T-MOBILE US INC (TM5.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:TM5 - US8725901040 - Common Stock
158.16 EUR
-0.16 (-0.1%)
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 has a great profitability rating, there are quite some concerns on its financial health. TM5 has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
- TM5 had positive earnings in the past year.
- In the past year TM5 had a positive cash flow from operations.
- TM5 had positive earnings in each of the past 5 years.
- Each year in the past 5 years TM5 had a positive operating cash flow.
1.2 Ratios
- TM5 has a Return On Assets of 5.47%. This is amongst the best in the industry. TM5 outperforms 83.33% of its industry peers.
- With an excellent Return On Equity value of 19.63%, TM5 belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
- TM5 has a better Return On Invested Capital (7.71%) than 83.33% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for TM5 is in line with the industry average of 6.49%.
- 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
- The Profit Margin of TM5 (13.83%) is better than 100.00% of its industry peers.
- TM5's Profit Margin has improved in the last couple of years.
- TM5's Operating Margin of 22.69% is amongst the best of the industry. TM5 outperforms 100.00% of its industry peers.
- TM5's Operating Margin has improved in the last couple of years.
- TM5 has a Gross Margin of 63.57%. This is amongst the best in the industry. TM5 outperforms 83.33% of its industry peers.
- In the last couple of years the Gross Margin of TM5 has grown nicely.
| 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
- TM5 has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- TM5 has less shares outstanding than it did 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
- Based on the Altman-Z score of 1.60, we must say that TM5 is in the distress zone and has some risk of bankruptcy.
- TM5 has a Altman-Z score of 1.60. This is comparable 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.
- With a decent Debt to FCF ratio value of 6.53, TM5 is doing good in the industry, outperforming 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.
- TM5 has a Debt to Equity ratio of 1.37. This is in the lower half of the industry: TM5 underperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.37 | ||
| Debt/FCF | 6.53 | ||
| Altman-Z | 1.6 |
ROIC/WACC1.05
WACC7.36%
2.3 Liquidity
- A Current Ratio of 0.89 indicates that TM5 may have some problems paying its short term obligations.
- TM5's Current ratio of 0.89 is in line compared to the rest of the industry. TM5 outperforms 50.00% of its industry peers.
- TM5 has a Quick 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 Quick ratio of 0.80. This is comparable to the rest of the industry: TM5 outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.89 | ||
| Quick Ratio | 0.8 |
3. Growth
3.1 Past
- TM5 shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 20.64%, which is quite impressive.
- Measured over the past years, TM5 shows a quite strong growth in Earnings Per Share. The EPS has been growing by 19.13% on average per year.
- TM5 shows a small growth in Revenue. In the last year, the Revenue has grown by 7.30%.
- Measured over the past years, TM5 shows a quite strong growth in Revenue. The Revenue has been growing by 12.59% on average per year.
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
- TM5 is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.24% yearly.
- Based on estimates for the next years, TM5 will show a small growth in Revenue. The Revenue will grow by 5.51% on average per year.
EPS Next Y5.37%
EPS Next 2Y9.96%
EPS Next 3Y15.4%
EPS Next 5Y16.24%
Revenue Next Year9.05%
Revenue Next 2Y8.17%
Revenue Next 3Y6.9%
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
- TM5 is valuated rather expensively with a Price/Earnings ratio of 17.55.
- 66.67% of the companies in the same industry are more expensive than TM5, based on the Price/Earnings ratio.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, TM5 is valued a bit cheaper.
- With a Price/Forward Earnings ratio of 15.88, TM5 is valued correctly.
- TM5's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. TM5 is cheaper than 66.67% of the companies in the same industry.
- TM5's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.55 | ||
| Fwd PE | 15.88 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TM5 is on the same level as its industry peers.
- The rest of the industry has a similar Price/Free Cash Flow ratio as TM5.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.04 | ||
| EV/EBITDA | 9.1 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates TM5 does not grow enough to justify the current Price/Earnings ratio.
- TM5 has an outstanding profitability rating, which may justify a higher PE ratio.
- A more expensive valuation may be justified as TM5's earnings are expected to grow with 15.40% in the coming years.
PEG (NY)3.27
PEG (5Y)0.92
EPS Next 2Y9.96%
EPS Next 3Y15.4%
5. Dividend
5.1 Amount
- TM5 has a Yearly Dividend Yield of 2.05%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 2.28, TM5 pays a bit more dividend than its industry peers.
- TM5's Dividend Yield is comparable with the S&P500 average which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.05% |
5.2 History
- The dividend of TM5 is nicely growing with an annual growth rate of 111.33%!
Dividend Growth(5Y)111.33%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
- 33.70% of the earnings are spent on dividend by TM5. This is a low number and sustainable payout ratio.
- The dividend of TM5 is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP33.7%
EPS Next 2Y9.96%
EPS Next 3Y15.4%
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 for TM5 stock?
ChartMill assigns a valuation rating of 4 / 10 to T-MOBILE US INC (TM5.DE). This can be considered as Fairly Valued.
What is the profitability of TM5 stock?
T-MOBILE US INC (TM5.DE) has a profitability rating of 9 / 10.
Can you provide the PE and PB ratios for TM5 stock?
The Price/Earnings (PE) ratio for T-MOBILE US INC (TM5.DE) is 17.55 and the Price/Book (PB) ratio is 3.43.
What is the expected EPS growth for T-MOBILE US INC (TM5.DE) stock?
The Earnings per Share (EPS) of T-MOBILE US INC (TM5.DE) is expected to grow by 5.37% in the next year.