TELEPHONE AND DATA SYSTEMS (TDS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TDS - US8794338298 - Common Stock
38.45 USD
0 (0%)
38.45 USD
0 (0%)
We assign a fundamental rating of 3 out of 10 to TDS. TDS was compared to 22 industry peers in the Wireless Telecommunication Services industry. While TDS seems to be doing ok healthwise, there are quite some concerns on its profitability. TDS is valued expensive and it does not seem to be growing.
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.
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 Return On Assets of -1.47%. This is in the lower half of the industry: TDS underperforms 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's Return On Invested Capital of 0.43% is on the low side compared to the rest of the industry. TDS is outperformed by 77.27% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TDS is significantly below the industry average of 6.45%.
| 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
TDS has a worse Operating Margin (1.10%) 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.
In the last couple of years the Gross Margin of TDS has remained more or less at the same level.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so TDS 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
Based on the Altman-Z score of 1.41, we must say that TDS is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of TDS (1.41) is better 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 has a better Debt to Equity ratio (0.18) than 86.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 2.84 | ||
| Altman-Z | 1.41 |
ROIC/WACC0.06
WACC7.36%
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.
TDS has a better Current ratio (1.89) 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.
TDS has a Quick ratio of 1.88. This is amongst the best in the industry. TDS outperforms 100.00% of its industry peers.
| 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.
TDS shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -22.79%.
TDS shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.83% yearly.
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
Based on estimates for the next years, TDS will show a very strong growth in Earnings Per Share. The EPS will grow by 40.07% on average per year.
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.
With a Price/Forward Earnings ratio of 75.58, TDS can be considered very expensive at the moment.
TDS's Price/Forward Earnings ratio is rather expensive when compared to the industry. TDS is more expensive than 81.82% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.79, TDS is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 75.58 |
4.2 Price Multiples
TDS's Enterprise Value to EBITDA ratio is in line with the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as TDS.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.25 | ||
| EV/EBITDA | 7.97 |
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
TDS has a yearly dividend return of 0.42%, which is pretty low.
Compared to an average industry Dividend Yield of 5.55, TDS is paying slightly less dividend.
With a Dividend Yield of 0.42, TDS pays less dividend than the S&P500 average, which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.42% |
5.2 History
The dividend of TDS is nicely growing with an annual growth rate of 6.94%!
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
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%
38.45
0 (0%)
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 Cap4.44B
Revenue(TTM)3.89B
Net Income(TTM)-125.06M
Analysts77.5
Price Target49.64 (29.1%)
Short Float %6.21%
Short Ratio7.17
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.42% |
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 | 75.58 | ||
| P/S | 1.14 | ||
| P/FCF | 15.25 | ||
| P/OCF | 5.68 | ||
| P/B | 0.99 | ||
| P/tB | 1.66 | ||
| EV/EBITDA | 7.97 |
EPS(TTM)-0.17
EYN/A
EPS(NY)0.51
Fwd EY1.32%
FCF(TTM)2.52
FCFY6.56%
OCF(TTM)6.77
OCFY17.62%
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 | 1.41 |
F-Score8
WACC7.36%
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 2Y60.98%
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%.