TELEPHONE AND DATA SYSTEMS (TDS) Stock Fundamental Analysis
USA - NYSE:TDS - US8794338298 - Common Stock
38.47 USD
-0.23 (-0.59%)
TDS gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 22 industry peers in the Wireless Telecommunication Services industry. While TDS seems to be doing ok healthwise, there are quite some concerns on its profitability. TDS does not seem to be growing, but still is valued expensively. Finally TDS also has an excellent dividend rating.
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.
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 -0.81%, TDS is doing worse than 77.27% of the companies in the same industry.
Looking at the Return On Equity, with a value of -2.18%, TDS is doing worse than 77.27% of the companies in the same industry.
With a Return On Invested Capital value of 0.69%, TDS is not doing good in the industry: 77.27% of the companies in the same industry are doing better.
Measured over the past 3 years, the Average Return On Invested Capital for TDS is below the industry average of 5.83%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.81% | ||
| ROE | -2.18% | ||
| ROIC | 0.69% |
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 2.27%, TDS is not doing good in the industry: 72.73% of the companies in the same industry are doing better.
In the last couple of years the Operating Margin of TDS has declined.
TDS has a Gross Margin of 57.74%. This is in the better half of the industry: TDS outperforms 72.73% of its industry peers.
TDS's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.27% | ||
| PM (TTM) | N/A | ||
| GM | 57.74% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so TDS is destroying value.
The number of shares outstanding for TDS has been increased compared to 1 year ago.
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 0.95. 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 of 0.95. This is comparable to the rest of the industry: TDS outperforms 45.45% of its industry peers.
The Debt to FCF ratio of TDS is 9.99, which is on the high side as it means it would take TDS, 9.99 years of fcf income to pay off all of its debts.
TDS has a Debt to FCF ratio of 9.99. This is comparable to the rest of the industry: TDS outperforms 40.91% of its industry peers.
TDS has a Debt/Equity ratio of 0.81. This is a neutral value indicating TDS is somewhat dependend on debt financing.
The Debt to Equity ratio of TDS (0.81) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.81 | ||
| Debt/FCF | 9.99 | ||
| Altman-Z | 0.95 |
ROIC/WACC0.09
WACC7.46%
2.3 Liquidity
A Current Ratio of 1.78 indicates that TDS should not have too much problems paying its short term obligations.
TDS has a Current ratio of 1.78. This is amongst the best in the industry. TDS outperforms 81.82% of its industry peers.
TDS has a Quick Ratio of 1.65. 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 1.65, TDS is in the better half of the industry, outperforming 77.27% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.78 | ||
| Quick Ratio | 1.65 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 80.46% over the past year.
TDS shows a decrease in Revenue. In the last year, the revenue decreased by -3.80%.
TDS shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.83% yearly.
EPS 1Y (TTM)80.46%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%109.59%
Revenue 1Y (TTM)-3.8%
Revenue growth 3Y-2.34%
Revenue growth 5Y-0.83%
Sales Q2Q%-74.79%
3.2 Future
The Earnings Per Share is expected to grow by 10.97% on average over the next years. This is quite good.
Based on estimates for the next years, TDS will show a decrease in Revenue. The Revenue will decrease by -1.71% on average per year.
EPS Next Y45.12%
EPS Next 2Y22.19%
EPS Next 3Y10.97%
EPS Next 5YN/A
Revenue Next Year-5.37%
Revenue Next 2Y-2.58%
Revenue Next 3Y-1.71%
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.
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 ratio is in line with the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as TDS.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.87 | ||
| EV/EBITDA | 7.55 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y22.19%
EPS Next 3Y10.97%
5. Dividend
5.1 Amount
TDS has a Yearly Dividend Yield of 7.91%, which is a nice return.
Compared to an average industry Dividend Yield of 8.87, TDS pays a better dividend. On top of this TDS pays more dividend than 90.91% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, TDS pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.91% |
5.2 History
The dividend of TDS is nicely growing with an annual growth rate of 6.94%!
TDS has paid a dividend for at least 10 years, which is 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.
