AT&T INC (T) Stock Fundamental Analysis

USA • New York Stock Exchange • NYSE:T • US00206R1023

27.13 USD
-0.18 (-0.66%)
At close: Feb 6, 2026
27.1 USD
-0.03 (-0.11%)
After Hours: 2/6/2026, 8:07:41 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

5

Overall T gets a fundamental rating of 5 out of 10. We evaluated T against 36 industry peers in the Diversified Telecommunication Services industry. While T belongs to the best of the industry regarding profitability, there are concerns on its financial health. T is cheap, but on the other hand it scores bad on growth.


Dividend Valuation Growth Profitability Health

7

1. Profitability

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

  • With a decent Return On Assets value of 5.21%, T is doing good in the industry, outperforming 75.00% of the companies in the same industry.
  • T has a Return On Equity of 19.80%. This is amongst the best in the industry. T outperforms 80.56% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 5.45%, T is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
  • T had an Average Return On Invested Capital over the past 3 years of 5.52%. This is in line with the industry average of 6.72%.
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

  • T has a better Profit Margin (17.42%) than 86.11% of its industry peers.
  • T has a Operating Margin of 19.89%. This is in the better half of the industry: T outperforms 75.00% 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 comparable to the rest of the industry: T outperforms 55.56% of its industry peers.
  • T's Gross Margin has improved in the last couple of years.
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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ROAROEROICOperating and Profit MarginShow most profitable peers

2

2. Health

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so T is destroying value.
  • Compared to 1 year ago, T has less shares outstanding
  • The number of shares outstanding for T has been reduced compared to 5 years ago.
  • Compared to 1 year ago, T has a worse debt to assets ratio.
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

  • Based on the Altman-Z score of 0.91, we must say that T is in the distress zone and has some risk of bankruptcy.
  • T has a Altman-Z score (0.91) which is in line with its industry peers.
  • 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.
  • With a decent Debt to FCF ratio value of 7.00, T is doing good in the industry, outperforming 72.22% of the companies in the same industry.
  • A Debt/Equity ratio of 1.15 is on the high side and indicates that T has dependencies on debt financing.
  • The Debt to Equity ratio of T (1.15) is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 1.15
Debt/FCF 7
Altman-Z 0.91
ROIC/WACC0.79
WACC6.93%
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.
  • The Current ratio of T (0.91) is worse than 72.22% of its industry peers.
  • T has a Quick Ratio of 0.91. This is a bad value and indicates that T is not financially healthy enough and could expect problems in meeting its short term obligations.
  • T has a worse Quick ratio (0.86) than 75.00% 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. Growth

3.1 Past

  • The earnings per share for T have decreased by -6.64% in the last year.
  • T shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -7.88% yearly.
  • Looking at the last year, T shows a small growth in Revenue. The Revenue has grown by 2.71% in the last year.
  • T shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -2.56% yearly.
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 8.87% on average per year.
  • Based on estimates for the next years, T will show a small growth in Revenue. The Revenue will grow by 2.41% on average per year.
EPS Next Y12.41%
EPS Next 2Y11.6%
EPS Next 3Y11.47%
EPS Next 5Y8.87%
Revenue Next Year2.68%
Revenue Next 2Y2.44%
Revenue Next 3Y2.35%
Revenue Next 5Y2.41%

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 accelerating: in the next years the growth will be better than in the last years.
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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Find the best growth stocksShow best growing peers

7

4. Valuation

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 12.86 indicates a correct valuation of T.
  • Based on the Price/Earnings ratio, T is valued cheaply inside the industry as 80.56% of the companies are valued more expensively.
  • Compared to an average S&P500 Price/Earnings ratio of 27.93, T is valued rather cheaply.
  • T is valuated reasonably with a Price/Forward Earnings ratio of 11.44.
  • 86.11% of the companies in the same industry are more expensive than T, based on the Price/Forward Earnings ratio.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 27.77, T is valued rather cheaply.
Industry RankSector Rank
PE 12.86
Fwd PE 11.44
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

