AT&T INC (T) Stock Fundamental Analysis
USA - NYSE:T - US00206R1023 - Common Stock
25.14 USD
-0.56 (-2.18%)
25.18 USD
+0.04 (+0.16%)
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.
T had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: T reported negative net income in multiple years.
T had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of T (5.24%) is better than 83.33% of its industry peers.
T has a Return On Equity of 20.02%. This is amongst the best in the industry. T outperforms 91.67% of its industry peers.
With a decent Return On Invested Capital value of 4.98%, T is doing good in the industry, outperforming 69.44% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for T is in line with the industry average of 5.86%.
| 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's Profit Margin of 17.81% is amongst the best of the industry. T outperforms 91.67% of its industry peers.
T's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 19.44%, T is doing good in the industry, outperforming 75.00% of the companies in the same industry.
In the last couple of years the Operating Margin of T has grown nicely.
T's Gross Margin of 59.67% is in line compared 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 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), T is destroying value.
The number of shares outstanding for T has been increased compared to 1 year ago.
The number of shares outstanding for T has been reduced compared to 5 years ago.
T has a better debt/assets ratio than last year.
2.2 Solvency
T has an Altman-Z score of 0.88. 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 (0.88) is comparable to the rest of the industry.
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.
The Debt to FCF ratio of T (6.99) is better 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 | 0.88 |
ROIC/WACC0.74
WACC6.75%
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 on the low side compared to the rest of the industry. T is outperformed by 63.89% of its industry peers.
A Quick Ratio of 0.96 indicates that T may have some problems paying its short term obligations.
With a Quick ratio value of 0.96, T is not doing good in the industry: 63.89% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.01 | ||
| Quick Ratio | 0.96 |
3. Growth
3.1 Past
The earnings per share for T have decreased by -5.75% in the last year.
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.
The Revenue has been growing slightly by 1.98% in the past 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
The Earnings Per Share is expected to grow by 4.99% on average over the next years.
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.
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 11.80, which indicates a very decent valuation of T.
88.89% 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 26.76. T is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 11.17, the valuation of T can be described as very reasonable.
T's Price/Forward Earnings ratio is rather cheap when compared to the industry. T is cheaper than 88.89% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.63, T is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.8 | ||
| Fwd PE | 11.17 |
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.
Based on the Price/Free Cash Flow ratio, T is valued a bit cheaper than 63.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.01 | ||
| EV/EBITDA | 6.68 |
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
T has a Yearly Dividend Yield of 4.32%, which is a nice return.
T's Dividend Yield is a higher than the industry average which is at 5.29.
T's Dividend Yield is rather good when compared to the S&P500 average which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.32% |
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
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%
25.14
-0.56 (-2.18%)
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 Cap179.76B
Revenue(TTM)124.48B
Net Income(TTM)22.17B
Analysts78.86
Price Target30.12 (19.81%)
Short Float %1.15%
Short Ratio2.09
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.32% |
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 | 11.8 | ||
| Fwd PE | 11.17 | ||
| P/S | 1.44 | ||
| P/FCF | 9.01 | ||
| P/OCF | 4.4 | ||
| P/B | 1.62 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.68 |
EPS(TTM)2.13
EY8.47%
EPS(NY)2.25
Fwd EY8.96%
FCF(TTM)2.79
FCFY11.1%
OCF(TTM)5.71
OCFY22.73%
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 | 0.88 |
F-Score7
WACC6.75%
ROIC/WACC0.74
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 11.8 and the Price/Book (PB) ratio is 1.62.
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.