T-MOBILE US INC (TMUS) Stock Fundamental Analysis
NASDAQ:TMUS - Nasdaq - US8725901040 - Common Stock - Currency: USD
Taking everything into account, TMUS scores 5 out of 10 in our fundamental rating. TMUS was compared to 22 industry peers in the Wireless Telecommunication Services industry. TMUS has an excellent profitability rating, but there are concerns on its financial health. While showing a medium growth rate, TMUS is valued expensive at the moment.
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.
Each year in the past 5 years TMUS has been profitable.
Each year in the past 5 years TMUS had a positive operating cash flow.
1.2 Ratios
The Return On Assets of TMUS (5.45%) is better than 76.19% of its industry peers.
TMUS has a Return On Equity of 18.37%. This is amongst the best in the industry. TMUS outperforms 85.71% of its industry peers.
TMUS's Return On Invested Capital of 7.21% is fine compared to the rest of the industry. TMUS outperforms 61.90% 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 6.52%.
The last Return On Invested Capital (7.21%) for TMUS is above the 3 year average (6.22%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.45% | ||
| ROE | 18.37% | ||
| ROIC | 7.21% |
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
With an excellent Profit Margin value of 13.93%, TMUS belongs to the best of the industry, outperforming 95.24% of the companies in the same industry.
TMUS's Profit Margin has improved in the last couple of years.
TMUS has a better Operating Margin (22.27%) than 85.71% of its industry peers.
In the last couple of years the Operating Margin of TMUS has grown nicely.
TMUS's Gross Margin of 63.79% is fine compared to the rest of the industry. TMUS outperforms 76.19% of its industry peers.
TMUS's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.27% | ||
| PM (TTM) | 13.93% | ||
| GM | 63.79% |
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 below the Cost of Capital (WACC), so TMUS is destroying value.
Compared to 1 year ago, TMUS has less shares outstanding
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
An Altman-Z score of 2.01 indicates that TMUS is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of TMUS (2.01) is better than 85.71% of its industry peers.
TMUS has a debt to FCF ratio of 8.44. This is a slightly negative value and a sign of low solvency as TMUS would need 8.44 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 8.44, TMUS is in the better half of the industry, outperforming 61.90% of the companies in the same industry.
A Debt/Equity ratio of 1.35 is on the high side and indicates that TMUS has dependencies on debt financing.
With a Debt to Equity ratio value of 1.35, TMUS is not doing good in the industry: 61.90% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.35 | ||
| Debt/FCF | 8.44 | ||
| Altman-Z | 2.01 |
ROIC/WACC0.91
WACC7.91%
2.3 Liquidity
TMUS has a Current Ratio of 0.91. This is a bad value and indicates that TMUS is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of TMUS (0.91) is worse than 71.43% of its industry peers.
A Quick Ratio of 0.83 indicates that TMUS may have some problems paying its short term obligations.
The Quick ratio of TMUS (0.83) is worse than 76.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.83 |
3. Growth
3.1 Past
TMUS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 39.54%, 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 3.62% 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)39.54%
EPS 3Y58.9%
EPS 5Y19.13%
EPS Q2Q%53.89%
Revenue 1Y (TTM)3.62%
Revenue growth 3Y0.53%
Revenue growth 5Y12.59%
Sales Q2Q%6.81%
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 14.58% yearly.
TMUS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.91% yearly.
EPS Next Y12.51%
EPS Next 2Y16.09%
EPS Next 3Y16.46%
EPS Next 5Y14.58%
Revenue Next Year5.8%
Revenue Next 2Y5.54%
Revenue Next 3Y5.08%
Revenue Next 5Y3.91%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
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 27.42, the valuation of TMUS can be described as expensive.
The rest of the industry has a similar Price/Earnings ratio as TMUS.
When comparing the Price/Earnings ratio of TMUS to the average of the S&P500 Index (29.63), we can say TMUS is valued inline with the index average.
The Price/Forward Earnings ratio is 24.37, which indicates a rather expensive current valuation of TMUS.
TMUS's Price/Forward Earnings 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.
When comparing the Price/Forward Earnings ratio of TMUS to the average of the S&P500 Index (22.68), we can say TMUS is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.42 | ||
| Fwd PE | 24.37 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TMUS indicates a slightly more expensive valuation: TMUS is more expensive than 76.19% of the companies listed in the same industry.
TMUS's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. TMUS is more expensive than 76.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.33 | ||
| EV/EBITDA | 12.17 |
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.
