T-MOBILE US INC (TM5.DE) Stock Fundamental Analysis
Europe - FRA:TM5 - US8725901040 - Common Stock
185.72 EUR
+0.96 (+0.52%)
Taking everything into account, TM5 scores 5 out of 10 in our fundamental rating. TM5 was compared to 6 industry peers in the Wireless Telecommunication Services industry. While TM5 belongs to the best of the industry regarding profitability, there are concerns on its financial health. TM5 is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year TM5 was profitable.
In the past year TM5 had a positive cash flow from operations.
In the past 5 years TM5 has always been profitable.
Each year in the past 5 years TM5 had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.47%, TM5 belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
TM5's Return On Equity of 19.63% is amongst the best of the industry. TM5 outperforms 100.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 7.71%, TM5 belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for TM5 is in line with the industry average of 6.63%.
The last Return On Invested Capital (7.71%) for TM5 is above the 3 year average (6.22%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.47% | ||
| ROE | 19.63% | ||
| ROIC | 7.71% |
ROA(3y)3.56%
ROA(5y)2.74%
ROE(3y)11.65%
ROE(5y)8.8%
ROIC(3y)6.22%
ROIC(5y)5.29%
1.3 Margins
Looking at the Profit Margin, with a value of 13.83%, TM5 belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
In the last couple of years the Profit Margin of TM5 has grown nicely.
TM5 has a Operating Margin of 22.69%. This is amongst the best in the industry. TM5 outperforms 100.00% of its industry peers.
TM5's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 63.57%, TM5 belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
TM5's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.69% | ||
| PM (TTM) | 13.83% | ||
| GM | 63.57% |
OM growth 3Y21.03%
OM growth 5Y9.44%
PM growth 3Y54.54%
PM growth 5Y12.57%
GM growth 3Y3.8%
GM growth 5Y1.56%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), TM5 is creating some value.
The number of shares outstanding for TM5 has been reduced compared to 1 year ago.
TM5 has more shares outstanding than it did 5 years ago.
The debt/assets ratio for TM5 is higher compared to a year ago.
2.2 Solvency
TM5 has an Altman-Z score of 1.73. This is a bad value and indicates that TM5 is not financially healthy and even has some risk of bankruptcy.
TM5's Altman-Z score of 1.73 is in line compared to the rest of the industry. TM5 outperforms 50.00% of its industry peers.
The Debt to FCF ratio of TM5 is 6.53, which is on the high side as it means it would take TM5, 6.53 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 6.53, TM5 is doing worse than 66.67% of the companies in the same industry.
A Debt/Equity ratio of 1.37 is on the high side and indicates that TM5 has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.37, TM5 is doing worse than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.37 | ||
| Debt/FCF | 6.53 | ||
| Altman-Z | 1.73 |
ROIC/WACC1.07
WACC7.21%
2.3 Liquidity
TM5 has a Current Ratio of 0.89. This is a bad value and indicates that TM5 is not financially healthy enough and could expect problems in meeting its short term obligations.
TM5 has a Current ratio of 0.89. This is comparable to the rest of the industry: TM5 outperforms 50.00% of its industry peers.
A Quick Ratio of 0.80 indicates that TM5 may have some problems paying its short term obligations.
TM5 has a Quick ratio (0.80) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.89 | ||
| Quick Ratio | 0.8 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 20.64% over the past year.
TM5 shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 19.13% yearly.
TM5 shows a small growth in Revenue. In the last year, the Revenue has grown by 7.30%.
The Revenue has been growing by 12.59% on average over the past years. This is quite good.
EPS 1Y (TTM)20.64%
EPS 3Y58.9%
EPS 5Y19.13%
EPS Q2Q%-0.77%
Revenue 1Y (TTM)7.3%
Revenue growth 3Y0.53%
Revenue growth 5Y12.59%
Sales Q2Q%8.9%
3.2 Future
Based on estimates for the next years, TM5 will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.24% on average per year.
