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AT&T INC - T 5.35 11/01/66 (TBB) Stock Fundamental Analysis

NYSE:TBB - New York Stock Exchange, Inc. - US00206R3003 - Currency: USD

23.05  -0.14 (-0.6%)

Fundamental Rating

4

We assign a fundamental rating of 4 out of 10 to TBB. TBB was compared to 32 industry peers in the Diversified Telecommunication Services industry. TBB scores excellent on profitability, but there are concerns on its financial health. TBB is valued correctly, but it does not seem to be growing.


Dividend Valuation Growth Profitability Health

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7

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.
In multiple years TBB reported negative net income over the last 5 years.
TBB had a positive operating cash flow in each of the past 5 years.
TBB Yearly Net Income VS EBIT VS OCF VS FCFTBB Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10B 20B 30B 40B

1.2 Ratios

Looking at the Return On Assets, with a value of 2.96%, TBB is in the better half of the industry, outperforming 68.75% of the companies in the same industry.
The Return On Equity of TBB (11.32%) is better than 75.00% of its industry peers.
TBB's Return On Invested Capital of 5.31% is fine compared to the rest of the industry. TBB outperforms 71.88% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TBB 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 RankSector 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%
TBB Yearly ROA, ROE, ROICTBB Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5 -5 10 15 20

1.3 Margins

TBB has a Profit Margin of 9.55%. This is in the better half of the industry: TBB outperforms 71.88% of its industry peers.
In the last couple of years the Profit Margin of TBB has grown nicely.
With a decent Operating Margin value of 19.84%, TBB is doing good in the industry, outperforming 78.13% of the companies in the same industry.
TBB's Operating Margin has improved in the last couple of years.
TBB has a Gross Margin of 59.90%. This is comparable to the rest of the industry: TBB outperforms 56.25% of its industry peers.
TBB's Gross Margin has improved in the last couple of years.
Industry RankSector 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%
TBB Yearly Profit, Operating, Gross MarginsTBB Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 40

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2

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.
TBB has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, TBB has less shares outstanding
TBB has a better debt/assets ratio than last year.
TBB Yearly Shares OutstandingTBB Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B
TBB Yearly Total Debt VS Total AssetsTBB Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100B 200B 300B 400B 500B

2.2 Solvency

TBB has an Altman-Z score of 0.82. 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 (0.82) which is in line with its industry peers.
The Debt to FCF ratio of TBB is 6.47, which is on the high side as it means it would take TBB, 6.47 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 6.47, TBB is in the better half of the industry, outperforming 78.13% of the companies in the same industry.
A Debt/Equity ratio of 1.13 is on the high side and indicates that TBB has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.13, TBB is in line with its industry, outperforming 56.25% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 1.13
Debt/FCF 6.47
Altman-Z 0.82
ROIC/WACC0.77
WACC6.91%
TBB Yearly LT Debt VS Equity VS FCFTBB Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50B 100B 150B

2.3 Liquidity

A Current Ratio of 0.70 indicates that TBB may have some problems paying its short term obligations.
TBB has a worse Current ratio (0.70) than 78.13% 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 worse Quick ratio (0.65) than 78.13% of its industry peers.
Industry RankSector Rank
Current Ratio 0.7
Quick Ratio 0.65
TBB Yearly Current Assets VS Current LiabilitesTBB Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50B 100B 150B

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3

3. Growth

3.1 Past

The earnings per share for TBB have decreased by -5.93% in the last year.
The Earnings Per Share has been decreasing by -8.79% on average over the past years.
The Revenue has been growing slightly by 0.50% in the past year.
Measured over the past years, TBB shows a decrease in Revenue. The Revenue has been decreasing by -7.56% on average per year.
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

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.
The Revenue is expected to grow by 2.18% on average over the next years.
EPS Next Y-7.35%
EPS Next 2Y0.44%
EPS Next 3Y4.07%
EPS Next 5Y6.07%
Revenue Next Year1.68%
Revenue Next 2Y1.51%
Revenue Next 3Y1.53%
Revenue Next 5Y2.18%

