AT&T INC - T 5.35 11/01/66 (TBB) Stock Fundamental Analysis
NYSE:TBB - New York Stock Exchange, Inc. - US00206R3003 - Currency: USD
We assign a fundamental rating of 4 out of 10 to TBB. TBB was compared to 35 industry peers in the Diversified Telecommunication Services industry. TBB scores excellent on profitability, but there are 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.
TBB had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
TBB's Return On Assets of 3.12% is fine compared to the rest of the industry. TBB outperforms 68.57% of its industry peers.
The Return On Equity of TBB (12.03%) is better than 74.29% of its industry peers.
TBB has a Return On Invested Capital of 5.25%. This is in the better half of the industry: TBB outperforms 74.29% 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 7.12%.
The last Return On Invested Capital (5.25%) for TBB is above the 3 year average (5.19%), which is a sign of increasing profitability.
| 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
TBB has a better Profit Margin (10.21%) than 74.29% of its industry peers.
TBB's Profit Margin has improved in the last couple of years.
TBB's Operating Margin of 19.86% is fine compared to the rest of the industry. TBB outperforms 80.00% of its industry peers.
TBB's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 59.67%, TBB is in the better half of the industry, outperforming 62.86% 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 | 19.86% | ||
| 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
TBB has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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.
Compared to 1 year ago, TBB has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.83, we must say that TBB is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.83, TBB is in line with its industry, outperforming 48.57% of the companies in the same industry.
TBB has a debt to FCF ratio of 6.74. This is a slightly negative value and a sign of low solvency as TBB would need 6.74 years to pay back of all of its debts.
TBB's Debt to FCF ratio of 6.74 is fine compared to the rest of the industry. TBB outperforms 77.14% of its industry peers.
A Debt/Equity ratio of 1.17 is on the high side and indicates that TBB has dependencies on debt financing.
TBB's Debt to Equity ratio of 1.17 is in line compared to the rest of the industry. TBB outperforms 57.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.17 | ||
| Debt/FCF | 6.74 | ||
| Altman-Z | 0.83 |
ROIC/WACC0.77
WACC6.79%
2.3 Liquidity
A Current Ratio of 0.81 indicates that TBB may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.81, TBB is doing worse than 71.43% of the companies in the same industry.
TBB has a Quick 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 has a worse Quick ratio (0.76) than 71.43% of its industry peers.
| 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.
Measured over the past years, TBB shows a decrease in Earnings Per Share. The EPS has been decreasing by -8.79% on average per year.
TBB shows a small growth in Revenue. In the last year, the Revenue has grown by 1.46%.
TBB shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -7.56% yearly.
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
Based on estimates for the next years, TBB will show a small growth in Earnings Per Share. The EPS will grow by 6.07% on average per year.
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-7.35%
EPS Next 2Y0.44%
EPS Next 3Y4.07%
EPS Next 5Y6.07%
Revenue Next Year2.29%
Revenue Next 2Y1.83%
Revenue Next 3Y1.76%
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.
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
Based on the Price/Earnings ratio of 10.56, the valuation of TBB can be described as reasonable.
Based on the Price/Earnings ratio, TBB is valued cheaply inside the industry as 88.57% of the companies are valued more expensively.
TBB's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.82.
With a Price/Forward Earnings ratio of 10.14, the valuation of TBB can be described as very reasonable.
88.57% of the companies in the same industry are more expensive than TBB, based on the Price/Forward Earnings ratio.
TBB's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.21.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.56 | ||
| Fwd PE | 10.14 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TBB is valued a bit cheaper than 80.00% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, TBB is valued a bit cheaper than 65.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.42 | ||
| EV/EBITDA | 6.29 |
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 2Y0.44%
EPS Next 3Y4.07%
5. Dividend
5.1 Amount
TBB has a Yearly Dividend Yield of 4.05%, which is a nice return.
TBB's Dividend Yield is a higher than the industry average which is at 5.13.
TBB's Dividend Yield is rather good when compared to the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.05% |
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
TBB pays out 64.83% of its income as dividend. This is not a sustainable payout ratio.
DP64.83%
EPS Next 2Y0.44%
EPS Next 3Y4.07%
NYSE:TBB (8/4/2025, 10:46:20 AM)
23.12
+0.1 (+0.43%)
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 Cap165.32B
Analysts78.92
Price Target25.01 (8.17%)
Short Float %0%
Short Ratio0.17
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.05% |
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)5.43%
PT rev (3m)7.61%
EPS NQ rev (1m)-2.08%
EPS NQ rev (3m)-1.83%
EPS NY rev (1m)-0.01%
EPS NY rev (3m)0.65%
Revenue NQ rev (1m)0.74%
Revenue NQ rev (3m)0.49%
Revenue NY rev (1m)0.58%
Revenue NY rev (3m)0.97%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.56 | ||
| Fwd PE | 10.14 | ||
| P/S | 1.33 | ||
| P/FCF | 8.42 | ||
| P/OCF | 4.04 | ||
| P/B | 1.57 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.29 |
EPS(TTM)2.19
EY9.47%
EPS(NY)2.28
Fwd EY9.86%
FCF(TTM)2.74
FCFY11.87%
OCF(TTM)5.73
OCFY24.77%
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 | 0.83 |
F-Score7
WACC6.79%
ROIC/WACC0.77
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-7.35%
EPS Next 2Y0.44%
EPS Next 3Y4.07%
EPS Next 5Y6.07%
Revenue 1Y (TTM)1.46%
Revenue growth 3Y-3%
Revenue growth 5Y-7.56%
Sales Q2Q%3.52%
Revenue Next Year2.29%
Revenue Next 2Y1.83%
Revenue Next 3Y1.76%
Revenue Next 5Y2.18%
EBIT growth 1Y0.41%
EBIT growth 3Y-2.47%
EBIT growth 5Y-3.83%
EBIT Next Year97.53%
EBIT Next 3Y28.45%
EBIT Next 5Y17.76%
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%