AT&T INC - T 5.35 11/01/66 (TBB) Stock Fundamental Analysis
USA - NYSE:TBB - US00206R3003
23.88 USD
+0.11 (+0.46%)
23.17 USD
-0.71 (-2.97%)
Overall TBB gets a fundamental rating of 4 out of 10. We evaluated TBB against 36 industry peers in the Diversified Telecommunication Services industry. TBB has an excellent profitability rating, but there are concerns on its financial health. TBB 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 TBB was profitable.
TBB had a positive operating cash flow in the past year.
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
With a decent Return On Assets value of 3.12%, TBB is doing good in the industry, outperforming 69.44% of the companies in the same industry.
The Return On Equity of TBB (12.03%) is better than 75.00% of its industry peers.
The Return On Invested Capital of TBB (5.25%) is better than 75.00% 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 6.32%.
The 3 year average ROIC (5.19%) for TBB is below the current ROIC(5.25%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.12% | ||
| ROE | 12.03% | ||
| ROIC | 5.25% |
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
With a decent Profit Margin value of 10.21%, TBB is doing good in the industry, outperforming 75.00% of the companies in the same industry.
In the last couple of years the Profit Margin of TBB has grown nicely.
TBB has a better Operating Margin (19.86%) than 77.78% of its industry peers.
TBB's Operating Margin has improved in the last couple of years.
TBB has a better Gross Margin (59.67%) than 66.67% of its industry peers.
In the last couple of years the Gross Margin of TBB has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.86% | ||
| PM (TTM) | 10.21% | ||
| 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 TBB is destroying value.
The number of shares outstanding for TBB has been increased compared to 1 year ago.
TBB has less shares outstanding than it did 5 years ago.
TBB has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.84, we must say that TBB is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 0.84, TBB perfoms like the industry average, outperforming 58.33% of the companies in the same industry.
The Debt to FCF ratio of TBB is 6.74, which is on the high side as it means it would take TBB, 6.74 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 6.74, TBB is doing good in the industry, outperforming 77.78% of the companies in the same industry.
TBB has a Debt/Equity ratio of 1.17. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.17, TBB perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.17 | ||
| Debt/FCF | 6.74 | ||
| Altman-Z | 0.84 |
ROIC/WACC0.78
WACC6.71%
2.3 Liquidity
TBB has a Current Ratio of 0.81. 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's Current ratio of 0.81 is on the low side compared to the rest of the industry. TBB is outperformed by 75.00% of its industry peers.
A Quick Ratio of 0.76 indicates that TBB may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.76, TBB is doing worse than 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.76 |
3. Growth
3.1 Past
The earnings per share for TBB have decreased by -4.78% in the last year.
The Earnings Per Share has been decreasing by -8.79% on average over the past years.
TBB shows a small growth in Revenue. In the last year, the Revenue has grown by 1.46%.
The Revenue has been decreasing by -7.56% on average over the past years.
EPS 1Y (TTM)-4.78%
EPS 3Y-12.73%
EPS 5Y-8.79%
EPS Q2Q%-5.26%
Revenue 1Y (TTM)1.46%
Revenue growth 3Y-3%
Revenue growth 5Y-7.56%
Sales Q2Q%3.52%
3.2 Future
The Earnings Per Share is expected to grow by 5.24% on average over the next years.
Based on estimates for the next years, TBB will show a small growth in Revenue. The Revenue will grow by 2.29% on average per year.
EPS Next Y-7.63%
EPS Next 2Y0.15%
EPS Next 3Y4.04%
EPS Next 5Y5.24%
Revenue Next Year2.35%
Revenue Next 2Y1.86%
Revenue Next 3Y1.83%
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
The Price/Earnings ratio is 10.90, which indicates a very decent valuation of TBB.
Compared to the rest of the industry, the Price/Earnings ratio of TBB indicates a rather cheap valuation: TBB is cheaper than 94.44% of the companies listed in the same industry.
TBB's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.30.
TBB is valuated reasonably with a Price/Forward Earnings ratio of 10.53.
Based on the Price/Forward Earnings ratio, TBB is valued cheaper than 91.67% of the companies in the same industry.
TBB is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.73, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.9 | ||
| Fwd PE | 10.53 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TBB is valued a bit cheaper than 77.78% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TBB indicates a somewhat cheap valuation: TBB is cheaper than 69.44% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.7 | ||
| EV/EBITDA | 6.41 |
4.3 Compensation for Growth
TBB has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y0.15%
EPS Next 3Y4.04%
5. Dividend
5.1 Amount
TBB has a Yearly Dividend Yield of 3.75%.
