US CELLULAR CORP (USM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:USM - US9116841084 - Common Stock
77.01 USD
+2.76 (+3.72%)
77.9 USD
+0.89 (+1.16%)
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 has an average financial health and profitability rating. USM has a expensive valuation and it also scores bad on growth.
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.
- Each year in the past 5 years USM had a positive operating cash flow.
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'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.
- With a Return On Invested Capital value of 1.10%, USM perfoms like the industry average, outperforming 40.91% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for USM is significantly below the industry average of 6.24%.
- 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
- USM has a Operating Margin of 3.58%. This is comparable to the rest of the industry: USM outperforms 40.91% of its industry peers.
- In the last couple of years the Operating Margin of USM has grown nicely.
- Looking at the Gross Margin, with a value of 57.26%, USM is in the better half of 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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so USM 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 has a Debt to FCF ratio (8.09) which is comparable to the rest of the industry.
- USM has a Debt/Equity ratio of 0.62. This is a neutral value indicating USM is somewhat dependend on debt financing.
- With a Debt to Equity ratio value of 0.62, USM perfoms like the industry average, outperforming 59.09% of the companies in the same 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
- USM has a Current Ratio of 1.70. This is a normal value and indicates that USM is financially healthy and should not expect problems in meeting 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
- The Earnings Per Share has been growing slightly by 7.32% over the past year.
- Measured over the past years, USM shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -13.19% on average per year.
- Looking at the last year, USM shows a decrease in Revenue. The Revenue has decreased by -3.48% in the last year.
- 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.
- The Revenue is expected to decrease by -42.63% on average over the next years. This is quite bad
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
- With a Price/Earnings ratio of 87.51, USM can be considered very expensive at the moment.
- 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.
- USM's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.38.
- Based on the Price/Forward Earnings ratio of 69.32, the valuation of USM can be described as expensive.
- 72.73% of the companies in the same industry are cheaper than USM, based on the Price/Forward Earnings ratio.
- When comparing the Price/Forward Earnings ratio of USM to the average of the S&P500 Index (24.29), we can say USM is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 87.51 | ||
| Fwd PE | 69.32 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of USM indicates a slightly more expensive valuation: USM is more expensive than 63.64% of the companies listed 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 USM does not grow enough to justify the current Price/Earnings ratio.
- 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 6.15, 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 1.85.
| 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)08-11 2025-08-11/amc
Earnings (Next)10-30 2025-10-30/bmo
Inst OwnersN/A
Inst Owner Change-0.15%
Ins OwnersN/A
Ins Owner Change-8.73%
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-DateN/A
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.
What is the valuation status for USM stock?
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.
What is the expected EPS growth for US CELLULAR CORP (USM) stock?
The Earnings per Share (EPS) of US CELLULAR CORP (USM) is expected to grow by 15.94% in the next year.
How sustainable is the dividend of US CELLULAR CORP (USM) stock?
The dividend rating of US CELLULAR CORP (USM) is 4 / 10 and the dividend payout ratio is 0%.