AT&T INC (T) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:T - US00206R1023 - Common Stock
23.58 USD
+0.08 (+0.34%)
23.61 USD
+0.03 (+0.13%)
Taking everything into account, T scores 5 out of 10 in our fundamental rating. T was compared to 37 industry peers in the Diversified Telecommunication Services industry. T has an excellent profitability rating, but there are concerns on its financial health. T is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- T had positive earnings in the past year.
- In the past year T had a positive cash flow from operations.
- The reported net income has been mixed in the past 5 years: T reported negative net income in multiple years.
- In the past 5 years T always reported a positive cash flow from operatings.
1.2 Ratios
- T has a better Return On Assets (5.24%) than 78.38% of its industry peers.
- T has a Return On Equity of 20.02%. This is amongst the best in the industry. T outperforms 83.78% of its industry peers.
- The Return On Invested Capital of T (4.98%) is better than 62.16% of its industry peers.
- 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
- T has a better Profit Margin (17.81%) than 86.49% of its industry peers.
- T's Profit Margin has improved in the last couple of years.
- Looking at the Operating Margin, with a value of 19.44%, T is in the better half of the industry, outperforming 75.68% of the companies in the same industry.
- T's Operating Margin has improved in the last couple of years.
- T's Gross Margin of 59.67% is in line compared to the rest of the industry. T outperforms 56.76% of its industry peers.
- In the last couple of years the Gross Margin of T has grown nicely.
| 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
- T 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, T has more shares outstanding
- T has less shares outstanding than it did 5 years ago.
- T has a better debt/assets ratio than last year.
2.2 Solvency
- T has an Altman-Z score of 0.85. This is a bad value and indicates that T is not financially healthy and even has some risk of bankruptcy.
- T has a Altman-Z score of 0.85. This is comparable to the rest of the industry: T outperforms 51.35% of its industry peers.
- T has a debt to FCF ratio of 6.99. This is a slightly negative value and a sign of low solvency as T would need 6.99 years to pay back of all of its debts.
- With a decent Debt to FCF ratio value of 6.99, T is doing good in the industry, outperforming 75.68% of the companies in the same industry.
- T has a Debt/Equity ratio of 1.16. This is a high value indicating a heavy dependency on external financing.
- T has a Debt to Equity ratio (1.16) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.16 | ||
| Debt/FCF | 6.99 | ||
| Altman-Z | 0.85 |
ROIC/WACC0.73
WACC6.82%
2.3 Liquidity
- A Current Ratio of 1.01 indicates that T should not have too much problems paying its short term obligations.
- With a Current ratio value of 1.01, T perfoms like the industry average, outperforming 43.24% of the companies in the same industry.
- T has a Quick Ratio of 1.01. 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 Quick ratio (0.96) which is comparable to the rest of the 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%.
- T shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -8.79% yearly.
- T shows a small growth in Revenue. In the last year, the Revenue has grown by 1.98%.
- Measured over the past years, T shows a decrease in Revenue. The Revenue has been decreasing by -7.56% on average per year.
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-7.49%
EPS Next 2Y-0.05%
EPS Next 3Y3.36%
EPS Next 5Y5.7%
Revenue Next Year2.35%
Revenue Next 2Y1.91%
Revenue Next 3Y1.88%
Revenue Next 5Y2.26%
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.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 11.07, which indicates a very decent valuation of T.
- 83.78% of the companies in the same industry are more expensive than T, based on the Price/Earnings ratio.
- The average S&P500 Price/Earnings ratio is at 27.32. T is valued rather cheaply when compared to this.
- The Price/Forward Earnings ratio is 10.44, which indicates a very decent valuation of T.
- Based on the Price/Forward Earnings ratio, T is valued cheaper than 86.49% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 24.32. T is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.07 | ||
| Fwd PE | 10.44 |
4.2 Price Multiples
- 72.97% of the companies in the same industry are more expensive than T, based on the Enterprise Value to EBITDA ratio.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of T indicates a somewhat cheap valuation: T is cheaper than 62.16% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.38 | ||
| EV/EBITDA | 6.3 |
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 2Y-0.05%
EPS Next 3Y3.36%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 4.68%, T is a good candidate for dividend investing.
- T's Dividend Yield is a higher than the industry average which is at 2.33.
- Compared to an average S&P500 Dividend Yield of 1.83, T pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.68% |
5.2 History
- The dividend of T decreases each year by -10.97%.
- 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)-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 2Y-0.05%
EPS Next 3Y3.36%
23.58
+0.08 (+0.34%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)10-22 2025-10-22/bmo
Earnings (Next)01-28 2026-01-28/amc
Inst Owners67.23%
Inst Owner Change0.13%
Ins Owners0.06%
Ins Owner Change-1.06%
Market Cap167.17B
Revenue(TTM)124.48B
Net Income(TTM)22.17B
Analysts77.58
Price Target29.37 (24.55%)
Short Float %1.56%
Short Ratio2.75
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.68% |
Yearly Dividend1.15
Dividend Growth(5Y)-10.97%
DP37.01%
Div Incr Years0
Div Non Decr Years1
Ex-Date01-12 2026-01-12 (0.2775)
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)-2.31%
PT rev (3m)-2.5%
EPS NQ rev (1m)-0.78%
EPS NQ rev (3m)1.41%
EPS NY rev (1m)-0.09%
EPS NY rev (3m)0.16%
Revenue NQ rev (1m)0.18%
Revenue NQ rev (3m)0.32%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)-0.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.07 | ||
| Fwd PE | 10.44 | ||
| P/S | 1.34 | ||
| P/FCF | 8.38 | ||
| P/OCF | 4.09 | ||
| P/B | 1.51 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.3 |
EPS(TTM)2.13
EY9.03%
EPS(NY)2.26
Fwd EY9.57%
FCF(TTM)2.81
FCFY11.94%
OCF(TTM)5.76
OCFY24.44%
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 | 0.85 |
F-Score7
WACC6.82%
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-7.49%
EPS Next 2Y-0.05%
EPS Next 3Y3.36%
EPS Next 5Y5.7%
Revenue 1Y (TTM)1.98%
Revenue growth 3Y-3%
Revenue growth 5Y-7.56%
Sales Q2Q%1.64%
Revenue Next Year2.35%
Revenue Next 2Y1.91%
Revenue Next 3Y1.88%
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.
What is the valuation status of AT&T INC (T) stock?
ChartMill assigns a valuation rating of 6 / 10 to AT&T INC (T). This can be considered as Fairly Valued.
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 decline by -7.49% 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 37.01%.