TELEPHONE AND DATA SYSTEMS (TDS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TDS - US8794338298 - Common Stock
40.2 USD
-0.39 (-0.96%)
40.2 USD
0 (0%)
Overall TDS gets a fundamental rating of 3 out of 10. We evaluated TDS against 22 industry peers in the Wireless Telecommunication Services industry. TDS scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. TDS has a expensive valuation and it also scores bad on growth.
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.
In multiple years TDS reported negative net income over the last 5 years.
TDS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
TDS has a worse Return On Assets (-1.47%) than 77.27% of its industry peers.
TDS has a Return On Equity of -2.80%. This is in the lower half of the industry: TDS underperforms 72.73% of its industry peers.
TDS has a Return On Invested Capital of 0.43%. This is in the lower half of the industry: TDS underperforms 77.27% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TDS is significantly below the industry average of 6.45%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.47% | ||
| ROE | -2.8% | ||
| ROIC | 0.43% |
ROA(3y)-1.61%
ROA(5y)-0.43%
ROE(3y)-4.32%
ROE(5y)-1.26%
ROIC(3y)1%
ROIC(5y)1.36%
1.3 Margins
The Operating Margin of TDS (1.10%) is worse than 77.27% of its industry peers.
TDS's Operating Margin has declined in the last couple of years.
TDS has a Gross Margin of 57.76%. This is in the better half of the industry: TDS outperforms 72.73% of its industry peers.
TDS's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.1% | ||
| PM (TTM) | N/A | ||
| GM | 57.76% |
OM growth 3Y-14.66%
OM growth 5Y-1.97%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y2.06%
GM growth 5Y0.77%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), TDS is destroying value.
The number of shares outstanding for TDS has been increased compared to 1 year ago.
Compared to 5 years ago, TDS has less shares outstanding
The debt/assets ratio for TDS is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.44, we must say that TDS is in the distress zone and has some risk of bankruptcy.
With a decent Altman-Z score value of 1.44, TDS is doing good in the industry, outperforming 63.64% of the companies in the same industry.
TDS has a debt to FCF ratio of 2.84. This is a good value and a sign of high solvency as TDS would need 2.84 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 2.84, TDS is doing good in the industry, outperforming 72.73% of the companies in the same industry.
A Debt/Equity ratio of 0.18 indicates that TDS is not too dependend on debt financing.
TDS's Debt to Equity ratio of 0.18 is amongst the best of the industry. TDS outperforms 86.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 2.84 | ||
| Altman-Z | 1.44 |
ROIC/WACC0.05
WACC7.9%
2.3 Liquidity
A Current Ratio of 1.89 indicates that TDS should not have too much problems paying its short term obligations.
TDS's Current ratio of 1.89 is amongst the best of the industry. TDS outperforms 100.00% of its industry peers.
A Quick Ratio of 1.88 indicates that TDS should not have too much problems paying its short term obligations.
With an excellent Quick ratio value of 1.88, TDS belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.89 | ||
| Quick Ratio | 1.88 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 80.46% over the past year.
The Revenue for TDS has decreased by -22.79% in the past year. This is quite bad
The Revenue has been decreasing by -0.83% on average over the past years.
EPS 1Y (TTM)80.46%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%109.59%
Revenue 1Y (TTM)-22.79%
Revenue growth 3Y-2.34%
Revenue growth 5Y-0.83%
Sales Q2Q%-49.54%
3.2 Future
The Earnings Per Share is expected to grow by 40.07% on average over the next years. This is a very strong growth
The Revenue is expected to decrease by -35.74% on average over the next years. This is quite bad
EPS Next Y-4.11%
EPS Next 2Y60.98%
EPS Next 3Y40.07%
EPS Next 5YN/A
Revenue Next Year-40.27%
Revenue Next 2Y-49.25%
Revenue Next 3Y-35.74%
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
The Price/Earnings Ratio is negative for TDS. In the last year negative earnings were reported.
Based on the Price/Forward Earnings ratio of 79.02, the valuation of TDS can be described as expensive.
Based on the Price/Forward Earnings ratio, TDS is valued expensively inside the industry as 81.82% of the companies are valued cheaper.
The average S&P500 Price/Forward Earnings ratio is at 24.03. TDS is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 79.02 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TDS is on the same level as its industry peers.
TDS's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.94 | ||
| EV/EBITDA | 8.34 |
4.3 Compensation for Growth
A more expensive valuation may be justified as TDS's earnings are expected to grow with 40.07% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y60.98%
EPS Next 3Y40.07%
5. Dividend
5.1 Amount
With a yearly dividend of 0.41%, TDS is not a good candidate for dividend investing.
TDS's Dividend Yield is slightly below the industry average, which is at 5.50.
Compared to an average S&P500 Dividend Yield of 1.88, TDS's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.41% |
5.2 History
On average, the dividend of TDS grows each year by 6.94%, which is quite nice.
TDS has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)6.94%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
TDS has negative earnings and hence a negative payout ratio. The dividend may be in danger.
The dividend of TDS is growing, but earnings are growing more, so the dividend growth is sustainable.
