TELEPHONE AND DATA SYSTEMS (TDS) Fundamental Analysis & Valuation

Q: What is the ChartMill fundamental rating of TELEPHONE AND DATA SYSTEMS (TDS) stock?

ChartMill assigns a fundamental rating of 3 / 10 to TDS.

NYSE:TDS • US8794338298

44.98 USD

-0.37 (-0.82%)

Last: Apr 7, 2026, 01:35 PM

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

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.
TDS had negative earnings in 4 of the past 5 years.
TDS had a positive operating cash flow in each of the past 5 years.

1.2 Ratios

TDS has a worse Return On Assets (-0.89%) than 77.27% of its industry peers.
TDS has a Return On Equity of -1.56%. This is in the lower half of the industry: TDS underperforms 77.27% of its industry peers.
TDS has a worse Return On Invested Capital (0.64%) than 81.82% of its industry peers.

		Industry Rank	Sector 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

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 Rank	Sector 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%

More info and screens

ROA ROE ROIC Operating and Profit Margin Show most profitable peers

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.
TDS has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for TDS remains at a similar level compared to 5 years ago.
TDS has a better debt/assets ratio than last year.

2.2 Solvency

TDS has an Altman-Z score of 1.59. This is a bad value and indicates that TDS is not financially healthy and even has some risk of bankruptcy.
With a decent Altman-Z score value of 1.59, TDS is doing good in the industry, outperforming 68.18% of the companies in the same industry.
The Debt to FCF ratio of TDS is 4.16, which is a neutral value as it means it would take TDS, 4.16 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.16, TDS is in the better half of the industry, outperforming 63.64% of the companies in the same industry.
TDS has a Debt/Equity ratio of 0.17. This is a healthy value indicating a solid balance between debt and equity.
TDS's Debt to Equity ratio of 0.17 is amongst the best of the industry. TDS outperforms 90.91% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0.17
Debt/FCF	4.16
Altman-Z	1.59

ROIC/WACC0.09

WACC7.11%

2.3 Liquidity

TDS has a Current Ratio of 2.10. This indicates that TDS is financially healthy and has no problem in meeting its short term obligations.
TDS's Current ratio of 2.10 is amongst the best of the industry. TDS outperforms 100.00% of its industry peers.
A Quick Ratio of 2.09 indicates that TDS has no problem at all paying its short term obligations.
TDS's Quick ratio of 2.09 is amongst the best of the industry. TDS outperforms 100.00% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	2.1
Quick Ratio	2.09

More info and screens

WACC Debt/Equity How to determine the health of a company Altman-Z score Show peers with great health

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%.
The Revenue for TDS have been decreasing by -25.14% on average. This is quite bad

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

TDS is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -53.16% yearly.
Based on estimates for the next years, TDS will show a very negative growth in Revenue. The Revenue will decrease by -21.95% on average per year.

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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.

More info and screens

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4. TDS Valuation Analysis

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 173.00 indicates a quite expensive valuation of TDS.
Compared to the rest of the industry, the Price/Earnings ratio of TDS indicates a slightly more expensive valuation: TDS is more expensive than 77.27% of the companies listed in the same industry.
TDS's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 26.21.
With a Price/Forward Earnings ratio of 86.64, TDS can be considered very expensive at the moment.
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 23.13. TDS is valued rather expensively when compared to this.

		Industry Rank	Sector Rank
PE	173
Fwd PE	86.64

4.2 Price Multiples

TDS's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, TDS is valued expensively inside the industry as 81.82% of the companies are valued cheaper.

		Industry Rank	Sector Rank
P/FCF	25.65
EV/EBITDA	12.55

4.3 Compensation for Growth

The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
TDS's earnings are expected to decrease with -53.16% in the coming years. This may justify a cheaper valuation.

PEG (NY)1.74

PEG (5Y)N/A

EPS Next 2Y37.33%

EPS Next 3Y-53.16%

More info and screens

Price/Earnings Price/FCF FCF per share EV/EBITDA PEG RATIO Show best valued peers

5. TDS Dividend Analysis

5.1 Amount

With a yearly dividend of 0.38%, TDS is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.26, TDS is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 1.89, TDS's dividend is way lower than the S&P500 average.

		Industry Rank	Sector Rank
Dividend Yield	0.38%

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

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%

More info and screens

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TDS Fundamentals: All Metrics, Ratios and Statistics

TELEPHONE AND DATA SYSTEMS

NYSE:TDS (4/7/2026, 1:35:46 PM)

44.98

-0.37 (-0.82%)

Chartmill FA Rating

GICS SectorCommunication Services

GICS IndustryGroupTelecommunication Services

GICS IndustryWireless Telecommunication Services

Earnings (Last)02-20 2026-02-20/bmo

Earnings (Next)04-30 2026-04-30

Inst Owners97.32%

Inst Owner Change0%

Ins Owners1.01%

Ins Owner Change-1.15%

Market Cap5.11B

Revenue(TTM)2.98B

Net Income(TTM)-74.89M

Analysts77.5

Price Target53.38 (18.67%)

Short Float %4.5%

Short Ratio4.77

Dividend

		Industry Rank	Sector Rank
Dividend Yield	0.38%

Yearly Dividend0.77

Dividend Growth(5Y)2.48%

DP-117.07%

Div Incr Years0

Div Non Decr Years0

Ex-Date03-16 2026-03-16 (0.04)

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)3.29%

PT rev (3m)7.53%

EPS NQ rev (1m)-718.44%

EPS NQ rev (3m)-718.44%

EPS NY rev (1m)0%

EPS NY rev (3m)2.05%

Revenue NQ rev (1m)0%

Revenue NQ rev (3m)-1.16%

Revenue NY rev (1m)0%

Revenue NY rev (3m)-1.31%

Valuation

		Industry Rank	Sector Rank
PE	173
Fwd PE	86.64
P/S	1.72
P/FCF	25.65
P/OCF	8.67
P/B	1.07
P/tB	1.69
EV/EBITDA	12.55

EPS(TTM)0.26

EY0.58%

EPS(NY)0.52

Fwd EY1.15%

FCF(TTM)1.75

FCFY3.9%

OCF(TTM)5.19

OCFY11.53%

SpS26.2

BVpS42.23

TBVpS26.62

PEG (NY)1.74

PEG (5Y)N/A

Graham Number15.72

Profitability

		Industry Rank	Sector 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 Rank	Sector 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	1.59

F-Score6

WACC7.11%

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.

What is the profitability of TDS stock?

TELEPHONE AND DATA SYSTEMS (TDS) has a profitability rating of 2 / 10.

How financially healthy is TELEPHONE AND DATA SYSTEMS?

The financial health rating of TELEPHONE AND DATA SYSTEMS (TDS) is 7 / 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.