AT&T INC (T) Fundamental Analysis & Valuation

NYSE:T • US00206R1023

Current stock price

25.88 USD
-0.3 (-1.15%)
At close:
25.16 USD
-0.72 (-2.78%)
Pre-Market:

This T fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

7

1. T Profitability Analysis

1.1 Basic Checks

  • In the past year T was profitable.
  • T had a positive operating cash flow in the past year.
  • Of the past 5 years T 4 years were profitable.
  • T had a positive operating cash flow in each of the past 5 years.
T Yearly Net Income VS EBIT VS OCF VS FCFT Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10B 20B 30B 40B

1.2 Ratios

  • T's Return On Assets of 5.21% is fine compared to the rest of the industry. T outperforms 78.38% of its industry peers.
  • T has a Return On Equity of 19.80%. This is amongst the best in the industry. T outperforms 81.08% of its industry peers.
  • With a decent Return On Invested Capital value of 5.45%, T is doing good in the industry, outperforming 67.57% of the companies in the same industry.
  • The Average Return On Invested Capital over the past 3 years for T is in line with the industry average of 6.02%.
Industry RankSector Rank
ROA 5.21%
ROE 19.8%
ROIC 5.45%
ROA(3y)3.81%
ROA(5y)2.57%
ROE(3y)14.61%
ROE(5y)9.37%
ROIC(3y)5.52%
ROIC(5y)5.3%
T Yearly ROA, ROE, ROICT Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5 -5 10 15 20

1.3 Margins

  • The Profit Margin of T (17.42%) is better than 89.19% of its industry peers.
  • T's Operating Margin of 19.89% is fine compared to the rest of the industry. T outperforms 78.38% of its industry peers.
  • T's Operating Margin has improved in the last couple of years.
  • T has a Gross Margin of 59.55%. This is in the better half of the industry: T outperforms 62.16% of its industry peers.
  • In the last couple of years the Gross Margin of T has grown nicely.
Industry RankSector Rank
OM 19.89%
PM (TTM) 17.42%
GM 59.55%
OM growth 3Y1.56%
OM growth 5Y4.24%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.95%
GM growth 5Y1.94%
T Yearly Profit, Operating, Gross MarginsT Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 40

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2

2. T Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so T is destroying value.
  • T has less shares outstanding than it did 1 year ago.
  • Compared to 5 years ago, T has less shares outstanding
  • The debt/assets ratio for T is higher compared to a year ago.
T Yearly Shares OutstandingT Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B
T Yearly Total Debt VS Total AssetsT Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100B 200B 300B 400B 500B

2.2 Solvency

  • T has an Altman-Z score of 0.88. This is a bad value and indicates that T is not financially healthy and even has some risk of bankruptcy.
  • With a Altman-Z score value of 0.88, T perfoms like the industry average, outperforming 45.95% of the companies in the same industry.
  • T has a debt to FCF ratio of 7.00. This is a slightly negative value and a sign of low solvency as T would need 7.00 years to pay back of all of its debts.
  • T has a better Debt to FCF ratio (7.00) than 70.27% of its industry peers.
  • T has a Debt/Equity ratio of 1.15. This is a high value indicating a heavy dependency on external financing.
  • Looking at the Debt to Equity ratio, with a value of 1.15, T is in line with its industry, outperforming 45.95% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 1.15
Debt/FCF 7
Altman-Z 0.88
ROIC/WACC0.79
WACC6.88%
T Yearly LT Debt VS Equity VS FCFT Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50B 100B 150B

2.3 Liquidity

  • A Current Ratio of 0.91 indicates that T may have some problems paying its short term obligations.
  • T has a Current ratio of 0.91. This is in the lower half of the industry: T underperforms 70.27% of its industry peers.
  • A Quick Ratio of 0.86 indicates that T may have some problems paying its short term obligations.
  • T's Quick ratio of 0.86 is on the low side compared to the rest of the industry. T is outperformed by 75.68% of its industry peers.
Industry RankSector Rank
Current Ratio 0.91
Quick Ratio 0.86
T Yearly Current Assets VS Current LiabilitesT Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50B 100B 150B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

3

3. T Growth Analysis

3.1 Past

  • T shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -6.64%.
  • T shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -7.88% yearly.
  • T shows a small growth in Revenue. In the last year, the Revenue has grown by 2.71%.
  • The Revenue has been decreasing by -2.56% on average over the past years.
EPS 1Y (TTM)-6.64%
EPS 3Y-8%
EPS 5Y-7.88%
EPS Q2Q%-3.7%
Revenue 1Y (TTM)2.71%
Revenue growth 3Y1.34%
Revenue growth 5Y-2.56%
Sales Q2Q%3.62%

