T-MOBILE US INC (TM5.DE) Stock Fundamental Analysis
FRA:TM5 - Deutsche Boerse Ag - US8725901040 - Common Stock - Currency: EUR
Overall TM5 gets a fundamental rating of 5 out of 10. We evaluated TM5 against 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 is valied quite expensively at the moment, while it does show 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.
TM5 had positive earnings in each of the past 5 years.
TM5 had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of TM5 (5.45%) is better than 83.33% of its industry peers.
The Return On Equity of TM5 (18.37%) is better than 100.00% of its industry peers.
With an excellent Return On Invested Capital value of 7.21%, TM5 belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
TM5 had an Average Return On Invested Capital over the past 3 years of 6.22%. This is in line with the industry average of 5.50%.
The last Return On Invested Capital (7.21%) for TM5 is above the 3 year average (6.22%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.45% | ||
| ROE | 18.37% | ||
| ROIC | 7.21% |
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
TM5's Profit Margin of 13.93% is amongst the best of the industry. TM5 outperforms 83.33% of its industry peers.
In the last couple of years the Profit Margin of TM5 has grown nicely.
The Operating Margin of TM5 (22.27%) is better than 100.00% of its industry peers.
In the last couple of years the Operating Margin of TM5 has grown nicely.
TM5 has a Gross Margin of 63.79%. This is amongst the best in the industry. TM5 outperforms 100.00% of its industry peers.
TM5's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.27% | ||
| PM (TTM) | 13.93% | ||
| GM | 63.79% |
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) below the Cost of Capital (WACC), TM5 is destroying value.
Compared to 1 year ago, TM5 has less shares outstanding
Compared to 5 years ago, TM5 has more shares outstanding
Compared to 1 year ago, TM5 has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.00 indicates that TM5 is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.00, TM5 perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
TM5 has a debt to FCF ratio of 8.44. This is a slightly negative value and a sign of low solvency as TM5 would need 8.44 years to pay back of all of its debts.
TM5 has a Debt to FCF ratio of 8.44. This is in the better half of the industry: TM5 outperforms 66.67% of its industry peers.
A Debt/Equity ratio of 1.35 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 1.35, TM5 is doing worse than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.35 | ||
| Debt/FCF | 8.44 | ||
| Altman-Z | 2 |
ROIC/WACC0.93
WACC7.76%
2.3 Liquidity
TM5 has a Current Ratio of 0.91. 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 0.91. This is comparable to the rest of the industry: TM5 outperforms 50.00% of its industry peers.
TM5 has a Quick Ratio of 0.91. This is a bad value and indicates that TM5 is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.83, TM5 perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.83 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 39.54% over the past year.
The Earnings Per Share has been growing by 19.13% on average over the past years. This is quite good.
The Revenue has been growing slightly by 3.62% in the past year.
The Revenue has been growing by 12.59% on average over the past years. This is quite good.
EPS 1Y (TTM)39.54%
EPS 3Y58.9%
EPS 5Y19.13%
EPS Q2Q%53.89%
Revenue 1Y (TTM)3.62%
Revenue growth 3Y0.53%
Revenue growth 5Y12.59%
Sales Q2Q%6.81%
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 14.58% on average per year.
TM5 is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.91% yearly.
EPS Next Y12.51%
EPS Next 2Y16.09%
EPS Next 3Y16.46%
EPS Next 5Y14.58%
Revenue Next Year5.79%
Revenue Next 2Y5.51%
Revenue Next 3Y5.05%
Revenue Next 5Y3.91%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past 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 quite expensively with a Price/Earnings ratio of 27.19.
TM5's Price/Earnings ratio is a bit more expensive when compared to the industry. TM5 is more expensive than 66.67% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 29.35. TM5 is around the same levels.
With a Price/Forward Earnings ratio of 24.18, TM5 is valued on the expensive side.
TM5's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. TM5 is more expensive than 66.67% of the companies in the same industry.
TM5 is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.10, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.19 | ||
| Fwd PE | 24.18 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TM5 indicates a slightly more expensive valuation: TM5 is more expensive than 66.67% of the companies listed in the same industry.
TM5's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.09 | ||
| EV/EBITDA | 12.08 |
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.
TM5's earnings are expected to grow with 16.46% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.17
PEG (5Y)1.42
EPS Next 2Y16.09%
EPS Next 3Y16.46%
5. Dividend
5.1 Amount
TM5 has a Yearly Dividend Yield of 1.25%. Purely for dividend investing, there may be better candidates out there.
