TELEPHONE AND DATA SYSTEMS (TDS)
US8794338298 - Common Stock
TDS gets a fundamental rating of 2 out of 10. The analysis compared the fundamentals against 22 industry peers in the Wireless Telecommunication Services industry. TDS has a bad profitability rating. Also its financial health evaluation is rather negative. TDS is valued expensive and it does not seem to be growing. Finally TDS also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
TDS had negative earnings in the past year.
TDS had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: TDS reported negative net income in multiple years.
TDS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
TDS has a worse Return On Assets (-4.08%) than 80.95% of its industry peers.
The Return On Equity of TDS (-10.92%) is worse than 80.95% of its industry peers.
The Return On Invested Capital of TDS (0.98%) is worse than 80.95% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TDS is significantly below the industry average of 7.51%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.08% | ||
| ROE | -10.92% | ||
| ROIC | 0.98% |
ROA(3y)-1.09%
ROA(5y)-0.07%
ROE(3y)-3.03%
ROE(5y)-0.36%
ROIC(3y)1.27%
ROIC(5y)1.46%
1.3 Margins
TDS has a Operating Margin of 3.06%. This is amonst the worse of the industry: TDS underperforms 80.95% of its industry peers.
In the last couple of years the Operating Margin of TDS has declined.
Looking at the Gross Margin, with a value of 54.77%, TDS is in line with its industry, outperforming 47.62% of the companies in the same industry.
In the last couple of years the Gross Margin of TDS has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.06% | ||
| PM (TTM) | N/A | ||
| GM | 54.77% |
OM growth 3Y-14.9%
OM growth 5Y-2.89%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.11%
GM growth 5Y0.18%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so TDS is destroying value.
Compared to 1 year ago, TDS has more shares outstanding
The number of shares outstanding for TDS has been reduced compared to 5 years ago.
The debt/assets ratio for TDS is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.77, we must say that TDS is in the distress zone and has some risk of bankruptcy.
TDS has a worse Altman-Z score (0.77) than 66.67% of its industry peers.
A Debt/Equity ratio of 0.78 indicates that TDS is somewhat dependend on debt financing.
TDS has a Debt to Equity ratio of 0.78. This is comparable to the rest of the industry: TDS outperforms 47.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.78 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.77 |
ROIC/WACC0.16
WACC6.05%
2.3 Liquidity
TDS has a Current Ratio of 1.40. This is a normal value and indicates that TDS is financially healthy and should not expect problems in meeting its short term obligations.
TDS has a Current ratio of 1.40. This is in the better half of the industry: TDS outperforms 61.90% of its industry peers.
TDS has a Quick Ratio of 1.23. This is a normal value and indicates that TDS is financially healthy and should not expect problems in meeting its short term obligations.
TDS's Quick ratio of 1.23 is in line compared to the rest of the industry. TDS outperforms 52.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.4 | ||
| Quick Ratio | 1.23 |
3. Growth
3.1 Past
The earnings per share for TDS have decreased strongly by -550.00% in the last year.
TDS shows a decrease in Revenue. In the last year, the revenue decreased by -4.67%.
TDS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.20% yearly.
EPS 1Y (TTM)-550%
EPS 3YN/A
EPS 5YN/A
EPS growth Q2Q71.05%
Revenue 1Y (TTM)-4.67%
Revenue growth 3Y-0.42%
Revenue growth 5Y0.2%
Revenue growth Q2Q-3.32%
3.2 Future
The Earnings Per Share is expected to grow by 1.43% on average over the next years.
Based on estimates for the next years, TDS will show a decrease in Revenue. The Revenue will decrease by -1.22% on average per year.
EPS Next Y-107.83%
EPS Next 2Y1.43%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-2.57%
Revenue Next 2Y-1.22%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
TDS reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
Besides the negative Price/Earnings Ratio, also the Forward Price/Earnings Ratio is negative for TDS. No positive earnings are expected for the next year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
TDS's Enterprise Value to EBITDA is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 5.21 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y1.43%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.89%, TDS is a good candidate for dividend investing.
The stock price of TDS dropped by -25.32% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
TDS's Dividend Yield is a higher than the industry average which is at 6.15.
TDS's Dividend Yield is rather good when compared to the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.89% |
5.2 History
On average, the dividend of TDS grows each year by 16.27%, which is quite nice.
TDS has paid a dividend for at least 10 years, which is a reliable track record.
TDS has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)16.27%
Div Incr Years17
Div Non Decr Years17
5.3 Sustainability
The earnings of TDS are negative and hence is the payout ratio. TDS will probably not be able to sustain this dividend level.
The dividend of TDS is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP-26.94%
EPS Next 2Y1.43%
EPS Next 3YN/A
TELEPHONE AND DATA SYSTEMS
NYSE:TDS (5/3/2024, 7:21:13 PM)
After market: 14.36 0 (0%)14.36
-1.85 (-11.41%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.52B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.89% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.08% | ||
| ROE | -10.92% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 3.06% | ||
| PM (TTM) | N/A | ||
| GM | 54.77% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.37
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.78 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.4 | ||
| Quick Ratio | 1.23 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-550%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y-107.83%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-4.67%
Revenue growth 3Y-0.42%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y