AT&T INC (T) Stock Fundamental Analysis
USA - NYSE:T - US00206R1023 - Common Stock
24.75 USD
+0.07 (+0.28%)
24.8096 USD
+0.06 (+0.24%)
We assign a fundamental rating of 5 out of 10 to T. T was compared to 36 industry peers in the Diversified Telecommunication Services industry. T scores excellent on profitability, 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.
In the past year T had a positive cash flow from operations.
In multiple years T reported negative net income over the last 5 years.
In the past 5 years T always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.24%, T belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
The Return On Equity of T (20.02%) is better than 91.67% of its industry peers.
T has a Return On Invested Capital of 4.98%. This is in the better half of the industry: T outperforms 69.44% 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 5.85%.
| 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 Profit Margin of 17.81%. This is amongst the best in the industry. T outperforms 91.67% of its industry peers.
T's Profit Margin has improved in the last couple of years.
The Operating Margin of T (19.44%) is better than 75.00% of its industry peers.
In the last couple of years the Operating Margin of T has grown nicely.
T has a Gross Margin (59.67%) which is in line with its industry peers.
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.
Compared to 1 year ago, T has more shares outstanding
Compared to 5 years ago, T has less shares outstanding
The debt/assets ratio for T has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.87, we must say that T is in the distress zone and has some risk of bankruptcy.
T has a Altman-Z score (0.87) which is in line with its industry peers.
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 has a better Debt to FCF ratio (6.99) than 75.00% 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 47.22% 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
A Current Ratio of 1.01 indicates that T should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.01, T is doing worse than 63.89% of the companies in the same industry.
A Quick Ratio of 0.96 indicates that T may have some problems paying its short term obligations.
The Quick ratio of T (0.96) is worse than 63.89% of its industry peers.
| 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%.
Measured over the past years, T shows a decrease in Earnings Per Share. The EPS has been decreasing by -8.79% on average per year.
Looking at the last year, T shows a small growth in Revenue. The Revenue has grown by 1.98% in the last year.
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
Based on estimates for the next years, T will show a small growth in Earnings Per Share. The EPS will grow by 4.99% on average per year.
The Revenue is expected to grow by 2.29% on average over the next years.
EPS Next Y-7.67%
EPS Next 2Y-0.19%
EPS Next 3Y3.55%
EPS Next 5Y4.99%
Revenue Next Year2.37%
Revenue Next 2Y1.86%
Revenue Next 3Y1.81%
Revenue Next 5Y2.29%
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
With a Price/Earnings ratio of 11.62, the valuation of T can be described as very reasonable.
88.89% of the companies in the same industry are more expensive than T, based on the Price/Earnings ratio.
T's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.10.
The Price/Forward Earnings ratio is 10.99, which indicates a very decent valuation of T.
Based on the Price/Forward Earnings ratio, T is valued cheaply inside the industry as 88.89% of the companies are valued more expensively.
T is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.52, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.62 | ||
| Fwd PE | 10.99 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, T is valued a bit cheaper than 69.44% of the companies in the same industry.
63.89% of the companies in the same industry are more expensive than T, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.87 | ||
| EV/EBITDA | 6.52 |
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-0.19%
EPS Next 3Y3.55%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.50%, T is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 5.38, T pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.37, T pays a better dividend.
| 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.
The dividend of T decreased recently.
Dividend Growth(5Y)-10.97%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
T pays out 37.01% of its income as dividend. This is a sustainable payout ratio.
DP37.01%
EPS Next 2Y-0.19%
EPS Next 3Y3.55%
24.75
+0.07 (+0.28%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners66.66%
Inst Owner Change-3.78%
Ins Owners0.06%
Ins Owner Change-1.19%
Market Cap176.97B
Revenue(TTM)124.48B
Net Income(TTM)22.17B
Analysts78.86
Price Target30.12 (21.7%)
Short Float %1.15%
Short Ratio2.09
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)0.11%
PT rev (3m)2.07%
EPS NQ rev (1m)-0.44%
EPS NQ rev (3m)-2.79%
EPS NY rev (1m)-0.04%
EPS NY rev (3m)-0.34%
Revenue NQ rev (1m)-0.06%
Revenue NQ rev (3m)0.64%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)0.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.62 | ||
| Fwd PE | 10.99 | ||
| P/S | 1.42 | ||
| P/FCF | 8.87 | ||
| P/OCF | 4.33 | ||
| P/B | 1.6 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.52 |
EPS(TTM)2.13
EY8.61%
EPS(NY)2.25
Fwd EY9.1%
FCF(TTM)2.79
FCFY11.28%
OCF(TTM)5.71
OCFY23.09%
SpS17.41
BVpS15.48
TBVpS-11.99
PEG (NY)N/A
PEG (5Y)N/A
Graham Number27.24
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-7.67%
EPS Next 2Y-0.19%
EPS Next 3Y3.55%
EPS Next 5Y4.99%
Revenue 1Y (TTM)1.98%
Revenue growth 3Y-3%
Revenue growth 5Y-7.56%
Sales Q2Q%1.64%
Revenue Next Year2.37%
Revenue Next 2Y1.86%
Revenue Next 3Y1.81%
Revenue Next 5Y2.29%
EBIT growth 1Y-1.92%
EBIT growth 3Y-2.47%
EBIT growth 5Y-3.83%
EBIT Next Year97.59%
EBIT Next 3Y28.47%
EBIT Next 5Y17.43%
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 11.62 and the Price/Book (PB) ratio is 1.6.
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 -7.67% in the next year.