AT&T INC (T) Fundamental Analysis & Valuation

NYSE:T • US00206R1023

28.64 USD
-0.33 (-1.14%)
At close: Mar 6, 2026
28.6201 USD
-0.02 (-0.07%)
After Hours: 3/6/2026, 8:04:00 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Forecast Earnings Financials Ownership News

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

Fundamental Rating

5

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. While T has a great profitability rating, there are quite some concerns on its financial health. T has a valuation in line with the averages, but it does not seem to be growing.


Dividend Valuation Growth Profitability Health

7

1. T Profitability Analysis

1.1 Basic Checks

  • In the past year T was profitable.
  • In the past year T had a positive cash flow from operations.
  • 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 72.97% of the companies in the same industry.
  • The Return On Equity of T (19.80%) is better than 81.08% of its industry peers.
  • T's Return On Invested Capital of 5.45% is fine compared to the rest of the industry. T outperforms 62.16% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for T is in line with the industry average of 5.96%.
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 Profit Margin of 17.42%. This is amongst the best in the industry. T outperforms 83.78% of its industry peers.
  • T's Operating Margin of 19.89% is fine compared to the rest of the industry. T outperforms 75.68% of its industry peers.
  • T's Operating Margin has improved in the last couple of years.
  • With a decent Gross Margin value of 59.55%, T is doing good in the industry, outperforming 62.16% of the companies in the same industry.
  • 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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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.
  • 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

  • T has an Altman-Z score of 0.93. 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 (0.93) which is comparable to the rest of the 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.
  • Looking at the Debt to FCF ratio, with a value of 7.00, T is in the better half of the industry, outperforming 72.97% 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.
  • With a Debt to Equity ratio value of 1.15, T perfoms like the industry average, outperforming 45.95% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 1.15
Debt/FCF 7
Altman-Z 0.93
ROIC/WACC0.79
WACC6.94%
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

  • T has a Current 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.
  • The Current ratio of T (0.91) is worse than 72.97% 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'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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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%.
  • The Earnings Per Share has been decreasing by -7.88% on average over the past years.
  • The Revenue has been growing slightly by 2.71% in the past year.
  • Measured over the past years, T shows a decrease in Revenue. The Revenue has been decreasing by -2.56% on average per year.
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.
  • T is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.42% yearly.
EPS Next Y12.41%
EPS Next 2Y11.6%
EPS Next 3Y11.47%
EPS Next 5Y10.17%
Revenue Next Year2.79%
Revenue Next 2Y2.46%
Revenue Next 3Y2.34%
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.
  • 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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6

4. T Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 13.57, the valuation of T can be described as correct.
  • Compared to the rest of the industry, the Price/Earnings ratio of T indicates a rather cheap valuation: T is cheaper than 81.08% of the companies listed in the same industry.
  • T is valuated rather cheaply when we compare the Price/Earnings ratio to 26.29, which is the current average of the S&P500 Index.
  • T is valuated correctly with a Price/Forward Earnings ratio of 12.07.
  • Based on the Price/Forward Earnings ratio, T is valued cheaper than 83.78% of the companies in the same industry.
  • The average S&P500 Price/Forward Earnings ratio is at 24.57. T is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 13.57
Fwd PE 12.07
T Price Earnings VS Forward Price EarningsT Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • 64.86% of the companies in the same industry are more expensive than T, based on the Enterprise Value to EBITDA ratio.
  • T's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. T is cheaper than 70.27% of the companies in the same industry.
Industry RankSector Rank
P/FCF 10.37
EV/EBITDA 7.01
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.
  • The decent profitability rating of T may justify a higher PE ratio.
PEG (NY)1.09
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. T Dividend Analysis

5.1 Amount

  • T has a Yearly Dividend Yield of 4.04%, which is a nice return.
  • Compared to an average industry Dividend Yield of 2.18, T pays a better dividend. On top of this T pays more dividend than 81.08% of the companies listed in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.82, T pays a better dividend.
Industry RankSector Rank
Dividend Yield 4.04%

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

  • T pays out 37.37% of its income as dividend. This is a 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

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T Fundamentals: All Metrics, Ratios and Statistics

AT&T INC

NYSE:T (3/6/2026, 8:04:00 PM)

After market: 28.6201 -0.02 (-0.07%)

28.64

-0.33 (-1.14%)

Chartmill FA Rating
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)01-28
Earnings (Next)04-21
Inst Owners67.23%
Inst Owner Change-0.58%
Ins Owners0.06%
Ins Owner Change-5.84%
Market Cap201.54B
Revenue(TTM)125.65B
Net Income(TTM)21.89B
Analysts77.06
Price Target29.35 (2.48%)
Short Float %1.59%
Short Ratio2.57
Dividend
Industry RankSector Rank
Dividend Yield 4.04%
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)-0.09%
PT rev (3m)-2.39%
EPS NQ rev (1m)3.49%
EPS NQ rev (3m)3.16%
EPS NY rev (1m)5.05%
EPS NY rev (3m)4.06%
Revenue NQ rev (1m)0.73%
Revenue NQ rev (3m)0.57%
Revenue NY rev (1m)1.28%
Revenue NY rev (3m)1.4%
Valuation
Industry RankSector Rank
PE 13.57
Fwd PE 12.07
P/S 1.6
P/FCF 10.37
P/OCF 5
P/B 1.82
P/tB N/A
EV/EBITDA 7.01
EPS(TTM)2.11
EY7.37%
EPS(NY)2.37
Fwd EY8.28%
FCF(TTM)2.76
FCFY9.65%
OCF(TTM)5.72
OCFY19.99%
SpS17.86
BVpS15.71
TBVpS-12.26
PEG (NY)1.09
PEG (5Y)N/A
Graham Number27.31
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 0.93
F-Score6
WACC6.94%
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 5Y10.17%
Revenue 1Y (TTM)2.71%
Revenue growth 3Y1.34%
Revenue growth 5Y-2.56%
Sales Q2Q%3.62%
Revenue Next Year2.79%
Revenue Next 2Y2.46%
Revenue Next 3Y2.34%
Revenue Next 5Y2.42%
EBIT growth 1Y3.53%
EBIT growth 3Y2.92%
EBIT growth 5Y1.57%
EBIT Next Year92.53%
EBIT Next 3Y27.91%
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 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 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%.