TELEPHONE AND DATA SYSTEMS (TDS) Stock Fundamental Analysis
NYSE:TDS - New York Stock Exchange, Inc. - US8794338298 - Common Stock - Currency: USD
TDS gets a fundamental rating of 2 out of 10. The analysis compared the fundamentals against 21 industry peers in the Wireless Telecommunication Services industry. TDS has a bad profitability rating. Also its financial health evaluation is rather negative. TDS has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year TDS has reported negative net income.
In the past year TDS had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: TDS reported negative net income in multiple years.
In the past 5 years TDS always reported a positive cash flow from operatings.
1.2 Ratios
TDS's Return On Assets of -0.87% is on the low side compared to the rest of the industry. TDS is outperformed by 80.95% of its industry peers.
TDS has a Return On Equity of -2.32%. This is amonst the worse of the industry: TDS underperforms 80.95% of its industry peers.
The Return On Invested Capital of TDS (0.80%) is worse than 80.95% of its industry peers.
TDS had an Average Return On Invested Capital over the past 3 years of 1.00%. This is significantly below the industry average of 6.22%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.87% | ||
| ROE | -2.32% | ||
| ROIC | 0.8% |
ROA(3y)-1.61%
ROA(5y)-0.43%
ROE(3y)-4.32%
ROE(5y)-1.26%
ROIC(3y)1%
ROIC(5y)1.36%
1.3 Margins
With a Operating Margin value of 2.64%, TDS is not doing good in the industry: 80.95% of the companies in the same industry are doing better.
TDS's Operating Margin has declined in the last couple of years.
The Gross Margin of TDS (57.56%) is better than 66.67% of its industry peers.
TDS's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.64% | ||
| PM (TTM) | N/A | ||
| GM | 57.56% |
OM growth 3Y-14.66%
OM growth 5Y-1.97%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y2.06%
GM growth 5Y0.77%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), TDS is destroying value.
The number of shares outstanding for TDS has been increased compared to 1 year ago.
Compared to 5 years ago, TDS has less shares outstanding
TDS has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.90, we must say that TDS is in the distress zone and has some risk of bankruptcy.
TDS has a Altman-Z score of 0.90. This is comparable to the rest of the industry: TDS outperforms 42.86% of its industry peers.
TDS has a debt to FCF ratio of 12.39. This is a negative value and a sign of low solvency as TDS would need 12.39 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 12.39, TDS is doing worse than 61.90% of the companies in the same industry.
TDS has a Debt/Equity ratio of 0.80. This is a neutral value indicating TDS is somewhat dependend on debt financing.
The Debt to Equity ratio of TDS (0.80) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | 12.39 | ||
| Altman-Z | 0.9 |
ROIC/WACC0.11
WACC7.49%
2.3 Liquidity
A Current Ratio of 1.74 indicates that TDS should not have too much problems paying its short term obligations.
The Current ratio of TDS (1.74) is better than 90.48% of its industry peers.
TDS has a Quick Ratio of 1.55. This is a normal value and indicates that TDS is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.55, TDS belongs to the top of the industry, outperforming 95.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.74 | ||
| Quick Ratio | 1.55 |
3. Growth
3.1 Past
The earnings per share for TDS have decreased strongly by -208.82% in the last year.
The Revenue has decreased by -5.14% in the past year.
The Revenue has been decreasing by -0.83% on average over the past years.
EPS 1Y (TTM)-208.82%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-190%
Revenue 1Y (TTM)-5.14%
Revenue growth 3Y-2.34%
Revenue growth 5Y-0.83%
Sales Q2Q%-8.56%
3.2 Future
Based on estimates for the next years, TDS will show a very strong growth in Earnings Per Share. The EPS will grow by 33.65% on average per year.
The Revenue is expected to decrease by -1.10% on average over the next years.
EPS Next Y87.08%
EPS Next 2Y38%
EPS Next 3Y33.65%
EPS Next 5YN/A
Revenue Next Year-4.16%
Revenue Next 2Y-1.93%
Revenue Next 3Y-1.1%
Revenue Next 5YN/A
3.3 Evolution
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
TDS reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
Also next year TDS is expected to report negative earnings again, which makes the also the Forward Price/Earnings Ratio negative.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
TDS's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TDS is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.99 | ||
| EV/EBITDA | 6.94 |
4.3 Compensation for Growth
TDS's earnings are expected to grow with 33.65% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y38%
EPS Next 3Y33.65%
5. Dividend
5.1 Amount
TDS has a yearly dividend return of 0.47%, which is pretty low.
TDS's Dividend Yield is slightly below the industry average, which is at 5.43.
With a Dividend Yield of 0.47, TDS pays less dividend than the S&P500 average, which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.47% |
5.2 History
On average, the dividend of TDS grows each year by 6.94%, 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)6.94%
Div Incr Years33
Div Non Decr Years33
5.3 Sustainability
TDS has negative earnings and hence a negative payout ratio. The dividend may be in danger.
