200.56 USD
+2.65 (+1.34%)
200.2 USD
-0.36 (-0.18%)
We assign a fundamental rating of 5 out of 10 to TMUS. TMUS was compared to 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 has a correct valuation and a medium 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
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.
Looking at the Return On Invested Capital, with a value of 7.71%, TMUS is in the better half of the industry, outperforming 68.18% of the companies in the same industry.
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 6.24%.
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.
In the last couple of years the Profit Margin of TMUS has grown nicely.
With an excellent Operating Margin value of 22.69%, TMUS belongs to the best of the industry, outperforming 81.82% of the companies in the same industry.
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
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.
Compared to 1 year ago, TMUS has a worse debt to assets ratio.
2.2 Solvency
TMUS has an Altman-Z score of 1.67. 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 (1.67) 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.
Looking at the Debt to FCF ratio, with a value of 6.53, TMUS is in line with its industry, outperforming 59.09% of the companies in the same industry.
A Debt/Equity ratio of 1.37 is on the high side and indicates that TMUS has dependencies on debt financing.
TMUS's Debt to Equity ratio of 1.37 is in line compared to the rest of the industry. TMUS outperforms 40.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.37 | ||
| Debt/FCF | 6.53 | ||
| Altman-Z | 1.67 |
ROIC/WACC0.96
WACC8%
2.3 Liquidity
A Current Ratio of 0.89 indicates that TMUS may have some problems paying its short term obligations.
The Current ratio of TMUS (0.89) is comparable to the rest of the industry.
A Quick Ratio of 0.80 indicates that TMUS may have some problems paying its short term obligations.
TMUS's Quick ratio of 0.80 is in line compared to the rest of the industry. TMUS outperforms 45.45% of its industry peers.
| 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.
The Earnings Per Share has been growing by 19.13% on average over the past years. This is quite good.
The Revenue has been growing slightly by 7.30% in the past year.
Measured over the past years, TMUS shows a quite strong growth in Revenue. The Revenue has been growing by 12.59% on average per year.
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.
The Revenue is expected to grow by 5.51% on average over the next years.
EPS Next Y6.05%
EPS Next 2Y10.56%
EPS Next 3Y15.93%
EPS Next 5Y16.24%
Revenue Next Year9.06%
Revenue Next 2Y8.19%
Revenue Next 3Y6.95%
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.
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
The Price/Earnings ratio is 18.96, which indicates a rather expensive current valuation of TMUS.
TMUS's Price/Earnings ratio is a bit cheaper when compared to the industry. TMUS is cheaper than 68.18% of the companies in the same industry.
When comparing the Price/Earnings ratio of TMUS to the average of the S&P500 Index (27.19), we can say TMUS is valued slightly cheaper.
With a Price/Forward Earnings ratio of 16.97, TMUS is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TMUS indicates a slightly more expensive valuation: TMUS is more expensive than 72.73% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.92. TMUS is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.96 | ||
| Fwd PE | 16.97 |
4.2 Price Multiples
TMUS's Enterprise Value to EBITDA is on the same level as the industry average.
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 | 16.25 | ||
| EV/EBITDA | 9.61 |
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.
TMUS has an outstanding profitability rating, which may justify a higher PE ratio.
TMUS's earnings are expected to grow with 15.93% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.13
PEG (5Y)0.99
EPS Next 2Y10.56%
EPS Next 3Y15.93%
5. Dividend
5.1 Amount
TMUS has a Yearly Dividend Yield of 1.92%.
Compared to an average industry Dividend Yield of 5.49, TMUS has a dividend in line with its industry peers.
TMUS's Dividend Yield is comparable with the S&P500 average which is at 1.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.92% |
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 over 5 years, so it has already some track record.
TMUS has decreased its dividend recently.
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 2Y10.56%
EPS Next 3Y15.93%
200.56
+2.65 (+1.34%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners41.2%
Inst Owner Change-0.09%
Ins Owners0.38%
Ins Owner Change-0.42%
Market Cap224.33B
Revenue(TTM)85.85B
Net Income(TTM)11.87B
Analysts77.3
Price Target273.37 (36.3%)
Short Float %3.21%
Short Ratio2.91
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.92% |
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)-2.23%
PT rev (3m)-0.56%
EPS NQ rev (1m)-1.08%
EPS NQ rev (3m)-17.63%
EPS NY rev (1m)-0.27%
EPS NY rev (3m)-7.13%
Revenue NQ rev (1m)-0.03%
Revenue NQ rev (3m)3.1%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)0.93%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.96 | ||
| Fwd PE | 16.97 | ||
| P/S | 2.61 | ||
| P/FCF | 16.25 | ||
| P/OCF | 8.36 | ||
| P/B | 3.71 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.61 |
EPS(TTM)10.58
EY5.28%
EPS(NY)11.82
Fwd EY5.89%
FCF(TTM)12.34
FCFY6.15%
OCF(TTM)24
OCFY11.97%
SpS76.75
BVpS54.07
TBVpS-49.24
PEG (NY)3.13
PEG (5Y)0.99
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 | 1.67 |
F-Score6
WACC8%
ROIC/WACC0.96
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 Y6.05%
EPS Next 2Y10.56%
EPS Next 3Y15.93%
EPS Next 5Y16.24%
Revenue 1Y (TTM)7.3%
Revenue growth 3Y0.53%
Revenue growth 5Y12.59%
Sales Q2Q%8.9%
Revenue Next Year9.06%
Revenue Next 2Y8.19%
Revenue Next 3Y6.95%
Revenue Next 5Y5.51%
EBIT growth 1Y12.78%
EBIT growth 3Y21.67%
EBIT growth 5Y23.21%
EBIT Next Year90.37%
EBIT Next 3Y31.21%
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.
Can you provide the valuation status for T-MOBILE US INC?
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.
Can you provide the financial health for TMUS stock?
The financial health rating of T-MOBILE US INC (TMUS) is 2 / 10.
Can you provide the dividend sustainability for TMUS stock?
The dividend rating of T-MOBILE US INC (TMUS) is 4 / 10 and the dividend payout ratio is 33.7%.