TELEPHONE AND DATA SYSTEMS (TDS) Stock Fundamental Analysis
USA - NYSE:TDS - US8794338298 - Common Stock
38.16 USD
-0.18 (-0.47%)
38.16 USD
0 (0%)
Taking everything into account, TDS scores 2 out of 10 in our fundamental rating. 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 does not seem to be growing, but still is valued expensively.
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.
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's Return On Assets of -0.81% is on the low side compared to the rest of the industry. TDS is outperformed by 72.73% of its industry peers.
TDS has a Return On Equity of -2.18%. This is in the lower half of the industry: TDS underperforms 72.73% of its industry peers.
TDS has a Return On Invested Capital of 0.69%. This is in the lower half of the industry: TDS underperforms 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 6.09%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.81% | ||
| ROE | -2.18% | ||
| ROIC | 0.69% |
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 (2.27%) than 72.73% of its industry peers.
In the last couple of years the Operating Margin of TDS has declined.
With a decent Gross Margin value of 57.74%, TDS is doing good in the industry, outperforming 72.73% 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 Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.27% | ||
| PM (TTM) | N/A | ||
| GM | 57.74% |
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.
The number of shares outstanding for TDS has been reduced compared to 5 years ago.
The debt/assets ratio for TDS is higher compared to a year ago.
2.2 Solvency
TDS has an Altman-Z score of 0.94. This is a bad value and indicates that TDS is not financially healthy and even has some risk of bankruptcy.
TDS has a Altman-Z score of 0.94. This is comparable to the rest of the industry: TDS outperforms 40.91% of its industry peers.
The Debt to FCF ratio of TDS is 9.99, which is on the high side as it means it would take TDS, 9.99 years of fcf income to pay off all of its debts.
TDS's Debt to FCF ratio of 9.99 is in line compared to the rest of the industry. TDS outperforms 40.91% of its industry peers.
TDS has a Debt/Equity ratio of 0.81. This is a neutral value indicating 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 54.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.81 | ||
| Debt/FCF | 9.99 | ||
| Altman-Z | 0.94 |
ROIC/WACC0.09
WACC7.46%
2.3 Liquidity
A Current Ratio of 1.78 indicates that TDS should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.78, TDS belongs to the top of the industry, outperforming 81.82% of the companies in the same industry.
A Quick Ratio of 1.65 indicates that TDS should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.65, TDS is doing good in the industry, outperforming 77.27% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.78 | ||
| Quick Ratio | 1.65 |
3. Growth
3.1 Past
TDS shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -223.33%.
TDS shows a decrease in Revenue. In the last year, the revenue decreased by -5.62%.
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)-223.33%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%61.54%
Revenue 1Y (TTM)-5.62%
Revenue growth 3Y-2.34%
Revenue growth 5Y-0.83%
Sales Q2Q%-4.2%
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 11.43% yearly.
Based on estimates for the next years, TDS will show a decrease in Revenue. The Revenue will decrease by -1.71% on average per year.
EPS Next Y34.23%
EPS Next 2Y19.35%
EPS Next 3Y11.43%
EPS Next 5YN/A
Revenue Next Year-5.37%
Revenue Next 2Y-2.58%
Revenue Next 3Y-1.71%
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.
Besides the negative Price/Earnings Ratio, also the Forward Price/Earnings Ratio is negative for TDS. No positive earnings are expected for the next year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
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 | 10.78 | ||
| EV/EBITDA | 7.49 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y19.35%
EPS Next 3Y11.43%
5. Dividend
5.1 Amount
TDS has a yearly dividend return of 0.41%, which is pretty low.
TDS's Dividend Yield is slightly below the industry average, which is at 5.28.
With a Dividend Yield of 0.41, TDS pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.41% |
5.2 History
The dividend of TDS is nicely growing with an annual growth rate of 6.94%!
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.
