US CELLULAR CORP (USM) Stock Fundamental Analysis
NYSE:USM - New York Stock Exchange, Inc. - US9116841084 - Common Stock
Overall USM gets a fundamental rating of 3 out of 10. We evaluated USM against 22 industry peers in the Wireless Telecommunication Services industry. USM scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. USM is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year USM was profitable.
USM had a positive operating cash flow in the past year.
USM had positive earnings in each of the past 5 years.
In the past 5 years USM always reported a positive cash flow from operatings.
1.2 Ratios
USM's Return On Assets of -0.29% is on the low side compared to the rest of the industry. USM is outperformed by 71.43% of its industry peers.
The Return On Equity of USM (-0.65%) is worse than 71.43% of its industry peers.
USM has a Return On Invested Capital of 1.45%. This is in the lower half of the industry: USM underperforms 76.19% of its industry peers.
The Average Return On Invested Capital over the past 3 years for USM is significantly below the industry average of 6.49%.
The last Return On Invested Capital (1.45%) for USM is above the 3 year average (1.18%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.29% | ||
| ROE | -0.65% | ||
| ROIC | 1.45% |
ROA(3y)0.76%
ROA(5y)1.24%
ROE(3y)1.74%
ROE(5y)2.69%
ROIC(3y)1.18%
ROIC(5y)1.33%
1.3 Margins
In the last couple of years the Profit Margin of USM has declined.
USM's Operating Margin of 4.63% is on the low side compared to the rest of the industry. USM is outperformed by 76.19% of its industry peers.
USM's Operating Margin has been stable in the last couple of years.
USM has a Gross Margin (56.96%) which is in line with its industry peers.
USM's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.63% | ||
| PM (TTM) | N/A | ||
| GM | 56.96% |
OM growth 3Y-6.22%
OM growth 5Y0.84%
PM growth 3Y-37.54%
PM growth 5Y-18.23%
GM growth 3Y0.1%
GM growth 5Y0.31%
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
Based on the Altman-Z score of 1.40, we must say that USM is in the distress zone and has some risk of bankruptcy.
USM has a Altman-Z score of 1.40. This is in the better half of the industry: USM outperforms 66.67% of its industry peers.
USM has a debt to FCF ratio of 12.51. This is a negative value and a sign of low solvency as USM would need 12.51 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 12.51, USM is doing worse than 66.67% of the companies in the same industry.
USM has a Debt/Equity ratio of 0.63. This is a neutral value indicating USM is somewhat dependend on debt financing.
USM has a Debt to Equity ratio (0.63) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 12.51 | ||
| Altman-Z | 1.4 |
ROIC/WACC0.19
WACC7.61%
2.3 Liquidity
USM has a Current Ratio of 1.57. This is a normal value and indicates that USM is financially healthy and should not expect problems in meeting its short term obligations.
USM has a Current ratio of 1.57. This is in the better half of the industry: USM outperforms 66.67% of its industry peers.
A Quick Ratio of 1.39 indicates that USM should not have too much problems paying its short term obligations.
USM has a Quick ratio of 1.39. This is in the better half of the industry: USM outperforms 61.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.57 | ||
| Quick Ratio | 1.39 |
3. Growth
3.1 Past
USM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 530.77%, which is quite impressive.
USM shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -18.46% yearly.
USM shows a decrease in Revenue. In the last year, the revenue decreased by -3.94%.
The Revenue has been decreasing by -0.31% on average over the past years.
EPS 1Y (TTM)530.77%
EPS 3Y-37.59%
EPS 5Y-18.46%
EPS Q2Q%0%
Revenue 1Y (TTM)-3.94%
Revenue growth 3Y-1.09%
Revenue growth 5Y-0.31%
Sales Q2Q%-4.26%
3.2 Future
The Earnings Per Share is expected to grow by 26.90% on average over the next years. This is a very strong growth
USM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.63% yearly.
EPS Next Y-97.83%
EPS Next 2Y33.41%
EPS Next 3Y22.07%
EPS Next 5Y26.9%
Revenue Next Year-3.33%
Revenue Next 2Y-2.56%
Revenue Next 3Y-1.75%
Revenue Next 5Y0.63%
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.
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
A Price/Earnings ratio of 76.96 indicates a quite expensive valuation of USM.
Based on the Price/Earnings ratio, USM is valued a bit more expensive than 71.43% of the companies in the same industry.
When comparing the Price/Earnings ratio of USM to the average of the S&P500 Index (28.29), we can say USM is valued expensively.
USM is valuated quite expensively with a Price/Forward Earnings ratio of 57.19.
Based on the Price/Forward Earnings ratio, USM is valued expensively inside the industry as 80.95% of the companies are valued cheaper.
When comparing the Price/Forward Earnings ratio of USM to the average of the S&P500 Index (24.44), we can say USM is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 76.96 | ||
| Fwd PE | 57.19 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, USM is valued a bit more expensive than the industry average as 66.67% of the companies are valued more cheaply.
