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. TDS scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. TDS does not seem to be growing, but still is valued expensively.
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.
In the past 5 years TDS always reported a positive cash flow from operatings.
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 has a worse Return On Invested Capital (0.43%) than 77.27% 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 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
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.
TDS has less shares outstanding than it did 5 years ago.
TDS has a worse debt/assets ratio than last year.
2.2 Solvency
TDS has an Altman-Z score of 1.41. This is a bad value and indicates that TDS is not financially healthy and even has some risk of bankruptcy.
TDS's Altman-Z score of 1.41 is fine compared to the rest of the industry. TDS outperforms 63.64% of its industry peers.
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.
TDS's Debt to FCF ratio of 2.84 is fine compared to the rest of the industry. TDS outperforms 72.73% of its industry peers.
TDS has a Debt/Equity ratio of 0.18. This is a healthy value indicating a solid balance between debt and equity.
With an excellent Debt to Equity ratio value of 0.18, TDS belongs to the best of the industry, outperforming 86.36% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 2.84 | ||
| Altman-Z | 1.41 |
ROIC/WACC0.06
WACC7.63%
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.
With an excellent Current ratio value of 1.89, TDS belongs to the best 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.
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.
The Revenue for TDS has decreased by -22.79% in the past year. This is quite bad
Measured over the past years, TDS shows a decrease in Revenue. The Revenue has been decreasing by -0.83% on average per year.
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
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.
The Price/Forward Earnings ratio is 75.58, which means the current valuation is very expensive for TDS.
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.
When comparing the Price/Forward Earnings ratio of TDS to the average of the S&P500 Index (23.79), we can say TDS is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 75.58 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as TDS.
TDS's Price/Free Cash Flow is on the same level as the industry average.
| 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.
Compared to an average S&P500 Dividend Yield of 1.87, TDS's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.42% |
5.2 History
On average, the dividend of TDS grows each year by 6.94%, which is quite nice.
TDS has been paying a dividend for at least 10 years, so it has 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.
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
WACC7.63%
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%.