T-MOBILE US INC (TMUS) Stock Fundamental Analysis
NASDAQ:TMUS - Nasdaq - US8725901040 - Common Stock - Currency: USD
Taking everything into account, TMUS scores 5 out of 10 in our fundamental rating. TMUS was compared to 21 industry peers in the Wireless Telecommunication Services industry. TMUS has an excellent profitability rating, but there are concerns on its financial health. TMUS is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year TMUS was profitable.
In the past year TMUS had a positive cash flow from operations.
TMUS had positive earnings in each of the past 5 years.
TMUS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of TMUS (5.45%) is better than 80.95% of its industry peers.
TMUS has a Return On Equity of 18.37%. This is amongst the best in the industry. TMUS outperforms 80.95% of its industry peers.
Looking at the Return On Invested Capital, with a value of 7.21%, TMUS is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for TMUS is in line with the industry average of 6.12%.
The last Return On Invested Capital (7.21%) for TMUS 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
TMUS's Profit Margin of 13.93% is amongst the best of the industry. TMUS outperforms 100.00% of its industry peers.
In the last couple of years the Profit Margin of TMUS has grown nicely.
TMUS's Operating Margin of 22.27% is amongst the best of the industry. TMUS outperforms 85.71% of its industry peers.
In the last couple of years the Operating Margin of TMUS has grown nicely.
With an excellent Gross Margin value of 63.79%, TMUS belongs to the best of the industry, outperforming 80.95% of the companies in the same industry.
TMUS'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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so TMUS is destroying value.
The number of shares outstanding for TMUS has been reduced compared to 1 year ago.
The number of shares outstanding for TMUS has been increased compared to 5 years ago.
TMUS has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 1.99 indicates that TMUS is not a great score, but indicates only limited risk for bankruptcy at the moment.
With an excellent Altman-Z score value of 1.99, TMUS belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
TMUS has a debt to FCF ratio of 8.44. This is a slightly negative value and a sign of low solvency as TMUS would need 8.44 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 8.44, TMUS is doing good in the industry, outperforming 61.90% of the companies in the same industry.
TMUS has a Debt/Equity ratio of 1.35. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of TMUS (1.35) is worse than 61.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.35 | ||
| Debt/FCF | 8.44 | ||
| Altman-Z | 1.99 |
ROIC/WACC0.93
WACC7.77%
2.3 Liquidity
A Current Ratio of 0.91 indicates that TMUS may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.91, TMUS is doing worse than 66.67% of the companies in the same industry.
TMUS has a Quick Ratio of 0.91. This is a bad value and indicates that TMUS is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of TMUS (0.83) is worse than 66.67% of its industry peers.
| 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.
Looking at the last year, TMUS shows a small growth in Revenue. The Revenue has grown by 3.62% in the last year.
TMUS shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 12.59% yearly.
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
The Earnings Per Share is expected to grow by 16.07% on average over the next years. This is quite good.
TMUS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.10% yearly.
EPS Next Y12.03%
EPS Next 2Y15.9%
EPS Next 3Y16.5%
EPS Next 5Y16.07%
Revenue Next Year5.81%
Revenue Next 2Y5.46%
Revenue Next 3Y5.18%
Revenue Next 5Y5.1%
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
TMUS is valuated quite expensively with a Price/Earnings ratio of 27.10.
Compared to the rest of the industry, the Price/Earnings ratio of TMUS is on the same level as its industry peers.
When comparing the Price/Earnings ratio of TMUS to the average of the S&P500 Index (28.29), we can say TMUS is valued inline with the index average.
With a Price/Forward Earnings ratio of 24.19, TMUS is valued on the expensive side.
61.90% of the companies in the same industry are cheaper than TMUS, based on the Price/Forward Earnings ratio.
TMUS is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.08, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.1 | ||
| Fwd PE | 24.19 |
4.2 Price Multiples
TMUS's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. TMUS is more expensive than 71.43% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TMUS indicates a slightly more expensive valuation: TMUS is more expensive than 71.43% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.97 | ||
| EV/EBITDA | 12.04 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
TMUS has an outstanding profitability rating, which may justify a higher PE ratio.
TMUS's earnings are expected to grow with 16.50% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.25
PEG (5Y)1.42
EPS Next 2Y15.9%
EPS Next 3Y16.5%
5. Dividend
5.1 Amount
TMUS has a Yearly Dividend Yield of 1.28%.
Compared to an average industry Dividend Yield of 5.49, TMUS has a dividend in line with its industry peers.
With a Dividend Yield of 1.28, TMUS pays less dividend than the S&P500 average, which is at 2.57.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.28% |
5.2 History
The dividend of TMUS is nicely growing with an annual growth rate of 111.33%!
TMUS has been paying a dividend for less than 5 years, so it still needs to build a track record.
Dividend Growth(5Y)111.33%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
TMUS pays out 29.10% of its income as dividend. This is a sustainable payout ratio.
The dividend of TMUS is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP29.1%
EPS Next 2Y15.9%
EPS Next 3Y16.5%
262.04
+2.4 (+0.92%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners38.63%
Inst Owner Change0.01%
Ins Owners0.67%
Ins Owner Change0.01%
Market Cap299.18B
Analysts77.22
Price Target267.26 (1.99%)
Short Float %3.06%
Short Ratio3.56
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.28% |
Yearly Dividend2.82
Dividend Growth(5Y)111.33%
DP29.1%
Div Incr Years1
Div Non Decr Years1
Ex-Date
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)1.76%
PT rev (3m)5.34%
EPS NQ rev (1m)-1.09%
EPS NQ rev (3m)-1.22%
EPS NY rev (1m)-0.42%
EPS NY rev (3m)-0.56%
Revenue NQ rev (1m)-0.23%
Revenue NQ rev (3m)0.06%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)0.98%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.1 | ||
| Fwd PE | 24.19 | ||
| P/S | 3.68 | ||
| P/FCF | 29.97 | ||
| P/OCF | 13.42 | ||
| P/B | 4.85 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.04 |
EPS(TTM)9.67
EY3.69%
EPS(NY)10.83
Fwd EY4.13%
FCF(TTM)8.74
FCFY3.34%
OCF(TTM)19.53
OCFY7.45%
SpS71.29
BVpS54.08
TBVpS-47.59
PEG (NY)2.25
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 | 1.99 |
F-Score8
WACC7.77%
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 Y12.03%
EPS Next 2Y15.9%
EPS Next 3Y16.5%
EPS Next 5Y16.07%
Revenue 1Y (TTM)3.62%
Revenue growth 3Y0.53%
Revenue growth 5Y12.59%
Sales Q2Q%6.81%
Revenue Next Year5.81%
Revenue Next 2Y5.46%
Revenue Next 3Y5.18%
Revenue Next 5Y5.1%
EBIT growth 1Y18.7%
EBIT growth 3Y21.67%
EBIT growth 5Y23.21%
EBIT Next Year87.94%
EBIT Next 3Y29.77%
EBIT Next 5Y19.43%
FCF growth 1Y28.83%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y20.12%
OCF growth 3Y17.01%
OCF growth 5Y26.71%