AT&T INC - T 5.35 11/01/66 (TBB) Stock Fundamental Analysis
NYSE:TBB - New York Stock Exchange, Inc. - US00206R3003 - Currency: USD
Overall TBB gets a fundamental rating of 4 out of 10. We evaluated TBB against 33 industry peers in the Diversified Telecommunication Services industry. While TBB has a great profitability rating, there are quite some concerns on its financial health. TBB has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year TBB was profitable.
In the past year TBB had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: TBB reported negative net income in multiple years.
Each year in the past 5 years TBB had a positive operating cash flow.
1.2 Ratios
TBB's Return On Assets of 2.96% is fine compared to the rest of the industry. TBB outperforms 66.67% of its industry peers.
The Return On Equity of TBB (11.32%) is better than 72.73% of its industry peers.
TBB has a better Return On Invested Capital (5.31%) than 72.73% of its industry peers.
TBB had an Average Return On Invested Capital over the past 3 years of 5.19%. This is in line with the industry average of 7.13%.
The 3 year average ROIC (5.19%) for TBB is below the current ROIC(5.31%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.96% | ||
| ROE | 11.32% | ||
| ROIC | 5.31% |
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
TBB has a better Profit Margin (9.55%) than 69.70% of its industry peers.
TBB's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 19.84%, TBB is doing good in the industry, outperforming 78.79% of the companies in the same industry.
TBB's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 59.90%, TBB perfoms like the industry average, outperforming 57.58% of the companies in the same industry.
In the last couple of years the Gross Margin of TBB has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.84% | ||
| PM (TTM) | 9.55% | ||
| GM | 59.9% |
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), TBB is destroying value.
TBB has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, TBB has less shares outstanding
Compared to 1 year ago, TBB has an improved debt to assets ratio.
2.2 Solvency
TBB has an Altman-Z score of 0.81. This is a bad value and indicates that TBB is not financially healthy and even has some risk of bankruptcy.
TBB has a Altman-Z score of 0.81. This is comparable to the rest of the industry: TBB outperforms 45.45% of its industry peers.
TBB has a debt to FCF ratio of 6.47. This is a slightly negative value and a sign of low solvency as TBB would need 6.47 years to pay back of all of its debts.
The Debt to FCF ratio of TBB (6.47) is better than 78.79% of its industry peers.
A Debt/Equity ratio of 1.13 is on the high side and indicates that TBB has dependencies on debt financing.
The Debt to Equity ratio of TBB (1.13) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.13 | ||
| Debt/FCF | 6.47 | ||
| Altman-Z | 0.81 |
ROIC/WACC0.6
WACC8.83%
2.3 Liquidity
TBB has a Current Ratio of 0.70. This is a bad value and indicates that TBB is not financially healthy enough and could expect problems in meeting its short term obligations.
TBB has a worse Current ratio (0.70) than 78.79% of its industry peers.
A Quick Ratio of 0.65 indicates that TBB may have some problems paying its short term obligations.
TBB has a Quick ratio of 0.65. This is in the lower half of the industry: TBB underperforms 78.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.7 | ||
| Quick Ratio | 0.65 |
3. Growth
3.1 Past
The earnings per share for TBB have decreased by -5.93% in the last year.
TBB shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -8.79% yearly.
TBB shows a small growth in Revenue. In the last year, the Revenue has grown by 0.50%.
TBB shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -7.56% yearly.
EPS 1Y (TTM)-5.93%
EPS 3Y-12.73%
EPS 5Y-8.79%
EPS Q2Q%-7.27%
Revenue 1Y (TTM)0.5%
Revenue growth 3Y-3%
Revenue growth 5Y-7.56%
Sales Q2Q%1.99%
3.2 Future
TBB is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.07% yearly.
Based on estimates for the next years, TBB will show a small growth in Revenue. The Revenue will grow by 2.18% on average per year.
EPS Next Y-7.74%
EPS Next 2Y0.69%
EPS Next 3Y4.34%
EPS Next 5Y6.07%
Revenue Next Year1.7%
Revenue Next 2Y1.52%
Revenue Next 3Y1.53%
Revenue Next 5Y2.18%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
TBB is valuated reasonably with a Price/Earnings ratio of 9.87.
87.88% of the companies in the same industry are more expensive than TBB, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.32. TBB is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 9.56 indicates a reasonable valuation of TBB.
84.85% of the companies in the same industry are more expensive than TBB, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of TBB to the average of the S&P500 Index (22.13), we can say TBB is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.87 | ||
| Fwd PE | 9.56 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TBB is valued a bit cheaper than the industry average as 78.79% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, TBB is valued a bit cheaper than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.09 | ||
| EV/EBITDA | 6.14 |
4.3 Compensation for Growth
The decent profitability rating of TBB may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y0.69%
EPS Next 3Y4.34%
5. Dividend
5.1 Amount
TBB has a Yearly Dividend Yield of 3.93%.