3.2 Future

  • Based on estimates for the next years, T will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.17% on average per year.
  • The Revenue is expected to grow by 2.42% on average over the next years.
EPS Next Y10.86%
EPS Next 2Y10.8%
EPS Next 3Y11.75%
EPS Next 5Y10.17%
Revenue Next Year2.81%
Revenue Next 2Y2.47%
Revenue Next 3Y2.38%
Revenue Next 5Y2.42%

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 accelerating.
T Yearly Revenue VS EstimatesT Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 50B 100B 150B
T Yearly EPS VS EstimatesT Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 1 2 3

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7

4. T Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 12.27, the valuation of T can be described as correct.
  • Based on the Price/Earnings ratio, T is valued cheaper than 81.08% of the companies in the same industry.
  • The average S&P500 Price/Earnings ratio is at 27.66. T is valued rather cheaply when compared to this.
  • T is valuated reasonably with a Price/Forward Earnings ratio of 11.06.
  • Based on the Price/Forward Earnings ratio, T is valued cheaply inside the industry as 81.08% of the companies are valued more expensively.
  • The average S&P500 Price/Forward Earnings ratio is at 38.00. T is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 12.27
Fwd PE 11.06
T Price Earnings VS Forward Price EarningsT Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of T indicates a somewhat cheap valuation: T is cheaper than 70.27% of the companies listed in the same industry.
  • Based on the Price/Free Cash Flow ratio, T is valued a bit cheaper than the industry average as 78.38% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 9.29
EV/EBITDA 6.51
T Per share dataT EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 -10

4.3 Compensation for Growth

  • The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
  • T has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.13
PEG (5Y)N/A
EPS Next 2Y10.8%
EPS Next 3Y11.75%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

6

5. T Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 4.20%, T is a good candidate for dividend investing.
  • T's Dividend Yield is rather good when compared to the industry average which is at 2.19. T pays more dividend than 81.08% of the companies in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.81, T pays a better dividend.
Industry RankSector Rank
Dividend Yield 4.2%

5.2 History

  • The dividend of T decreases each year by -11.16%.
  • T has paid a dividend for at least 10 years, which is a reliable track record.
  • The dividend of T decreased in the last 3 years.
Dividend Growth(5Y)-11.16%
Div Incr Years0
Div Non Decr Years2
T Yearly Dividends per shareT Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.5 1 1.5 2

5.3 Sustainability

  • 37.37% of the earnings are spent on dividend by T. This is a low number and sustainable payout ratio.
DP37.37%
EPS Next 2Y10.8%
EPS Next 3Y11.75%
T Yearly Income VS Free CF VS DividendT Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10B 20B
T Dividend Payout.T Dividend Payout, showing the Payout Ratio.T Dividend Payout.PayoutRetained Earnings

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T Fundamentals: All Metrics, Ratios and Statistics

AT&T INC

NYSE:T (4/21/2026, 8:14:18 PM)

Premarket: 25.16 -0.72 (-2.78%)

25.88

-0.3 (-1.15%)

