TELEPHONE AND DATA SYSTEMS (TDS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TDS - US8794338298 - Common Stock
40.27 USD
+0.55 (+1.38%)
40.27 USD
0 (0%)
TDS gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 22 industry peers in the Wireless Telecommunication Services industry. The financial health of TDS is average, but there are quite some concerns on its profitability. TDS is valued expensive and it does not seem to be growing. TDS also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
TDS had negative earnings in the past year.
In the past year TDS had a positive cash flow from operations.
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
The Return On Assets of TDS (-1.47%) is worse than 77.27% of its industry peers.
TDS has a worse Return On Equity (-2.80%) than 72.73% of its industry peers.
With a Return On Invested Capital value of 0.43%, TDS is not doing good in the industry: 77.27% of the companies in the same industry are doing better.
The Average Return On Invested Capital over the past 3 years for TDS is below the industry average of 5.89%.
| 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
With a Operating Margin value of 1.10%, TDS is not doing good in the industry: 77.27% of the companies in the same industry are doing better.
In the last couple of years the Operating Margin of TDS has declined.
TDS has a better Gross Margin (57.76%) than 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
TDS has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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
TDS has an Altman-Z score of 1.44. This is a bad value and indicates that TDS is not financially healthy and even has some risk of bankruptcy.
TDS has a better Altman-Z score (1.44) than 63.64% of its industry peers.
The Debt to FCF ratio of TDS is 2.84, which is a good value as it means it would take TDS, 2.84 years of fcf income to pay off 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.
TDS has a Debt/Equity ratio of 0.18. This is a healthy value indicating a solid balance between debt and equity.
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/WACC0.06
WACC7.74%
2.3 Liquidity
A Current Ratio of 1.89 indicates that TDS should not have too much problems paying its short term obligations.
TDS has a Current ratio of 1.89. This is amongst the best in 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.
Looking at the last year, TDS shows a very negative growth in Revenue. The Revenue has decreased by -22.79% in the last year.
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 10.97% on average over the next years. This is quite good.
Based on estimates for the next years, TDS will show a decrease in Revenue. The Revenue will decrease by -1.71% on average per year.
EPS Next Y45.12%
EPS Next 2Y22.19%
EPS Next 3Y10.97%
EPS Next 5YN/A
Revenue Next Year-5.37%
Revenue Next 2Y-2.58%
Revenue Next 3Y-1.71%
Revenue Next 5YN/A
3.3 Evolution
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
TDS reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
Also next year TDS is expected to report negative earnings again, which makes the also the Forward Price/Earnings Ratio negative.
| 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.
TDS's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.97 | ||
| EV/EBITDA | 8.36 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y22.19%
EPS Next 3Y10.97%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.85%, TDS is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 8.77, TDS pays a better dividend. On top of this TDS pays more dividend than 90.91% of the companies listed in the same industry.
TDS's Dividend Yield is rather good when compared to the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.85% |
5.2 History
The dividend of TDS is nicely growing with an annual growth rate of 6.94%!
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 2Y22.19%
EPS Next 3Y10.97%
40.27
+0.55 (+1.38%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners95.4%
Inst Owner Change3.08%
Ins Owners1%
Ins Owner Change-6.51%
Market Cap4.65B
Revenue(TTM)3.89B
Net Income(TTM)-125.06M
Analysts74.29
Price Target51 (26.65%)
Short Float %6.36%
Short Ratio7.16
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.85% |
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)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)16.55%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.87%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 1.2 | ||
| P/FCF | 15.97 | ||
| P/OCF | 5.95 | ||
| P/B | 1.04 | ||
| P/tB | 1.74 | ||
| EV/EBITDA | 8.36 |
EPS(TTM)-0.17
EYN/A
EPS(NY)-0.44
Fwd EYN/A
FCF(TTM)2.52
FCFY6.26%
OCF(TTM)6.77
OCFY16.82%
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
WACC7.74%
ROIC/WACC0.06
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 Y45.12%
EPS Next 2Y22.19%
EPS Next 3Y10.97%
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-5.37%
Revenue Next 2Y-2.58%
Revenue Next 3Y-1.71%
Revenue Next 5YN/A
EBIT growth 1Y-78.84%
EBIT growth 3Y-16.65%
EBIT growth 5Y-2.78%
EBIT Next Year4587.96%
EBIT Next 3Y257.02%
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 1 / 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 grow by 45.12% in the next year.
Is the dividend of TELEPHONE AND DATA SYSTEMS sustainable?
The dividend rating of TELEPHONE AND DATA SYSTEMS (TDS) is 7 / 10 and the dividend payout ratio is -69.41%.