196.73 USD
-3.54 (-1.77%)
197.33 USD
+0.6 (+0.3%)
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. While TMUS has a great profitability rating, there are quite some concerns on its financial health. TMUS has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
TMUS had positive earnings in the past year.
TMUS had a positive operating cash flow in the past year.
In the past 5 years TMUS has always been profitable.
Each year in the past 5 years TMUS had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 5.47%, TMUS is doing good in the industry, outperforming 72.73% of the companies in the same industry.
Looking at the Return On Equity, with a value of 19.63%, TMUS is in the better half of the industry, outperforming 77.27% of the companies in the same industry.
With a decent Return On Invested Capital value of 7.71%, TMUS is doing good in the industry, outperforming 68.18% 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 6.45%.
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
TMUS has a better Profit Margin (13.83%) than 81.82% of its industry peers.
TMUS's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 22.69%, TMUS is doing good in the industry, outperforming 77.27% of the companies in the same industry.
In the last couple of years the Operating Margin of TMUS has grown nicely.
TMUS has a Gross Margin of 63.57%. This is amongst the best in the industry. TMUS outperforms 81.82% of its industry peers.
TMUS's Gross Margin has improved in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), TMUS is creating some value.
Compared to 1 year ago, TMUS has less shares outstanding
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 1.65. This is a bad value and indicates that TMUS is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of TMUS (1.65) is better than 68.18% of its industry peers.
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 Debt to FCF ratio value of 6.53, TMUS perfoms like the industry average, outperforming 54.55% 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.
TMUS's Debt to Equity ratio of 1.37 is in line compared to the rest of the industry. TMUS outperforms 40.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.37 | ||
| Debt/FCF | 6.53 | ||
| Altman-Z | 1.65 |
ROIC/WACC1.05
WACC7.32%
2.3 Liquidity
A Current Ratio of 0.89 indicates that TMUS may have some problems paying its short term obligations.
TMUS has a Current ratio (0.89) which is comparable to the rest of the industry.
TMUS has a Quick 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.
TMUS has a Quick ratio of 0.80. This is comparable to the rest of the industry: TMUS outperforms 45.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.89 | ||
| Quick Ratio | 0.8 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 20.64% over the past year.
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.
TMUS shows a small growth in Revenue. In the last year, the Revenue has grown by 7.30%.
Measured over the past years, TMUS shows a quite strong growth in Revenue. The Revenue has been growing by 12.59% on average per year.
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
TMUS is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.24% yearly.
The Revenue is expected to grow by 5.51% on average over the next years.
EPS Next Y6.34%
EPS Next 2Y11.1%
EPS Next 3Y16.37%
EPS Next 5Y16.24%
Revenue Next Year9.07%
Revenue Next 2Y8.21%
Revenue Next 3Y6.98%
Revenue Next 5Y5.51%
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
With a Price/Earnings ratio of 18.59, TMUS is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of TMUS indicates a somewhat cheap valuation: TMUS is cheaper than 68.18% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.39, TMUS is valued a bit cheaper.
A Price/Forward Earnings ratio of 16.48 indicates a correct valuation of TMUS.
Based on the Price/Forward Earnings ratio, TMUS is valued a bit more expensive than the industry average as 68.18% of the companies are valued more cheaply.
TMUS's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.84.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.59 | ||
| Fwd PE | 16.48 |
4.2 Price Multiples
TMUS's Enterprise Value to EBITDA ratio is in line with the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as TMUS.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.94 | ||
| EV/EBITDA | 9.48 |
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 16.37% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.93
PEG (5Y)0.97
EPS Next 2Y11.1%
EPS Next 3Y16.37%
5. Dividend
5.1 Amount
TMUS has a Yearly Dividend Yield of 1.90%.
Compared to an average industry Dividend Yield of 5.50, TMUS has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 1.87, TMUS has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.9% |
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 over 5 years, so it has already some track record.
TMUS has decreased its dividend recently.
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 2Y11.1%
EPS Next 3Y16.37%
196.73
-3.54 (-1.77%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners41.15%
Inst Owner Change-1.07%
Ins Owners0.38%
Ins Owner Change-0.52%
Market Cap220.04B
Revenue(TTM)85.85B
Net Income(TTM)11.87B
Analysts76.76
Price Target279.61 (42.13%)
Short Float %3.11%
Short Ratio2.97
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.9% |
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)0.86%
PT rev (3m)1.71%
EPS NQ rev (1m)-0.4%
EPS NQ rev (3m)-18.77%
EPS NY rev (1m)0.23%
EPS NY rev (3m)-7.44%
Revenue NQ rev (1m)-0.31%
Revenue NQ rev (3m)3.64%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.59 | ||
| Fwd PE | 16.48 | ||
| P/S | 2.56 | ||
| P/FCF | 15.94 | ||
| P/OCF | 8.2 | ||
| P/B | 3.64 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.48 |
EPS(TTM)10.58
EY5.38%
EPS(NY)11.94
Fwd EY6.07%
FCF(TTM)12.34
FCFY6.27%
OCF(TTM)24
OCFY12.2%
SpS76.75
BVpS54.07
TBVpS-49.24
PEG (NY)2.93
PEG (5Y)0.97
Graham Number113.45
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 | 1.65 |
F-Score6
WACC7.32%
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 Y6.34%
EPS Next 2Y11.1%
EPS Next 3Y16.37%
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 2Y8.21%
Revenue Next 3Y6.98%
Revenue Next 5Y5.51%
EBIT growth 1Y12.78%
EBIT growth 3Y21.67%
EBIT growth 5Y23.21%
EBIT Next Year90.5%
EBIT Next 3Y31.31%
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 4 / 10 to T-MOBILE US INC (TMUS). This can be considered as Fairly Valued.
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 6.34% in the next year.
Is the dividend of T-MOBILE US INC sustainable?
The dividend rating of T-MOBILE US INC (TMUS) is 4 / 10 and the dividend payout ratio is 33.7%.