AT&T INC - T 5.35 11/01/66 (TBB) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:TBB • US00206R3003
22.46 USD
+0.04 (+0.18%)
Last: Jan 30, 2026, 08:20 PM
Taking everything into account, TBB scores 5 out of 10 in our fundamental rating. TBB was compared to 36 industry peers in the Diversified Telecommunication Services industry. While TBB belongs to the best of the industry regarding profitability, there are concerns on its financial health. TBB is cheap, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
- TBB had positive earnings in the past year.
- TBB had a positive operating cash flow in the past year.
- Of the past 5 years TBB 4 years were profitable.
- In the past 5 years TBB always reported a positive cash flow from operatings.
1.2 Ratios
- TBB's Return On Assets of 5.21% is fine compared to the rest of the industry. TBB outperforms 77.78% of its industry peers.
- TBB has a Return On Equity of 19.80%. This is amongst the best in the industry. TBB outperforms 83.33% of its industry peers.
- TBB has a better Return On Invested Capital (5.45%) than 69.44% of its industry peers.
- TBB had an Average Return On Invested Capital over the past 3 years of 5.52%. This is in line with the industry average of 6.76%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.21% | ||
| ROE | 19.8% | ||
| ROIC | 5.45% |
ROA(3y)3.81%
ROA(5y)2.57%
ROE(3y)14.61%
ROE(5y)9.37%
ROIC(3y)5.52%
ROIC(5y)5.3%
1.3 Margins
- Looking at the Profit Margin, with a value of 17.42%, TBB belongs to the top of the industry, outperforming 86.11% of the companies in the same industry.
- The Operating Margin of TBB (19.89%) is better than 77.78% of its industry peers.
- TBB's Operating Margin has improved in the last couple of years.
- TBB has a Gross Margin (59.55%) which is comparable to the rest of the industry.
- In the last couple of years the Gross Margin of TBB has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.89% | ||
| PM (TTM) | 17.42% | ||
| GM | 59.55% |
OM growth 3Y1.56%
OM growth 5Y4.24%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.95%
GM growth 5Y1.94%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so TBB is destroying value.
- Compared to 1 year ago, TBB has less shares outstanding
- TBB has less shares outstanding than it did 5 years ago.
- The debt/assets ratio for TBB is higher compared to a year ago.
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.
- TBB's Altman-Z score of 0.84 is in line compared to the rest of the industry. TBB outperforms 44.44% of its industry peers.
- The Debt to FCF ratio of TBB is 7.00, which is on the high side as it means it would take TBB, 7.00 years of fcf income to pay off all of its debts.
- TBB has a Debt to FCF ratio of 7.00. This is in the better half of the industry: TBB outperforms 75.00% of its industry peers.
- TBB has a Debt/Equity ratio of 1.15. This is a high value indicating a heavy dependency on external financing.
- TBB's Debt to Equity ratio of 1.15 is in line compared to the rest of the industry. TBB outperforms 47.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.15 | ||
| Debt/FCF | 7 | ||
| Altman-Z | 0.84 |
ROIC/WACC0.81
WACC6.74%
2.3 Liquidity
- A Current Ratio of 0.91 indicates that TBB may have some problems paying its short term obligations.
- With a Current ratio value of 0.91, TBB is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
- A Quick Ratio of 0.86 indicates that TBB may have some problems paying its short term obligations.
- TBB's Quick ratio of 0.86 is on the low side compared to the rest of the industry. TBB is outperformed by 69.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.86 |
3. Growth
3.1 Past
- The earnings per share for TBB have decreased by -6.64% in the last year.
- The Earnings Per Share has been decreasing by -7.88% on average over the past years.
- The Revenue has been growing slightly by 2.71% in the past year.
- TBB shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -2.56% yearly.
EPS 1Y (TTM)-6.64%
EPS 3Y-8%
EPS 5Y-7.88%
EPS Q2Q%-3.7%
Revenue 1Y (TTM)2.71%
Revenue growth 3Y1.34%
Revenue growth 5Y-2.56%
Sales Q2Q%3.62%
3.2 Future
- Based on estimates for the next years, TBB will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.87% on average per year.
- TBB is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.41% yearly.
EPS Next Y7%
EPS Next 2Y8.76%
EPS Next 3Y8.81%
EPS Next 5Y8.87%
Revenue Next Year1.49%
Revenue Next 2Y1.65%
Revenue Next 3Y1.9%
Revenue Next 5Y2.41%
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
- With a Price/Earnings ratio of 10.64, the valuation of TBB can be described as very reasonable.
- TBB's Price/Earnings ratio is rather cheap when compared to the industry. TBB is cheaper than 86.11% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 28.32. TBB is valued rather cheaply when compared to this.
- A Price/Forward Earnings ratio of 9.95 indicates a reasonable valuation of TBB.
- TBB's Price/Forward Earnings ratio is rather cheap when compared to the industry. TBB is cheaper than 88.89% of the companies in the same industry.
- TBB is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.57, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.64 | ||
| Fwd PE | 9.95 |
4.2 Price Multiples
- TBB's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. TBB is cheaper than 75.00% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, TBB is valued a bit cheaper than the industry average as 72.22% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.19 | ||
| EV/EBITDA | 6.04 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- The decent profitability rating of TBB may justify a higher PE ratio.
PEG (NY)1.52
PEG (5Y)N/A
EPS Next 2Y8.76%
EPS Next 3Y8.81%
5. Dividend
5.1 Amount
- TBB has a Yearly Dividend Yield of 4.42%, which is a nice return.
- Compared to an average industry Dividend Yield of 2.25, TBB pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.83, TBB pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.42% |
5.2 History
- The dividend of TBB decreases each year by -11.16%.
- TBB has been paying a dividend for over 5 years, so it has already some track record.
Dividend Growth(5Y)-11.16%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 37.37% of the earnings are spent on dividend by TBB. This is a low number and sustainable payout ratio.
DP37.37%
EPS Next 2Y8.76%
EPS Next 3Y8.81%
AT&T INC - T 5.35 11/01/66 / TBB FAQ
What is the fundamental rating for TBB stock?
ChartMill assigns a fundamental rating of 5 / 10 to TBB.
What is the valuation status of AT&T INC - T 5.35 11/01/66 (TBB) stock?
ChartMill assigns a valuation rating of 7 / 10 to AT&T INC - T 5.35 11/01/66 (TBB). This can be considered as Undervalued.
How profitable is AT&T INC - T 5.35 11/01/66 (TBB) stock?
AT&T INC - T 5.35 11/01/66 (TBB) has a profitability rating of 7 / 10.
What is the expected EPS growth for AT&T INC - T 5.35 11/01/66 (TBB) stock?
The Earnings per Share (EPS) of AT&T INC - T 5.35 11/01/66 (TBB) is expected to grow by 7% in the next year.
How sustainable is the dividend of AT&T INC - T 5.35 11/01/66 (TBB) stock?
The dividend rating of AT&T INC - T 5.35 11/01/66 (TBB) is 6 / 10 and the dividend payout ratio is 37.37%.