T-MOBILE US INC (TMUS) Stock Fundamental Analysis
USA - NASDAQ:TMUS - US8725901040 - Common Stock
238.83 USD
-0.62 (-0.26%)
239.15 USD
+0.32 (+0.13%)
We assign a fundamental rating of 5 out of 10 to TMUS. TMUS was compared to 22 industry peers in the Wireless Telecommunication Services industry. TMUS scores excellent on profitability, but there are some minor concerns on its financial health. While showing a medium growth rate, TMUS is valued expensive at the moment.
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.
In the past 5 years TMUS has always been profitable.
TMUS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
TMUS has a better Return On Assets (5.74%) than 81.82% of its industry peers.
Looking at the Return On Equity, with a value of 19.99%, TMUS belongs to the top of the industry, outperforming 86.36% of the companies in the same industry.
TMUS's Return On Invested Capital of 7.77% is fine compared to the rest of the industry. TMUS outperforms 72.73% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TMUS is in line with the industry average of 6.09%.
The 3 year average ROIC (6.22%) for TMUS is below the current ROIC(7.77%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.74% | ||
| ROE | 19.99% | ||
| ROIC | 7.77% |
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 has a Profit Margin of 14.53%. This is amongst the best in the industry. TMUS outperforms 90.91% of its industry peers.
In the last couple of years the Profit Margin of TMUS has grown nicely.
The Operating Margin of TMUS (23.08%) is better than 77.27% of its industry peers.
TMUS's Operating Margin has improved in the last couple of years.
The Gross Margin of TMUS (63.61%) 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 | 23.08% | ||
| PM (TTM) | 14.53% | ||
| GM | 63.61% |
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.
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.
The debt/assets ratio for TMUS is higher compared to a year ago.
2.2 Solvency
TMUS has an Altman-Z score of 1.91. This is not the best score and indicates that TMUS is in the grey zone with still only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 1.91, TMUS belongs to the top of the industry, outperforming 81.82% of the companies in the same industry.
The Debt to FCF ratio of TMUS is 7.20, which is on the high side as it means it would take TMUS, 7.20 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 7.20, TMUS is in line with its industry, outperforming 50.00% of the companies in the same industry.
TMUS has a Debt/Equity ratio of 1.33. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.33, TMUS perfoms like the industry average, outperforming 45.45% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.33 | ||
| Debt/FCF | 7.2 | ||
| Altman-Z | 1.91 |
ROIC/WACC1.04
WACC7.45%
2.3 Liquidity
A Current Ratio of 1.21 indicates that TMUS should not have too much problems paying its short term obligations.
With a Current ratio value of 1.21, TMUS perfoms like the industry average, outperforming 45.45% of the companies in the same industry.
TMUS has a Quick Ratio of 1.13. This is a normal value and indicates that TMUS is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.13, TMUS is in line with its industry, outperforming 45.45% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.21 | ||
| Quick Ratio | 1.13 |
3. Growth
3.1 Past
TMUS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 32.83%, 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.
The Revenue has been growing slightly by 6.27% in the past 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)32.83%
EPS 3Y58.9%
EPS 5Y19.13%
EPS Q2Q%14.06%
Revenue 1Y (TTM)6.27%
Revenue growth 3Y0.53%
Revenue growth 5Y12.59%
Sales Q2Q%6.88%
3.2 Future
The Earnings Per Share is expected to grow by 16.75% 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 5.20% yearly.
EPS Next Y14.89%
EPS Next 2Y17.04%
EPS Next 3Y17.16%
EPS Next 5Y16.75%
Revenue Next Year7.46%
Revenue Next 2Y6.5%
Revenue Next 3Y5.92%
Revenue Next 5Y5.2%
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 stable.
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
The Price/Earnings ratio is 22.53, which indicates a rather expensive current valuation of TMUS.
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 27.41.
The Price/Forward Earnings ratio is 18.03, which indicates a rather expensive current valuation of TMUS.
TMUS's Price/Forward Earnings is on the same level as the industry average.
TMUS is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.88, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.53 | ||
| Fwd PE | 18.03 |
4.2 Price Multiples
TMUS's Enterprise Value to EBITDA is on the same level as the industry average.
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 63.64% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.79 | ||
| EV/EBITDA | 10.86 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of TMUS may justify a higher PE ratio.
A more expensive valuation may be justified as TMUS's earnings are expected to grow with 17.16% in the coming years.
