T-MOBILE US INC (TMUS)
US8725901040 - Common Stock
Taking everything into account, TMUS scores 5 out of 10 in our fundamental rating. TMUS was compared to 22 industry peers in the Wireless Telecommunication Services industry. While TMUS belongs to the best of the industry regarding profitability, there are concerns on its financial health. TMUS has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
TMUS had positive earnings in the past year.
TMUS had a positive operating cash flow in the past year.
Each year in the past 5 years TMUS has been profitable.
TMUS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 4.24%, TMUS is doing good in the industry, outperforming 61.90% of the companies in the same industry.
TMUS has a better Return On Equity (14.10%) than 71.43% of its industry peers.
TMUS has a better Return On Invested Capital (6.49%) than 66.67% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TMUS is in line with the industry average of 6.44%.
The last Return On Invested Capital (6.49%) for TMUS is above the 3 year average (5.36%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.24% | ||
| ROE | 14.1% | ||
| ROIC | 6.49% |
ROA(3y)2.23%
ROA(5y)2.44%
ROE(3y)6.98%
ROE(5y)7.54%
ROIC(3y)5.36%
ROIC(5y)5.33%
1.3 Margins
TMUS's Profit Margin of 11.14% is fine compared to the rest of the industry. TMUS outperforms 61.90% of its industry peers.
TMUS's Profit Margin has improved in the last couple of years.
TMUS has a Operating Margin of 19.98%. This is in the better half of the industry: TMUS outperforms 76.19% of its industry peers.
In the last couple of years the Operating Margin of TMUS has grown nicely.
With a decent Gross Margin value of 62.97%, TMUS is doing good in the industry, outperforming 71.43% of the companies in the same industry.
TMUS's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.98% | ||
| PM (TTM) | 11.14% | ||
| GM | 62.97% |
OM growth 3Y14.03%
OM growth 5Y9.67%
PM growth 3Y33.2%
PM growth 5Y9.69%
GM growth 3Y1.52%
GM growth 5Y1.6%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), TMUS is destroying value.
Compared to 1 year ago, TMUS has less shares outstanding
Compared to 5 years ago, TMUS has more shares outstanding
TMUS has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.51, we must say that TMUS is in the distress zone and has some risk of bankruptcy.
TMUS has a Altman-Z score of 1.51. This is in the better half of the industry: TMUS outperforms 66.67% of its industry peers.
TMUS has a debt to FCF ratio of 9.21. This is a negative value and a sign of low solvency as TMUS would need 9.21 years to pay back of all of its debts.
TMUS has a Debt to FCF ratio of 9.21. This is in the lower half of the industry: TMUS underperforms 66.67% of its industry peers.
A Debt/Equity ratio of 1.34 is on the high side and indicates that TMUS has dependencies on debt financing.
TMUS's Debt to Equity ratio of 1.34 is on the low side compared to the rest of the industry. TMUS is outperformed by 61.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.34 | ||
| Debt/FCF | 9.21 | ||
| Altman-Z | 1.51 |
ROIC/WACC0.85
WACC7.6%
2.3 Liquidity
A Current Ratio of 0.94 indicates that TMUS may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.94, TMUS is doing worse than 66.67% of the companies in the same industry.
A Quick Ratio of 0.86 indicates that TMUS may have some problems paying its short term obligations.
The Quick ratio of TMUS (0.86) is worse than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.94 | ||
| Quick Ratio | 0.86 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 104.74% over the past year.
TMUS shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 15.44% yearly.
TMUS shows a decrease in Revenue. In the last year, the revenue decreased by -0.71%.
The Revenue has been growing by 12.65% on average over the past years. This is quite good.
EPS 1Y (TTM)104.74%
EPS 3Y31.04%
EPS 5Y15.44%
EPS Q2Q%26.58%
Revenue 1Y (TTM)-0.71%
Revenue growth 3Y4.73%
Revenue growth 5Y12.65%
Sales Q2Q%-0.19%
3.2 Future
Based on estimates for the next years, TMUS will show a very strong growth in Earnings Per Share. The EPS will grow by 21.25% on average per year.
Based on estimates for the next years, TMUS will show a small growth in Revenue. The Revenue will grow by 3.51% on average per year.
EPS Next Y32.33%
EPS Next 2Y27.73%
EPS Next 3Y24.12%
EPS Next 5Y21.25%
Revenue Next Year2.89%
Revenue Next 2Y3.28%
Revenue Next 3Y3.24%
Revenue Next 5Y3.51%
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
The Price/Earnings ratio is 23.80, which indicates a rather expensive current valuation of TMUS.
TMUS's Price/Earnings ratio is in line with the industry average.
TMUS's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.05.
A Price/Forward Earnings ratio of 15.47 indicates a correct valuation of TMUS.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TMUS is on the same level as its industry peers.
TMUS's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 20.07.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.8 | ||
| Fwd PE | 15.47 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TMUS is valued a bit more expensive than 71.43% of the companies in the same industry.
80.95% of the companies in the same industry are cheaper than TMUS, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.37 | ||
| EV/EBITDA | 9.5 |
4.3 Compensation for Growth
TMUS's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The excellent profitability rating of TMUS may justify a higher PE ratio.
A more expensive valuation may be justified as TMUS's earnings are expected to grow with 24.12% in the coming years.
PEG (NY)0.74
PEG (5Y)1.54
EPS Next 2Y27.73%
EPS Next 3Y24.12%
5. Dividend
5.1 Amount
TMUS has a Yearly Dividend Yield of 1.58%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 5.96, TMUS has a dividend in line with its industry peers.
TMUS's Dividend Yield is slightly below the S&P500 average, which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.58% |
5.2 History
The dividend of TMUS is nicely growing with an annual growth rate of 55.47%!
TMUS has been paying a dividend for less than 5 years, so it still needs to build a track record.
Dividend Growth(5Y)55.47%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
TMUS pays out 17.32% of its income as dividend. This is a sustainable payout ratio.
The dividend of TMUS is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP17.32%
EPS Next 2Y27.73%
EPS Next 3Y24.12%
T-MOBILE US INC
NASDAQ:TMUS (5/31/2024, 7:00:00 PM)
After market: 174.96 0 (0%)174.96
+4.26 (+2.5%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners
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Market Cap205.03B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.58% |
Dividend Growth(5Y)
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Surprises & Revisions
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.8 | ||
| Fwd PE | 15.47 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.74
PEG (5Y)1.54
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.24% | ||
| ROE | 14.1% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 19.98% | ||
| PM (TTM) | 11.14% | ||
| GM | 62.97% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.38
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.34 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.94 | ||
| Quick Ratio | 0.86 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)104.74%
EPS 3Y31.04%
EPS 5Y
EPS Q2Q%
EPS Next Y32.33%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-0.71%
Revenue growth 3Y4.73%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
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FCF growth 3Y
FCF growth 5Y
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