T-MOBILE US INC (TMUS)
US8725901040 - Common Stock
Taking everything into account, TMUS scores 6 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. TMUS is not valued too expensively and it also shows 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.
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
TMUS has a better Return On Assets (4.92%) than 80.95% 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.
With a decent Return On Invested Capital value of 6.97%, TMUS is doing good in the industry, outperforming 61.90% 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 6.46%.
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.
The Operating Margin of TMUS (21.59%) is better than 80.95% of its industry peers.
TMUS's Operating Margin has improved in the last couple of years.
The Gross Margin of TMUS (63.83%) is better than 76.19% of its industry peers.
In the last couple of years the Gross Margin of TMUS has grown nicely.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), TMUS is destroying 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.
The debt/assets ratio for TMUS is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 1.87 indicates that TMUS is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 1.87, TMUS is in the better half of the industry, outperforming 71.43% 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.
The Debt to FCF ratio of TMUS (8.63) is comparable to the rest of the industry.
TMUS has a Debt/Equity ratio of 1.32. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of TMUS (1.32) is worse than 61.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.32 | ||
| Debt/FCF | 8.63 | ||
| Altman-Z | 1.87 |
ROIC/WACC0.89
WACC7.8%
2.3 Liquidity
TMUS has a Current Ratio of 1.08. This is a normal value and indicates that TMUS is financially healthy and should not expect problems in meeting its short term obligations.
TMUS's Current ratio of 1.08 is in line compared to the rest of the industry. TMUS outperforms 42.86% of its industry peers.
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
The Earnings Per Share has grown by an impressive 36.18% over the past year.
The Earnings Per Share has been growing by 15.44% on average over the past years. This is quite good.
TMUS shows a small growth in Revenue. In the last year, the Revenue has grown by 2.11%.
Measured over the past years, TMUS shows a quite strong growth in Revenue. The Revenue has been growing by 12.65% on average per year.
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 21.78% on average per year.
The Revenue is expected to grow by 3.62% on average over the next years.
EPS Next Y38.26%
EPS Next 2Y25.3%
EPS Next 3Y23.25%
EPS Next 5Y21.78%
Revenue Next Year3.97%
Revenue Next 2Y4.33%
Revenue Next 3Y4.47%
Revenue Next 5Y3.62%
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 27.19, which means the current valuation is very expensive for TMUS.
Compared to the rest of the industry, the Price/Earnings ratio of TMUS is on the same level as its industry peers.
When comparing the Price/Earnings ratio of TMUS to the average of the S&P500 Index (28.96), we can say TMUS is valued inline with the index average.
A Price/Forward Earnings ratio of 21.91 indicates a rather expensive valuation of TMUS.
TMUS's Price/Forward Earnings ratio is in line with the industry average.
TMUS is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.82, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.19 | ||
| Fwd PE | 21.91 |
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 rather expensive when compared to the industry. TMUS is more expensive than 80.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.76 | ||
| EV/EBITDA | 11.36 |
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)0.71
PEG (5Y)1.76
EPS Next 2Y25.3%
EPS Next 3Y23.25%
5. Dividend
5.1 Amount
TMUS has a Yearly Dividend Yield of 1.19%.
TMUS's Dividend Yield is comparable with the industry average which is at 5.16.
With a Dividend Yield of 1.19, TMUS pays less dividend than the S&P500 average, which is at 2.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.19% |
5.2 History
The dividend of TMUS is nicely growing with an annual growth rate of 55.47%!
TMUS has paid a dividend for less than 5 years, so there is no long track record yet.
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.
The dividend of TMUS is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP29.24%
EPS Next 2Y25.3%
EPS Next 3Y23.25%
T-MOBILE US INC
NASDAQ:TMUS (11/22/2024, 11:58:09 AM)
238.43
+1.85 (+0.78%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap276.70B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.19% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.19 | ||
| Fwd PE | 21.91 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.71
PEG (5Y)1.76
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.92% | ||
| ROE | 16.14% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 21.59% | ||
| PM (TTM) | 12.96% | ||
| GM | 63.83% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.38
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.32 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.08 | ||
| Quick Ratio | 0.99 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)36.18%
EPS 3Y31.04%
EPS 5Y
EPS Q2Q%
EPS Next Y38.26%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)2.11%
Revenue growth 3Y4.73%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y