AT&T INC (T) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:T - US00206R1023 - Common Stock
24.81 USD
+0.04 (+0.16%)
24.82 USD
+0.01 (+0.04%)
Overall T gets a fundamental rating of 5 out of 10. We evaluated T against 37 industry peers in the Diversified Telecommunication Services industry. T has an excellent profitability rating, but there are concerns on its financial health. T has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year T was profitable.
T had a positive operating cash flow in the past year.
In multiple years T reported negative net income over the last 5 years.
Each year in the past 5 years T had a positive operating cash flow.
1.2 Ratios
T has a Return On Assets of 5.24%. This is in the better half of the industry: T outperforms 78.38% of its industry peers.
Looking at the Return On Equity, with a value of 20.02%, T belongs to the top of the industry, outperforming 83.78% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 4.98%, T is in the better half of the industry, outperforming 62.16% of the companies in the same industry.
T had an Average Return On Invested Capital over the past 3 years of 5.19%. This is in line with the industry average of 6.52%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.24% | ||
| ROE | 20.02% | ||
| ROIC | 4.98% |
ROA(3y)1.35%
ROA(5y)1.32%
ROE(3y)5.03%
ROE(5y)4.74%
ROIC(3y)5.19%
ROIC(5y)4.76%
1.3 Margins
With an excellent Profit Margin value of 17.81%, T belongs to the best of the industry, outperforming 86.49% of the companies in the same industry.
T's Profit Margin has improved in the last couple of years.
The Operating Margin of T (19.44%) is better than 75.68% of its industry peers.
In the last couple of years the Operating Margin of T has grown nicely.
Looking at the Gross Margin, with a value of 59.67%, T is in line with its industry, outperforming 56.76% of the companies in the same industry.
T's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.44% | ||
| PM (TTM) | 17.81% | ||
| GM | 59.67% |
OM growth 3Y0.54%
OM growth 5Y4.03%
PM growth 3Y-16.01%
PM growth 5Y2.75%
GM growth 3Y2.85%
GM growth 5Y2.22%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so T is destroying value.
T has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, T has less shares outstanding
T has a better debt/assets ratio than last year.
2.2 Solvency
T has an Altman-Z score of 0.87. This is a bad value and indicates that T is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of T (0.87) is comparable to the rest of the industry.
The Debt to FCF ratio of T is 6.99, which is on the high side as it means it would take T, 6.99 years of fcf income to pay off all of its debts.
T's Debt to FCF ratio of 6.99 is fine compared to the rest of the industry. T outperforms 75.68% of its industry peers.
T has a Debt/Equity ratio of 1.16. This is a high value indicating a heavy dependency on external financing.
T's Debt to Equity ratio of 1.16 is in line compared to the rest of the industry. T outperforms 48.65% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.16 | ||
| Debt/FCF | 6.99 | ||
| Altman-Z | 0.87 |
ROIC/WACC0.73
WACC6.8%
2.3 Liquidity
T has a Current Ratio of 1.01. This is a normal value and indicates that T is financially healthy and should not expect problems in meeting its short term obligations.
T's Current ratio of 1.01 is in line compared to the rest of the industry. T outperforms 43.24% of its industry peers.
A Quick Ratio of 0.96 indicates that T may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.96, T is in line with its industry, outperforming 43.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.01 | ||
| Quick Ratio | 0.96 |
3. Growth
3.1 Past
T shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -5.75%.
The Earnings Per Share has been decreasing by -8.79% on average over the past years.
Looking at the last year, T shows a small growth in Revenue. The Revenue has grown by 1.98% in the last year.
T shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -7.56% yearly.
EPS 1Y (TTM)-5.75%
EPS 3Y-12.73%
EPS 5Y-8.79%
EPS Q2Q%-10%
Revenue 1Y (TTM)1.98%
Revenue growth 3Y-3%
Revenue growth 5Y-7.56%
Sales Q2Q%1.64%
3.2 Future
T is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.70% yearly.
Based on estimates for the next years, T will show a small growth in Revenue. The Revenue will grow by 2.26% on average per year.
EPS Next Y-7.41%
EPS Next 2Y0.35%
EPS Next 3Y3.73%
EPS Next 5Y5.7%
Revenue Next Year2.29%
Revenue Next 2Y1.87%
Revenue Next 3Y1.92%
Revenue Next 5Y2.26%
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
The Price/Earnings ratio is 11.65, which indicates a very decent valuation of T.
Based on the Price/Earnings ratio, T is valued cheaper than 81.08% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.77, T is valued rather cheaply.
The Price/Forward Earnings ratio is 10.90, which indicates a very decent valuation of T.
86.49% of the companies in the same industry are more expensive than T, based on the Price/Forward Earnings ratio.
T's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.65 | ||
| Fwd PE | 10.9 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, T is valued a bit cheaper than 72.97% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, T is valued a bit cheaper than 62.16% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.81 | ||
| EV/EBITDA | 6.5 |
4.3 Compensation for Growth
The decent profitability rating of T may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y0.35%
EPS Next 3Y3.73%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.50%, T is a good candidate for dividend investing.
T's Dividend Yield is a higher than the industry average which is at 2.41.
T's Dividend Yield is rather good when compared to the S&P500 average which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.5% |
5.2 History
The dividend of T decreases each year by -10.97%.
T has been paying a dividend for at least 10 years, so it has a reliable track record.
T has decreased its dividend recently.
Dividend Growth(5Y)-10.97%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
37.01% of the earnings are spent on dividend by T. This is a low number and sustainable payout ratio.
