TELEPHONE AND DATA SYSTEMS (TDS) Fundamental Analysis & Valuation

NYSE:TDS • US8794338298

Current stock price

41.93 USD
-1.27 (-2.94%)
At close:
41.93 USD
0 (0%)
After Hours:

This TDS fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

2

1. TDS Profitability Analysis

1.1 Basic Checks

  • TDS had positive earnings in the past year.
  • In the past year TDS had a positive cash flow from operations.
  • In the past 5 years TDS reported 4 times negative net income.
  • Each year in the past 5 years TDS had a positive operating cash flow.
TDS Yearly Net Income VS EBIT VS OCF VS FCFTDS Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 500M -500M 1B 1.5B

1.2 Ratios

  • TDS's Return On Assets of -0.89% is on the low side compared to the rest of the industry. TDS is outperformed by 77.27% of its industry peers.
  • TDS has a worse Return On Equity (-1.56%) than 77.27% of its industry peers.
  • With a Return On Invested Capital value of 0.64%, TDS is not doing good in the industry: 81.82% of the companies in the same industry are doing better.
Industry RankSector Rank
ROA -0.89%
ROE -1.56%
ROIC 0.64%
ROA(3y)-1.9%
ROA(5y)-0.98%
ROE(3y)-4.81%
ROE(5y)-2.51%
ROIC(3y)N/A
ROIC(5y)N/A
TDS Yearly ROA, ROE, ROICTDS Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 -5 -10

1.3 Margins

  • TDS's Operating Margin of 2.15% is on the low side compared to the rest of the industry. TDS is outperformed by 81.82% of its industry peers.
  • Looking at the Gross Margin, with a value of 59.47%, TDS is in the better half of the industry, outperforming 68.18% of the companies in the same industry.
  • In the last couple of years the Gross Margin of TDS has remained more or less at the same level.
Industry RankSector Rank
OM 2.15%
PM (TTM) N/A
GM 59.47%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y3.91%
GM growth 5Y1.44%
TDS Yearly Profit, Operating, Gross MarginsTDS Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 -20 40 -40

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7

2. TDS Health Analysis

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 remains at a similar level compared to 1 year ago.
  • The number of shares outstanding for TDS remains at a similar level compared to 5 years ago.
  • Compared to 1 year ago, TDS has an improved debt to assets ratio.
TDS Yearly Shares OutstandingTDS Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20M 40M 60M 80M 100M
TDS Yearly Total Debt VS Total AssetsTDS Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B

2.2 Solvency

  • Based on the Altman-Z score of 1.55, we must say that TDS is in the distress zone and has some risk of bankruptcy.
  • With a decent Altman-Z score value of 1.55, 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 4.16. This is a neutral value as TDS would need 4.16 years to pay back of all of its debts.
  • TDS's Debt to FCF ratio of 4.16 is fine compared to the rest of the industry. TDS outperforms 68.18% of its industry peers.
  • A Debt/Equity ratio of 0.17 indicates that TDS is not too dependend on debt financing.
  • With an excellent Debt to Equity ratio value of 0.17, TDS belongs to the best of the industry, outperforming 90.91% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.17
Debt/FCF 4.16
Altman-Z 1.55
ROIC/WACC0.09
WACC7.06%
TDS Yearly LT Debt VS Equity VS FCFTDS Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 1B 2B 3B 4B 5B

2.3 Liquidity

  • A Current Ratio of 2.10 indicates that TDS has no problem at all paying its short term obligations.
  • The Current ratio of TDS (2.10) is better than 100.00% of its industry peers.
  • TDS has a Quick Ratio of 2.09. This indicates that TDS is financially healthy and has no problem in meeting its short term obligations.
  • TDS has a Quick ratio of 2.09. This is amongst the best in the industry. TDS outperforms 100.00% of its industry peers.
Industry RankSector Rank
Current Ratio 2.1
Quick Ratio 2.09
TDS Yearly Current Assets VS Current LiabilitesTDS Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

