US CELLULAR CORP (USM) Stock Fundamental Analysis
USA - NYSE:USM - US9116841084 - Common Stock
77.01 USD
+2.76 (+3.72%)
77.9 USD
+0.89 (+1.16%)
USM gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 22 industry peers in the Wireless Telecommunication Services industry. USM has an average financial health and profitability rating. USM is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
USM had positive earnings in the past year.
USM had a positive operating cash flow in the past year.
Of the past 5 years USM 4 years were profitable.
USM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
USM has a worse Return On Assets (-0.38%) than 72.73% of its industry peers.
USM's Return On Equity of -0.85% is on the low side compared to the rest of the industry. USM is outperformed by 72.73% of its industry peers.
The Return On Invested Capital of USM (1.10%) is comparable to the rest of the industry.
USM had an Average Return On Invested Capital over the past 3 years of 1.05%. This is below the industry average of 5.83%.
The last Return On Invested Capital (1.10%) for USM is above the 3 year average (1.05%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.38% | ||
| ROE | -0.85% | ||
| ROIC | 1.1% |
ROA(3y)0.13%
ROA(5y)0.85%
ROE(3y)0.32%
ROE(5y)1.91%
ROIC(3y)1.05%
ROIC(5y)1.3%
1.3 Margins
USM has a Operating Margin (3.58%) which is in line with its industry peers.
In the last couple of years the Operating Margin of USM has grown nicely.
USM has a Gross Margin of 57.26%. This is in the better half of the industry: USM outperforms 68.18% of its industry peers.
USM's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.58% | ||
| PM (TTM) | N/A | ||
| GM | 57.26% |
OM growth 3Y-6.02%
OM growth 5Y3.54%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.86%
GM growth 5Y0.4%
2. Health
2.1 Basic Checks
USM has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, USM has about the same amount of shares outstanding.
Compared to 5 years ago, USM has less shares outstanding
The debt/assets ratio for USM has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.53, we must say that USM is in the distress zone and has some risk of bankruptcy.
USM has a Altman-Z score of 1.53. This is in the better half of the industry: USM outperforms 72.73% of its industry peers.
The Debt to FCF ratio of USM is 8.09, which is on the high side as it means it would take USM, 8.09 years of fcf income to pay off all of its debts.
USM's Debt to FCF ratio of 8.09 is in line compared to the rest of the industry. USM outperforms 40.91% of its industry peers.
A Debt/Equity ratio of 0.62 indicates that USM is somewhat dependend on debt financing.
USM has a Debt to Equity ratio (0.62) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 8.09 | ||
| Altman-Z | 1.53 |
ROIC/WACC0.14
WACC7.62%
2.3 Liquidity
A Current Ratio of 1.70 indicates that USM should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.70, USM is in the better half of the industry, outperforming 63.64% of the companies in the same industry.
USM has a Quick Ratio of 1.48. This is a normal value and indicates that USM is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Quick ratio value of 1.48, USM is doing good in the industry, outperforming 68.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.7 | ||
| Quick Ratio | 1.48 |
3. Growth
3.1 Past
USM shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.32%.
USM shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -13.19% yearly.
USM shows a decrease in Revenue. In the last year, the revenue decreased by -3.48%.
The Revenue has been decreasing by -1.29% on average over the past years.
EPS 1Y (TTM)7.32%
EPS 3Y-26.25%
EPS 5Y-13.19%
EPS Q2Q%80%
Revenue 1Y (TTM)-3.48%
Revenue growth 3Y-2.93%
Revenue growth 5Y-1.29%
Sales Q2Q%-1.19%
3.2 Future
Based on estimates for the next years, USM will show a small growth in Earnings Per Share. The EPS will grow by 0.20% on average per year.
USM is expected to show a very negative growth in Revenue. In the coming years, the Revenue will decrease by -42.63% yearly.
EPS Next Y15.94%
EPS Next 2Y25.09%
EPS Next 3Y21.15%
EPS Next 5Y0.2%
Revenue Next Year-2.84%
Revenue Next 2Y-1.42%
Revenue Next 3Y-1.07%
Revenue Next 5Y-42.63%
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 87.51, which means the current valuation is very expensive for USM.
USM's Price/Earnings ratio is a bit more expensive when compared to the industry. USM is more expensive than 72.73% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.47, USM is valued quite expensively.
Based on the Price/Forward Earnings ratio of 69.32, the valuation of USM can be described as expensive.
Based on the Price/Forward Earnings ratio, USM is valued a bit more expensive than the industry average as 72.73% of the companies are valued more cheaply.
USM is valuated expensively when we compare the Price/Forward Earnings ratio to 35.42, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 87.51 | ||
| Fwd PE | 69.32 |
4.2 Price Multiples
USM's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. USM is more expensive than 63.64% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, USM is valued a bit more expensive than 63.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.54 | ||
| EV/EBITDA | 11.58 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
A more expensive valuation may be justified as USM's earnings are expected to grow with 21.15% in the coming years.
PEG (NY)5.49
PEG (5Y)N/A
EPS Next 2Y25.09%
EPS Next 3Y21.15%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.49%, USM is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 8.26, USM pays a better dividend. On top of this USM pays more dividend than 81.82% of the companies listed in the same industry.