TDS's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP-79.82%
EPS Next 2Y22.19%
EPS Next 3Y10.97%
NYSE:TDS (11/14/2025, 2:25:59 PM)
38.47
-0.23 (-0.59%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners95.4%
Inst Owner Change-1.05%
Ins Owners1%
Ins Owner Change9.04%
Market Cap4.42B
Revenue(TTM)4.96B
Net Income(TTM)-109.00M
Analysts74.29
Price Target51 (32.57%)
Short Float %6.89%
Short Ratio6.81
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.91% |
Yearly Dividend0.92
Dividend Growth(5Y)6.94%
DP-79.82%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-416.89%
Min EPS beat(2)-550.04%
Max EPS beat(2)-283.73%
EPS beat(4)1
Avg EPS beat(4)-267.25%
Min EPS beat(4)-550.04%
Max EPS beat(4)64.81%
EPS beat(8)4
Avg EPS beat(8)-101.58%
EPS beat(12)4
Avg EPS beat(12)-180.53%
EPS beat(16)7
Avg EPS beat(16)-112.37%
Revenue beat(2)0
Avg Revenue beat(2)-2.67%
Min Revenue beat(2)-5.18%
Max Revenue beat(2)-0.17%
Revenue beat(4)0
Avg Revenue beat(4)-2.58%
Min Revenue beat(4)-5.18%
Max Revenue beat(4)-0.17%
Revenue beat(8)1
Avg Revenue beat(8)-1.45%
Revenue beat(12)2
Avg Revenue beat(12)-1.67%
Revenue beat(16)3
Avg Revenue beat(16)-1.47%
PT rev (1m)0%
PT rev (3m)2.04%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-338.65%
EPS NY rev (1m)0%
EPS NY rev (3m)-26.08%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.42%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 0.92 | ||
| P/FCF | 10.87 | ||
| P/OCF | 3.93 | ||
| P/B | 0.88 | ||
| P/tB | 16.63 | ||
| EV/EBITDA | 7.55 |
EPS(TTM)-0.17
EYN/A
EPS(NY)-0.44
Fwd EYN/A
FCF(TTM)3.54
FCFY9.2%
OCF(TTM)9.79
OCFY25.45%
SpS41.77
BVpS43.51
TBVpS2.31
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.81% | ||
| ROE | -2.18% | ||
| ROCE | 0.87% | ||
| ROIC | 0.69% | ||
| ROICexc | 0.72% | ||
| ROICexgc | 1.19% | ||
| OM | 2.27% | ||
| PM (TTM) | N/A | ||
| GM | 57.74% | ||
| FCFM | 8.47% |
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%
ROICexgc growth 3Y-18.07%
ROICexgc 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-Score6
Asset Turnover0.36
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.81 | ||
| Debt/FCF | 9.99 | ||
| Debt/EBITDA | 3.81 | ||
| Cap/Depr | 75.84% | ||
| Cap/Sales | 14.97% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 106.53% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.78 | ||
| Quick Ratio | 1.65 | ||
| Altman-Z | 0.95 |
F-Score6
WACC7.46%
ROIC/WACC0.09
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)80.46%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%109.59%
EPS Next Y45.12%
EPS Next 2Y22.19%
EPS Next 3Y10.97%
EPS Next 5YN/A
Revenue 1Y (TTM)-3.8%
Revenue growth 3Y-2.34%
Revenue growth 5Y-0.83%
Sales Q2Q%-74.79%
Revenue Next Year-5.37%
Revenue Next 2Y-2.58%
Revenue Next 3Y-1.71%
Revenue Next 5YN/A
EBIT growth 1Y-47.85%
EBIT growth 3Y-16.65%
EBIT growth 5Y-2.78%
EBIT Next Year4587.96%
EBIT Next 3Y257.02%
EBIT Next 5YN/A
FCF growth 1Y223.71%
FCF growth 3YN/A
FCF growth 5Y34.63%
OCF growth 1Y20.43%
OCF growth 3Y1.25%
OCF growth 5Y2.42%
TELEPHONE AND DATA SYSTEMS / TDS FAQ
What is the ChartMill fundamental rating of TELEPHONE AND DATA SYSTEMS (TDS) stock?
ChartMill assigns a fundamental rating of 3 / 10 to TDS.
What is the valuation status of TELEPHONE AND DATA SYSTEMS (TDS) stock?
ChartMill assigns a valuation rating of 1 / 10 to TELEPHONE AND DATA SYSTEMS (TDS). This can be considered as Overvalued.
Can you provide the profitability details for TELEPHONE AND DATA SYSTEMS?
TELEPHONE AND DATA SYSTEMS (TDS) has a profitability rating of 2 / 10.
What is the earnings growth outlook for TELEPHONE AND DATA SYSTEMS?
The Earnings per Share (EPS) of TELEPHONE AND DATA SYSTEMS (TDS) is expected to grow by 45.12% in the next year.
Is the dividend of TELEPHONE AND DATA SYSTEMS sustainable?
The dividend rating of TELEPHONE AND DATA SYSTEMS (TDS) is 7 / 10 and the dividend payout ratio is -79.82%.