1

3. TDS Growth Analysis

3.1 Past

  • TDS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 130.23%, which is quite impressive.
  • Measured over the past years, TDS shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -32.75% on average per year.
  • TDS shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -39.98%.
  • TDS shows a very negative growth in Revenue. Measured over the last years, the Revenue has been decreasing by -25.14% yearly.
EPS 1Y (TTM)130.23%
EPS 3YN/A
EPS 5Y-32.75%
EPS Q2Q%430%
Revenue 1Y (TTM)-39.98%
Revenue growth 3Y-39.01%
Revenue growth 5Y-25.14%
Sales Q2Q%-73.33%

3.2 Future

  • The Earnings Per Share is expected to decrease by -53.16% on average over the next years. This is quite bad
  • The Revenue is expected to decrease by -21.95% on average over the next years. This is quite bad
EPS Next Y99.67%
EPS Next 2Y37.33%
EPS Next 3Y-53.16%
EPS Next 5YN/A
Revenue Next Year-57.44%
Revenue Next 2Y-34.2%
Revenue Next 3Y-21.95%
Revenue Next 5YN/A

3.3 Evolution

  • The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
TDS Yearly Revenue VS EstimatesTDS Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 1B 2B 3B 4B 5B
TDS Yearly EPS VS EstimatesTDS Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 0 1 -1

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1

4. TDS Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 161.27, TDS can be considered very expensive at the moment.
  • 77.27% of the companies in the same industry are cheaper than TDS, based on the Price/Earnings ratio.
  • The average S&P500 Price/Earnings ratio is at 24.88. TDS is valued rather expensively when compared to this.
  • The Price/Forward Earnings ratio is 80.77, which means the current valuation is very expensive for TDS.
  • 81.82% of the companies in the same industry are cheaper than TDS, based on the Price/Forward Earnings ratio.
  • The average S&P500 Price/Forward Earnings ratio is at 22.19. TDS is valued rather expensively when compared to this.
Industry RankSector Rank
PE 161.27
Fwd PE 80.77
TDS Price Earnings VS Forward Price EarningsTDS Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 50 100 150

4.2 Price Multiples

  • The rest of the industry has a similar Enterprise Value to EBITDA ratio as TDS.
  • Based on the Price/Free Cash Flow ratio, TDS is valued a bit more expensive than the industry average as 72.73% of the companies are valued more cheaply.
Industry RankSector Rank
P/FCF 23.91
EV/EBITDA 11.96
TDS Per share dataTDS EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30 40

4.3 Compensation for Growth

  • The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
  • A cheap valuation may be justified as TDS's earnings are expected to decrease with -53.16% in the coming years.
PEG (NY)1.62
PEG (5Y)N/A
EPS Next 2Y37.33%
EPS Next 3Y-53.16%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

3

5. TDS Dividend Analysis

5.1 Amount

  • With a yearly dividend of 0.37%, TDS is not a good candidate for dividend investing.
  • Compared to an average industry Dividend Yield of 7.07, TDS pays a better dividend. On top of this TDS pays more dividend than 86.36% of the companies listed in the same industry.
  • With a Dividend Yield of 0.37, TDS pays less dividend than the S&P500 average, which is at 1.90.
Industry RankSector Rank
Dividend Yield 0.37%

5.2 History

  • The dividend of TDS has a limited annual growth rate of 2.48%.
  • TDS has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)2.48%
Div Incr Years0
Div Non Decr Years0
TDS Yearly Dividends per shareTDS Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.2 0.4 0.6

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.
DP-117.07%
EPS Next 2Y37.33%
EPS Next 3Y-53.16%
TDS Yearly Income VS Free CF VS DividendTDS Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 200M -200M -400M

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TDS Fundamentals: All Metrics, Ratios and Statistics

TELEPHONE AND DATA SYSTEMS

NYSE:TDS (3/27/2026, 8:04:00 PM)

After market: 41.93 0 (0%)

41.93

-1.27 (-2.94%)