TDS's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP-79.82%
EPS Next 2Y19.35%
EPS Next 3Y11.43%
38.16
-0.18 (-0.47%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners96.34%
Inst Owner Change0.36%
Ins Owners1.13%
Ins Owner Change9.08%
Market Cap4.39B
Analysts74.29
Price Target51 (33.65%)
Short Float %6.47%
Short Ratio4.73
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.41% |
Yearly Dividend0.92
Dividend Growth(5Y)6.94%
DP-79.82%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-416.89%
Min EPS beat(2)-550.04%
Max EPS beat(2)-283.73%
EPS beat(4)1
Avg EPS beat(4)-267.25%
Min EPS beat(4)-550.04%
Max EPS beat(4)64.81%
EPS beat(8)4
Avg EPS beat(8)-101.58%
EPS beat(12)4
Avg EPS beat(12)-180.53%
EPS beat(16)7
Avg EPS beat(16)-112.37%
Revenue beat(2)0
Avg Revenue beat(2)-2.67%
Min Revenue beat(2)-5.18%
Max Revenue beat(2)-0.17%
Revenue beat(4)0
Avg Revenue beat(4)-2.58%
Min Revenue beat(4)-5.18%
Max Revenue beat(4)-0.17%
Revenue beat(8)1
Avg Revenue beat(8)-1.45%
Revenue beat(12)2
Avg Revenue beat(12)-1.67%
Revenue beat(16)3
Avg Revenue beat(16)-1.47%
PT rev (1m)2.04%
PT rev (3m)6.38%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-338.65%
EPS NY rev (1m)-51.08%
EPS NY rev (3m)-46.98%
Revenue NQ rev (1m)-0.42%
Revenue NQ rev (3m)-0.42%
Revenue NY rev (1m)-0.29%
Revenue NY rev (3m)-0.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 0.91 | ||
| P/FCF | 10.78 | ||
| P/OCF | 3.9 | ||
| P/B | 0.88 | ||
| P/tB | 16.5 | ||
| EV/EBITDA | 7.49 |
EPS(TTM)-0.97
EYN/A
EPS(NY)-0.49
Fwd EYN/A
FCF(TTM)3.54
FCFY9.27%
OCF(TTM)9.79
OCFY25.66%
SpS41.77
BVpS43.51
TBVpS2.31
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.81% | ||
| ROE | -2.18% | ||
| ROCE | 0.87% | ||
| ROIC | 0.69% | ||
| ROICexc | 0.72% | ||
| ROICexgc | 1.19% | ||
| OM | 2.27% | ||
| PM (TTM) | N/A | ||
| GM | 57.74% | ||
| FCFM | 8.47% |
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%
ROICexcg growth 3Y-18.07%
ROICexcg 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-Score6
Asset Turnover0.36
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.81 | ||
| Debt/FCF | 9.99 | ||
| Debt/EBITDA | 3.81 | ||
| Cap/Depr | 75.84% | ||
| Cap/Sales | 14.97% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 106.53% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.78 | ||
| Quick Ratio | 1.65 | ||
| Altman-Z | 0.94 |
F-Score6
WACC7.46%
ROIC/WACC0.09
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)-223.33%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%61.54%
EPS Next Y34.23%
EPS Next 2Y19.35%
EPS Next 3Y11.43%
EPS Next 5YN/A
Revenue 1Y (TTM)-5.62%
Revenue growth 3Y-2.34%
Revenue growth 5Y-0.83%
Sales Q2Q%-4.2%
Revenue Next Year-5.37%
Revenue Next 2Y-2.58%
Revenue Next 3Y-1.71%
Revenue Next 5YN/A
EBIT growth 1Y-47.85%
EBIT growth 3Y-16.65%
EBIT growth 5Y-2.78%
EBIT Next Year4621.32%
EBIT Next 3Y258.76%
EBIT Next 5YN/A
FCF growth 1Y223.71%
FCF growth 3YN/A
FCF growth 5Y34.63%
OCF growth 1Y20.43%
OCF growth 3Y1.25%
OCF growth 5Y2.42%