TM5 is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.51% yearly.
EPS Next Y6.1%
EPS Next 2Y11.13%
EPS Next 3Y16.13%
EPS Next 5Y16.24%
Revenue Next Year9.07%
Revenue Next 2Y8.2%
Revenue Next 3Y6.99%
Revenue Next 5Y5.51%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
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
Based on the Price/Earnings ratio of 20.32, the valuation of TM5 can be described as rather expensive.
The rest of the industry has a similar Price/Earnings ratio as TM5.
Compared to an average S&P500 Price/Earnings ratio of 25.91, TM5 is valued a bit cheaper.
The Price/Forward Earnings ratio is 18.00, which indicates a rather expensive current valuation of TM5.
Based on the Price/Forward Earnings ratio, TM5 is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 34.57. TM5 is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.32 | ||
| Fwd PE | 18 |
4.2 Price Multiples
66.67% of the companies in the same industry are cheaper than TM5, based on the Enterprise Value to EBITDA ratio.
The rest of the industry has a similar Price/Free Cash Flow ratio as TM5.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.52 | ||
| EV/EBITDA | 10.11 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of TM5 may justify a higher PE ratio.
TM5's earnings are expected to grow with 16.13% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.33
PEG (5Y)1.06
EPS Next 2Y11.13%
EPS Next 3Y16.13%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.82%, TM5 has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.93, TM5 pays a bit more dividend than its industry peers.
Compared to the average S&P500 Dividend Yield of 2.36, TM5 is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.82% |
5.2 History
On average, the dividend of TM5 grows each year by 111.33%, which is quite nice.
Dividend Growth(5Y)111.33%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
TM5 pays out 33.70% of its income as dividend. This is a sustainable payout ratio.
TM5's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP33.7%
EPS Next 2Y11.13%
EPS Next 3Y16.13%
FRA:TM5 (11/13/2025, 7:00:00 PM)
185.72
+0.96 (+0.52%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners39.36%
Inst Owner ChangeN/A
Ins Owners0.38%
Ins Owner ChangeN/A
Market Cap209.01B
Revenue(TTM)85.85B
Net Income(TTM)11.87B
Analysts77.84
Price Target239.89 (29.17%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.82% |
Yearly Dividend2.44
Dividend Growth(5Y)111.33%
DP33.7%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.84%
Min EPS beat(2)4.27%
Max EPS beat(2)5.41%
EPS beat(4)4
Avg EPS beat(4)5.61%
Min EPS beat(4)2.7%
Max EPS beat(4)10.04%
EPS beat(8)7
Avg EPS beat(8)3.32%
EPS beat(12)11
Avg EPS beat(12)3.95%
EPS beat(16)15
Avg EPS beat(16)69.37%
Revenue beat(2)0
Avg Revenue beat(2)-1.63%
Min Revenue beat(2)-1.82%
Max Revenue beat(2)-1.44%
Revenue beat(4)1
Avg Revenue beat(4)-0.83%
Min Revenue beat(4)-1.82%
Max Revenue beat(4)0.63%
Revenue beat(8)2
Avg Revenue beat(8)-0.77%
Revenue beat(12)2
Avg Revenue beat(12)-1.45%
Revenue beat(16)2
Avg Revenue beat(16)-1.94%
