TELEPHONE AND DATA SYSTEMS (TDS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TDS - US8794338298 - Common Stock
41.71 USD
+1.14 (+2.81%)
41.75 USD
+0.04 (+0.1%)
Overall TDS gets a fundamental rating of 3 out of 10. We evaluated TDS against 22 industry peers in the Wireless Telecommunication Services industry. The financial health of TDS is average, but 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.
In multiple years TDS reported negative net income over the last 5 years.
Each year in the past 5 years TDS had a positive operating cash flow.
1.2 Ratios
The Return On Assets of TDS (-1.47%) is worse than 77.27% of its industry peers.
TDS has a Return On Equity of -2.80%. This is in the lower half of the industry: TDS underperforms 72.73% of its industry peers.
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 6.34%.
| 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 Operating Margin of 1.10%. This is in the lower half of the industry: TDS underperforms 77.27% of its industry peers.
TDS's Operating Margin has declined in the last couple of years.
TDS's Gross Margin of 57.76% is fine compared to the rest 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
TDS has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, TDS has more shares outstanding
The number of shares outstanding for TDS has been reduced compared to 5 years ago.
TDS has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.45, we must say that TDS is in the distress zone and has some risk of bankruptcy.
TDS's Altman-Z score of 1.45 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 has a Debt to FCF ratio of 2.84. This is in the better half of the industry: TDS outperforms 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 | 1.45 |
ROIC/WACC0.05
WACC8.5%
2.3 Liquidity
A Current Ratio of 1.89 indicates that TDS should not have too much problems paying its short term obligations.
TDS has a Current ratio of 1.89. This is amongst the best in the industry. TDS outperforms 100.00% of its industry peers.
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
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.
TDS shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -22.79%.
The Revenue has been decreasing by -0.83% on average over the past years.
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
Based on estimates for the next years, TDS will show a very strong growth in Earnings Per Share. The EPS will grow by 40.07% on average per year.
Based on estimates for the next years, TDS will show a very negative growth in Revenue. The Revenue will decrease by -35.74% on average per year.
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.
With a Price/Forward Earnings ratio of 81.99, TDS can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, TDS is valued expensively inside the industry as 86.36% of the companies are valued cheaper.
The average S&P500 Price/Forward Earnings ratio is at 23.57. TDS is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 81.99 |
4.2 Price Multiples
TDS's Enterprise Value to EBITDA ratio is in line with the industry average.
TDS's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.54 | ||
| EV/EBITDA | 8.42 |
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 0.39%, which is pretty low.
Compared to an average industry Dividend Yield of 5.49, TDS is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 1.94, TDS's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.39% |
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
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%
41.71
+1.14 (+2.81%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners99.22%
Inst Owner Change0%
Ins Owners1%
Ins Owner Change-8.07%
Market Cap4.82B
Revenue(TTM)3.89B
Net Income(TTM)-125.06M
Analysts77.5
Price Target49.64 (19.01%)
Short Float %5.54%
Short Ratio6.28
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.39% |
Yearly Dividend0.92
Dividend Growth(5Y)6.94%
DP-69.41%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
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)0%
EPS NQ rev (3m)129.64%
EPS NY rev (1m)0%
EPS NY rev (3m)-89.69%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-73.52%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-36.89%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 81.99 | ||
| P/S | 1.24 | ||
| P/FCF | 16.54 | ||
| P/OCF | 6.16 | ||
| P/B | 1.08 | ||
| P/tB | 1.8 | ||
| EV/EBITDA | 8.42 |
EPS(TTM)-0.17
EYN/A
EPS(NY)0.51
Fwd EY1.22%
FCF(TTM)2.52
FCFY6.05%
OCF(TTM)6.77
OCFY16.24%
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 | 1.45 |
F-Score8
WACC8.5%
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 for TDS stock?
ChartMill assigns a valuation rating of 2 / 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 decline by -4.11% 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 3 / 10 and the dividend payout ratio is -69.41%.