T-MOBILE US INC (TMUS) Stock Fundamental Analysis
NASDAQ:TMUS - Nasdaq - US8725901040 - Common Stock
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. While TMUS belongs to the best of the industry regarding profitability, 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.
TMUS had a positive operating cash flow in the past year.
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 (4.92%) is better than 76.19% of its industry peers.
With an excellent Return On Equity value of 16.14%, TMUS belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
TMUS has a better Return On Invested Capital (6.97%) than 61.90% 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 6.49%.
The 3 year average ROIC (5.36%) for TMUS is below the current ROIC(6.97%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.92% | ||
| ROE | 16.14% | ||
| ROIC | 6.97% |
ROA(3y)2.23%
ROA(5y)2.44%
ROE(3y)6.98%
ROE(5y)7.54%
ROIC(3y)5.36%
ROIC(5y)5.33%
1.3 Margins
TMUS's Profit Margin of 12.96% is amongst the best of the industry. TMUS outperforms 95.24% of its industry peers.
In the last couple of years the Profit Margin of TMUS has grown nicely.
TMUS has a Operating Margin of 21.59%. This is amongst the best in the industry. TMUS outperforms 80.95% of its industry peers.
TMUS's Operating Margin has improved in the last couple of years.
TMUS's Gross Margin of 63.83% 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 | 21.59% | ||
| PM (TTM) | 12.96% | ||
| GM | 63.83% |
OM growth 3Y14.03%
OM growth 5Y9.67%
PM growth 3Y33.2%
PM growth 5Y9.69%
GM growth 3Y1.52%
GM growth 5Y1.6%
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.
Compared to 5 years ago, TMUS has more shares outstanding
TMUS has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.78, we must say that TMUS is in the distress zone and has some risk of bankruptcy.
With a decent Altman-Z score value of 1.78, TMUS is doing good in the industry, outperforming 76.19% of the companies in the same industry.
TMUS has a debt to FCF ratio of 8.63. This is a slightly negative value and a sign of low solvency as TMUS would need 8.63 years to pay back of all of its debts.
TMUS has a Debt to FCF ratio of 8.63. This is in the better half of the industry: TMUS outperforms 61.90% of its industry peers.
A Debt/Equity ratio of 1.32 is on the high side and indicates that TMUS has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.32, TMUS is doing worse than 61.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.32 | ||
| Debt/FCF | 8.63 | ||
| Altman-Z | 1.78 |
ROIC/WACC0.88
WACC7.88%
2.3 Liquidity
A Current Ratio of 1.08 indicates that TMUS should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.08, TMUS is in line with its industry, outperforming 42.86% of the companies in the same industry.
TMUS has a Quick Ratio of 1.08. 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's Quick ratio of 0.99 is in line compared to the rest of the industry. TMUS outperforms 42.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.08 | ||
| Quick Ratio | 0.99 |
3. Growth
3.1 Past
TMUS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 36.18%, 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 15.44% on average per year.
Looking at the last year, TMUS shows a small growth in Revenue. The Revenue has grown by 2.11% in the last year.
TMUS shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 12.65% yearly.
EPS 1Y (TTM)36.18%
EPS 3Y31.04%
EPS 5Y15.44%
EPS Q2Q%43.41%
Revenue 1Y (TTM)2.11%
Revenue growth 3Y4.73%
Revenue growth 5Y12.65%
Sales Q2Q%4.73%
3.2 Future
Based on estimates for the next years, TMUS will show a very strong growth in Earnings Per Share. The EPS will grow by 20.21% on average per year.
TMUS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.55% yearly.
EPS Next Y38.47%
EPS Next 2Y25.38%
EPS Next 3Y23.25%
EPS Next 5Y20.21%
Revenue Next Year3.93%
Revenue Next 2Y4.35%
Revenue Next 3Y4.51%
Revenue Next 5Y4.55%
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 accelerating.
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
The Price/Earnings ratio is 25.03, which means the current valuation is very expensive for TMUS.
TMUS's Price/Earnings ratio is in line with the industry average.
TMUS's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.29.
Based on the Price/Forward Earnings ratio of 20.15, the valuation of TMUS can be described as rather expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as TMUS.
When comparing the Price/Forward Earnings ratio of TMUS to the average of the S&P500 Index (24.44), we can say TMUS is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.03 | ||
| Fwd PE | 20.15 |
4.2 Price Multiples
TMUS's Enterprise Value to EBITDA 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.
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 | 25.56 | ||
| EV/EBITDA | 10.71 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The excellent profitability rating of TMUS may justify a higher PE ratio.
TMUS's earnings are expected to grow with 23.25% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.65
PEG (5Y)1.62
EPS Next 2Y25.38%
EPS Next 3Y23.25%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.42%, TMUS has a reasonable but not impressive dividend return.
TMUS's Dividend Yield is comparable with the industry average which is at 5.35.
TMUS's Dividend Yield is slightly below the S&P500 average, which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.42% |
5.2 History
On average, the dividend of TMUS grows each year by 55.47%, 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)55.47%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
TMUS pays out 29.24% 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.
