US CELLULAR CORP (USM) Stock Fundamental Analysis
NYSE:USM - New York Stock Exchange, Inc. - US9116841084 - Common Stock - Currency: USD
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 may be in some trouble as it scores bad on both profitability and health. USM is quite expensive at the moment. It does show a decent growth rate.
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.
Of the past 5 years USM 4 years had a positive operating cash flow.
1.2 Ratios
USM has a Return On Assets of -0.29%. This is in the lower half of the industry: USM underperforms 71.43% of its industry peers.
With a Return On Equity value of -0.65%, USM is not doing good in the industry: 71.43% of the companies in the same industry are doing better.
With a Return On Invested Capital value of 1.45%, USM is not doing good in the industry: 76.19% of the companies in the same industry are doing better.
Measured over the past 3 years, the Average Return On Invested Capital for USM is significantly below the industry average of 6.52%.
The 3 year average ROIC (1.18%) for USM is below the current ROIC(1.45%), indicating increased profibility in the last year.
| 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.
With a Operating Margin value of 4.63%, USM is not doing good in the industry: 76.19% of the companies in the same industry are doing better.
USM's Operating Margin has been stable in the last couple of years.
The Gross Margin of USM (56.96%) is comparable to the rest of the 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 | 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), USM is destroying value.
There is no outstanding debt for USM. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
USM has an Altman-Z score of 1.43. 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 1.43, USM is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
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.
USM has a worse Debt to FCF ratio (12.51) than 66.67% of its industry peers.
A Debt/Equity ratio of 0.63 indicates that USM is somewhat dependend on debt financing.
USM has a Debt to Equity ratio of 0.63. This is comparable to the rest of the industry: USM outperforms 52.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 12.51 | ||
| Altman-Z | 1.43 |
ROIC/WACC0.19
WACC7.52%
2.3 Liquidity
A Current Ratio of 1.57 indicates that USM should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.57, USM is doing good in the industry, outperforming 66.67% of the companies in the same industry.
A Quick Ratio of 1.39 indicates that USM should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.39, USM is doing good in the industry, outperforming 61.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.57 | ||
| Quick Ratio | 1.39 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 530.77% over the past year.
The earnings per share for USM have been decreasing by -18.46% on average. This is quite bad
USM shows a decrease in Revenue. In the last year, the revenue decreased by -3.94%.
USM shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.31% yearly.
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
USM is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 26.90% yearly.
The Revenue is expected to grow by 0.63% on average over the next years.
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
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
A Price/Earnings ratio of 79.78 indicates a quite expensive valuation of 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 71.43% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 29.63. USM is valued rather expensively when compared to this.
The Price/Forward Earnings ratio is 59.29, which means the current valuation is very expensive for USM.
Based on the Price/Forward Earnings ratio, USM is valued more expensive than 80.95% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.68, USM is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 79.78 | ||
| Fwd PE | 59.29 |
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 | 24.25 | ||
| EV/EBITDA | 9.98 |
4.3 Compensation for Growth
USM's earnings are expected to grow with 22.07% in the coming years. This may justify a more expensive valuation.
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 |
65.42
-1.63 (-2.43%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners26.28%
Inst Owner Change-6.55%
Ins Owners0.56%
Ins Owner Change1.91%
Market Cap5.63B
Analysts75.56
Price Target79.1 (20.91%)
Short Float %4.65%
Short Ratio6.49
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)0%
PT rev (3m)31.44%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-255.53%
EPS NY rev (1m)0%
EPS NY rev (3m)-97.37%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.03%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 79.78 | ||
| Fwd PE | 59.29 | ||
| P/S | 1.48 | ||
| P/FCF | 24.25 | ||
| P/OCF | 6.2 | ||
| P/B | 1.23 | ||
| P/tB | 937.69 | ||
| EV/EBITDA | 9.98 |
EPS(TTM)0.82
EY1.25%
EPS(NY)1.1
Fwd EY1.69%
FCF(TTM)2.7
FCFY4.12%
OCF(TTM)10.56
OCFY16.14%
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 | 1.43 |
F-Score5
WACC7.52%
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%