USM's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. USM is more expensive than 71.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.39 | ||
| EV/EBITDA | 9.58 |
4.3 Compensation for Growth
A more expensive valuation may be justified as USM's earnings are expected to grow with 22.07% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y33.41%
EPS Next 3Y22.07%
5. Dividend
5.1 Amount
No dividends for USM!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
US CELLULAR CORP
NYSE:USM (1/21/2025, 8:04:00 PM)
After market: 63.11 0 (0%)63.11
-0.94 (-1.47%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners29.79%
Inst Owner Change0.08%
Ins Owners0.55%
Ins Owner Change-5.55%
Market Cap5.43B
Analysts75.56
Price Target79.1 (25.34%)
Short Float %4.48%
Short Ratio4.73
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0
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)70.33%
Min EPS beat(2)44.89%
Max EPS beat(2)95.76%
EPS beat(4)3
Avg EPS beat(4)104.24%
Min EPS beat(4)-27.29%
Max EPS beat(4)303.61%
EPS beat(8)5
Avg EPS beat(8)89.13%
EPS beat(12)7
Avg EPS beat(12)52.28%
EPS beat(16)9
Avg EPS beat(16)66.83%
Revenue beat(2)0
Avg Revenue beat(2)-1.83%
Min Revenue beat(2)-2.87%
Max Revenue beat(2)-0.78%
Revenue beat(4)1
Avg Revenue beat(4)-1.21%
Min Revenue beat(4)-2.87%
Max Revenue beat(4)0.6%
Revenue beat(8)1
Avg Revenue beat(8)-2.76%
Revenue beat(12)3
Avg Revenue beat(12)-1.89%
Revenue beat(16)5
Avg Revenue beat(16)-1.53%
PT rev (1m)3.77%
PT rev (3m)31.44%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-206.66%
EPS NY rev (1m)0%
EPS NY rev (3m)-97.7%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.9%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 76.96 | ||
| Fwd PE | 57.19 | ||
| P/S | 1.43 | ||
| P/FCF | 23.39 | ||
| P/OCF | 5.98 | ||
| P/B | 1.18 | ||
| P/tB | 904.58 | ||
| EV/EBITDA | 9.58 |
EPS(TTM)0.82
EY1.3%
EPS(NY)1.1
Fwd EY1.75%
FCF(TTM)2.7
FCFY4.27%
OCF(TTM)10.56
OCFY16.73%
SpS44.17
BVpS53.28
TBVpS0.07
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.29% | ||
| ROE | -0.65% | ||
| ROCE | 1.83% | ||
| ROIC | 1.45% | ||
| ROICexc | 1.49% | ||
| ROICexgc | 2.92% | ||
| OM | 4.63% | ||
| PM (TTM) | N/A | ||
| GM | 56.96% | ||
| FCFM | 6.11% |
ROA(3y)0.76%
ROA(5y)1.24%
ROE(3y)1.74%
ROE(5y)2.69%
ROIC(3y)1.18%
ROIC(5y)1.33%
ROICexc(3y)1.21%
ROICexc(5y)1.42%
ROICexgc(3y)2.26%
ROICexgc(5y)2.42%
ROCE(3y)1.5%
ROCE(5y)1.69%
ROICexcg growth 3Y-7.86%
ROICexcg growth 5Y-4.86%
ROICexc growth 3Y-14.73%
ROICexc growth 5Y-8.72%
OM growth 3Y-6.22%
OM growth 5Y0.84%
PM growth 3Y-37.54%
PM growth 5Y-18.23%
GM growth 3Y0.1%
GM growth 5Y0.31%
F-Score5
Asset Turnover0.36
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 12.51 | ||
| Debt/EBITDA | 3.43 | ||
| Cap/Depr | 101.65% | ||
| Cap/Sales | 17.79% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 107.97% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.57 | ||
| Quick Ratio | 1.39 | ||
| Altman-Z | 1.4 |
F-Score5
WACC7.61%
ROIC/WACC0.19
Cap/Depr(3y)193.63%
Cap/Depr(5y)176.24%
Cap/Sales(3y)32.17%
Cap/Sales(5y)29.61%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)530.77%
EPS 3Y-37.59%
EPS 5Y-18.46%
EPS Q2Q%0%
EPS Next Y-97.83%
EPS Next 2Y33.41%
EPS Next 3Y22.07%
EPS Next 5Y26.9%
Revenue 1Y (TTM)-3.94%
Revenue growth 3Y-1.09%
Revenue growth 5Y-0.31%
Sales Q2Q%-4.26%
Revenue Next Year-3.33%
Revenue Next 2Y-2.56%
Revenue Next 3Y-1.75%
Revenue Next 5Y0.63%
EBIT growth 1Y54.39%
EBIT growth 3Y-7.25%
EBIT growth 5Y0.53%
EBIT Next Year453.09%
EBIT Next 3Y76.59%
EBIT Next 5Y45.86%
FCF growth 1Y146.03%
FCF growth 3Y18.46%
FCF growth 5Y-7.5%
OCF growth 1Y15.37%
OCF growth 3Y-11.21%
OCF growth 5Y4.08%