TELEPHONE AND DATA SYSTEMS (TDS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TDS - US8794338298 - Common Stock
39.31 USD
+0.73 (+1.89%)
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 has a expensive valuation and it also scores bad on growth.
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.
TDS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
TDS's Return On Assets of -1.47% is on the low side compared to the rest of the industry. TDS is outperformed by 77.27% of its industry peers.
With a Return On Equity value of -2.80%, TDS is not doing good in the industry: 72.73% of the companies in the same industry are doing better.
Looking at the Return On Invested Capital, with a value of 0.43%, TDS is doing worse than 77.27% of the companies in the same industry.
TDS had an Average Return On Invested Capital over the past 3 years of 1.00%. This 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
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.
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.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), TDS is destroying value.
The number of shares outstanding for TDS has been increased compared to 1 year ago.
The number of shares outstanding for TDS has been reduced compared to 5 years ago.
Compared to 1 year ago, TDS has a worse debt to assets ratio.
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.
Looking at the Altman-Z score, with a value of 1.41, TDS is in the better half of the industry, outperforming 63.64% of the companies in the same industry.
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.
TDS has a better Debt to FCF ratio (2.84) than 72.73% of its industry peers.
A Debt/Equity ratio of 0.18 indicates that TDS is not too dependend on debt financing.
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 | 1.41 |
ROIC/WACC0.05
WACC7.9%
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.
Looking at the Current ratio, with a value of 1.89, TDS belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
A Quick Ratio of 1.88 indicates that TDS should not have too much problems paying its short term obligations.
TDS's Quick ratio of 1.88 is amongst the best of 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.
Looking at the last year, TDS shows a very negative growth in Revenue. The Revenue has decreased by -22.79% in the last year.
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
The Earnings Per Share is expected to grow by 40.07% on average over the next years. This is a very strong growth
TDS is expected to show a very negative growth in Revenue. In the coming years, the Revenue will decrease by -35.74% yearly.
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
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
The Price/Earnings Ratio is negative for TDS. In the last year negative earnings were reported.
TDS is valuated quite expensively with a Price/Forward Earnings ratio of 77.27.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TDS indicates a rather expensive valuation: TDS more expensive than 81.82% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.84. TDS is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 77.27 |
4.2 Price Multiples
TDS's Enterprise Value to EBITDA is on the same level as the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as TDS.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.59 | ||
| EV/EBITDA | 8 |
4.3 Compensation for Growth
TDS's earnings are expected to grow with 40.07% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y60.98%
EPS Next 3Y40.07%
5. Dividend
5.1 Amount
With a yearly dividend of 0.41%, TDS is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 5.50, TDS is paying slightly less dividend.
With a Dividend Yield of 0.41, TDS pays less dividend than the S&P500 average, which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.41% |
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
TDS has negative earnings and hence a negative payout ratio. The dividend may be in danger.
TDS's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP-69.41%
EPS Next 2Y60.98%
EPS Next 3Y40.07%
NYSE:TDS (12/22/2025, 10:17:08 AM)
39.31
+0.73 (+1.89%)
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 Cap4.54B
Revenue(TTM)3.89B
Net Income(TTM)-125.06M
Analysts77.5
Price Target49.64 (26.28%)
Short Float %5.85%
Short Ratio6.88
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.41% |
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 | 77.27 | ||
| P/S | 1.17 | ||
| P/FCF | 15.59 | ||
| P/OCF | 5.8 | ||
| P/B | 1.02 | ||
| P/tB | 1.7 | ||
| EV/EBITDA | 8 |
EPS(TTM)-0.17
EYN/A
EPS(NY)0.51
Fwd EY1.29%
FCF(TTM)2.52
FCFY6.41%
OCF(TTM)6.77
OCFY17.23%
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
WACC7.9%
ROIC/WACC0.05
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%.