DP37.01%
EPS Next 2Y0.35%
EPS Next 3Y3.73%
24.81
+0.04 (+0.16%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners67.17%
Inst Owner Change-3.93%
Ins Owners0.06%
Ins Owner Change-1.06%
Market Cap175.89B
Revenue(TTM)124.48B
Net Income(TTM)22.17B
Analysts78.82
Price Target29.57 (19.19%)
Short Float %1.64%
Short Ratio2.22
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.5% |
Yearly Dividend1.15
Dividend Growth(5Y)-10.97%
DP37.01%
Div Incr Years0
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.95%
Min EPS beat(2)-0.97%
Max EPS beat(2)2.87%
EPS beat(4)3
Avg EPS beat(4)2.66%
Min EPS beat(4)-0.97%
Max EPS beat(4)6.05%
EPS beat(8)5
Avg EPS beat(8)0.93%
EPS beat(12)9
Avg EPS beat(12)1.37%
EPS beat(16)12
Avg EPS beat(16)1.73%
Revenue beat(2)0
Avg Revenue beat(2)-1.65%
Min Revenue beat(2)-2.47%
Max Revenue beat(2)-0.84%
Revenue beat(4)0
Avg Revenue beat(4)-1.39%
Min Revenue beat(4)-2.47%
Max Revenue beat(4)-0.84%
Revenue beat(8)0
Avg Revenue beat(8)-1.81%
Revenue beat(12)0
Avg Revenue beat(12)-1.87%
Revenue beat(16)0
Avg Revenue beat(16)-4.61%
PT rev (1m)-1.63%
PT rev (3m)-1.72%
EPS NQ rev (1m)-0.13%
EPS NQ rev (3m)2.21%
EPS NY rev (1m)0.02%
EPS NY rev (3m)0.25%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.15%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)-0.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.65 | ||
| Fwd PE | 10.9 | ||
| P/S | 1.41 | ||
| P/FCF | 8.81 | ||
| P/OCF | 4.3 | ||
| P/B | 1.59 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.5 |
EPS(TTM)2.13
EY8.59%
EPS(NY)2.28
Fwd EY9.17%
FCF(TTM)2.81
FCFY11.35%
OCF(TTM)5.76
OCFY23.23%
SpS17.56
BVpS15.62
TBVpS-12.09
PEG (NY)N/A
PEG (5Y)N/A
Graham Number27.36
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.24% | ||
| ROE | 20.02% | ||
| ROCE | 6.55% | ||
| ROIC | 4.98% | ||
| ROICexc | 5.27% | ||
| ROICexgc | 12.06% | ||
| OM | 19.44% | ||
| PM (TTM) | 17.81% | ||
| GM | 59.67% | ||
| FCFM | 16.03% |
ROA(3y)1.35%
ROA(5y)1.32%
ROE(3y)5.03%
ROE(5y)4.74%
ROIC(3y)5.19%
ROIC(5y)4.76%
ROICexc(3y)5.26%
ROICexc(5y)4.87%
ROICexgc(3y)12.3%
ROICexgc(5y)11.33%
ROCE(3y)6.83%
ROCE(5y)6.27%
ROICexgc growth 3Y9.2%
ROICexgc growth 5Y-1.63%
ROICexc growth 3Y4.26%
ROICexc growth 5Y2.35%
OM growth 3Y0.54%
OM growth 5Y4.03%
PM growth 3Y-16.01%
PM growth 5Y2.75%
GM growth 3Y2.85%
GM growth 5Y2.22%
F-Score7
Asset Turnover0.29
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.16 | ||
| Debt/FCF | 6.99 | ||
| Debt/EBITDA | 2.83 | ||
| Cap/Depr | 98.92% | ||
| Cap/Sales | 16.79% | ||
| Interest Coverage | 3.62 | ||
| Cash Conversion | 90.13% | ||
| Profit Quality | 90.02% | ||
| Current Ratio | 1.01 | ||
| Quick Ratio | 0.96 | ||
| Altman-Z | 0.87 |
F-Score7
WACC6.8%
ROIC/WACC0.73
Cap/Depr(3y)100.82%
Cap/Depr(5y)90.95%
Cap/Sales(3y)15.8%
Cap/Sales(5y)13.85%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-5.75%
EPS 3Y-12.73%
EPS 5Y-8.79%
EPS Q2Q%-10%
EPS Next Y-7.41%
EPS Next 2Y0.35%
EPS Next 3Y3.73%
EPS Next 5Y5.7%
Revenue 1Y (TTM)1.98%
Revenue growth 3Y-3%
Revenue growth 5Y-7.56%
Sales Q2Q%1.64%
Revenue Next Year2.29%
Revenue Next 2Y1.87%
Revenue Next 3Y1.92%
Revenue Next 5Y2.26%
EBIT growth 1Y-1.92%
EBIT growth 3Y-2.47%
EBIT growth 5Y-3.83%
EBIT Next Year98.37%
EBIT Next 3Y28.57%
EBIT Next 5Y17.67%
FCF growth 1Y0.95%
FCF growth 3Y-11.18%
FCF growth 5Y-8.74%
OCF growth 1Y9.69%
OCF growth 3Y-2.6%
OCF growth 5Y-4.45%
AT&T INC / T FAQ
What is the fundamental rating for T stock?
ChartMill assigns a fundamental rating of 5 / 10 to T.
Can you provide the valuation status for AT&T INC?
ChartMill assigns a valuation rating of 6 / 10 to AT&T INC (T). This can be considered as Fairly Valued.
What is the profitability of T stock?
AT&T INC (T) has a profitability rating of 7 / 10.
Can you provide the PE and PB ratios for T stock?
The Price/Earnings (PE) ratio for AT&T INC (T) is 11.65 and the Price/Book (PB) ratio is 1.59.
What is the earnings growth outlook for AT&T INC?
The Earnings per Share (EPS) of AT&T INC (T) is expected to decline by -7.41% in the next year.