TM5's Dividend Yield is comparable with the industry average which is at 3.65.
With a Dividend Yield of 1.25, TM5 pays less dividend than the S&P500 average, which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.25% |
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
29.10% of the earnings are spent on dividend by TM5. This is a low number and sustainable payout ratio.
TM5's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP29.1%
EPS Next 2Y16.09%
EPS Next 3Y16.46%
FRA:TM5 (3/7/2025, 7:00:00 PM)
242.3
-0.5 (-0.21%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners38.63%
Inst Owner ChangeN/A
Ins Owners0.67%
Ins Owner ChangeN/A
Market Cap276.64B
Analysts78.89
Price Target248 (2.35%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.25% |
Yearly Dividend2.6
Dividend Growth(5Y)111.33%
DP29.1%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.85%
Min EPS beat(2)5.66%
Max EPS beat(2)10.04%
EPS beat(4)4
Avg EPS beat(4)7%
Min EPS beat(4)5.06%
Max EPS beat(4)10.04%
EPS beat(8)7
Avg EPS beat(8)3.7%
EPS beat(12)11
Avg EPS beat(12)81.53%
EPS beat(16)15
Avg EPS beat(16)73.12%
Revenue beat(2)1
Avg Revenue beat(2)-0.29%
Min Revenue beat(2)-1.21%
Max Revenue beat(2)0.63%
Revenue beat(4)1
Avg Revenue beat(4)-1.12%
Min Revenue beat(4)-3.03%
Max Revenue beat(4)0.63%
Revenue beat(8)2
Avg Revenue beat(8)-1.24%
Revenue beat(12)2
Avg Revenue beat(12)-1.97%
Revenue beat(16)4
Avg Revenue beat(16)-1.76%
PT rev (1m)2.82%
PT rev (3m)5.69%
EPS NQ rev (1m)0.31%
EPS NQ rev (3m)-0.14%
EPS NY rev (1m)0.44%
EPS NY rev (3m)-0.01%
Revenue NQ rev (1m)0.01%
Revenue NQ rev (3m)0.29%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.19 | ||
| Fwd PE | 24.18 | ||
| P/S | 3.69 | ||
| P/FCF | 30.09 | ||
| P/OCF | 13.47 | ||
| P/B | 4.86 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.08 |
EPS(TTM)8.91
EY3.68%
EPS(NY)10.02
Fwd EY4.14%
FCF(TTM)8.05
FCFY3.32%
OCF(TTM)17.98
OCFY7.42%
SpS65.67
BVpS49.81
TBVpS-43.83
PEG (NY)2.17
PEG (5Y)1.42
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.45% | ||
| ROE | 18.37% | ||
| ROCE | 9.65% | ||
| ROIC | 7.21% | ||
| ROICexc | 7.42% | ||
| ROICexgc | 19.65% | ||
| OM | 22.27% | ||
| PM (TTM) | 13.93% | ||
| GM | 63.79% | ||
| FCFM | 12.26% |
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%
ROICexcg growth 3Y22.86%
ROICexcg 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-Score8
Asset Turnover0.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.35 | ||
| Debt/FCF | 8.44 | ||
| Debt/EBITDA | 2.68 | ||
| Cap/Depr | 95.29% | ||
| Cap/Sales | 15.12% | ||
| Interest Coverage | 4.92 | ||
| Cash Conversion | 71.8% | ||
| Profit Quality | 88.03% | ||
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.83 | ||
| Altman-Z | 2 |
F-Score8
WACC7.76%
ROIC/WACC0.93
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)39.54%
EPS 3Y58.9%
EPS 5Y19.13%
EPS Q2Q%53.89%
EPS Next Y12.51%
EPS Next 2Y16.09%
EPS Next 3Y16.46%
EPS Next 5Y14.58%
Revenue 1Y (TTM)3.62%
Revenue growth 3Y0.53%
Revenue growth 5Y12.59%
Sales Q2Q%6.81%
Revenue Next Year5.79%
Revenue Next 2Y5.51%
Revenue Next 3Y5.05%
Revenue Next 5Y3.91%
EBIT growth 1Y18.7%
EBIT growth 3Y21.67%
EBIT growth 5Y23.21%
EBIT Next Year87.71%
EBIT Next 3Y29.63%
EBIT Next 5Y19.69%
FCF growth 1Y28.83%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y20.12%
OCF growth 3Y17.01%
OCF growth 5Y26.71%