T-MOBILE US INC (TMUS) Stock Fundamental Analysis
NASDAQ:TMUS - Nasdaq - US8725901040 - Common Stock - Currency: USD
TMUS gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 21 industry peers in the Wireless Telecommunication Services industry. While TMUS has a great profitability rating, there are quite some 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.
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 better Return On Assets (5.55%) than 80.95% of its industry peers.
With an excellent Return On Equity value of 19.50%, TMUS belongs to the best of the industry, outperforming 90.48% of the companies in the same industry.
TMUS has a Return On Invested Capital of 7.52%. This is in the better half of the industry: TMUS outperforms 66.67% 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 6.34%.
The last Return On Invested Capital (7.52%) for TMUS 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
TMUS has a better Profit Margin (14.41%) than 95.24% of its industry peers.
TMUS's Profit Margin has improved in the last couple of years.
The Operating Margin of TMUS (22.74%) is better than 76.19% of its industry peers.
In the last couple of years the Operating Margin of TMUS has grown nicely.
TMUS has a better Gross Margin (63.85%) than 80.95% of its industry peers.
TMUS'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
TMUS has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for TMUS has been reduced compared to 1 year ago.
TMUS has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, TMUS has a worse debt to assets ratio.
2.2 Solvency
TMUS has an Altman-Z score of 1.87. 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 1.87, TMUS belongs to the top of the industry, outperforming 80.95% of the companies in the same industry.
TMUS has a debt to FCF ratio of 7.69. This is a slightly negative value and a sign of low solvency as TMUS would need 7.69 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 7.69, 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.
Looking at the Debt to Equity ratio, with a value of 1.35, TMUS is doing worse than 61.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.35 | ||
| Debt/FCF | 7.69 | ||
| Altman-Z | 1.87 |
ROIC/WACC0.98
WACC7.69%
2.3 Liquidity
A Current Ratio of 1.16 indicates that TMUS should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.16, TMUS is doing worse than 61.90% of the companies in the same industry.
TMUS has a Quick 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 worse Quick ratio (1.08) than 61.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.16 | ||
| Quick Ratio | 1.08 |
3. Growth
3.1 Past
TMUS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 39.46%, 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 19.13% yearly.
Looking at the last year, TMUS shows a small growth in Revenue. The Revenue has grown by 5.31% 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)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
TMUS is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.70% yearly.
Based on estimates for the next years, TMUS will show a small growth in Revenue. The Revenue will grow by 4.92% on average per year.
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
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 23.49, which indicates a rather expensive current valuation of TMUS.
TMUS's Price/Earnings ratio is in line with the industry average.
TMUS is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.45, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 18.59 indicates a rather expensive valuation of TMUS.
The rest of the industry has a similar Price/Forward Earnings ratio as TMUS.
TMUS is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.90, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.49 | ||
| Fwd PE | 18.59 |
4.2 Price Multiples
66.67% of the companies in the same industry are cheaper than TMUS, based on the Enterprise Value to EBITDA ratio.
TMUS's Price/Free Cash Flow 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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.95 | ||
| EV/EBITDA | 11.19 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive 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 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
TMUS has a Yearly Dividend Yield of 1.52%.
Compared to an average industry Dividend Yield of 4.99, TMUS has a dividend in line with its industry peers.
TMUS's Dividend Yield is slightly below the S&P500 average, which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.52% |
5.2 History
On average, the dividend of TMUS grows each year by 111.33%, 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)111.33%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
TMUS pays out 29.65% 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.
DP29.65%
EPS Next 2Y15.74%
EPS Next 3Y16.27%
240.75
+3.33 (+1.4%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners37.4%
Inst Owner Change-0.98%
Ins Owners0.38%
Ins Owner Change-0.03%
Market Cap273.36B
Analysts77.78
Price Target275.11 (14.27%)
Short Float %3.2%
Short Ratio3.05
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.52% |
Yearly Dividend2.82
Dividend Growth(5Y)111.33%
DP29.65%
Div Incr Years1
Div Non Decr Years1
Ex-Date
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)0.12%
PT rev (3m)4.75%
EPS NQ rev (1m)-0.11%
EPS NQ rev (3m)-1.62%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)0.02%
Revenue NQ rev (1m)-0.09%
Revenue NQ rev (3m)1.24%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)1.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.49 | ||
| Fwd PE | 18.59 | ||
| P/S | 3.31 | ||
| P/FCF | 22.95 | ||
| P/OCF | 11.36 | ||
| P/B | 4.47 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.19 |
EPS(TTM)10.25
EY4.26%
EPS(NY)12.95
Fwd EY5.38%
FCF(TTM)10.49
FCFY4.36%
OCF(TTM)21.19
OCFY8.8%
SpS72.83
BVpS53.82
TBVpS-47.31
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
WACC7.69%
ROIC/WACC0.98
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%