TMUS's earnings are expected to grow with 16.46% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.19
PEG (5Y)1.43
EPS Next 2Y16.09%
EPS Next 3Y16.46%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.24%, TMUS has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 5.05, TMUS has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.29, TMUS's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.24% |
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
29.10% 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.
DP29.1%
EPS Next 2Y16.09%
EPS Next 3Y16.46%
265.17
-0.23 (-0.09%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners39.63%
Inst Owner Change-4.25%
Ins Owners0.65%
Ins Owner Change-0.01%
Market Cap302.76B
Analysts78.89
Price Target253.19 (-4.52%)
Short Float %2.98%
Short Ratio3.52
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.24% |
Yearly Dividend2.82
Dividend Growth(5Y)111.33%
DP29.1%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.85%
Min EPS beat(2)5.66%
Max EPS beat(2)10.04%
EPS beat(4)4
Avg EPS beat(4)7%
Min EPS beat(4)5.06%
Max EPS beat(4)10.04%
EPS beat(8)7
Avg EPS beat(8)3.7%
EPS beat(12)11
Avg EPS beat(12)81.53%
EPS beat(16)15
Avg EPS beat(16)73.12%
Revenue beat(2)1
Avg Revenue beat(2)-0.29%
Min Revenue beat(2)-1.21%
Max Revenue beat(2)0.63%
Revenue beat(4)1
Avg Revenue beat(4)-1.12%
Min Revenue beat(4)-3.03%
Max Revenue beat(4)0.63%
Revenue beat(8)2
Avg Revenue beat(8)-1.24%
Revenue beat(12)2
Avg Revenue beat(12)-1.97%
Revenue beat(16)4
Avg Revenue beat(16)-1.76%
PT rev (1m)-0.2%
PT rev (3m)13.6%
EPS NQ rev (1m)-0.14%
EPS NQ rev (3m)-3.98%
EPS NY rev (1m)-0.14%
EPS NY rev (3m)-0.01%
Revenue NQ rev (1m)0.29%
Revenue NQ rev (3m)2.3%
Revenue NY rev (1m)0.97%
Revenue NY rev (3m)1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.42 | ||
| Fwd PE | 24.37 | ||
| P/S | 3.72 | ||
| P/FCF | 30.33 | ||
| P/OCF | 13.58 | ||
| P/B | 4.9 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.17 |
EPS(TTM)9.67
EY3.65%
EPS(NY)10.88
Fwd EY4.1%
FCF(TTM)8.74
FCFY3.3%
OCF(TTM)19.53
OCFY7.36%
SpS71.29
BVpS54.08
TBVpS-47.59
PEG (NY)2.19
PEG (5Y)1.43
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.45% | ||
| ROE | 18.37% | ||
| ROCE | 9.65% | ||
| ROIC | 7.21% | ||
| ROICexc | 7.42% | ||
| ROICexgc | 19.65% | ||
| OM | 22.27% | ||
| PM (TTM) | 13.93% | ||
| GM | 63.79% | ||
| FCFM | 12.26% |
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 | 8.44 | ||
| Debt/EBITDA | 2.68 | ||
| Cap/Depr | 95.29% | ||
| Cap/Sales | 15.12% | ||
| Interest Coverage | 4.92 | ||
| Cash Conversion | 71.8% | ||
| Profit Quality | 88.03% | ||
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.83 | ||
| Altman-Z | 2.01 |
F-Score8
WACC7.91%
ROIC/WACC0.91
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)39.54%
EPS 3Y58.9%
EPS 5Y19.13%
EPS Q2Q%53.89%
EPS Next Y12.51%
EPS Next 2Y16.09%
EPS Next 3Y16.46%
EPS Next 5Y14.58%
Revenue 1Y (TTM)3.62%
Revenue growth 3Y0.53%
Revenue growth 5Y12.59%
Sales Q2Q%6.81%
Revenue Next Year5.8%
Revenue Next 2Y5.54%
Revenue Next 3Y5.08%
Revenue Next 5Y3.91%
EBIT growth 1Y18.7%
EBIT growth 3Y21.67%
EBIT growth 5Y23.21%
EBIT Next Year87.71%
EBIT Next 3Y29.63%
EBIT Next 5Y19.69%
FCF growth 1Y28.83%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y20.12%
OCF growth 3Y17.01%
OCF growth 5Y26.71%