US CELLULAR CORP (USM) Stock Fundamental Analysis
NYSE:USM - New York Stock Exchange, Inc. - US9116841084 - Common Stock - Currency: USD
USM gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 21 industry peers in the Wireless Telecommunication Services industry. While USM seems to be doing ok healthwise, there are quite some concerns on its profitability. USM is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year USM was profitable.
In the past year USM had a positive cash flow from operations.
Of the past 5 years USM 4 years were profitable.
In the past 5 years USM always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of -0.37%, USM is not doing good in the industry: 76.19% of the companies in the same industry are doing better.
USM has a worse Return On Equity (-0.85%) than 76.19% of its industry peers.
The Return On Invested Capital of USM (1.21%) is worse than 76.19% of its industry peers.
USM had an Average Return On Invested Capital over the past 3 years of 1.05%. This is significantly below the industry average of 6.12%.
The 3 year average ROIC (1.05%) for USM is below the current ROIC(1.21%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.37% | ||
| ROE | -0.85% | ||
| ROIC | 1.21% |
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
The Operating Margin of USM (3.90%) is worse than 76.19% of its industry peers.
In the last couple of years the Operating Margin of USM has grown nicely.
USM has a Gross Margin of 56.76%. This is comparable to the rest of the industry: USM outperforms 47.62% of its industry peers.
USM's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.9% | ||
| PM (TTM) | N/A | ||
| GM | 56.76% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so USM is destroying value.
The number of shares outstanding for USM remains at a similar level compared to 1 year ago.
USM has less shares outstanding than it did 5 years ago.
USM has a better debt/assets ratio than last year.
2.2 Solvency
USM has an Altman-Z score of 1.42. This is a bad value and indicates that USM is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.42, USM is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
The Debt to FCF ratio of USM is 8.77, which is on the high side as it means it would take USM, 8.77 years of fcf income to pay off all of its debts.
USM has a Debt to FCF ratio (8.77) which is in line with 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 | 8.77 | ||
| Altman-Z | 1.42 |
ROIC/WACC0.16
WACC7.54%
2.3 Liquidity
USM has a Current Ratio of 1.52. 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 Current ratio value of 1.52, USM is doing good in the industry, outperforming 71.43% of the companies in the same industry.
USM has a Quick Ratio of 1.32. 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 1.32, USM is doing good in the industry, outperforming 71.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.52 | ||
| Quick Ratio | 1.32 |
3. Growth
3.1 Past
USM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 14.52%, which is quite good.
USM shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -13.19% yearly.
The Revenue has decreased by -3.48% in the past year.
USM shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.29% yearly.
EPS 1Y (TTM)14.52%
EPS 3Y-26.25%
EPS 5Y-13.19%
EPS Q2Q%-68.75%
Revenue 1Y (TTM)-3.48%
Revenue growth 3Y-2.93%
Revenue growth 5Y-1.29%
Sales Q2Q%-3%
3.2 Future
USM is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 31.56% yearly.
Based on estimates for the next years, USM will show a decrease in Revenue. The Revenue will decrease by -0.31% on average per year.
EPS Next Y61.22%
EPS Next 2Y47.29%
EPS Next 3Y51.51%
EPS Next 5Y31.56%
Revenue Next Year-1.16%
Revenue Next 2Y-0.69%
Revenue Next 3Y-0.82%
Revenue Next 5Y-0.31%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 94.34, which means the current valuation is very expensive for USM.
Based on the Price/Earnings ratio, USM is valued a bit more expensive than the industry average as 76.19% of the companies are valued more cheaply.
The average S&P500 Price/Earnings ratio is at 27.63. USM is valued rather expensively when compared to this.
USM is valuated quite expensively with a Price/Forward Earnings ratio of 58.52.
Compared to the rest of the industry, the Price/Forward Earnings ratio of USM indicates a slightly more expensive valuation: USM is more expensive than 71.43% of the companies listed in the same industry.
USM is valuated expensively when we compare the Price/Forward Earnings ratio to 20.85, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 94.34 | ||
| Fwd PE | 58.52 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, USM is valued a bit more expensive than 61.90% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, USM is valued a bit more expensive than the industry average as 66.67% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.46 | ||
| EV/EBITDA | 10.31 |
4.3 Compensation for Growth
USM's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as USM's earnings are expected to grow with 51.51% in the coming years.
