AT&T INC - T 5.35 11/01/66 (TBB) Stock Fundamental Analysis
USA - NYSE:TBB - US00206R3003
23.465 USD
-0.02 (-0.06%)
We assign a fundamental rating of 4 out of 10 to TBB. TBB was compared to 36 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 it does not seem to be growing.
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.
In the past 5 years TBB always reported a positive cash flow from operatings.
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.
With a decent Return On Equity value of 12.03%, TBB is doing good in the industry, outperforming 75.00% of the companies in the same industry.
The Return On Invested Capital of TBB (5.25%) is better than 75.00% 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 6.38%.
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 75.00% 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 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.
TBB's Gross Margin has improved in the last couple of years.
| 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
TBB has an Altman-Z score of 0.84. 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 (0.84) which is in line with its industry peers.
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.
The Debt to FCF ratio of TBB (6.74) is better than 77.78% 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.
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
WACC6.75%
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.
With a Quick ratio value of 0.76, TBB is not doing good in the industry: 75.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.76 |
3. Growth
3.1 Past
TBB shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -4.78%.
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%.
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)-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 5.24% on average per year.
TBB is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.29% yearly.
EPS Next Y-7.63%
EPS Next 2Y0.14%
EPS Next 3Y4.01%
EPS Next 5Y5.24%
Revenue Next Year2.35%
Revenue Next 2Y1.87%
Revenue Next 3Y1.84%
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 10.71, 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.
The average S&P500 Price/Earnings ratio is at 27.86. TBB is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 10.35, the valuation of TBB can be described as reasonable.
TBB's Price/Forward Earnings ratio is rather cheap when compared to the industry. TBB is cheaper than 91.67% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.29. TBB is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.71 | ||
| Fwd PE | 10.35 |
4.2 Price Multiples
77.78% of the companies in the same industry are more expensive than TBB, based on the Enterprise Value to EBITDA ratio.
66.67% of the companies in the same industry are more expensive than TBB, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.55 | ||
| EV/EBITDA | 6.36 |
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 2Y0.14%
EPS Next 3Y4.01%
5. Dividend
5.1 Amount
TBB has a Yearly Dividend Yield of 3.92%.
TBB's Dividend Yield is a higher than the industry average which is at 5.17.
TBB's Dividend Yield is rather good when compared to the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.92% |
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 2Y0.14%
EPS Next 3Y4.01%
NYSE:TBB (10/3/2025, 10:40:15 AM)
23.465
-0.02 (-0.06%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners66.66%
Inst Owner ChangeN/A
Ins Owners0.06%
Ins Owner ChangeN/A
Market Cap167.78B
Analysts78.89
Price Target24.26 (3.39%)
Short Float %0%
Short Ratio0.46
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.92% |
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)1.16%
PT rev (3m)2.24%
EPS NQ rev (1m)0.11%
EPS NQ rev (3m)-1.9%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.31%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)0.64%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.64%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.71 | ||
| Fwd PE | 10.35 | ||
| P/S | 1.35 | ||
| P/FCF | 8.55 | ||
| P/OCF | 4.1 | ||
| P/B | 1.59 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.36 |
EPS(TTM)2.19
EY9.33%
EPS(NY)2.27
Fwd EY9.66%
FCF(TTM)2.74
FCFY11.7%
OCF(TTM)5.73
OCFY24.4%
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
WACC6.75%
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 2Y0.14%
EPS Next 3Y4.01%
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 2Y1.87%
Revenue Next 3Y1.84%
Revenue Next 5Y2.29%
EBIT growth 1Y0.41%
EBIT growth 3Y-2.47%
EBIT growth 5Y-3.83%
EBIT Next Year97.59%
EBIT Next 3Y28.47%
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%