PEG (NY)1.51
PEG (5Y)1.18
EPS Next 2Y17.04%
EPS Next 3Y17.16%
5. Dividend
5.1 Amount
TMUS has a Yearly Dividend Yield of 1.46%.
TMUS's Dividend Yield is comparable with the industry average which is at 5.28.
TMUS'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 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
30.87% of the earnings are spent on dividend by TMUS. This is a low number and sustainable payout ratio.
TMUS's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP30.87%
EPS Next 2Y17.04%
EPS Next 3Y17.16%
238.83
-0.62 (-0.26%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners37.96%
Inst Owner Change-1.87%
Ins Owners0.38%
Ins Owner Change-0.32%
Market Cap268.78B
Analysts76.22
Price Target274.9 (15.1%)
Short Float %2.68%
Short Ratio3.19
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.46% |
Yearly Dividend2.82
Dividend Growth(5Y)111.33%
DP30.87%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.49%
Min EPS beat(2)2.7%
Max EPS beat(2)4.27%
EPS beat(4)4
Avg EPS beat(4)5.67%
Min EPS beat(4)2.7%
Max EPS beat(4)10.04%
EPS beat(8)7
Avg EPS beat(8)2.97%
EPS beat(12)11
Avg EPS beat(12)70.16%
EPS beat(16)15
Avg EPS beat(16)69.14%
Revenue beat(2)0
Avg Revenue beat(2)-1.06%
Min Revenue beat(2)-1.44%
Max Revenue beat(2)-0.68%
Revenue beat(4)1
Avg Revenue beat(4)-0.68%
Min Revenue beat(4)-1.44%
Max Revenue beat(4)0.63%
Revenue beat(8)2
Avg Revenue beat(8)-0.83%
Revenue beat(12)2
Avg Revenue beat(12)-1.67%
Revenue beat(16)2
Avg Revenue beat(16)-2.12%
PT rev (1m)0.08%
PT rev (3m)-0.08%
EPS NQ rev (1m)-0.67%
EPS NQ rev (3m)-0.82%
EPS NY rev (1m)2.47%
EPS NY rev (3m)2.06%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)0.55%
Revenue NY rev (1m)0.21%
Revenue NY rev (3m)0.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.53 | ||
| Fwd PE | 18.03 | ||
| P/S | 3.2 | ||
| P/FCF | 21.79 | ||
| P/OCF | 10.53 | ||
| P/B | 4.4 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.86 |
EPS(TTM)10.6
EY4.44%
EPS(NY)13.25
Fwd EY5.55%
FCF(TTM)10.96
FCFY4.59%
OCF(TTM)22.68
OCFY9.5%
SpS74.69
BVpS54.3
TBVpS-45.07
PEG (NY)1.51
PEG (5Y)1.18
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.74% | ||
| ROE | 19.99% | ||
| ROCE | 10.18% | ||
| ROIC | 7.77% | ||
| ROICexc | 8.21% | ||
| ROICexgc | 21.63% | ||
| OM | 23.08% | ||
| PM (TTM) | 14.53% | ||
| GM | 63.61% | ||
| FCFM | 14.68% |
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 Turnover0.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.33 | ||
| Debt/FCF | 7.2 | ||
| Debt/EBITDA | 2.54 | ||
| Cap/Depr | 104.31% | ||
| Cap/Sales | 15.69% | ||
| Interest Coverage | 5.13 | ||
| Cash Conversion | 79.67% | ||
| Profit Quality | 101.01% | ||
| Current Ratio | 1.21 | ||
| Quick Ratio | 1.13 | ||
| Altman-Z | 1.91 |
F-Score8
WACC7.45%
ROIC/WACC1.04
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)32.83%
EPS 3Y58.9%
EPS 5Y19.13%
EPS Q2Q%14.06%
EPS Next Y14.89%
EPS Next 2Y17.04%
EPS Next 3Y17.16%
EPS Next 5Y16.75%
Revenue 1Y (TTM)6.27%
Revenue growth 3Y0.53%
Revenue growth 5Y12.59%
Sales Q2Q%6.88%
Revenue Next Year7.46%
Revenue Next 2Y6.5%
Revenue Next 3Y5.92%
Revenue Next 5Y5.2%
EBIT growth 1Y19.54%
EBIT growth 3Y21.67%
EBIT growth 5Y23.21%
EBIT Next Year89.14%
EBIT Next 3Y30.3%
EBIT Next 5Y19.95%
FCF growth 1Y220.63%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y48.99%
OCF growth 3Y17.01%
OCF growth 5Y26.71%