T-MOBILE US INC (TM5.DE) Stock Fundamental Analysis
Europe - FRA:TM5 - US8725901040 - Common Stock
206.25 EUR
+1.8 (+0.88%)
Overall TM5 gets a fundamental rating of 5 out of 10. We evaluated TM5 against 6 industry peers in the Wireless Telecommunication Services industry. TM5 scores excellent on profitability, but there are 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
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
The Return On Assets of TM5 (5.74%) is better than 83.33% of its industry peers.
TM5's Return On Equity of 19.99% is amongst the best of the industry. TM5 outperforms 100.00% of its industry peers.
TM5 has a better Return On Invested Capital (7.77%) than 83.33% of its industry peers.
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 6.64%.
The 3 year average ROIC (6.22%) for TM5 is below the current ROIC(7.77%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.74% | ||
| ROE | 19.99% | ||
| ROIC | 7.77% |
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
With an excellent Profit Margin value of 14.53%, TM5 belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
In the last couple of years the Profit Margin of TM5 has grown nicely.
With an excellent Operating Margin value of 23.08%, TM5 belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
TM5's Operating Margin has improved in the last couple of years.
TM5 has a better Gross Margin (63.61%) than 83.33% of its industry peers.
TM5's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.08% | ||
| PM (TTM) | 14.53% | ||
| GM | 63.61% |
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.
The number of shares outstanding for TM5 has been reduced compared to 1 year ago.
Compared to 5 years ago, TM5 has more shares outstanding
The debt/assets ratio for TM5 is higher compared to a year ago.
2.2 Solvency
TM5 has an Altman-Z score of 1.91. This is not the best score and indicates that TM5 is in the grey zone with still only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 1.91, TM5 is in line with its industry, outperforming 50.00% of the companies in the same industry.
The Debt to FCF ratio of TM5 is 7.20, which is on the high side as it means it would take TM5, 7.20 years of fcf income to pay off all of its debts.
TM5 has a Debt to FCF ratio (7.20) which is comparable to the rest of the industry.
TM5 has a Debt/Equity ratio of 1.33. This is a high value indicating a heavy dependency on external financing.
TM5 has a Debt to Equity ratio of 1.33. This is in the lower half of the industry: TM5 underperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.33 | ||
| Debt/FCF | 7.2 | ||
| Altman-Z | 1.91 |
ROIC/WACC1.06
WACC7.31%
2.3 Liquidity
TM5 has a Current Ratio of 1.21. This is a normal value and indicates that TM5 is financially healthy and should not expect problems in meeting its short term obligations.
TM5's Current ratio of 1.21 is in line compared to the rest of the industry. TM5 outperforms 50.00% of its industry peers.
A Quick Ratio of 1.13 indicates that TM5 should not have too much problems paying its short term obligations.
TM5 has a Quick ratio of 1.13. This is comparable to the rest of the industry: TM5 outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.21 | ||
| Quick Ratio | 1.13 |
3. Growth
3.1 Past
TM5 shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 32.83%, which is quite impressive.
The Earnings Per Share has been growing by 19.13% on average over the past years. This is quite good.
TM5 shows a small growth in Revenue. In the last year, the Revenue has grown by 6.27%.
The Revenue has been growing by 12.59% on average over the past years. This is quite good.
EPS 1Y (TTM)32.83%
EPS 3Y58.9%
EPS 5Y19.13%
EPS Q2Q%14.06%
Revenue 1Y (TTM)6.27%
Revenue growth 3Y0.53%
Revenue growth 5Y12.59%
Sales Q2Q%6.88%
3.2 Future
The Earnings Per Share is expected to grow by 16.75% on average over the next years. This is quite good.
Based on estimates for the next years, TM5 will show a small growth in Revenue. The Revenue will grow by 5.20% on average per year.
EPS Next Y14.89%
EPS Next 2Y17.04%
EPS Next 3Y17.16%
EPS Next 5Y16.75%
Revenue Next Year7.37%
Revenue Next 2Y6.39%
Revenue Next 3Y5.83%
Revenue Next 5Y5.2%
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
A Price/Earnings ratio of 22.74 indicates a rather expensive valuation of TM5.
Compared to the rest of the industry, the Price/Earnings ratio of TM5 is on the same level as its industry peers.
TM5 is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 18.20, the valuation of TM5 can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TM5 is on the same level as its industry peers.
TM5's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.73.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.74 | ||
| Fwd PE | 18.2 |
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.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TM5 indicates a slightly more expensive valuation: TM5 is more expensive than 66.67% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.98 | ||
| EV/EBITDA | 10.85 |
4.3 Compensation for Growth
TM5's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
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 17.16% in the coming years.
