Operating Margin has declined in the last couple of years.
TDS has a Gross Margin of 56.77%. This is comparable to the rest of the industry: TDS outperforms 47.62% of its industry peers.
TDS's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.03% | ||
| PM (TTM) | N/A | ||
| GM | 56.77% |
OM growth 3Y-14.9%
OM growth 5Y-2.89%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.11%
GM growth 5Y0.18%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), TDS is destroying value.
Compared to 1 year ago, TDS has more shares outstanding
TDS has less shares outstanding than it did 5 years ago.
The debt/assets ratio for TDS is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.93, we must say that TDS is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 0.93, TDS is not doing good in the industry: 61.90% of the companies in the same industry are doing better.
The Debt to FCF ratio of TDS is 21.49, which is on the high side as it means it would take TDS, 21.49 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of TDS (21.49) is worse than 71.43% of its industry peers.
TDS has a Debt/Equity ratio of 0.81. This is a neutral value indicating TDS is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.81, TDS is in line with its industry, outperforming 42.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.81 | ||
| Debt/FCF | 21.49 | ||
| Altman-Z | 0.93 |
ROIC/WACC0.18
WACC6.95%
2.3 Liquidity
TDS has a Current Ratio of 1.59. This is a normal value and indicates that TDS is financially healthy and should not expect problems in meeting its short term obligations.
With an excellent Current ratio value of 1.59, TDS belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
A Quick Ratio of 1.44 indicates that TDS should not have too much problems paying its short term obligations.
With an excellent Quick ratio value of 1.44, TDS belongs to the best of the industry, outperforming 80.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.59 | ||
| Quick Ratio | 1.44 |
3. Growth
3.1 Past
The earnings per share for TDS have decreased strongly by -10.13% in the last year.
Looking at the last year, TDS shows a decrease in Revenue. The Revenue has decreased by -3.25% in the last year.
The Revenue has been growing slightly by 0.20% on average over the past years.
EPS 1Y (TTM)-10.13%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-356.25%
Revenue 1Y (TTM)-3.25%
Revenue growth 3Y-0.42%
Revenue growth 5Y0.2%
Sales Q2Q%-4.23%
3.2 Future
TDS is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 19.81% yearly.
TDS is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -1.69% yearly.
EPS Next Y-21.85%
EPS Next 2Y32.93%
EPS Next 3Y19.81%
EPS Next 5YN/A
Revenue Next Year-3.73%
Revenue Next 2Y-2.85%
Revenue Next 3Y-1.69%
Revenue Next 5YN/A
3.3 Evolution
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
TDS reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
Besides the negative Price/Earnings Ratio, also the Forward Price/Earnings Ratio is negative for TDS. No positive earnings are expected for the next year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
TDS's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, TDS is valued a bit more expensive than the industry average as 66.67% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.88 | ||
| EV/EBITDA | 6.57 |
4.3 Compensation for Growth
TDS's earnings are expected to grow with 19.81% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y32.93%
EPS Next 3Y19.81%
5. Dividend
5.1 Amount
TDS has a yearly dividend return of 0.46%, which is pretty low.
Compared to an average industry Dividend Yield of 5.35, TDS is paying slightly less dividend.
With a Dividend Yield of 0.46, TDS pays less dividend than the S&P500 average, which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.46% |
5.2 History
The dividend of TDS is nicely growing with an annual growth rate of 16.27%!
TDS has been paying a dividend for at least 10 years, so it has a reliable track record.
TDS has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)16.27%
Div Incr Years33
Div Non Decr Years33
5.3 Sustainability
TDS has negative earnings and hence a negative payout ratio. The dividend may be in danger.
