T-MOBILE US INC (TMUS)
US8725901040 - Common Stock
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 scores excellent on profitability, 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.
TMUS had a positive operating cash flow in the past year.
Each year in the past 5 years TMUS has been profitable.
In the past 5 years TMUS always reported a positive cash flow from operatings.
1.2 Ratios
TMUS has a Return On Assets of 4.92%. This is in the better half of the industry: TMUS outperforms 76.19% of its industry peers.
TMUS's Return On Equity of 16.14% is amongst the best of the industry. TMUS outperforms 85.71% of its industry peers.
TMUS's Return On Invested Capital of 6.97% is fine compared to the rest of the industry. TMUS outperforms 61.90% of its industry peers.
TMUS had an Average Return On Invested Capital over the past 3 years of 5.36%. This is in line with the industry average of 6.49%.
The 3 year average ROIC (5.36%) for TMUS is below the current ROIC(6.97%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.92% | ||
| ROE | 16.14% | ||
| ROIC | 6.97% |
ROA(3y)2.23%
ROA(5y)2.44%
ROE(3y)6.98%
ROE(5y)7.54%
ROIC(3y)5.36%
ROIC(5y)5.33%
1.3 Margins
TMUS's Profit Margin of 12.96% is amongst the best of the industry. TMUS outperforms 95.24% of its industry peers.
In the last couple of years the Profit Margin of TMUS has grown nicely.
The Operating Margin of TMUS (21.59%) is better than 80.95% of its industry peers.
In the last couple of years the Operating Margin of TMUS has grown nicely.
TMUS's Gross Margin of 63.83% is fine compared to the rest of the industry. TMUS outperforms 76.19% of its industry peers.
TMUS's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.59% | ||
| PM (TTM) | 12.96% | ||
| GM | 63.83% |
OM growth 3Y14.03%
OM growth 5Y9.67%
PM growth 3Y33.2%
PM growth 5Y9.69%
GM growth 3Y1.52%
GM growth 5Y1.6%
2. Health
2.1 Basic Checks
TMUS has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, TMUS has less shares outstanding
Compared to 5 years ago, TMUS has more shares outstanding
The debt/assets ratio for TMUS is higher compared to a year ago.
2.2 Solvency
TMUS has an Altman-Z score of 1.79. This is a bad value and indicates that TMUS is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.79, TMUS is in the better half of the industry, outperforming 76.19% of the companies in the same industry.
The Debt to FCF ratio of TMUS is 8.63, which is on the high side as it means it would take TMUS, 8.63 years of fcf income to pay off all of its debts.
TMUS's Debt to FCF ratio of 8.63 is fine compared to the rest of the industry. TMUS outperforms 61.90% of its industry peers.
TMUS has a Debt/Equity ratio of 1.32. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of TMUS (1.32) is worse than 61.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.32 | ||
| Debt/FCF | 8.63 | ||
| Altman-Z | 1.79 |
ROIC/WACC0.89
WACC7.85%
2.3 Liquidity
TMUS has a Current Ratio of 1.08. This is a normal value and indicates that TMUS is financially healthy and should not expect problems in meeting its short term obligations.
TMUS has a Current ratio (1.08) which is comparable to the rest of the industry.
A Quick Ratio of 0.99 indicates that TMUS may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.99, TMUS is in line with its industry, outperforming 42.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.08 | ||
| Quick Ratio | 0.99 |
3. Growth
3.1 Past
TMUS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 36.18%, which is quite impressive.
TMUS shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 15.44% yearly.
Looking at the last year, TMUS shows a small growth in Revenue. The Revenue has grown by 2.11% in the last year.
TMUS shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 12.65% yearly.
EPS 1Y (TTM)36.18%
EPS 3Y31.04%
EPS 5Y15.44%
EPS Q2Q%43.41%
Revenue 1Y (TTM)2.11%
Revenue growth 3Y4.73%
Revenue growth 5Y12.65%
Sales Q2Q%4.73%
3.2 Future
The Earnings Per Share is expected to grow by 20.21% on average over the next years. This is a very strong growth
TMUS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.55% yearly.
EPS Next Y38.47%
EPS Next 2Y25.38%
EPS Next 3Y23.25%
EPS Next 5Y20.21%
Revenue Next Year3.99%
Revenue Next 2Y4.41%
Revenue Next 3Y4.52%
Revenue Next 5Y4.55%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
With a Price/Earnings ratio of 25.12, TMUS can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of TMUS is on the same level as its industry peers.
TMUS's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.20.
The Price/Forward Earnings ratio is 20.22, which indicates a rather expensive current valuation of TMUS.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TMUS indicates a slightly more expensive valuation: TMUS is more expensive than 66.67% of the companies listed in the same industry.
TMUS is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.73, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.12 | ||
| Fwd PE | 20.22 |
4.2 Price Multiples
71.43% of the companies in the same industry are cheaper than TMUS, based on the Enterprise Value to EBITDA ratio.
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 76.19% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.65 | ||
| EV/EBITDA | 10.74 |
4.3 Compensation for Growth
TMUS's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap 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 23.25% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.65
PEG (5Y)1.63
EPS Next 2Y25.38%
EPS Next 3Y23.25%
5. Dividend
5.1 Amount
TMUS has a Yearly Dividend Yield of 1.40%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 5.26, TMUS has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.36, TMUS's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.4% |
5.2 History
On average, the dividend of TMUS grows each year by 55.47%, which is quite nice.