PT rev (1m)1.56%
PT rev (3m)2.18%
EPS NQ rev (1m)-18.03%
EPS NQ rev (3m)-20.58%
EPS NY rev (1m)-7.09%
EPS NY rev (3m)-5.36%
Revenue NQ rev (1m)3.49%
Revenue NQ rev (3m)4%
Revenue NY rev (1m)0.94%
Revenue NY rev (3m)1.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.32 | ||
| Fwd PE | 18 | ||
| P/S | 2.82 | ||
| P/FCF | 17.52 | ||
| P/OCF | 9.01 | ||
| P/B | 4 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.11 |
EPS(TTM)9.14
EY4.92%
EPS(NY)10.32
Fwd EY5.55%
FCF(TTM)10.6
FCFY5.71%
OCF(TTM)20.61
OCFY11.1%
SpS65.89
BVpS46.42
TBVpS-42.28
PEG (NY)3.33
PEG (5Y)1.06
Graham Number97.71
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.47% | ||
| ROE | 19.63% | ||
| ROCE | 10.1% | ||
| ROIC | 7.71% | ||
| ROICexc | 7.85% | ||
| ROICexgc | 20.09% | ||
| OM | 22.69% | ||
| PM (TTM) | 13.83% | ||
| GM | 63.57% | ||
| FCFM | 16.08% |
ROA(3y)3.56%
ROA(5y)2.74%
ROE(3y)11.65%
ROE(5y)8.8%
ROIC(3y)6.22%
ROIC(5y)5.29%
ROICexc(3y)6.39%
ROICexc(5y)5.46%
ROICexgc(3y)16.31%
ROICexgc(5y)13.76%
ROCE(3y)8.33%
ROCE(5y)7.1%
ROICexgc growth 3Y22.86%
ROICexgc growth 5Y6.74%
ROICexc growth 3Y20.69%
ROICexc growth 5Y2.1%
OM growth 3Y21.03%
OM growth 5Y9.44%
PM growth 3Y54.54%
PM growth 5Y12.57%
GM growth 3Y3.8%
GM growth 5Y1.56%
F-Score6
Asset Turnover0.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.37 | ||
| Debt/FCF | 6.53 | ||
| Debt/EBITDA | 2.55 | ||
| Cap/Depr | 101.06% | ||
| Cap/Sales | 15.19% | ||
| Interest Coverage | 5.09 | ||
| Cash Conversion | 82.9% | ||
| Profit Quality | 116.32% | ||
| Current Ratio | 0.89 | ||
| Quick Ratio | 0.8 | ||
| Altman-Z | 1.73 |
F-Score6
WACC7.21%
ROIC/WACC1.07
Cap/Depr(3y)102.13%
Cap/Depr(5y)103.35%
Cap/Sales(3y)16.88%
Cap/Sales(5y)18.77%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)20.64%
EPS 3Y58.9%
EPS 5Y19.13%
EPS Q2Q%-0.77%
EPS Next Y6.1%
EPS Next 2Y11.13%
EPS Next 3Y16.13%
EPS Next 5Y16.24%
Revenue 1Y (TTM)7.3%
Revenue growth 3Y0.53%
Revenue growth 5Y12.59%
Sales Q2Q%8.9%
Revenue Next Year9.07%
Revenue Next 2Y8.2%
Revenue Next 3Y6.99%
Revenue Next 5Y5.51%
EBIT growth 1Y12.78%
EBIT growth 3Y21.67%
EBIT growth 5Y23.21%
EBIT Next Year89.72%
EBIT Next 3Y30.47%
EBIT Next 5Y20.04%
FCF growth 1Y122.62%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y48.84%
OCF growth 3Y17.01%
OCF growth 5Y26.71%
T-MOBILE US INC / TM5.DE FAQ
What is the ChartMill fundamental rating of T-MOBILE US INC (TM5.DE) stock?
ChartMill assigns a fundamental rating of 5 / 10 to TM5.DE.
What is the valuation status of T-MOBILE US INC (TM5.DE) stock?
ChartMill assigns a valuation rating of 4 / 10 to T-MOBILE US INC (TM5.DE). This can be considered as Fairly Valued.
How profitable is T-MOBILE US INC (TM5.DE) stock?
T-MOBILE US INC (TM5.DE) has a profitability rating of 9 / 10.
What is the earnings growth outlook for T-MOBILE US INC?
The Earnings per Share (EPS) of T-MOBILE US INC (TM5.DE) is expected to grow by 6.1% in the next year.
Can you provide the dividend sustainability for TM5 stock?
The dividend rating of T-MOBILE US INC (TM5.DE) is 4 / 10 and the dividend payout ratio is 33.7%.