T-MOBILE US INC (TMUS) Stock Fundamental Analysis
USA - NASDAQ:TMUS - US8725901040 - Common Stock
210.65 USD
-4.36 (-2.03%)
209.46 USD
-1.19 (-0.56%)
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. While TMUS has a great profitability rating, there are quite some 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.
TMUS had positive earnings in each of the past 5 years.
TMUS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 5.47%, TMUS is doing good in the industry, outperforming 77.27% of the companies in the same industry.
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.
The Return On Invested Capital of TMUS (7.71%) is better than 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 5.81%.
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
The Profit Margin of TMUS (13.83%) is better than 77.27% of its industry peers.
In the last couple of years the Profit Margin of TMUS has grown nicely.
TMUS has a better Operating Margin (22.69%) than 77.27% of its industry peers.
TMUS's Operating Margin has improved in the last couple of years.
The Gross Margin of TMUS (63.57%) is better than 77.27% 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.
TMUS has less shares outstanding than it did 1 year ago.
The number of shares outstanding for TMUS has been increased compared to 5 years ago.
TMUS has a worse debt/assets ratio than last year.
2.2 Solvency
TMUS has an Altman-Z score of 1.73. This is a bad value and indicates that TMUS is not financially healthy and even has some risk of bankruptcy.
TMUS has a better Altman-Z score (1.73) than 77.27% 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.
Looking at the Debt to FCF ratio, with a value of 6.53, TMUS is in the better half of 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.
With a Debt to Equity ratio value of 1.37, TMUS perfoms like the industry average, outperforming 40.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.37 | ||
| Debt/FCF | 6.53 | ||
| Altman-Z | 1.73 |
ROIC/WACC1.05
WACC7.34%
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.
With a Current ratio value of 0.89, TMUS is not doing good in the industry: 72.73% of the companies in the same industry are doing better.
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
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.
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 16.62% on average over the next years. This is quite good.
Based on estimates for the next years, TMUS will show a small growth in Revenue. The Revenue will grow by 5.51% on average per year.
EPS Next Y8.16%
EPS Next 2Y14.48%
EPS Next 3Y16.78%
EPS Next 5Y16.62%
Revenue Next Year8.54%
Revenue Next 2Y7.55%
Revenue Next 3Y6.53%
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.
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
Based on the Price/Earnings ratio of 19.91, the valuation of TMUS can be described as rather expensive.
TMUS's Price/Earnings is on the same level as the industry average.
TMUS's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.19.
Based on the Price/Forward Earnings ratio of 16.62, the valuation of TMUS can be described as correct.
TMUS's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. TMUS is more expensive than 63.64% of the companies in the same industry.
TMUS is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.50, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.91 | ||
| Fwd PE | 16.62 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TMUS is valued a bit more expensive than the industry average as 63.64% of the companies are valued more cheaply.
The rest of the industry has a similar Price/Free Cash Flow ratio as TMUS.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.17 | ||
| EV/EBITDA | 10.15 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
TMUS has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as TMUS's earnings are expected to grow with 16.78% in the coming years.
PEG (NY)2.44
PEG (5Y)1.04
EPS Next 2Y14.48%
EPS Next 3Y16.78%
5. Dividend
5.1 Amount
TMUS has a Yearly Dividend Yield of 1.70%.
Compared to an average industry Dividend Yield of 8.49, TMUS is paying slightly less dividend.
Compared to the average S&P500 Dividend Yield of 2.33, TMUS is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.7% |
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
33.70% of the earnings are spent on dividend by TMUS. This is a low number and 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 2Y14.48%
EPS Next 3Y16.78%
210.65
-4.36 (-2.03%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners39.36%
Inst Owner Change0.06%
Ins Owners0.38%
Ins Owner Change-0.54%
Market Cap237.07B
Revenue(TTM)85.85B
Net Income(TTM)11.87B
Analysts76.22
Price Target277.23 (31.61%)
Short Float %2.23%
Short Ratio2.53
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.7% |
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)5.28%
Min EPS beat(2)4.27%
Max EPS beat(2)6.3%
EPS beat(4)4
Avg EPS beat(4)5.83%
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)4.03%
EPS beat(16)15
Avg EPS beat(16)69.43%
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%
PT rev (3m)1.46%
EPS NQ rev (1m)-14.7%
EPS NQ rev (3m)-14.91%
EPS NY rev (1m)-5.28%
EPS NY rev (3m)-3.52%
Revenue NQ rev (1m)1.81%
Revenue NQ rev (3m)2.68%
Revenue NY rev (1m)1%
Revenue NY rev (3m)1.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.91 | ||
| Fwd PE | 16.62 | ||
| P/S | 2.76 | ||
| P/FCF | 17.17 | ||
| P/OCF | 8.83 | ||
| P/B | 3.92 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.15 |
EPS(TTM)10.58
EY5.02%
EPS(NY)12.67
Fwd EY6.02%
FCF(TTM)12.27
FCFY5.82%
OCF(TTM)23.85
OCFY11.32%
SpS76.28
BVpS53.74
TBVpS-48.94
PEG (NY)2.44
PEG (5Y)1.04
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 | 1.73 |
F-Score6
WACC7.34%
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 Y8.16%
EPS Next 2Y14.48%
EPS Next 3Y16.78%
EPS Next 5Y16.62%
Revenue 1Y (TTM)7.3%
Revenue growth 3Y0.53%
Revenue growth 5Y12.59%
Sales Q2Q%8.9%
Revenue Next Year8.54%
Revenue Next 2Y7.55%
Revenue Next 3Y6.53%
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 5Y19.99%
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 8.16% 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%.