T-MOBILE US INC (TM5.DE) Stock Fundamental Analysis
Europe • Frankfurt Stock Exchange • FRA:TM5 • US8725901040
163.98 EUR
+5.68 (+3.59%)
Last: Jan 30, 2026, 07:00 PM
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 has a correct valuation and a medium 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.
- Each year in the past 5 years TM5 has been profitable.
- TM5 had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- With an excellent Return On Assets value of 5.47%, TM5 belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
- 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's Return On Invested Capital of 7.71% is amongst the best of the industry. TM5 outperforms 83.33% of its industry peers.
- The Average Return On Invested Capital over the past 3 years 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
- 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.
- TM5's Profit Margin has improved in the last couple of years.
- The Operating Margin of TM5 (22.69%) is better than 100.00% of its industry peers.
- In the last couple of years the Operating Margin of TM5 has grown nicely.
- With an excellent Gross Margin value of 63.57%, TM5 belongs to the best 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
- 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.
- 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 1.62. This is a bad value and indicates that TM5 is not financially healthy and even has some risk of bankruptcy.
- Looking at the Altman-Z score, with a value of 1.62, TM5 is in line with its industry, outperforming 50.00% of the companies in the same industry.
- TM5 has a debt to FCF ratio of 6.53. This is a slightly negative value and a sign of low solvency as TM5 would need 6.53 years to pay back of all of its debts.
- The Debt to FCF ratio of TM5 (6.53) is better than 66.67% of its industry peers.
- TM5 has a Debt/Equity ratio of 1.37. This is a high value indicating a heavy dependency on external financing.
- With a Debt to Equity ratio value of 1.37, TM5 is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.37 | ||
| Debt/FCF | 6.53 | ||
| Altman-Z | 1.62 |
ROIC/WACC1.04
WACC7.39%
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.
- The Revenue has been growing slightly by 7.30% in the past year.
- TM5 shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 12.59% yearly.
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
- The Earnings Per Share is expected to grow by 16.24% on average over the next years. This is quite good.
- TM5 is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.51% yearly.
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.
- 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
- TM5 is valuated rather expensively with a Price/Earnings ratio of 18.55.
- Based on the Price/Earnings ratio, TM5 is valued a bit cheaper than 66.67% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 28.30. TM5 is valued slightly cheaper when compared to this.
- Based on the Price/Forward Earnings ratio of 16.79, the valuation of TM5 can be described as correct.
- 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.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.57, TM5 is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.55 | ||
| Fwd PE | 16.79 |
4.2 Price Multiples
- TM5's Enterprise Value to EBITDA is on the same level as the industry average.
- The rest of the industry has a similar Price/Free Cash Flow ratio as TM5.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.9 | ||
| EV/EBITDA | 9.22 |
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.
- The excellent profitability rating of TM5 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)3.46
PEG (5Y)0.97
EPS Next 2Y9.96%
EPS Next 3Y15.4%
5. Dividend
5.1 Amount
- TM5 has a Yearly Dividend Yield of 2.01%.
- 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 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.01% |
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 18.55 and the Price/Book (PB) ratio is 3.63.
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.