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%)
We assign a fundamental rating of 3 out of 10 to USM. USM was compared to 22 industry peers in the Wireless Telecommunication Services industry. USM has an average financial health and profitability rating. USM is valued expensive and it does not seem to be growing.
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
- USM has a worse Return On Assets (-0.38%) than 72.73% of its industry peers.
- Looking at the Return On Equity, with a value of -0.85%, USM is doing worse than 72.73% of the companies in the same industry.
- USM has a Return On Invested Capital (1.10%) which is comparable to the rest of the industry.
- USM had an Average Return On Invested Capital over the past 3 years of 1.05%. This is significantly below the industry average of 6.55%.
- The last Return On Invested Capital (1.10%) for USM is above the 3 year average (1.05%), which is a sign of increasing profitability.
| 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 (3.58%) which is comparable to the rest of the industry.
- USM's Operating Margin has improved in the last couple of years.
- USM's Gross Margin of 57.26% is fine compared to the rest of the industry. USM outperforms 68.18% 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.
- USM has less shares outstanding than it did 5 years ago.
- The debt/assets ratio for USM has been reduced compared to a year ago.
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.
- USM's Altman-Z score of 1.53 is fine compared to the rest 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 in line with its industry peers.
- USM has a Debt/Equity ratio of 0.62. This is a neutral value indicating USM is somewhat dependend on debt financing.
- USM has a Debt to Equity ratio (0.62) which 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.
- USM has a Quick ratio of 1.48. This is in the better half of the industry: USM outperforms 68.18% of its industry peers.
| 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
- Looking at the last year, USM shows a decrease in Revenue. The Revenue has decreased by -3.48% in the last 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
- USM is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 0.20% yearly.
- 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.
- 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
- 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 is valuated expensively when we compare the Price/Earnings ratio to 28.60, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 69.32, the valuation of USM can be described as expensive.
- 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 72.73% of the companies listed in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.83. USM is valued rather expensively when compared to this.
| 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 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
- With a Yearly Dividend Yield of 7.49%, USM is a good candidate for dividend investing.
- USM's Dividend Yield is rather good when compared to the industry average which is at 3.98. USM pays more dividend than 81.82% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, USM pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.49% |
5.2 History
- USM is new to the dividend game and has less than 3 years of track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DP0%
EPS Next 2Y25.09%
EPS Next 3Y21.15%
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%.