TDS's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP-20.07%
EPS Next 2Y32.93%
EPS Next 3Y19.81%
TELEPHONE AND DATA SYSTEMS
NYSE:TDS (1/21/2025, 8:04:00 PM)
After market: 36 0 (0%)36
-0.11 (-0.3%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners89.19%
Inst Owner Change-0.21%
Ins Owners1.28%
Ins Owner Change-29.72%
Market Cap3.82B
Analysts74.29
Price Target53.04 (47.33%)
Short Float %3.83%
Short Ratio3.62
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.46% |
Yearly Dividend1.36
Dividend Growth(5Y)16.27%
DP-20.07%
Div Incr Years33
Div Non Decr Years33
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-149.53%
Min EPS beat(2)-300.05%
Max EPS beat(2)0.99%
EPS beat(4)3
Avg EPS beat(4)1.2%
Min EPS beat(4)-300.05%
Max EPS beat(4)295.4%
EPS beat(8)3
Avg EPS beat(8)-81.5%
EPS beat(12)6
Avg EPS beat(12)-84.75%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-2.07%
Min Revenue beat(2)-2.93%
Max Revenue beat(2)-1.2%
Revenue beat(4)1
Avg Revenue beat(4)-0.82%
Min Revenue beat(4)-2.93%
Max Revenue beat(4)1.31%
Revenue beat(8)1
Avg Revenue beat(8)-1.86%
Revenue beat(12)3
Avg Revenue beat(12)-1.18%
Revenue beat(16)5
Avg Revenue beat(16)-0.91%
PT rev (1m)14.29%
PT rev (3m)147.62%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1272.34%
EPS NY rev (1m)0%
EPS NY rev (3m)-45.78%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.8%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 0.76 | ||
| P/FCF | 19.88 | ||
| P/OCF | 3.31 | ||
| P/B | 0.75 | ||
| P/tB | 11.89 | ||
| EV/EBITDA | 6.57 |
EPS(TTM)-0.87
EYN/A
EPS(NY)-0.12
Fwd EYN/A
FCF(TTM)1.81
FCFY5.03%
OCF(TTM)10.87
OCFY30.19%
SpS47.51
BVpS47.88
TBVpS3.03
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.43% | ||
| ROE | -11.98% | ||
| ROCE | 1.61% | ||
| ROIC | 1.27% | ||
| ROICexc | 1.32% | ||
| ROICexgc | 2.16% | ||
| OM | 4.03% | ||
| PM (TTM) | N/A | ||
| GM | 56.77% | ||
| FCFM | 3.81% |
ROA(3y)-1.09%
ROA(5y)-0.07%
ROE(3y)-3.03%
ROE(5y)-0.36%
ROIC(3y)1.27%
ROIC(5y)1.46%
ROICexc(3y)1.3%
ROICexc(5y)1.55%
ROICexgc(3y)2.2%
ROICexgc(5y)2.49%
ROCE(3y)1.61%
ROCE(5y)1.84%
ROICexcg growth 3Y-19.45%
ROICexcg growth 5Y-10.51%
ROICexc growth 3Y-21.49%
ROICexc growth 5Y-11.08%
OM growth 3Y-14.9%
OM growth 5Y-2.89%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.11%
GM growth 5Y0.18%
F-Score6
Asset Turnover0.37
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.81 | ||
| Debt/FCF | 21.49 | ||
| Debt/EBITDA | 3.59 | ||
| Cap/Depr | 102.35% | ||
| Cap/Sales | 19.06% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 100.96% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.59 | ||
| Quick Ratio | 1.44 | ||
| Altman-Z | 0.93 |
F-Score6
WACC6.95%
ROIC/WACC0.18
Cap/Depr(3y)127.9%
Cap/Depr(5y)126.71%
Cap/Sales(3y)22.05%
Cap/Sales(5y)22.05%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-10.13%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-356.25%
EPS Next Y-21.85%
EPS Next 2Y32.93%
EPS Next 3Y19.81%
EPS Next 5YN/A
Revenue 1Y (TTM)-3.25%
Revenue growth 3Y-0.42%
Revenue growth 5Y0.2%
Sales Q2Q%-4.23%
Revenue Next Year-3.73%
Revenue Next 2Y-2.85%
Revenue Next 3Y-1.69%
Revenue Next 5YN/A
EBIT growth 1Y67.77%
EBIT growth 3Y-15.26%
EBIT growth 5Y-2.69%
EBIT Next Year595.18%
EBIT Next 3Y89.06%
EBIT Next 5YN/A
FCF growth 1Y431.03%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y0.96%
OCF growth 3Y-9.33%
OCF growth 5Y2.35%