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.
TBB Yearly Revenue VS EstimatesTBB Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 50B 100B 150B
TBB Yearly EPS VS EstimatesTBB Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 1 2 3

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6

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 10.38, which indicates a very decent valuation of TBB.
93.75% of the companies in the same industry are more expensive than TBB, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.52, TBB is valued rather cheaply.
With a Price/Forward Earnings ratio of 10.11, the valuation of TBB can be described as very reasonable.
84.38% 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 35.58.
Industry RankSector Rank
PE 10.38
Fwd PE 10.11
TBB Price Earnings VS Forward Price EarningsTBB Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

75.00% of the companies in the same industry are more expensive than TBB, based on the Enterprise Value to EBITDA ratio.
TBB's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. TBB is cheaper than 68.75% of the companies in the same industry.
Industry RankSector Rank
P/FCF 8.51
EV/EBITDA 6.34
TBB Per share dataTBB EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 -5 10 -10 15

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 2Y0.44%
EPS Next 3Y4.07%

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5

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 4.02%, TBB is a good candidate for dividend investing.
TBB's Dividend Yield is a higher than the industry average which is at 5.05.
Compared to an average S&P500 Dividend Yield of 2.35, TBB pays a better dividend.
Industry RankSector Rank
Dividend Yield 4.02%

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
TBB Yearly Dividends per shareTBB Yearly Dividends per shareYearly Dividends per share 2020 2021 2022 2023 2024 2025 0.2 0.4 0.6 0.8 1

5.3 Sustainability

TBB pays out 70.36% of its income as dividend. This is not a sustainable payout ratio.
DP70.36%
EPS Next 2Y0.44%
EPS Next 3Y4.07%
TBB Yearly Income VS Free CF VS DividendTBB Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10B 20B
TBB Dividend Payout.TBB Dividend Payout, showing the Payout Ratio.TBB Dividend Payout.PayoutRetained Earnings

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AT&T INC - T 5.35 11/01/66

NYSE:TBB (7/14/2025, 8:07:10 PM)

23.05

-0.14 (-0.6%)

Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)04-23 2025-04-23/bmo
Earnings (Next)07-23 2025-07-23/bmo
Inst Owners65.83%
Inst Owner ChangeN/A
Ins Owners0.06%
Ins Owner ChangeN/A
Market Cap165.86B
Analysts78.92
Price Target23.73 (2.95%)
Short Float %0%
Short Ratio0.05
Dividend
Industry RankSector Rank
Dividend Yield 4.02%
Yearly Dividend1.15
Dividend Growth(5Y)-10.97%
DP70.36%
Div Incr Years0
Div Non Decr Years0
Ex-Date04-16 2025-04-16 (0.334375)
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)2.78%
PT rev (3m)7.22%
EPS NQ rev (1m)-0.05%
EPS NQ rev (3m)-1.21%
EPS NY rev (1m)0.43%
EPS NY rev (3m)0.73%
Revenue NQ rev (1m)0.11%
Revenue NQ rev (3m)0.93%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)0.35%
Valuation
Industry RankSector Rank
PE 10.38
Fwd PE 10.11
P/S 1.35
P/FCF 8.51
P/OCF 4.12
P/B 1.6
P/tB N/A
EV/EBITDA 6.34
EPS(TTM)2.22
EY9.63%
EPS(NY)2.28
Fwd EY9.89%
FCF(TTM)2.71
FCFY11.75%
OCF(TTM)5.6
OCFY24.28%
SpS17.08
BVpS14.42
TBVpS-12.83
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector 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 RankSector 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 0.82
F-Score8
WACC6.91%
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)-5.93%
EPS 3Y-12.73%
EPS 5Y-8.79%
EPS Q2Q%-7.27%
EPS Next Y-7.35%
EPS Next 2Y0.44%
EPS Next 3Y4.07%
EPS Next 5Y6.07%
Revenue 1Y (TTM)0.5%
Revenue growth 3Y-3%
Revenue growth 5Y-7.56%
Sales Q2Q%1.99%
Revenue Next Year1.68%
Revenue Next 2Y1.51%
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%