Chartmill FA Rating
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)02-20
Earnings (Next)04-30
Inst Owners97.32%
Inst Owner Change-4.61%
Ins Owners1.01%
Ins Owner Change-0.9%
Market Cap4.77B
Revenue(TTM)2.98B
Net Income(TTM)-74.89M
Analysts77.5
Price Target53.38 (27.31%)
Short Float %4.6%
Short Ratio4.74
Dividend
Industry RankSector Rank
Dividend Yield 0.37%
Yearly Dividend0.77
Dividend Growth(5Y)2.48%
DP-117.07%
Div Incr Years0
Div Non Decr Years0
Ex-Date03-16
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)237.45%
Min EPS beat(2)176.44%
Max EPS beat(2)298.45%
EPS beat(4)2
Avg EPS beat(4)-89.72%
Min EPS beat(4)-550.04%
Max EPS beat(4)298.45%
EPS beat(8)5
Avg EPS beat(8)-37.22%
EPS beat(12)6
Avg EPS beat(12)-78.57%
EPS beat(16)8
Avg EPS beat(16)-93.04%
Revenue beat(2)1
Avg Revenue beat(2)-22.86%
Min Revenue beat(2)-47.39%
Max Revenue beat(2)1.68%
Revenue beat(4)1
Avg Revenue beat(4)-12.77%
Min Revenue beat(4)-47.39%
Max Revenue beat(4)1.68%
Revenue beat(8)1
Avg Revenue beat(8)-7.22%
Revenue beat(12)2
Avg Revenue beat(12)-5.34%
Revenue beat(16)4
Avg Revenue beat(16)-4.21%
PT rev (1m)0%
PT rev (3m)4.11%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)6.49%
EPS NY rev (3m)2.05%
Revenue NQ rev (1m)-1.16%
Revenue NQ rev (3m)-1.16%
Revenue NY rev (1m)-1.16%
Revenue NY rev (3m)-1.31%
Valuation
Industry RankSector Rank
PE 161.27
Fwd PE 80.77
P/S 1.6
P/FCF 23.91
P/OCF 8.08
P/B 0.99
P/tB 1.57
EV/EBITDA 11.96
EPS(TTM)0.26
EY0.62%
EPS(NY)0.52
Fwd EY1.24%
FCF(TTM)1.75
FCFY4.18%
OCF(TTM)5.19
OCFY12.37%
SpS26.2
BVpS42.23
TBVpS26.62
PEG (NY)1.62
PEG (5Y)N/A
Graham Number15.72
Profitability
Industry RankSector Rank
ROA -0.89%
ROE -1.56%
ROCE 0.81%
ROIC 0.64%
ROICexc 0.7%
ROICexgc 0.94%
OM 2.15%
PM (TTM) N/A
GM 59.47%
FCFM 6.69%
ROA(3y)-1.9%
ROA(5y)-0.98%
ROE(3y)-4.81%
ROE(5y)-2.51%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y3.91%
GM growth 5Y1.44%
F-Score6
Asset Turnover0.35
Health
Industry RankSector Rank
Debt/Equity 0.17
Debt/FCF 4.16
Debt/EBITDA 1.98
Cap/Depr 110.98%
Cap/Sales 13.11%
Interest Coverage 0.66
Cash Conversion 141.8%
Profit Quality N/A
Current Ratio 2.1
Quick Ratio 2.09
Altman-Z 1.55
F-Score6
WACC7.06%
ROIC/WACC0.09
Cap/Depr(3y)112.36%
Cap/Depr(5y)117.68%
Cap/Sales(3y)63.11%
Cap/Sales(5y)46.4%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)130.23%
EPS 3YN/A
EPS 5Y-32.75%
EPS Q2Q%430%
EPS Next Y99.67%
EPS Next 2Y37.33%
EPS Next 3Y-53.16%
EPS Next 5YN/A
Revenue 1Y (TTM)-39.98%
Revenue growth 3Y-39.01%
Revenue growth 5Y-25.14%
Sales Q2Q%-73.33%
Revenue Next Year-57.44%
Revenue Next 2Y-34.2%
Revenue Next 3Y-21.95%
Revenue Next 5YN/A
EBIT growth 1Y-60.9%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year57958.4%
EBIT Next 3Y777.5%
EBIT Next 5YN/A
FCF growth 1Y-23.62%
FCF growth 3YN/A
FCF growth 5Y0.55%
OCF growth 1Y-48.48%
OCF growth 3Y-20.07%
OCF growth 5Y-17.38%

TELEPHONE AND DATA SYSTEMS / TDS Fundamental Analysis 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 grow by 99.67% 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 5 / 10 and the dividend payout ratio is -117.07%.