The dividend of TDS is growing, but earnings are growing more, so the dividend growth is sustainable.
DP-73.73%
EPS Next 2Y38%
EPS Next 3Y33.65%
33.75
-0.83 (-2.4%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners93.82%
Inst Owner Change-0.94%
Ins Owners1.28%
Ins Owner Change12.08%
Market Cap3.62B
Analysts74.29
Price Target52.02 (54.13%)
Short Float %5.75%
Short Ratio5.3
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.47% |
Yearly Dividend0.92
Dividend Growth(5Y)6.94%
DP-73.73%
Div Incr Years33
Div Non Decr Years33
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-109.46%
Min EPS beat(2)-283.73%
Max EPS beat(2)64.81%
EPS beat(4)2
Avg EPS beat(4)-129.5%
Min EPS beat(4)-300.05%
Max EPS beat(4)64.81%
EPS beat(8)4
Avg EPS beat(8)-73.59%
EPS beat(12)5
Avg EPS beat(12)-121.18%
EPS beat(16)7
Avg EPS beat(16)-79.68%
Revenue beat(2)0
Avg Revenue beat(2)-3.62%
Min Revenue beat(2)-5.18%
Max Revenue beat(2)-2.05%
Revenue beat(4)0
Avg Revenue beat(4)-2.84%
Min Revenue beat(4)-5.18%
Max Revenue beat(4)-1.2%
Revenue beat(8)1
Avg Revenue beat(8)-1.82%
Revenue beat(12)3
Avg Revenue beat(12)-1.56%
Revenue beat(16)3
Avg Revenue beat(16)-1.5%
PT rev (1m)0%
PT rev (3m)-1.92%
EPS NQ rev (1m)-10.17%
EPS NQ rev (3m)8.16%
EPS NY rev (1m)0%
EPS NY rev (3m)8.33%
Revenue NQ rev (1m)-1.48%
Revenue NQ rev (3m)-1.64%
Revenue NY rev (1m)-1.81%
Revenue NY rev (3m)-2.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 0.74 | ||
| P/FCF | 10.99 | ||
| P/OCF | 3.27 | ||
| P/B | 0.71 | ||
| P/tB | 10.83 | ||
| EV/EBITDA | 6.94 |
EPS(TTM)-1.05
EYN/A
EPS(NY)-0.08
Fwd EYN/A
FCF(TTM)3.07
FCFY9.1%
OCF(TTM)10.33
OCFY30.61%
SpS45.32
BVpS47.39
TBVpS3.12
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.87% | ||
| ROE | -2.32% | ||
| ROCE | 1.02% | ||
| ROIC | 0.8% | ||
| ROICexc | 0.83% | ||
| ROICexgc | 1.35% | ||
| OM | 2.64% | ||
| PM (TTM) | N/A | ||
| GM | 57.56% | ||
| FCFM | 6.78% |
ROA(3y)-1.61%
ROA(5y)-0.43%
ROE(3y)-4.32%
ROE(5y)-1.26%
ROIC(3y)1%
ROIC(5y)1.36%
ROICexc(3y)1.03%
ROICexc(5y)1.44%
ROICexgc(3y)1.72%
ROICexgc(5y)2.35%
ROCE(3y)1.27%
ROCE(5y)1.72%
ROICexcg growth 3Y-18.07%
ROICexcg growth 5Y-6.7%
ROICexc growth 3Y-17.3%
ROICexc growth 5Y-7.85%
OM growth 3Y-14.66%
OM growth 5Y-1.97%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y2.06%
GM growth 5Y0.77%
F-Score7
Asset Turnover0.36
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | 12.39 | ||
| Debt/EBITDA | 3.77 | ||
| Cap/Depr | 82.5% | ||
| Cap/Sales | 16.02% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 103.36% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.74 | ||
| Quick Ratio | 1.55 | ||
| Altman-Z | 0.9 |
F-Score7
WACC7.49%
ROIC/WACC0.11
Cap/Depr(3y)117.02%
Cap/Depr(5y)124.93%
Cap/Sales(3y)20.91%
Cap/Sales(5y)21.91%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-208.82%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-190%
EPS Next Y87.08%
EPS Next 2Y38%
EPS Next 3Y33.65%
EPS Next 5YN/A
Revenue 1Y (TTM)-5.14%
Revenue growth 3Y-2.34%
Revenue growth 5Y-0.83%
Sales Q2Q%-8.56%
Revenue Next Year-4.16%
Revenue Next 2Y-1.93%
Revenue Next 3Y-1.1%
Revenue Next 5YN/A
EBIT growth 1Y-32.98%
EBIT growth 3Y-16.65%
EBIT growth 5Y-2.78%
EBIT Next Year4765.85%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y182.05%
FCF growth 3YN/A
FCF growth 5Y34.63%
OCF growth 1Y35%
OCF growth 3Y1.25%
OCF growth 5Y2.42%