196.16 USD
+1 (+0.51%)
196.55 USD
+0.39 (+0.2%)
Overall TMUS gets a fundamental rating of 5 out of 10. We evaluated TMUS against 22 industry peers in the Wireless Telecommunication Services industry. TMUS has an excellent profitability rating, but there are 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.
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
TMUS has a Return On Assets of 5.47%. This is in the better half of the industry: TMUS outperforms 72.73% of its industry peers.
TMUS's Return On Equity of 19.63% is fine compared to the rest of the industry. TMUS outperforms 77.27% of its industry peers.
TMUS has a better Return On Invested Capital (7.71%) than 68.18% of its industry peers.
TMUS had an Average Return On Invested Capital over the past 3 years of 6.22%. This is in line with the industry average of 6.45%.
The last Return On Invested Capital (7.71%) for TMUS is above the 3 year average (6.22%), which is a sign of increasing profitability.
| 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's Profit Margin of 13.83% is amongst the best of the industry. TMUS outperforms 81.82% of its industry peers.
TMUS's Profit Margin has improved in the last couple of years.
TMUS's Operating Margin of 22.69% is fine compared to the rest of the industry. TMUS outperforms 77.27% of its industry peers.
In the last couple of years the Operating Margin of TMUS has grown nicely.
TMUS has a better Gross Margin (63.57%) than 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so TMUS is still 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.
Compared to 1 year ago, TMUS has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.64, we must say that TMUS is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of TMUS (1.64) is better than 68.18% of its industry peers.
The Debt to FCF ratio of TMUS is 6.53, which is on the high side as it means it would take TMUS, 6.53 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of TMUS (6.53) is comparable to the rest of the industry.
A Debt/Equity ratio of 1.37 is on the high side and indicates that TMUS has dependencies on debt 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 | 1.64 |
ROIC/WACC1.05
WACC7.34%
2.3 Liquidity
A Current Ratio of 0.89 indicates that TMUS may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.89, TMUS is in line with its industry, outperforming 50.00% of the companies in the same industry.
A Quick Ratio of 0.80 indicates that TMUS may have some problems paying its short term obligations.
TMUS has a Quick ratio (0.80) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.89 | ||
| Quick Ratio | 0.8 |
3. Growth
3.1 Past
TMUS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 20.64%, 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.
The Revenue has been growing slightly by 7.30% 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)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
Based on estimates for the next years, TMUS will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.24% on average per year.
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 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
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
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 18.54, 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 26.55, TMUS is valued a bit cheaper.
TMUS is valuated correctly with a Price/Forward Earnings ratio of 16.43.
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.
When comparing the Price/Forward Earnings ratio of TMUS to the average of the S&P500 Index (23.78), we can say TMUS is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.54 | ||
| Fwd PE | 16.43 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as TMUS.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TMUS is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.89 | ||
| EV/EBITDA | 9.42 |
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.
The excellent profitability rating of TMUS 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)2.92
PEG (5Y)0.97
EPS Next 2Y11.1%
EPS Next 3Y16.37%
5. Dividend
5.1 Amount
TMUS has a Yearly Dividend Yield of 1.95%. Purely for dividend investing, there may be better candidates out there.
TMUS's Dividend Yield is comparable with the industry average which is at 5.55.
TMUS's Dividend Yield is comparable with the S&P500 average which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.95% |
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 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
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%
196.16
+1 (+0.51%)
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-0.54%
Market Cap219.41B
Revenue(TTM)85.85B
Net Income(TTM)11.87B
Analysts76.76
Price Target279.61 (42.54%)
Short Float %42.05%
Short Ratio2.29
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.95% |
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)1.59%
EPS NQ rev (3m)-18.6%
EPS NY rev (1m)0.23%
EPS NY rev (3m)-7.44%
Revenue NQ rev (1m)-0.35%
Revenue NQ rev (3m)3.64%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.54 | ||
| Fwd PE | 16.43 | ||
| P/S | 2.56 | ||
| P/FCF | 15.89 | ||
| P/OCF | 8.17 | ||
| P/B | 3.63 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.42 |
EPS(TTM)10.58
EY5.39%
EPS(NY)11.94
Fwd EY6.08%
FCF(TTM)12.34
FCFY6.29%
OCF(TTM)24
OCFY12.24%
SpS76.75
BVpS54.07
TBVpS-49.24
PEG (NY)2.92
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 | 1.64 |
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 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%.