Chartmill FA Rating
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)04-22
Earnings (Next)N/A
Inst Owners68%
Inst Owner Change0.15%
Ins Owners0.07%
Ins Owner Change-5.8%
Market Cap180.70B
Revenue(TTM)125.65B
Net Income(TTM)21.89B
Analysts77.65
Price Target30.47 (17.74%)
Short Float %1.7%
Short Ratio2.7
Dividend
Industry RankSector Rank
Dividend Yield 4.2%
Yearly Dividend1.15
Dividend Growth(5Y)-11.16%
DP37.37%
Div Incr Years0
Div Non Decr Years2
Ex-Date04-10
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)4.61%
Min EPS beat(2)-0.97%
Max EPS beat(2)10.19%
EPS beat(4)3
Avg EPS beat(4)3.7%
Min EPS beat(4)-0.97%
Max EPS beat(4)10.19%
EPS beat(8)6
Avg EPS beat(8)2.81%
EPS beat(12)9
Avg EPS beat(12)1.82%
EPS beat(16)12
Avg EPS beat(16)2.31%
Revenue beat(2)0
Avg Revenue beat(2)-1.32%
Min Revenue beat(2)-2.47%
Max Revenue beat(2)-0.18%
Revenue beat(4)0
Avg Revenue beat(4)-1.14%
Min Revenue beat(4)-2.47%
Max Revenue beat(4)-0.18%
Revenue beat(8)0
Avg Revenue beat(8)-1.8%
Revenue beat(12)0
Avg Revenue beat(12)-1.71%
Revenue beat(16)0
Avg Revenue beat(16)-3.08%
PT rev (1m)3.82%
PT rev (3m)3.73%
EPS NQ rev (1m)-0.53%
EPS NQ rev (3m)3.42%
EPS NY rev (1m)-0.15%
EPS NY rev (3m)3.61%
Revenue NQ rev (1m)-0.16%
Revenue NQ rev (3m)0.68%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)1.31%
Valuation
Industry RankSector Rank
PE 12.27
Fwd PE 11.06
P/S 1.44
P/FCF 9.29
P/OCF 4.49
P/B 1.63
P/tB N/A
EV/EBITDA 6.51
EPS(TTM)2.11
EY8.15%
EPS(NY)2.34
Fwd EY9.04%
FCF(TTM)2.78
FCFY10.76%
OCF(TTM)5.77
OCFY22.29%
SpS18
BVpS15.83
TBVpS-12.36
PEG (NY)1.13
PEG (5Y)N/A
Graham Number27.4147 (5.93%)
Profitability
Industry RankSector Rank
ROA 5.21%
ROE 19.8%
ROCE 6.82%
ROIC 5.45%
ROICexc 5.74%
ROICexgc 13.21%
OM 19.89%
PM (TTM) 17.42%
GM 59.55%
FCFM 15.47%
ROA(3y)3.81%
ROA(5y)2.57%
ROE(3y)14.61%
ROE(5y)9.37%
ROIC(3y)5.52%
ROIC(5y)5.3%
ROICexc(3y)5.67%
ROICexc(5y)5.46%
ROICexgc(3y)13.14%
ROICexgc(5y)12.4%
ROCE(3y)6.9%
ROCE(5y)6.63%
ROICexgc growth 3Y1.61%
ROICexgc growth 5Y4.08%
ROICexc growth 3Y2.4%
ROICexc growth 5Y7.04%
OM growth 3Y1.56%
OM growth 5Y4.24%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.95%
GM growth 5Y1.94%
F-Score6
Asset Turnover0.3
Health
Industry RankSector Rank
Debt/Equity 1.15
Debt/FCF 7
Debt/EBITDA 2.77
Cap/Depr 99.79%
Cap/Sales 16.59%
Interest Coverage 3.77
Cash Conversion 87.81%
Profit Quality 88.82%
Current Ratio 0.91
Quick Ratio 0.86
Altman-Z 0.88
F-Score6
WACC6.88%
ROIC/WACC0.79
Cap/Depr(3y)97.78%
Cap/Depr(5y)97.86%
Cap/Sales(3y)15.91%
Cap/Sales(5y)15.12%
Profit Quality(3y)135.07%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-6.64%
EPS 3Y-8%
EPS 5Y-7.88%
EPS Q2Q%-3.7%
EPS Next Y10.86%
EPS Next 2Y10.8%
EPS Next 3Y11.75%
EPS Next 5Y10.17%
Revenue 1Y (TTM)2.71%
Revenue growth 3Y1.34%
Revenue growth 5Y-2.56%
Sales Q2Q%3.62%
Revenue Next Year2.81%
Revenue Next 2Y2.47%
Revenue Next 3Y2.38%
Revenue Next 5Y2.42%
EBIT growth 1Y3.53%
EBIT growth 3Y2.92%
EBIT growth 5Y1.57%
EBIT Next Year92.53%
EBIT Next 3Y27.93%
EBIT Next 5Y16.99%
FCF growth 1Y5.05%
FCF growth 3Y16.18%
FCF growth 5Y-7.32%
OCF growth 1Y3.9%
OCF growth 3Y7.95%
OCF growth 5Y-1.36%

AT&T INC / T Fundamental Analysis FAQ

What is the fundamental rating for T stock?

ChartMill assigns a fundamental rating of 5 / 10 to T.


What is the valuation status for T stock?

ChartMill assigns a valuation rating of 7 / 10 to AT&T INC (T). This can be considered as Undervalued.


How profitable is AT&T INC (T) stock?

AT&T INC (T) has a profitability rating of 7 / 10.


What are the PE and PB ratios of AT&T INC (T) stock?

The Price/Earnings (PE) ratio for AT&T INC (T) is 12.27 and the Price/Book (PB) ratio is 1.63.


How financially healthy is AT&T INC?

The financial health rating of AT&T INC (T) is 2 / 10.