Compared to an average industry Dividend Yield of 4.99, TBB pays a bit more dividend than its industry peers.
TBB's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.93% |
5.2 History
The dividend of TBB decreases each year by -10.97%.
TBB has been paying a dividend for over 5 years, so it has already some track record.
Dividend Growth(5Y)-10.97%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
70.36% of the earnings are spent on dividend by TBB. This is not a sustainable payout ratio.
DP70.36%
EPS Next 2Y0.69%
EPS Next 3Y4.34%
NYSE:TBB (6/13/2025, 8:04:00 PM)
21.91
-0.03 (-0.14%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners65.83%
Inst Owner ChangeN/A
Ins Owners0.06%
Ins Owner ChangeN/A
Market Cap157.66B
Analysts78.92
Price Target23.08 (5.34%)
Short Float %0%
Short Ratio0.15
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.93% |
Yearly Dividend1.15
Dividend Growth(5Y)-10.97%
DP70.36%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.37%
Min EPS beat(2)2.7%
Max EPS beat(2)6.05%
EPS beat(4)3
Avg EPS beat(4)2.5%
Min EPS beat(4)-2.25%
Max EPS beat(4)6.05%
EPS beat(8)6
Avg EPS beat(8)1.15%
EPS beat(12)10
Avg EPS beat(12)2.39%
EPS beat(16)13
Avg EPS beat(16)2.81%
Revenue beat(2)0
Avg Revenue beat(2)-1.12%
Min Revenue beat(2)-1.17%
Max Revenue beat(2)-1.08%
Revenue beat(4)0
Avg Revenue beat(4)-1.83%
Min Revenue beat(4)-2.71%
Max Revenue beat(4)-1.08%
Revenue beat(8)0
Avg Revenue beat(8)-1.83%
Revenue beat(12)0
Avg Revenue beat(12)-1.84%
Revenue beat(16)0
Avg Revenue beat(16)-6.87%
PT rev (1m)-2.64%
PT rev (3m)-2.69%
EPS NQ rev (1m)0.26%
EPS NQ rev (3m)-0.96%
EPS NY rev (1m)0%
EPS NY rev (3m)0.35%
Revenue NQ rev (1m)0.01%
Revenue NQ rev (3m)0.77%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.87 | ||
| Fwd PE | 9.56 | ||
| P/S | 1.28 | ||
| P/FCF | 8.09 | ||
| P/OCF | 3.91 | ||
| P/B | 1.52 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.14 |
EPS(TTM)2.22
EY10.13%
EPS(NY)2.29
Fwd EY10.46%
FCF(TTM)2.71
FCFY12.36%
OCF(TTM)5.6
OCFY25.54%
SpS17.08
BVpS14.42
TBVpS-12.83
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.96% | ||
| ROE | 11.32% | ||
| ROCE | 6.98% | ||
| ROIC | 5.31% | ||
| ROICexc | 5.41% | ||
| ROICexgc | 12.65% | ||
| OM | 19.84% | ||
| PM (TTM) | 9.55% | ||
| GM | 59.9% | ||
| FCFM | 15.85% |
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%
ROICexcg growth 3Y9.2%
ROICexcg 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-Score8
Asset Turnover0.31
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.13 | ||
| Debt/FCF | 6.47 | ||
| Debt/EBITDA | 2.6 | ||
| Cap/Depr | 100.29% | ||
| Cap/Sales | 16.91% | ||
| Interest Coverage | 3.56 | ||
| Cash Conversion | 89.28% | ||
| Profit Quality | 165.94% | ||
| Current Ratio | 0.7 | ||
| Quick Ratio | 0.65 | ||
| Altman-Z | 0.81 |
F-Score8
WACC8.83%
ROIC/WACC0.6
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)-5.93%
EPS 3Y-12.73%
EPS 5Y-8.79%
EPS Q2Q%-7.27%
EPS Next Y-7.74%
EPS Next 2Y0.69%
EPS Next 3Y4.34%
EPS Next 5Y6.07%
Revenue 1Y (TTM)0.5%
Revenue growth 3Y-3%
Revenue growth 5Y-7.56%
Sales Q2Q%1.99%
Revenue Next Year1.7%
Revenue Next 2Y1.52%
Revenue Next 3Y1.53%
Revenue Next 5Y2.18%
EBIT growth 1Y-1.17%
EBIT growth 3Y-2.47%
EBIT growth 5Y-3.83%
EBIT Next Year97.53%
EBIT Next 3Y28.45%
EBIT Next 5Y17.76%
FCF growth 1Y43.57%
FCF growth 3Y-11.18%
FCF growth 5Y-8.74%
OCF growth 1Y22.15%
OCF growth 3Y-2.6%
OCF growth 5Y-4.45%