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. While showing a medium growth rate, TM5 is valued expensive at the moment.
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.
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
TM5's Return On Assets of 5.55% is amongst the best of the industry. TM5 outperforms 83.33% of its industry peers.
TM5's Return On Equity of 19.50% is amongst the best of the industry. TM5 outperforms 100.00% of its industry peers.
The Return On Invested Capital of TM5 (7.52%) is better than 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 6.26%.
The last Return On Invested Capital (7.52%) for TM5 is above the 3 year average (6.22%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.55% | ||
| ROE | 19.5% | ||
| ROIC | 7.52% |
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 14.41% 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.
With an excellent Operating Margin value of 22.74%, 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 Gross Margin of 63.85%. This is amongst the best in the industry. TM5 outperforms 83.33% of its industry peers.
TM5's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.74% | ||
| PM (TTM) | 14.41% | ||
| GM | 63.85% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so TM5 is destroying value.
TM5 has less shares outstanding than it did 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
An Altman-Z score of 1.87 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 1.87, TM5 perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
The Debt to FCF ratio of TM5 is 7.69, which is on the high side as it means it would take TM5, 7.69 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of TM5 (7.69) is better than 66.67% of its industry peers.
TM5 has a Debt/Equity ratio of 1.35. This is a high value indicating a heavy dependency on external financing.
TM5's Debt to Equity ratio of 1.35 is on the low side compared to the rest of the industry. TM5 is outperformed by 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.35 | ||
| Debt/FCF | 7.69 | ||
| Altman-Z | 1.87 |
ROIC/WACC1
WACC7.52%
2.3 Liquidity
A Current Ratio of 1.16 indicates that TM5 should not have too much problems paying its short term obligations.
With a Current ratio value of 1.16, TM5 perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
A Quick Ratio of 1.08 indicates that TM5 should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.08, TM5 perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.16 | ||
| Quick Ratio | 1.08 |
3. Growth
3.1 Past
TM5 shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 39.46%, 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 5.31%.
The Revenue has been growing by 12.59% on average over the past years. This is quite good.
EPS 1Y (TTM)39.46%
EPS 3Y58.9%
EPS 5Y19.13%
EPS Q2Q%29%
Revenue 1Y (TTM)5.31%
Revenue growth 3Y0.53%
Revenue growth 5Y12.59%
Sales Q2Q%6.59%
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 15.70% on average per year.
TM5 is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.92% yearly.
EPS Next Y12.53%
EPS Next 2Y15.74%
EPS Next 3Y16.27%
EPS Next 5Y15.7%
Revenue Next Year6.87%
Revenue Next 2Y5.95%
Revenue Next 3Y5.46%
Revenue Next 5Y4.92%
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
With a Price/Earnings ratio of 23.45, TM5 is valued on the expensive side.
TM5's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 27.45. TM5 is around the same levels.
With a Price/Forward Earnings ratio of 18.56, TM5 is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TM5 is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of TM5 to the average of the S&P500 Index (21.90), we can say TM5 is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.45 | ||
| Fwd PE | 18.56 |
4.2 Price Multiples
TM5's Enterprise Value to EBITDA 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 rest of the industry has a similar Price/Free Cash Flow ratio as TM5.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.92 | ||
| EV/EBITDA | 11.15 |
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 16.27% in the coming years.
PEG (NY)1.87
PEG (5Y)1.23
EPS Next 2Y15.74%
EPS Next 3Y16.27%
5. Dividend
5.1 Amount
TM5 has a Yearly Dividend Yield of 1.46%. Purely for dividend investing, there may be better candidates out there.
TM5's Dividend Yield is a higher than the industry average which is at 2.98.
TM5's Dividend Yield is slightly below the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.46% |
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
29.65% 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.
DP29.65%
EPS Next 2Y15.74%
EPS Next 3Y16.27%
FRA:TM5 (7/4/2025, 7:00:00 PM)
204
+0.6 (+0.29%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners37.4%
Inst Owner ChangeN/A
Ins Owners0.38%
Ins Owner ChangeN/A
Market Cap231.63B
Analysts77.78
Price Target239.82 (17.56%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.46% |
Yearly Dividend2.4
Dividend Growth(5Y)111.33%
DP29.65%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.37%
Min EPS beat(2)2.7%
Max EPS beat(2)10.04%
EPS beat(4)4
Avg EPS beat(4)6.41%
Min EPS beat(4)2.7%
Max EPS beat(4)10.04%
EPS beat(8)7
Avg EPS beat(8)3.43%
EPS beat(12)11
Avg EPS beat(12)75.77%
EPS beat(16)15
Avg EPS beat(16)71.62%
Revenue beat(2)1
Avg Revenue beat(2)-0.03%
Min Revenue beat(2)-0.68%
Max Revenue beat(2)0.63%
Revenue beat(4)1
Avg Revenue beat(4)-0.53%
Min Revenue beat(4)-1.21%
Max Revenue beat(4)0.63%
Revenue beat(8)2
Avg Revenue beat(8)-0.97%
Revenue beat(12)2
Avg Revenue beat(12)-1.87%
Revenue beat(16)3
Avg Revenue beat(16)-1.96%
PT rev (1m)-0.93%
PT rev (3m)0.67%
EPS NQ rev (1m)-0.11%
EPS NQ rev (3m)-0.99%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)0.45%
Revenue NQ rev (1m)-0.09%
Revenue NQ rev (3m)1.16%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)1.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.45 | ||
| Fwd PE | 18.56 | ||
| P/S | 3.3 | ||
| P/FCF | 22.92 | ||
| P/OCF | 11.34 | ||
| P/B | 4.47 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.15 |
EPS(TTM)8.7
EY4.26%
EPS(NY)10.99
Fwd EY5.39%
FCF(TTM)8.9
FCFY4.36%
OCF(TTM)17.98
OCFY8.81%
SpS61.81
BVpS45.68
TBVpS-40.15
PEG (NY)1.87
PEG (5Y)1.23
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.55% | ||
| ROE | 19.5% | ||
| ROCE | 9.84% | ||
| ROIC | 7.52% | ||
| ROICexc | 8.02% | ||
| ROICexgc | 22.37% | ||
| OM | 22.74% | ||
| PM (TTM) | 14.41% | ||
| GM | 63.85% | ||
| FCFM | 14.4% |
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 | 7.69 | ||
| Debt/EBITDA | 2.61 | ||
| Cap/Depr | 95.3% | ||
| Cap/Sales | 14.69% | ||
| Interest Coverage | 5.05 | ||
| Cash Conversion | 76.25% | ||
| Profit Quality | 99.92% | ||
| Current Ratio | 1.16 | ||
| Quick Ratio | 1.08 | ||
| Altman-Z | 1.87 |
F-Score8
WACC7.52%
ROIC/WACC1
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)39.46%
EPS 3Y58.9%
EPS 5Y19.13%
EPS Q2Q%29%
EPS Next Y12.53%
EPS Next 2Y15.74%
EPS Next 3Y16.27%
EPS Next 5Y15.7%
Revenue 1Y (TTM)5.31%
Revenue growth 3Y0.53%
Revenue growth 5Y12.59%
Sales Q2Q%6.59%
Revenue Next Year6.87%
Revenue Next 2Y5.95%
Revenue Next 3Y5.46%
Revenue Next 5Y4.92%
EBIT growth 1Y19.84%
EBIT growth 3Y21.67%
EBIT growth 5Y23.21%
EBIT Next Year88.34%
EBIT Next 3Y29.81%
EBIT Next 5Y19.44%
FCF growth 1Y319.92%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y41.61%
OCF growth 3Y17.01%
OCF growth 5Y26.71%