PEG (NY)1.54
PEG (5Y)N/A
EPS Next 2Y47.29%
EPS Next 3Y51.51%
5. Dividend
5.1 Amount
No dividends for USM!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NYSE:USM (4/22/2025, 12:13:00 PM)
66.98
+0.45 (+0.68%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners26.28%
Inst Owner Change0.02%
Ins Owners0.56%
Ins Owner Change30.99%
Market Cap5.69B
Analysts75.56
Price Target75.21 (12.29%)
Short Float %5.81%
Short Ratio6.22
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)144.29%
Min EPS beat(2)95.76%
Max EPS beat(2)192.83%
EPS beat(4)3
Avg EPS beat(4)76.55%
Min EPS beat(4)-27.29%
Max EPS beat(4)192.83%
EPS beat(8)5
Avg EPS beat(8)113.01%
EPS beat(12)7
Avg EPS beat(12)61.31%
EPS beat(16)9
Avg EPS beat(16)50.3%
Revenue beat(2)0
Avg Revenue beat(2)-1.72%
Min Revenue beat(2)-2.87%
Max Revenue beat(2)-0.57%
Revenue beat(4)0
Avg Revenue beat(4)-1.5%
Min Revenue beat(4)-2.87%
Max Revenue beat(4)-0.57%
Revenue beat(8)1
Avg Revenue beat(8)-2.32%
Revenue beat(12)3
Avg Revenue beat(12)-1.86%
Revenue beat(16)4
Avg Revenue beat(16)-1.57%
PT rev (1m)0%
PT rev (3m)-4.92%
EPS NQ rev (1m)0%
EPS NQ rev (3m)11.95%
EPS NY rev (1m)3.74%
EPS NY rev (3m)3.74%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.12%
Revenue NY rev (1m)-0.24%
Revenue NY rev (3m)0.64%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 94.34 | ||
| Fwd PE | 58.52 | ||
| P/S | 1.51 | ||
| P/FCF | 17.46 | ||
| P/OCF | 6.45 | ||
| P/B | 1.24 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.31 |
EPS(TTM)0.71
EY1.06%
EPS(NY)1.14
Fwd EY1.71%
FCF(TTM)3.84
FCFY5.73%
OCF(TTM)10.39
OCFY15.51%
SpS44.35
BVpS53.85
TBVpS-0.02
PEG (NY)1.54
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.37% | ||
| ROE | -0.85% | ||
| ROCE | 1.54% | ||
| ROIC | 1.21% | ||
| ROICexc | 1.23% | ||
| ROICexgc | 2.4% | ||
| OM | 3.9% | ||
| PM (TTM) | N/A | ||
| GM | 56.76% | ||
| FCFM | 8.65% |
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%
ROICexcg growth 3Y-6.62%
ROICexcg 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 | 8.77 | ||
| Debt/EBITDA | 3.49 | ||
| Cap/Depr | 83.76% | ||
| Cap/Sales | 14.77% | ||
| Interest Coverage | 0.82 | ||
| Cash Conversion | 108.74% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.52 | ||
| Quick Ratio | 1.32 | ||
| Altman-Z | 1.42 |
F-Score5
WACC7.54%
ROIC/WACC0.16
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)14.52%
EPS 3Y-26.25%
EPS 5Y-13.19%
EPS Q2Q%-68.75%
EPS Next Y61.22%
EPS Next 2Y47.29%
EPS Next 3Y51.51%
EPS Next 5Y31.56%
Revenue 1Y (TTM)-3.48%
Revenue growth 3Y-2.93%
Revenue growth 5Y-1.29%
Sales Q2Q%-3%
Revenue Next Year-1.16%
Revenue Next 2Y-0.69%
Revenue Next 3Y-0.82%
Revenue Next 5Y-0.31%
EBIT growth 1Y-4.55%
EBIT growth 3Y-8.78%
EBIT growth 5Y2.21%
EBIT Next Year20757.2%
EBIT Next 3Y484.74%
EBIT Next 5Y183.49%
FCF growth 1Y154.69%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y1.96%
OCF growth 3Y3.26%
OCF growth 5Y4.05%