PEG (NY)1.53
PEG (5Y)1.19
EPS Next 2Y17.04%
EPS Next 3Y17.16%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.46%, TM5 has a reasonable but not impressive dividend return.
TM5's Dividend Yield is a higher than the industry average which is at 2.77.
With a Dividend Yield of 1.46, TM5 pays less dividend than the S&P500 average, which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.46% |
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
TM5 pays out 30.87% 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.
DP30.87%
EPS Next 2Y17.04%
EPS Next 3Y17.16%
FRA:TM5 (9/12/2025, 7:00:00 PM)
206.25
+1.8 (+0.88%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners37.96%
Inst Owner ChangeN/A
Ins Owners0.38%
Ins Owner ChangeN/A
Market Cap232.12B
Analysts76.22
Price Target234.88 (13.88%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.46% |
Yearly Dividend2.41
Dividend Growth(5Y)111.33%
DP30.87%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.49%
Min EPS beat(2)2.7%
Max EPS beat(2)4.27%
EPS beat(4)4
Avg EPS beat(4)5.67%
Min EPS beat(4)2.7%
Max EPS beat(4)10.04%
EPS beat(8)7
Avg EPS beat(8)2.97%
EPS beat(12)11
Avg EPS beat(12)70.16%
EPS beat(16)15
Avg EPS beat(16)69.14%
Revenue beat(2)0
Avg Revenue beat(2)-1.06%
Min Revenue beat(2)-1.44%
Max Revenue beat(2)-0.68%
Revenue beat(4)1
Avg Revenue beat(4)-0.68%
Min Revenue beat(4)-1.44%
Max Revenue beat(4)0.63%
Revenue beat(8)2
Avg Revenue beat(8)-0.83%
Revenue beat(12)2
Avg Revenue beat(12)-1.67%
Revenue beat(16)2
Avg Revenue beat(16)-2.12%
PT rev (1m)1.37%
PT rev (3m)-2.42%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.43%
EPS NY rev (1m)2.47%
EPS NY rev (3m)2.06%
Revenue NQ rev (1m)-0.11%
Revenue NQ rev (3m)1.42%
Revenue NY rev (1m)0.13%
Revenue NY rev (3m)0.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.74 | ||
| Fwd PE | 18.2 | ||
| P/S | 3.23 | ||
| P/FCF | 21.98 | ||
| P/OCF | 10.63 | ||
| P/B | 4.44 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.85 |
EPS(TTM)9.07
EY4.4%
EPS(NY)11.34
Fwd EY5.5%
FCF(TTM)9.38
FCFY4.55%
OCF(TTM)19.41
OCFY9.41%
SpS63.92
BVpS46.47
TBVpS-38.57
PEG (NY)1.53
PEG (5Y)1.19
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.74% | ||
| ROE | 19.99% | ||
| ROCE | 10.18% | ||
| ROIC | 7.77% | ||
| ROICexc | 8.21% | ||
| ROICexgc | 21.63% | ||
| OM | 23.08% | ||
| PM (TTM) | 14.53% | ||
| GM | 63.61% | ||
| FCFM | 14.68% |
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 Turnover0.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.33 | ||
| Debt/FCF | 7.2 | ||
| Debt/EBITDA | 2.54 | ||
| Cap/Depr | 104.31% | ||
| Cap/Sales | 15.69% | ||
| Interest Coverage | 5.13 | ||
| Cash Conversion | 79.67% | ||
| Profit Quality | 101.01% | ||
| Current Ratio | 1.21 | ||
| Quick Ratio | 1.13 | ||
| Altman-Z | 1.91 |
F-Score8
WACC7.31%
ROIC/WACC1.06
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)32.83%
EPS 3Y58.9%
EPS 5Y19.13%
EPS Q2Q%14.06%
EPS Next Y14.89%
EPS Next 2Y17.04%
EPS Next 3Y17.16%
EPS Next 5Y16.75%
Revenue 1Y (TTM)6.27%
Revenue growth 3Y0.53%
Revenue growth 5Y12.59%
Sales Q2Q%6.88%
Revenue Next Year7.37%
Revenue Next 2Y6.39%
Revenue Next 3Y5.83%
Revenue Next 5Y5.2%
EBIT growth 1Y19.54%
EBIT growth 3Y21.67%
EBIT growth 5Y23.21%
EBIT Next Year89.14%
EBIT Next 3Y30.3%
EBIT Next 5Y19.95%
FCF growth 1Y220.63%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y48.99%
OCF growth 3Y17.01%
OCF growth 5Y26.71%