USM's Dividend Yield is rather good when compared to the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.49% |
5.2 History
USM does not have a reliable dividend history as it only pays dividend since a couple or years.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DP0%
EPS Next 2Y25.09%
EPS Next 3Y21.15%
77.01
+2.76 (+3.72%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst OwnersN/A
Inst Owner Change16.5%
Ins OwnersN/A
Ins Owner Change-11.51%
Market Cap6.55B
Revenue(TTM)3.77B
Net Income(TTM)-39.00M
Analysts75.56
Price Target76.61 (-0.52%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.49% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)76.69%
Min EPS beat(2)-39.44%
Max EPS beat(2)192.83%
EPS beat(4)3
Avg EPS beat(4)73.51%
Min EPS beat(4)-39.44%
Max EPS beat(4)192.83%
EPS beat(8)5
Avg EPS beat(8)113.75%
EPS beat(12)6
Avg EPS beat(12)56.53%
EPS beat(16)8
Avg EPS beat(16)47.35%
Revenue beat(2)0
Avg Revenue beat(2)-2.98%
Min Revenue beat(2)-5.4%
Max Revenue beat(2)-0.57%
Revenue beat(4)0
Avg Revenue beat(4)-2.4%
Min Revenue beat(4)-5.4%
Max Revenue beat(4)-0.57%
Revenue beat(8)1
Avg Revenue beat(8)-2.52%
Revenue beat(12)3
Avg Revenue beat(12)-2.02%
Revenue beat(16)3
Avg Revenue beat(16)-2.08%
PT rev (1m)2.74%
PT rev (3m)1.35%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.26%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 87.51 | ||
| Fwd PE | 69.32 | ||
| P/S | 1.76 | ||
| P/FCF | 18.54 | ||
| P/OCF | 7.79 | ||
| P/B | 1.43 | ||
| P/tB | 1636.46 | ||
| EV/EBITDA | 11.58 |
EPS(TTM)0.88
EY1.14%
EPS(NY)1.11
Fwd EY1.44%
FCF(TTM)4.15
FCFY5.39%
OCF(TTM)9.88
OCFY12.83%
SpS43.66
BVpS53.94
TBVpS0.05
PEG (NY)5.49
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.38% | ||
| ROE | -0.85% | ||
| ROCE | 1.39% | ||
| ROIC | 1.1% | ||
| ROICexc | 1.12% | ||
| ROICexgc | 2.19% | ||
| OM | 3.58% | ||
| PM (TTM) | N/A | ||
| GM | 57.26% | ||
| FCFM | 9.51% |
ROA(3y)0.13%
ROA(5y)0.85%
ROE(3y)0.32%
ROE(5y)1.91%
ROIC(3y)1.05%
ROIC(5y)1.3%
ROICexc(3y)1.07%
ROICexc(5y)1.37%
ROICexgc(3y)2.08%
ROICexgc(5y)2.45%
ROCE(3y)1.33%
ROCE(5y)1.64%
ROICexgc growth 3Y-6.62%
ROICexgc growth 5Y1.42%
ROICexc growth 3Y-9.23%
ROICexc growth 5Y-3.33%
OM growth 3Y-6.02%
OM growth 5Y3.54%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.86%
GM growth 5Y0.4%
F-Score5
Asset Turnover0.36
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 8.09 | ||
| Debt/EBITDA | 3.55 | ||
| Cap/Depr | 73.45% | ||
| Cap/Sales | 13.12% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 105.53% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.7 | ||
| Quick Ratio | 1.48 | ||
| Altman-Z | 1.53 |
F-Score5
WACC7.62%
ROIC/WACC0.14
Cap/Depr(3y)121.94%
Cap/Depr(5y)166.9%
Cap/Sales(3y)20.71%
Cap/Sales(5y)28.01%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)7.32%
EPS 3Y-26.25%
EPS 5Y-13.19%
EPS Q2Q%80%
EPS Next Y15.94%
EPS Next 2Y25.09%
EPS Next 3Y21.15%
EPS Next 5Y0.2%
Revenue 1Y (TTM)-3.48%
Revenue growth 3Y-2.93%
Revenue growth 5Y-1.29%
Sales Q2Q%-1.19%
Revenue Next Year-2.84%
Revenue Next 2Y-1.42%
Revenue Next 3Y-1.07%
Revenue Next 5Y-42.63%
EBIT growth 1Y-23.56%
EBIT growth 3Y-8.78%
EBIT growth 5Y2.21%
EBIT Next Year20168.2%
EBIT Next 3Y476.6%
EBIT Next 5Y95.74%
FCF growth 1Y406.96%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y49.47%
OCF growth 3Y3.26%
OCF growth 5Y4.05%
US CELLULAR CORP / USM FAQ
What is the fundamental rating for USM stock?
ChartMill assigns a fundamental rating of 3 / 10 to USM.
Can you provide the valuation status for US CELLULAR CORP?
ChartMill assigns a valuation rating of 1 / 10 to US CELLULAR CORP (USM). This can be considered as Overvalued.
How profitable is US CELLULAR CORP (USM) stock?
US CELLULAR CORP (USM) has a profitability rating of 4 / 10.
How financially healthy is US CELLULAR CORP?
The financial health rating of US CELLULAR CORP (USM) is 4 / 10.
Can you provide the expected EPS growth for USM stock?
The Earnings per Share (EPS) of US CELLULAR CORP (USM) is expected to grow by 15.94% in the next year.