TELEPHONE AND DATA SYSTEMS (TDS) Stock Fundamental Analysis
NYSE:TDS - New York Stock Exchange, Inc. - US8794338298 - Common Stock - Currency: USD
Overall TDS gets a fundamental rating of 2 out of 10. We evaluated TDS against 22 industry peers in the Wireless Telecommunication Services industry. Both the profitability and financial health of TDS have multiple concerns. TDS is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year TDS has reported negative net income.
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 4 of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of -4.43%, TDS is doing worse than 76.19% of the companies in the same industry.
TDS has a Return On Equity of -11.98%. This is in the lower half of the industry: TDS underperforms 76.19% of its industry peers.
TDS has a worse Return On Invested Capital (1.27%) 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 6.52%.
The 3 year average ROIC (1.27%) for TDS is below the current ROIC(1.27%), indicating increased profibility in the last year.
| 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
TDS's Operating Margin of 4.03% is on the low side compared to the rest of the industry. TDS is outperformed by 80.95% of its industry peers.
TDS's Operating Margin has declined in the last couple of years.
The Gross Margin of TDS (56.77%) is comparable to the rest of the industry.
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
TDS has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
There is no outstanding debt for TDS. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
Based on the Altman-Z score of 0.95, we must say that TDS is in the distress zone and has some risk of bankruptcy.
TDS has a worse Altman-Z score (0.95) than 61.90% of its industry peers.
TDS has a debt to FCF ratio of 21.49. This is a negative value and a sign of low solvency as TDS would need 21.49 years to pay back of all of its debts.
TDS's Debt to FCF ratio of 21.49 is on the low side compared to the rest of the industry. TDS is outperformed by 71.43% of its industry peers.
A Debt/Equity ratio of 0.81 indicates that TDS is somewhat dependend on debt financing.
TDS's Debt to Equity ratio of 0.81 is in line compared to the rest of the industry. TDS outperforms 42.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.81 | ||
| Debt/FCF | 21.49 | ||
| Altman-Z | 0.95 |
ROIC/WACC0.17
WACC7.4%
2.3 Liquidity
A Current Ratio of 1.59 indicates that TDS should not have too much problems paying its short term obligations.
TDS has a Current ratio of 1.59. This is amongst the best in the industry. TDS outperforms 85.71% of its industry peers.
TDS has a Quick Ratio of 1.44. 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 Quick ratio value of 1.44, TDS belongs to the best of the industry, outperforming 85.71% 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.
The Revenue has decreased by -3.25% in the past year.
TDS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.20% yearly.
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
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
61.90% of the companies in the same industry are cheaper than TDS, based on the Enterprise Value to EBITDA ratio.
TDS's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. TDS is more expensive than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.96 | ||
| EV/EBITDA | 6.9 |
4.3 Compensation for Growth
A more expensive valuation may be justified as TDS's earnings are expected to grow with 19.81% in the coming years.
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 0.40%, which is pretty low.
TDS's Dividend Yield is slightly below the industry average, which is at 5.05.
Compared to an average S&P500 Dividend Yield of 2.29, TDS's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.4% |
5.2 History
On average, the dividend of TDS grows each year by 16.27%, which is quite nice.
TDS has paid a dividend for at least 10 years, which is a reliable track record.
TDS has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)16.27%
Div Incr Years33
Div Non Decr Years33
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-20.07%
EPS Next 2Y32.93%
EPS Next 3Y19.81%
37.96
-1.68 (-4.24%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners93.82%
Inst Owner Change4.26%
Ins Owners1.28%
Ins Owner Change0.69%
Market Cap4.02B
Analysts74.29
Price Target53.04 (39.73%)
Short Float %4.52%
Short Ratio5.25
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.4% |
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)0%
PT rev (3m)147.62%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.32%
EPS NY rev (1m)0%
EPS NY rev (3m)10.85%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.78%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 0.8 | ||
| P/FCF | 20.96 | ||
| P/OCF | 3.49 | ||
| P/B | 0.79 | ||
| P/tB | 12.54 | ||
| EV/EBITDA | 6.9 |
EPS(TTM)-0.87
EYN/A
EPS(NY)-0.12
Fwd EYN/A
FCF(TTM)1.81
FCFY4.77%
OCF(TTM)10.87
OCFY28.63%
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 | 0.95 |
F-Score6
WACC7.4%
ROIC/WACC0.17
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%