Compared to an average industry Dividend Yield of 4.80, TBB pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.45, TBB pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.75% |
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
64.83% of the earnings are spent on dividend by TBB. This is not a sustainable payout ratio.
DP64.83%
EPS Next 2Y0.15%
EPS Next 3Y4.04%
23.88
+0.11 (+0.46%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners66.3%
Inst Owner ChangeN/A
Ins Owners0.06%
Ins Owner ChangeN/A
Market Cap170.75B
Analysts78.89
Price Target23.98 (0.42%)
Short Float %0%
Short Ratio0.35
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.75% |
Yearly Dividend1.15
Dividend Growth(5Y)-10.97%
DP64.83%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.78%
Min EPS beat(2)2.7%
Max EPS beat(2)2.87%
EPS beat(4)4
Avg EPS beat(4)3.78%
Min EPS beat(4)2.7%
Max EPS beat(4)6.05%
EPS beat(8)6
Avg EPS beat(8)1.22%
EPS beat(12)10
Avg EPS beat(12)2.2%
EPS beat(16)13
Avg EPS beat(16)2.36%
Revenue beat(2)0
Avg Revenue beat(2)-0.96%
Min Revenue beat(2)-1.08%
Max Revenue beat(2)-0.84%
Revenue beat(4)0
Avg Revenue beat(4)-1.45%
Min Revenue beat(4)-2.71%
Max Revenue beat(4)-0.84%
Revenue beat(8)0
Avg Revenue beat(8)-1.68%
Revenue beat(12)0
Avg Revenue beat(12)-1.77%
Revenue beat(16)0
Avg Revenue beat(16)-5.8%
PT rev (1m)-4.14%
PT rev (3m)3.88%
EPS NQ rev (1m)0.08%
EPS NQ rev (3m)-1.76%
EPS NY rev (1m)-0.3%
EPS NY rev (3m)0.12%
Revenue NQ rev (1m)-0.06%
Revenue NQ rev (3m)0.42%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)0.64%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.9 | ||
| Fwd PE | 10.53 | ||
| P/S | 1.38 | ||
| P/FCF | 8.7 | ||
| P/OCF | 4.17 | ||
| P/B | 1.62 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.41 |
EPS(TTM)2.19
EY9.17%
EPS(NY)2.27
Fwd EY9.49%
FCF(TTM)2.74
FCFY11.49%
OCF(TTM)5.73
OCFY23.98%
SpS17.34
BVpS14.72
TBVpS-12.72
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.12% | ||
| ROE | 12.03% | ||
| ROCE | 6.9% | ||
| ROIC | 5.25% | ||
| ROICexc | 5.41% | ||
| ROICexgc | 12.47% | ||
| OM | 19.86% | ||
| PM (TTM) | 10.21% | ||
| GM | 59.67% | ||
| FCFM | 15.83% |
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-Score7
Asset Turnover0.31
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.17 | ||
| Debt/FCF | 6.74 | ||
| Debt/EBITDA | 2.7 | ||
| Cap/Depr | 102% | ||
| Cap/Sales | 17.2% | ||
| Interest Coverage | 3.62 | ||
| Cash Conversion | 89.93% | ||
| Profit Quality | 154.96% | ||
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.76 | ||
| Altman-Z | 0.84 |
F-Score7
WACC6.71%
ROIC/WACC0.78
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)-4.78%
EPS 3Y-12.73%
EPS 5Y-8.79%
EPS Q2Q%-5.26%
EPS Next Y-7.63%
EPS Next 2Y0.15%
EPS Next 3Y4.04%
EPS Next 5Y5.24%
Revenue 1Y (TTM)1.46%
Revenue growth 3Y-3%
Revenue growth 5Y-7.56%
Sales Q2Q%3.52%
Revenue Next Year2.35%
Revenue Next 2Y1.86%
Revenue Next 3Y1.83%
Revenue Next 5Y2.29%
EBIT growth 1Y0.41%
EBIT growth 3Y-2.47%
EBIT growth 5Y-3.83%
EBIT Next Year97.55%
EBIT Next 3Y28.51%
EBIT Next 5Y17.43%
FCF growth 1Y7.65%
FCF growth 3Y-11.18%
FCF growth 5Y-8.74%
OCF growth 1Y10.7%
OCF growth 3Y-2.6%
OCF growth 5Y-4.45%