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. Both the profitability and the financial health of USM get a neutral evaluation. Nothing too spectacular is happening here. USM does not seem to be growing, but still is valued expensively.
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.
In the past 5 years USM always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of -0.38%, USM is doing worse than 72.73% of the companies in the same industry.
USM has a Return On Equity of -0.85%. This is in the lower half of the industry: USM underperforms 72.73% of its industry peers.
USM has a Return On Invested Capital of 1.10%. This is comparable to the rest of the industry: USM outperforms 40.91% of its industry peers.
The Average Return On Invested Capital over the past 3 years for USM is significantly below the industry average of 6.09%.
The 3 year average ROIC (1.05%) for USM is below the current ROIC(1.10%), indicating increased profibility in the last year.
| 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
The Operating Margin of USM (3.58%) is comparable to the rest of the industry.
USM's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 57.26%, USM is doing good in the industry, outperforming 68.18% of the companies in the same industry.
In the last couple of years the Gross Margin of USM has remained more or less at the same level.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), USM is destroying value.
Compared to 1 year ago, USM has about the same amount of shares outstanding.
USM has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, USM has an improved debt to assets ratio.
2.2 Solvency
USM has an Altman-Z score of 1.53. This is a bad value and indicates that USM is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of USM (1.53) is better than 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.
The Debt to Equity ratio of USM (0.62) 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.
USM has a Current ratio of 1.70. This is in the better half of the industry: USM outperforms 63.64% of its industry peers.
A Quick Ratio of 1.48 indicates that USM should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.48, USM is in the better half of 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%.
The earnings per share for USM have been decreasing by -13.19% on average. This is quite bad
The Revenue has decreased by -3.48% in the past year.
Measured over the past years, USM shows a decrease in Revenue. The Revenue has been decreasing by -1.29% on average per year.
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.
Based on estimates for the next years, USM will show a very negative growth in Revenue. The Revenue will decrease by -42.63% on average per year.
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.
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 87.51, which means the current valuation is very expensive for USM.
Compared to the rest of the industry, the Price/Earnings ratio of USM indicates a slightly more expensive valuation: USM is more expensive than 72.73% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.38. USM is valued rather expensively when compared to this.
USM is valuated quite expensively with a Price/Forward Earnings ratio of 69.32.
Based on the Price/Forward Earnings ratio, USM is valued a bit more expensive than 72.73% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.86. USM is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 87.51 | ||
| Fwd PE | 69.32 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, USM is valued a bit more expensive than 63.64% of the companies in the same industry.
63.64% of the companies in the same industry are cheaper than USM, based on the Price/Free Cash Flow ratio.
| 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.
USM's earnings are expected to grow with 21.15% in the coming years. This may justify a more expensive valuation.
PEG (NY)5.49
PEG (5Y)N/A
EPS Next 2Y25.09%
EPS Next 3Y21.15%
5. Dividend
5.1 Amount
USM has a Yearly Dividend Yield of 7.49%, which is a nice return.
Compared to an average industry Dividend Yield of 5.28, 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 2.38.
| 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 Change5.38%
Ins OwnersN/A
Ins Owner Change18.51%
Market Cap6.55B
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
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%
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 | 8.09 | ||
| 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%