TMUS has paid a dividend for less than 5 years, so there is no long track record yet.
Dividend Growth(5Y)55.47%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
TMUS pays out 29.24% of its income as dividend. This is a sustainable payout ratio.
TMUS's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP29.24%
EPS Next 2Y25.38%
EPS Next 3Y23.25%
T-MOBILE US INC
NASDAQ:TMUS (12/20/2024, 8:00:01 PM)
After market: 221.26 +0.95 (+0.43%)220.31
+2.31 (+1.06%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners39.63%
Inst Owner Change0.11%
Ins Owners0.65%
Ins Owner Change-0.08%
Market Cap255.67B
Analysts81.67
Price Target248.04 (12.59%)
Short Float %3.19%
Short Ratio4.15
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.4% |
Dividend Growth(5Y)55.47%
DP29.24%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.46%
Min EPS beat(2)5.66%
Max EPS beat(2)7.25%
EPS beat(4)3
Avg EPS beat(4)1.03%
Min EPS beat(4)-13.84%
Max EPS beat(4)7.25%
EPS beat(8)7
Avg EPS beat(8)3.13%
EPS beat(12)11
Avg EPS beat(12)90.63%
EPS beat(16)15
Avg EPS beat(16)73.42%
Revenue beat(2)0
Avg Revenue beat(2)-1.03%
Min Revenue beat(2)-1.21%
Max Revenue beat(2)-0.85%
Revenue beat(4)1
Avg Revenue beat(4)-0.71%
Min Revenue beat(4)-3.03%
Max Revenue beat(4)2.24%
Revenue beat(8)1
Avg Revenue beat(8)-1.76%
Revenue beat(12)1
Avg Revenue beat(12)-2.31%
Revenue beat(16)4
Avg Revenue beat(16)-1.8%
PT rev (1m)11.29%
PT rev (3m)19.46%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.36%
EPS NY rev (1m)0.15%
EPS NY rev (3m)1.34%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.75%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)0.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.12 | ||
| Fwd PE | 20.22 | ||
| P/S | 3.2 | ||
| P/FCF | 25.65 | ||
| P/OCF | 11.83 | ||
| P/B | 3.98 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.74 |
EPS(TTM)8.77
EY3.98%
EPS(NY)10.89
Fwd EY4.95%
FCF(TTM)8.59
FCFY3.9%
OCF(TTM)18.62
OCFY8.45%
SpS68.94
BVpS55.36
TBVpS-43.31
PEG (NY)0.65
PEG (5Y)1.63
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.92% | ||
| ROE | 16.14% | ||
| ROCE | 9.1% | ||
| ROIC | 6.97% | ||
| ROICexc | 7.34% | ||
| ROICexgc | 19.11% | ||
| OM | 21.59% | ||
| PM (TTM) | 12.96% | ||
| GM | 63.83% | ||
| FCFM | 12.46% |
ROA(3y)2.23%
ROA(5y)2.44%
ROE(3y)6.98%
ROE(5y)7.54%
ROIC(3y)5.36%
ROIC(5y)5.33%
ROICexc(3y)5.51%
ROICexc(5y)5.5%
ROICexgc(3y)13.77%
ROICexgc(5y)13.11%
ROCE(3y)6.95%
ROCE(5y)6.88%
ROICexcg growth 3Y19.27%
ROICexcg growth 5Y-1.84%
ROICexc growth 3Y16.65%
ROICexc growth 5Y-1.07%
OM growth 3Y14.03%
OM growth 5Y9.67%
PM growth 3Y33.2%
PM growth 5Y9.69%
GM growth 3Y1.52%
GM growth 5Y1.6%
F-Score8
Asset Turnover0.38
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.32 | ||
| Debt/FCF | 8.63 | ||
| Debt/EBITDA | 2.79 | ||
| Cap/Depr | 88.91% | ||
| Cap/Sales | 14.54% | ||
| Interest Coverage | 4.7 | ||
| Cash Conversion | 71.15% | ||
| Profit Quality | 96.1% | ||
| Current Ratio | 1.08 | ||
| Quick Ratio | 0.99 | ||
| Altman-Z | 1.79 |
F-Score8
WACC7.85%
ROIC/WACC0.89
Cap/Depr(3y)114.5%
Cap/Depr(5y)106.54%
Cap/Sales(3y)20.86%
Cap/Sales(5y)19.01%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)36.18%
EPS 3Y31.04%
EPS 5Y15.44%
EPS Q2Q%43.41%
EPS Next Y38.47%
EPS Next 2Y25.38%
EPS Next 3Y23.25%
EPS Next 5Y20.21%
Revenue 1Y (TTM)2.11%
Revenue growth 3Y4.73%
Revenue growth 5Y12.65%
Sales Q2Q%4.73%
Revenue Next Year3.99%
Revenue Next 2Y4.41%
Revenue Next 3Y4.52%
Revenue Next 5Y4.55%
EBIT growth 1Y15.91%
EBIT growth 3Y19.42%
EBIT growth 5Y23.54%
EBIT Next Year115.06%
EBIT Next 3Y34.58%
EBIT Next 5Y22.74%
FCF growth 1Y802.4%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y39.87%
OCF growth 3Y29.03%
OCF growth 5Y36.62%