DP29.24%
EPS Next 2Y25.38%
EPS Next 3Y23.25%
T-MOBILE US INC
NASDAQ:TMUS (1/21/2025, 8:00:02 PM)
After market: 218.51 -0.98 (-0.45%)219.49
+0.52 (+0.24%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners39.63%
Inst Owner Change0.11%
Ins Owners0.65%
Ins Owner Change-0.02%
Market Cap254.72B
Analysts80
Price Target253.7 (15.59%)
Short Float %3.05%
Short Ratio4
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.42% |
Yearly Dividend0.61
Dividend Growth(5Y)55.47%
DP29.24%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.46%
Min EPS beat(2)5.66%
Max EPS beat(2)7.25%
EPS beat(4)3
Avg EPS beat(4)1.03%
Min EPS beat(4)-13.84%
Max EPS beat(4)7.25%
EPS beat(8)7
Avg EPS beat(8)3.13%
EPS beat(12)11
Avg EPS beat(12)90.63%
EPS beat(16)15
Avg EPS beat(16)73.42%
Revenue beat(2)0
Avg Revenue beat(2)-1.03%
Min Revenue beat(2)-1.21%
Max Revenue beat(2)-0.85%
Revenue beat(4)1
Avg Revenue beat(4)-0.71%
Min Revenue beat(4)-3.03%
Max Revenue beat(4)2.24%
Revenue beat(8)1
Avg Revenue beat(8)-1.76%
Revenue beat(12)1
Avg Revenue beat(12)-2.31%
Revenue beat(16)4
Avg Revenue beat(16)-1.8%
PT rev (1m)2.28%
PT rev (3m)16.36%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.36%
EPS NY rev (1m)0%
EPS NY rev (3m)1.34%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.75%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)0.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.03 | ||
| Fwd PE | 20.15 | ||
| P/S | 3.18 | ||
| P/FCF | 25.56 | ||
| P/OCF | 11.79 | ||
| P/B | 3.96 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.71 |
EPS(TTM)8.77
EY4%
EPS(NY)10.89
Fwd EY4.96%
FCF(TTM)8.59
FCFY3.91%
OCF(TTM)18.62
OCFY8.48%
SpS68.94
BVpS55.36
TBVpS-43.31
PEG (NY)0.65
PEG (5Y)1.62
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.92% | ||
| ROE | 16.14% | ||
| ROCE | 9.1% | ||
| ROIC | 6.97% | ||
| ROICexc | 7.34% | ||
| ROICexgc | 19.11% | ||
| OM | 21.59% | ||
| PM (TTM) | 12.96% | ||
| GM | 63.83% | ||
| FCFM | 12.46% |
ROA(3y)2.23%
ROA(5y)2.44%
ROE(3y)6.98%
ROE(5y)7.54%
ROIC(3y)5.36%
ROIC(5y)5.33%
ROICexc(3y)5.51%
ROICexc(5y)5.5%
ROICexgc(3y)13.77%
ROICexgc(5y)13.11%
ROCE(3y)6.95%
ROCE(5y)6.88%
ROICexcg growth 3Y19.27%
ROICexcg growth 5Y-1.84%
ROICexc growth 3Y16.65%
ROICexc growth 5Y-1.07%
OM growth 3Y14.03%
OM growth 5Y9.67%
PM growth 3Y33.2%
PM growth 5Y9.69%
GM growth 3Y1.52%
GM growth 5Y1.6%
F-Score8
Asset Turnover0.38
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.32 | ||
| Debt/FCF | 8.63 | ||
| Debt/EBITDA | 2.79 | ||
| Cap/Depr | 88.91% | ||
| Cap/Sales | 14.54% | ||
| Interest Coverage | 4.7 | ||
| Cash Conversion | 71.15% | ||
| Profit Quality | 96.1% | ||
| Current Ratio | 1.08 | ||
| Quick Ratio | 0.99 | ||
| Altman-Z | 1.78 |
F-Score8
WACC7.88%
ROIC/WACC0.88
Cap/Depr(3y)114.5%
Cap/Depr(5y)106.54%
Cap/Sales(3y)20.86%
Cap/Sales(5y)19.01%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)36.18%
EPS 3Y31.04%
EPS 5Y15.44%
EPS Q2Q%43.41%
EPS Next Y38.47%
EPS Next 2Y25.38%
EPS Next 3Y23.25%
EPS Next 5Y20.21%
Revenue 1Y (TTM)2.11%
Revenue growth 3Y4.73%
Revenue growth 5Y12.65%
Sales Q2Q%4.73%
Revenue Next Year3.93%
Revenue Next 2Y4.35%
Revenue Next 3Y4.51%
Revenue Next 5Y4.55%
EBIT growth 1Y15.91%
EBIT growth 3Y19.42%
EBIT growth 5Y23.54%
EBIT Next Year115.09%
EBIT Next 3Y34.65%
EBIT Next 5Y22.79%
FCF growth 1Y802.4%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y39.87%
OCF growth 3Y29.03%
OCF growth 5Y36.62%