T-MOBILE US INC (TMUS) Stock Fundamental Analysis
USA - NASDAQ:TMUS - US8725901040 - Common Stock
214.57 USD
+1.89 (+0.89%)
215.5 USD
+0.93 (+0.43%)
TMUS gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 22 industry peers in the Wireless Telecommunication Services industry. TMUS has an excellent profitability rating, but there are concerns on its financial health. TMUS 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 TMUS was profitable.
In the past year TMUS had a positive cash flow from operations.
Each year in the past 5 years TMUS has been profitable.
TMUS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of TMUS (5.47%) is better than 77.27% of its industry peers.
With an excellent Return On Equity value of 19.63%, TMUS belongs to the best of the industry, outperforming 81.82% of the companies in the same industry.
TMUS's Return On Invested Capital of 7.71% is fine compared to the rest of the industry. TMUS outperforms 72.73% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TMUS is in line with the industry average of 5.83%.
The 3 year average ROIC (6.22%) for TMUS is below the current ROIC(7.71%), indicating increased profibility in the last year.
| 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
With a decent Profit Margin value of 13.83%, TMUS is doing good in the industry, outperforming 77.27% of the companies in the same industry.
TMUS's Profit Margin has improved in the last couple of years.
TMUS's Operating Margin of 22.69% is fine compared to the rest of the industry. TMUS outperforms 77.27% of its industry peers.
TMUS's Operating Margin has improved in the last couple of years.
The Gross Margin of TMUS (63.57%) is better than 81.82% of its industry peers.
In the last couple of years the Gross Margin of TMUS has grown nicely.
| 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
TMUS has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
TMUS has less shares outstanding than it did 1 year ago.
TMUS has more shares outstanding than it did 5 years ago.
TMUS has a worse debt/assets ratio than last year.
2.2 Solvency
TMUS has an Altman-Z score of 1.72. This is a bad value and indicates that TMUS is not financially healthy and even has some risk of bankruptcy.
With a decent Altman-Z score value of 1.72, TMUS is doing good in the industry, outperforming 77.27% of the companies in the same industry.
TMUS has a debt to FCF ratio of 6.53. This is a slightly negative value and a sign of low solvency as TMUS would need 6.53 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 6.53, TMUS is doing good in the industry, outperforming 68.18% of the companies in the same industry.
TMUS has a Debt/Equity ratio of 1.37. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of TMUS (1.37) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.37 | ||
| Debt/FCF | 6.53 | ||
| Altman-Z | 1.72 |
ROIC/WACC1.05
WACC7.36%
2.3 Liquidity
TMUS has a Current Ratio of 0.89. This is a bad value and indicates that TMUS is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.89, TMUS is doing worse than 72.73% of the companies in the same industry.
A Quick Ratio of 0.80 indicates that TMUS may have some problems paying its short term obligations.
TMUS has a Quick ratio of 0.80. This is in the lower half of the industry: TMUS underperforms 77.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.89 | ||
| Quick Ratio | 0.8 |
3. Growth
3.1 Past
TMUS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 20.64%, which is quite impressive.
Measured over the past years, TMUS shows a quite strong growth in Earnings Per Share. The EPS has been growing by 19.13% on average per year.
Looking at the last year, TMUS shows a small growth in Revenue. The Revenue has grown by 7.30% in the last year.
The Revenue has been growing by 12.59% on average over the past years. This is quite good.
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.
The Revenue is expected to grow by 5.51% on average over the next years.
EPS Next Y6.1%
EPS Next 2Y11.13%
EPS Next 3Y16.13%
EPS Next 5Y16.24%
Revenue Next Year9.07%
Revenue Next 2Y8.2%
Revenue Next 3Y6.99%
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
A Price/Earnings ratio of 20.28 indicates a rather expensive valuation of TMUS.
Compared to the rest of the industry, the Price/Earnings ratio of TMUS indicates a somewhat cheap valuation: TMUS is cheaper than 63.64% of the companies listed in the same industry.
TMUS is valuated rather cheaply when we compare the Price/Earnings ratio to 25.91, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 17.97, the valuation of TMUS can be described as rather expensive.
Based on the Price/Forward Earnings ratio, TMUS is valued a bit more expensive than 72.73% of the companies in the same industry.
TMUS is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 34.57, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.28 | ||
| Fwd PE | 17.97 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TMUS is valued a bit more expensive than 63.64% of the companies in the same industry.
TMUS's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.49 | ||
| EV/EBITDA | 10.07 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates TMUS does not grow enough to justify the current Price/Earnings ratio.
TMUS has an outstanding profitability rating, which may justify a higher PE ratio.
TMUS's earnings are expected to grow with 16.13% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.33
PEG (5Y)1.06
EPS Next 2Y11.13%
EPS Next 3Y16.13%
5. Dividend
5.1 Amount
TMUS has a Yearly Dividend Yield of 1.82%.
TMUS's Dividend Yield is slightly below the industry average, which is at 8.87.
Compared to the average S&P500 Dividend Yield of 2.36, TMUS is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.82% |
5.2 History
On average, the dividend of TMUS grows each year by 111.33%, which is quite nice.
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 33.70% 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.
