TELEPHONE AND DATA SYSTEMS (TDS) Stock Fundamental Analysis
NYSE:TDS • US8794338298
46.54 USD
-1.05 (-2.21%)
At close: Feb 17, 2026
46.54 USD
0 (0%)
Pre-Market: 2/18/2026, 4:09:27 AM
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. TDS scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. TDS is valued expensive and it does not seem to be growing. Finally TDS also has an excellent dividend rating.
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.
- 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.
- Looking at the Return On Equity, with a value of -2.80%, TDS is doing worse than 72.73% of the companies in the same industry.
- TDS has a Return On Invested Capital of 0.43%. This is amonst the worse of the industry: TDS underperforms 81.82% 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 7.11%.
| 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
- Looking at the Operating Margin, with a value of 1.10%, TDS is doing worse than 81.82% of the companies in the same industry.
- TDS's Operating Margin has declined in the last couple of years.
- TDS's Gross Margin of 57.76% is fine compared to the rest of the industry. TDS outperforms 68.18% 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.
- The number of shares outstanding for TDS has been increased compared to 1 year ago.
- 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 1.55. This is a bad value and indicates that TDS is not financially healthy and even has some risk of bankruptcy.
- With a decent Altman-Z score value of 1.55, TDS is doing good in the industry, outperforming 68.18% 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.
- With an excellent Debt to Equity ratio value of 0.18, TDS belongs to the best of the industry, outperforming 90.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 2.84 | ||
| Altman-Z | 1.55 |
ROIC/WACC0.06
WACC7.4%
2.3 Liquidity
- TDS has a Current Ratio of 1.89. This is a normal value and indicates that TDS is financially healthy and should not expect problems in meeting its short term obligations.
- The Current ratio of TDS (1.89) is better than 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
- TDS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 80.46%, which is quite impressive.
- TDS shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -22.79%.
- 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
- TDS is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 43.46% yearly.
- Based on estimates for the next years, TDS will show a very negative growth in Revenue. The Revenue will decrease by -35.78% on average per year.
EPS Next Y-4.11%
EPS Next 2Y60.21%
EPS Next 3Y43.46%
EPS Next 5YN/A
Revenue Next Year-40.25%
Revenue Next 2Y-49.29%
Revenue Next 3Y-35.78%
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 95.47, the valuation of TDS can be described as expensive.
- 81.82% of the companies in the same industry are cheaper than TDS, based on the Price/Forward Earnings ratio.
- Compared to an average S&P500 Price/Forward Earnings ratio of 28.10, TDS is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 95.47 |
4.2 Price Multiples
- TDS's Enterprise Value to EBITDA is on the same level as the industry average.
- Based on the Price/Free Cash Flow ratio, TDS is valued a bit more expensive than the industry average as 68.18% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.46 | ||
| EV/EBITDA | 9.69 |
4.3 Compensation for Growth
- A more expensive valuation may be justified as TDS's earnings are expected to grow with 43.46% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y60.21%
EPS Next 3Y43.46%
5. Dividend
5.1 Amount
- TDS has a Yearly Dividend Yield of 7.50%, which is a nice return.
- TDS's Dividend Yield is rather good when compared to the industry average which is at 3.82. TDS pays more dividend than 90.91% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, TDS pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.5% |
5.2 History
- On average, the dividend of TDS grows each year by 6.94%, which is quite nice.
- TDS has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)6.94%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- The earnings of TDS are negative and hence is the payout ratio. TDS will probably not be able to sustain this dividend level.
- TDS's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP-69.41%
EPS Next 2Y60.21%
EPS Next 3Y43.46%
46.54
-1.05 (-2.21%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)11-07 2025-11-07/bmo
Earnings (Next)02-19 2026-02-19/amc
Inst Owners99.22%
Inst Owner Change-3.27%
Ins Owners1%
Ins Owner Change-2.34%
Market Cap5.38B
Revenue(TTM)3.89B
Net Income(TTM)-125.06M
Analysts77.5
Price Target51.68 (11.04%)
Short Float %5.21%
Short Ratio5.25
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.5% |
Yearly Dividend0.92
Dividend Growth(5Y)6.94%
DP-69.41%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
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)4.11%
PT rev (3m)1.33%
EPS NQ rev (1m)0%
EPS NQ rev (3m)129.64%
EPS NY rev (1m)0%
EPS NY rev (3m)-89.69%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)-73.51%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)-36.86%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 95.47 | ||
| P/S | 1.38 | ||
| P/FCF | 18.46 | ||
| P/OCF | 6.87 | ||
| P/B | 1.2 | ||
| P/tB | 2.01 | ||
| EV/EBITDA | 9.69 |
EPS(TTM)-0.17
EYN/A
EPS(NY)0.49
Fwd EY1.05%
FCF(TTM)2.52
FCFY5.42%
OCF(TTM)6.77
OCFY14.55%
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 | 1.55 |
F-Score8
WACC7.4%
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 Y-4.11%
EPS Next 2Y60.21%
EPS Next 3Y43.46%
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-40.25%
Revenue Next 2Y-49.29%
Revenue Next 3Y-35.78%
Revenue Next 5YN/A
EBIT growth 1Y-78.84%
EBIT growth 3Y-16.65%
EBIT growth 5Y-2.78%
EBIT Next Year3219.71%
EBIT Next 3Y171.31%
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 for TDS stock?
ChartMill assigns a valuation rating of 1 / 10 to TELEPHONE AND DATA SYSTEMS (TDS). This can be considered as Overvalued.
How profitable is TELEPHONE AND DATA SYSTEMS (TDS) stock?
TELEPHONE AND DATA SYSTEMS (TDS) has a profitability rating of 2 / 10.
Can you provide the expected EPS growth for TDS stock?
The Earnings per Share (EPS) of TELEPHONE AND DATA SYSTEMS (TDS) is expected to decline by -4.11% in the next year.
How sustainable is the dividend of TELEPHONE AND DATA SYSTEMS (TDS) stock?
The dividend rating of TELEPHONE AND DATA SYSTEMS (TDS) is 7 / 10 and the dividend payout ratio is -69.41%.