US CELLULAR CORP (USM) Stock Fundamental Analysis
NYSE:USM - New York Stock Exchange, Inc. - US9116841084 - Common Stock - Currency: USD
We assign a fundamental rating of 3 out of 10 to USM. USM was compared to 21 industry peers in the Wireless Telecommunication Services industry. The financial health of USM is average, but there are quite some concerns on its profitability. 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.
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
USM has a Return On Assets of -0.38%. This is in the lower half of the industry: USM underperforms 66.67% of its industry peers.
The Return On Equity of USM (-0.85%) is worse than 66.67% of its industry peers.
With a Return On Invested Capital value of 1.10%, USM is not doing good in the industry: 76.19% of the companies in the same industry are doing better.
The Average Return On Invested Capital over the past 3 years for USM is significantly below the industry average of 6.34%.
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 in the lower half of the industry: USM underperforms 76.19% of its industry peers.
USM's Operating Margin has improved in the last couple of years.
USM has a Gross Margin of 57.26%. This is comparable to the rest of the industry: USM outperforms 52.38% of its industry peers.
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
USM has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, USM has about the same amount of shares outstanding.
The number of shares outstanding for USM has been reduced compared to 5 years ago.
USM has a better debt/assets ratio than last year.
2.2 Solvency
USM has an Altman-Z score of 1.41. This is a bad value and indicates that USM is not financially healthy and even has some risk of bankruptcy.
With a decent Altman-Z score value of 1.41, USM is doing good in the industry, outperforming 66.67% of the companies in the same industry.
USM has a debt to FCF ratio of 8.09. This is a slightly negative value and a sign of low solvency as USM would need 8.09 years to pay back of all of its debts.
The Debt to FCF ratio of USM (8.09) is comparable to the rest of the industry.
A Debt/Equity ratio of 0.62 indicates that USM is somewhat dependend on debt financing.
USM has a Debt to Equity ratio of 0.62. This is comparable to the rest of the industry: USM outperforms 57.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 8.09 | ||
| Altman-Z | 1.41 |
ROIC/WACC0.14
WACC7.73%
2.3 Liquidity
A Current Ratio of 1.70 indicates that USM should not have too much problems paying 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 66.67% 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.
Looking at the Quick ratio, with a value of 1.48, USM is in the better half of the industry, outperforming 76.19% 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 7.46%.
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.
The Revenue has decreased by -4.11% 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)7.46%
EPS 3Y-26.25%
EPS 5Y-13.19%
EPS Q2Q%5%
Revenue 1Y (TTM)-4.11%
Revenue growth 3Y-2.93%
Revenue growth 5Y-1.29%
Sales Q2Q%-6.21%
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 Y15.94%
EPS Next 2Y25.09%
EPS Next 3Y21.15%
EPS Next 5Y31.56%
Revenue Next Year-2.84%
Revenue Next 2Y-1.42%
Revenue Next 3Y-1.07%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 89.38, which means the current valuation is very expensive for USM.
USM's Price/Earnings 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.
When comparing the Price/Earnings ratio of USM to the average of the S&P500 Index (27.30), we can say USM is valued expensively.
The Price/Forward Earnings ratio is 57.92, which means the current valuation is very expensive for USM.
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 76.19% of the companies listed in the same industry.
USM's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 89.38 | ||
| Fwd PE | 57.92 |
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 61.90% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, USM is valued a bit more expensive than 61.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.5 | ||
| EV/EBITDA | 10.23 |
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)5.61
PEG (5Y)N/A
EPS Next 2Y25.09%
EPS Next 3Y21.15%
5. Dividend
5.1 Amount
No dividends for USM!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
64.35
+0.89 (+1.4%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners29.22%
Inst Owner Change0%
Ins Owners0.94%
Ins Owner Change29.02%
Market Cap5.47B
Analysts75.56
Price Target74.57 (15.88%)
Short Float %7.83%
Short Ratio4.55
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)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)-1.35%
PT rev (3m)-0.85%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-19.55%
EPS NY rev (1m)0%
EPS NY rev (3m)-28.09%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.4%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.7%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 89.38 | ||
| Fwd PE | 57.92 | ||
| P/S | 1.47 | ||
| P/FCF | 15.5 | ||
| P/OCF | 6.51 | ||
| P/B | 1.19 | ||
| P/tB | 1367.44 | ||
| EV/EBITDA | 10.23 |
EPS(TTM)0.72
EY1.12%
EPS(NY)1.11
Fwd EY1.73%
FCF(TTM)4.15
FCFY6.45%
OCF(TTM)9.88
OCFY15.36%
SpS43.66
BVpS53.94
TBVpS0.05
PEG (NY)5.61
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 | 1.41 |
F-Score5
WACC7.73%
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)7.46%
EPS 3Y-26.25%
EPS 5Y-13.19%
EPS Q2Q%5%
EPS Next Y15.94%
EPS Next 2Y25.09%
EPS Next 3Y21.15%
EPS Next 5Y31.56%
Revenue 1Y (TTM)-4.11%
Revenue growth 3Y-2.93%
Revenue growth 5Y-1.29%
Sales Q2Q%-6.21%
Revenue Next Year-2.84%
Revenue Next 2Y-1.42%
Revenue Next 3Y-1.07%
Revenue Next 5Y-0.31%
EBIT growth 1Y-23.56%
EBIT growth 3Y-8.78%
EBIT growth 5Y2.21%
EBIT Next Year19886.2%
EBIT Next 3Y467.35%
EBIT Next 5Y183.49%
FCF growth 1Y406.96%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y49.47%
OCF growth 3Y3.26%
OCF growth 5Y4.05%