DP33.7%
EPS Next 2Y11.13%
EPS Next 3Y16.13%
214.57
+1.89 (+0.89%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners39.36%
Inst Owner Change-0.27%
Ins Owners0.38%
Ins Owner Change-0.55%
Market Cap241.48B
Revenue(TTM)85.85B
Net Income(TTM)11.87B
Analysts77.84
Price Target277.23 (29.2%)
Short Float %2.23%
Short Ratio2.53
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.82% |
Yearly Dividend2.82
Dividend Growth(5Y)111.33%
DP33.7%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.84%
Min EPS beat(2)4.27%
Max EPS beat(2)5.41%
EPS beat(4)4
Avg EPS beat(4)5.61%
Min EPS beat(4)2.7%
Max EPS beat(4)10.04%
EPS beat(8)7
Avg EPS beat(8)3.32%
EPS beat(12)11
Avg EPS beat(12)3.95%
EPS beat(16)15
Avg EPS beat(16)69.37%
Revenue beat(2)0
Avg Revenue beat(2)-1.63%
Min Revenue beat(2)-1.82%
Max Revenue beat(2)-1.44%
Revenue beat(4)1
Avg Revenue beat(4)-0.83%
Min Revenue beat(4)-1.82%
Max Revenue beat(4)0.63%
Revenue beat(8)2
Avg Revenue beat(8)-0.77%
Revenue beat(12)2
Avg Revenue beat(12)-1.45%
Revenue beat(16)2
Avg Revenue beat(16)-1.94%
PT rev (1m)0.85%
PT rev (3m)2.32%
EPS NQ rev (1m)-18.03%
EPS NQ rev (3m)-20.49%
EPS NY rev (1m)-7.09%
EPS NY rev (3m)-5.36%
Revenue NQ rev (1m)3.49%
Revenue NQ rev (3m)4%
Revenue NY rev (1m)0.94%
Revenue NY rev (3m)1.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.28 | ||
| Fwd PE | 17.97 | ||
| P/S | 2.81 | ||
| P/FCF | 17.49 | ||
| P/OCF | 9 | ||
| P/B | 3.99 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.07 |
EPS(TTM)10.58
EY4.93%
EPS(NY)11.94
Fwd EY5.57%
FCF(TTM)12.27
FCFY5.72%
OCF(TTM)23.85
OCFY11.12%
SpS76.28
BVpS53.74
TBVpS-48.94
PEG (NY)3.33
PEG (5Y)1.06
Graham Number113.1
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.47% | ||
| ROE | 19.63% | ||
| ROCE | 10.1% | ||
| ROIC | 7.71% | ||
| ROICexc | 7.85% | ||
| ROICexgc | 20.09% | ||
| OM | 22.69% | ||
| PM (TTM) | 13.83% | ||
| GM | 63.57% | ||
| FCFM | 16.08% |
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%
ROICexgc growth 3Y22.86%
ROICexgc 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-Score6
Asset Turnover0.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.37 | ||
| Debt/FCF | 6.53 | ||
| Debt/EBITDA | 2.55 | ||
| Cap/Depr | 101.06% | ||
| Cap/Sales | 15.19% | ||
| Interest Coverage | 5.09 | ||
| Cash Conversion | 82.9% | ||
| Profit Quality | 116.32% | ||
| Current Ratio | 0.89 | ||
| Quick Ratio | 0.8 | ||
| Altman-Z | 1.72 |
F-Score6
WACC7.36%
ROIC/WACC1.05
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)20.64%
EPS 3Y58.9%
EPS 5Y19.13%
EPS Q2Q%-0.77%
EPS Next Y6.1%
EPS Next 2Y11.13%
EPS Next 3Y16.13%
EPS Next 5Y16.24%
Revenue 1Y (TTM)7.3%
Revenue growth 3Y0.53%
Revenue growth 5Y12.59%
Sales Q2Q%8.9%
Revenue Next Year9.07%
Revenue Next 2Y8.2%
Revenue Next 3Y6.99%
Revenue Next 5Y5.51%
EBIT growth 1Y12.78%
EBIT growth 3Y21.67%
EBIT growth 5Y23.21%
EBIT Next Year89.72%
EBIT Next 3Y30.47%
EBIT Next 5Y20.04%
FCF growth 1Y122.62%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y48.84%
OCF growth 3Y17.01%
OCF growth 5Y26.71%
T-MOBILE US INC / TMUS FAQ
What is the fundamental rating for TMUS stock?
ChartMill assigns a fundamental rating of 5 / 10 to TMUS.
What is the valuation status for TMUS stock?
ChartMill assigns a valuation rating of 3 / 10 to T-MOBILE US INC (TMUS). This can be considered as Overvalued.
Can you provide the profitability details for T-MOBILE US INC?
T-MOBILE US INC (TMUS) has a profitability rating of 8 / 10.
What is the expected EPS growth for T-MOBILE US INC (TMUS) stock?
The Earnings per Share (EPS) of T-MOBILE US INC (TMUS) is expected to grow by 6.1% in the next year.
Is the dividend of T-MOBILE US INC sustainable?
The dividend rating of T-MOBILE US INC (TMUS) is 3 / 10 and the dividend payout ratio is 33.7%.