  • Based on the Enterprise Value to EBITDA ratio, T is valued a bit cheaper than the industry average as 72.22% of the companies are valued more expensively.
  • 63.89% of the companies in the same industry are more expensive than T, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 9.89
EV/EBITDA 6.76
T Per share dataT EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 -5 10 -10 15

4.3 Compensation for Growth

  • The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
  • The decent profitability rating of T may justify a higher PE ratio.
PEG (NY)1.04
PEG (5Y)N/A
EPS Next 2Y11.6%
EPS Next 3Y11.47%

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

6

5. Dividend

5.1 Amount

  • With a Yearly Dividend Yield of 4.06%, T is a good candidate for dividend investing.
  • Compared to an average industry Dividend Yield of 2.24, T pays a bit more dividend than its industry peers.
  • T's Dividend Yield is rather good when compared to the S&P500 average which is at 1.81.
Industry RankSector Rank
Dividend Yield 4.06%

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 recently.
Dividend Growth(5Y)-11.16%
Div Incr Years0
Div Non Decr Years1
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 2Y11.6%
EPS Next 3Y11.47%
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

More info and screens

Find the best dividend stocksShow peers with best dividend

AT&T INC

NYSE:T (2/6/2026, 8:07:41 PM)

After market: 27.1 -0.03 (-0.11%)

27.13

-0.18 (-0.66%)

Chartmill FA Rating
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)01-28
Earnings (Next)04-21
Inst Owners67.23%
Inst Owner Change-2.55%
Ins Owners0.06%
Ins Owner Change1.83%
Market Cap192.34B
Revenue(TTM)125.65B
Net Income(TTM)21.89B
Analysts77.58
Price Target29.32 (8.07%)
Short Float %1.64%
Short Ratio2.78
Dividend
Industry RankSector Rank
Dividend Yield 4.06%
Yearly Dividend1.15
Dividend Growth(5Y)-11.16%
DP37.37%
Div Incr Years0
Div Non Decr Years1
Ex-Date01-12
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)-0.87%
PT rev (3m)-2.66%
EPS NQ rev (1m)2.08%
EPS NQ rev (3m)-0.17%
EPS NY rev (1m)4.23%
EPS NY rev (3m)5.35%
Revenue NQ rev (1m)0.47%
Revenue NQ rev (3m)0.2%
Revenue NY rev (1m)1.27%
Revenue NY rev (3m)1.29%
Valuation
Industry RankSector Rank
PE 12.86
Fwd PE 11.44
P/S 1.53
P/FCF 9.89
P/OCF 4.77
P/B 1.74
P/tB N/A
EV/EBITDA 6.76
EPS(TTM)2.11
EY7.78%
EPS(NY)2.37
Fwd EY8.74%
FCF(TTM)2.74
FCFY10.11%
OCF(TTM)5.68
OCFY20.94%
SpS17.72
BVpS15.59
TBVpS-12.17
PEG (NY)1.04
PEG (5Y)N/A
Graham Number27.21
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 0.91
F-Score6
WACC6.93%
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 Y12.41%
EPS Next 2Y11.6%
EPS Next 3Y11.47%
EPS Next 5Y8.87%
Revenue 1Y (TTM)2.71%
Revenue growth 3Y1.34%
Revenue growth 5Y-2.56%
Sales Q2Q%3.62%
Revenue Next Year2.68%
Revenue Next 2Y2.44%
Revenue Next 3Y2.35%
Revenue Next 5Y2.41%
EBIT growth 1Y3.53%
EBIT growth 3Y2.92%
EBIT growth 5Y1.57%
EBIT Next Year91.38%
EBIT Next 3Y26.97%
EBIT Next 5Y16.91%
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 FAQ

What is the fundamental rating for T stock?

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


What is the valuation status of AT&T INC (T) stock?

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


Can you provide the profitability details for AT&T INC?

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


What is the earnings growth outlook for AT&T INC?

The Earnings per Share (EPS) of AT&T INC (T) is expected to grow by 12.41% in the next year.


Is the dividend of AT&T INC sustainable?

The dividend rating of AT&T INC (T) is 6 / 10 and the dividend payout ratio is 37.37%.