DP-69.41%
EPS Next 2Y60.98%
EPS Next 3Y40.07%
40.2
-0.39 (-0.96%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners99.07%
Inst Owner Change3.08%
Ins Owners1%
Ins Owner Change-8.07%
Market Cap4.64B
Revenue(TTM)3.89B
Net Income(TTM)-125.06M
Analysts77.5
Price TargetN/A
Short Float %5.85%
Short Ratio6.88
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.41% |
Yearly Dividend0.92
Dividend Growth(5Y)6.94%
DP-69.41%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-186.8%
Min EPS beat(2)-550.04%
Max EPS beat(2)176.44%
EPS beat(4)2
Avg EPS beat(4)-148.13%
Min EPS beat(4)-550.04%
Max EPS beat(4)176.44%
EPS beat(8)5
Avg EPS beat(8)-73.46%
EPS beat(12)5
Avg EPS beat(12)-103.71%
EPS beat(16)8
Avg EPS beat(16)-100.6%
Revenue beat(2)0
Avg Revenue beat(2)-23.78%
Min Revenue beat(2)-47.39%
Max Revenue beat(2)-0.17%
Revenue beat(4)0
Avg Revenue beat(4)-13.7%
Min Revenue beat(4)-47.39%
Max Revenue beat(4)-0.17%
Revenue beat(8)1
Avg Revenue beat(8)-7.26%
Revenue beat(12)1
Avg Revenue beat(12)-5.81%
Revenue beat(16)3
Avg Revenue beat(16)-4.31%
PT rev (1m)-2.67%
PT rev (3m)-2.67%
EPS NQ rev (1m)129.64%
EPS NQ rev (3m)129.64%
EPS NY rev (1m)-89.69%
EPS NY rev (3m)-58.3%
Revenue NQ rev (1m)-73.52%
Revenue NQ rev (3m)-73.52%
Revenue NY rev (1m)-36.89%
Revenue NY rev (3m)-36.89%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 79.02 | ||
| P/S | 1.19 | ||
| P/FCF | 15.94 | ||
| P/OCF | 5.94 | ||
| P/B | 1.04 | ||
| P/tB | 1.73 | ||
| EV/EBITDA | 8.34 |
EPS(TTM)-0.17
EYN/A
EPS(NY)0.51
Fwd EY1.27%
FCF(TTM)2.52
FCFY6.27%
OCF(TTM)6.77
OCFY16.85%
SpS33.67
BVpS38.68
TBVpS23.18
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.47% | ||
| ROE | -2.8% | ||
| ROCE | 0.54% | ||
| ROIC | 0.43% | ||
| ROICexc | 0.48% | ||
| ROICexgc | 0.65% | ||
| OM | 1.1% | ||
| PM (TTM) | N/A | ||
| GM | 57.76% | ||
| FCFM | 7.49% |
ROA(3y)-1.61%
ROA(5y)-0.43%
ROE(3y)-4.32%
ROE(5y)-1.26%
ROIC(3y)1%
ROIC(5y)1.36%
ROICexc(3y)1.03%
ROICexc(5y)1.44%
ROICexgc(3y)1.72%
ROICexgc(5y)2.35%
ROCE(3y)1.27%
ROCE(5y)1.72%
ROICexgc growth 3Y-18.07%
ROICexgc growth 5Y-6.7%
ROICexc growth 3Y-17.3%
ROICexc growth 5Y-7.85%
OM growth 3Y-14.66%
OM growth 5Y-1.97%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y2.06%
GM growth 5Y0.77%
F-Score8
Asset Turnover0.46
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 2.84 | ||
| Debt/EBITDA | 1.52 | ||
| Cap/Depr | 98% | ||
| Cap/Sales | 12.63% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 143.79% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.89 | ||
| Quick Ratio | 1.88 | ||
| Altman-Z | 1.44 |
F-Score8
WACC7.9%
ROIC/WACC0.05
Cap/Depr(3y)117.02%
Cap/Depr(5y)124.93%
Cap/Sales(3y)20.91%
Cap/Sales(5y)21.91%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)80.46%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%109.59%
EPS Next Y-4.11%
EPS Next 2Y60.98%
EPS Next 3Y40.07%
EPS Next 5YN/A
Revenue 1Y (TTM)-22.79%
Revenue growth 3Y-2.34%
Revenue growth 5Y-0.83%
Sales Q2Q%-49.54%
Revenue Next Year-40.27%
Revenue Next 2Y-49.25%
Revenue Next 3Y-35.74%
Revenue Next 5YN/A
EBIT growth 1Y-78.84%
EBIT growth 3Y-16.65%
EBIT growth 5Y-2.78%
EBIT Next Year3592.19%
EBIT Next 3Y193.59%
EBIT Next 5YN/A
FCF growth 1Y403.39%
FCF growth 3YN/A
FCF growth 5Y34.63%
OCF growth 1Y-33.53%
OCF growth 3Y1.25%
OCF growth 5Y2.42%
TELEPHONE AND DATA SYSTEMS / TDS FAQ
What is the ChartMill fundamental rating of TELEPHONE AND DATA SYSTEMS (TDS) stock?
ChartMill assigns a fundamental rating of 3 / 10 to TDS.
What is the valuation status of TELEPHONE AND DATA SYSTEMS (TDS) stock?
ChartMill assigns a valuation rating of 2 / 10 to TELEPHONE AND DATA SYSTEMS (TDS). This can be considered as Overvalued.
Can you provide the profitability details for TELEPHONE AND DATA SYSTEMS?
TELEPHONE AND DATA SYSTEMS (TDS) has a profitability rating of 2 / 10.
What is the earnings growth outlook for TELEPHONE AND DATA SYSTEMS?
The Earnings per Share (EPS) of TELEPHONE AND DATA SYSTEMS (TDS) is expected to decline by -4.11% in the next year.
Is the dividend of TELEPHONE AND DATA SYSTEMS sustainable?
The dividend rating of TELEPHONE AND DATA SYSTEMS (TDS) is 3 / 10 and the dividend payout ratio is -69.41%.