TELEPHONE AND DATA SYSTEMS (TDS) Stock Fundamental Analysis
NYSE:TDS - New York Stock Exchange, Inc. - US8794338298 - Common Stock - Currency: USD
Taking everything into account, TDS scores 2 out of 10 in our fundamental rating. TDS was compared to 21 industry peers in the Wireless Telecommunication Services industry. TDS scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. TDS does not seem to be growing, but still is valued expensively.
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.
Each year in the past 5 years TDS had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of -0.87%, TDS is doing worse than 76.19% of the companies in the same industry.
The Return On Equity of TDS (-2.32%) is worse than 71.43% of its industry peers.
TDS has a Return On Invested Capital of 0.80%. This is amonst the worse of the industry: TDS underperforms 80.95% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TDS is significantly below the industry average of 6.28%.
| 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
TDS has a worse Operating Margin (2.64%) than 80.95% of its industry peers.
TDS's Operating Margin has declined in the last couple of years.
TDS has a Gross Margin of 57.56%. This is in the better half of the industry: TDS outperforms 71.43% 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.
Compared to 1 year ago, TDS has more shares outstanding
TDS has less shares outstanding than it did 5 years ago.
The debt/assets ratio for TDS is higher compared to a year ago.
2.2 Solvency
TDS has an Altman-Z score of 0.92. This is a bad value and indicates that TDS is not financially healthy and even has some risk of bankruptcy.
TDS has a Altman-Z score (0.92) which is comparable to the rest of the industry.
The Debt to FCF ratio of TDS is 12.39, which is on the high side as it means it would take TDS, 12.39 years of fcf income to pay off all of its debts.
TDS's Debt to FCF ratio of 12.39 is in line compared to the rest of the industry. TDS outperforms 42.86% of its industry peers.
A Debt/Equity ratio of 0.80 indicates that 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 | 0.92 |
ROIC/WACC0.1
WACC7.8%
2.3 Liquidity
TDS has a Current Ratio of 1.74. 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 Current ratio, with a value of 1.74, TDS belongs to the top of the industry, outperforming 95.24% of the companies in the same industry.
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.
The Quick ratio of TDS (1.55) is better than 95.24% of its industry peers.
| 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.
TDS shows a decrease in Revenue. In the last year, the revenue decreased by -5.14%.
TDS shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.83% yearly.
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 quite strong growth in Earnings Per Share. The EPS will grow by 13.26% on average per year.
TDS is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -1.56% yearly.
EPS Next Y56.47%
EPS Next 2Y25.2%
EPS Next 3Y13.26%
EPS Next 5YN/A
Revenue Next Year-5.09%
Revenue Next 2Y-2.39%
Revenue Next 3Y-1.56%
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
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TDS is on the same level as its industry peers.
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 | 12.01 | ||
| EV/EBITDA | 7.2 |
4.3 Compensation for Growth
A more expensive valuation may be justified as TDS's earnings are expected to grow with 13.26% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y25.2%
EPS Next 3Y13.26%
5. Dividend
5.1 Amount
With a yearly dividend of 0.48%, TDS is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 5.12, TDS is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.43, TDS's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.48% |
5.2 History
On average, the dividend of TDS grows each year by 6.94%, which is quite nice.
TDS has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)6.94%
Div Incr Years0
Div Non Decr Years0
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 2Y25.2%
EPS Next 3Y13.26%
NYSE:TDS (6/27/2025, 10:41:27 AM)
34.65
-0.3 (-0.86%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners95.64%
Inst Owner Change5.05%
Ins Owners1.12%
Ins Owner Change23.73%
Market Cap3.95B
Analysts74.29
Price Target47.94 (38.35%)
Short Float %6.32%
Short Ratio6.62
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.48% |
Yearly Dividend0.92
Dividend Growth(5Y)6.94%
DP-73.73%
Div Incr Years0
Div Non Decr Years0
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)-7.84%
PT rev (3m)-7.84%
EPS NQ rev (1m)633.33%
EPS NQ rev (3m)-62.71%
EPS NY rev (1m)2.71%
EPS NY rev (3m)-208.89%
Revenue NQ rev (1m)0.34%
Revenue NQ rev (3m)-2.22%
Revenue NY rev (1m)0.13%
Revenue NY rev (3m)-2.77%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 0.81 | ||
| P/FCF | 12.01 | ||
| P/OCF | 3.57 | ||
| P/B | 0.78 | ||
| P/tB | 11.83 | ||
| EV/EBITDA | 7.2 |
EPS(TTM)-1.05
EYN/A
EPS(NY)-0.37
Fwd EYN/A
FCF(TTM)2.89
FCFY8.33%
OCF(TTM)9.71
OCFY28.02%
SpS42.6
BVpS44.54
TBVpS2.93
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 | 0.92 |
F-Score7
WACC7.8%
ROIC/WACC0.1
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 Y56.47%
EPS Next 2Y25.2%
EPS Next 3Y13.26%
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-5.09%
Revenue Next 2Y-2.39%
Revenue Next 3Y-1.56%
Revenue Next 5YN/A
EBIT growth 1Y-32.98%
EBIT growth 3Y-16.65%
EBIT growth 5Y-2.78%
EBIT Next Year4736.2%
EBIT Next 3Y258.66%
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%