TELEPHONE AND DATA SYSTEMS (TDS) Stock Fundamental Analysis
USA - NYSE:TDS - US8794338298 - Common Stock
38.53 USD
-0.28 (-0.72%)
38.53 USD
0 (0%)
Overall TDS gets a fundamental rating of 2 out of 10. We evaluated TDS against 22 industry peers in the Wireless Telecommunication Services industry. TDS may be in some trouble as it scores bad on both profitability and health. TDS has a expensive valuation and it also scores bad on growth. 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.
In multiple years TDS reported negative net income over the last 5 years.
Each year in the past 5 years TDS had a positive operating cash flow.
1.2 Ratios
TDS's Return On Assets of -0.81% is on the low side compared to the rest of the industry. TDS is outperformed by 77.27% of its industry peers.
TDS has a worse Return On Equity (-2.18%) than 77.27% of its industry peers.
TDS has a Return On Invested Capital of 0.69%. This is in the lower half of the industry: TDS underperforms 77.27% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TDS is below the industry average of 5.84%.
| 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's Gross Margin of 57.74% is fine compared to the rest of the industry. TDS outperforms 72.73% of its industry peers.
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 | 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.
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 0.95, we must say that TDS is in the distress zone and has some risk of bankruptcy.
TDS has a worse Altman-Z score (0.95) than 63.64% of its industry peers.
TDS has a debt to FCF ratio of 9.99. This is a negative value and a sign of low solvency as TDS would need 9.99 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 9.99, TDS is in line with its industry, outperforming 40.91% of the companies in the same industry.
A Debt/Equity ratio of 0.81 indicates that 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/WACC0.08
WACC8.65%
2.3 Liquidity
A Current Ratio of 1.78 indicates that TDS should not have too much problems paying its short term obligations.
TDS's Current ratio of 1.78 is amongst the best of the industry. TDS outperforms 81.82% of its industry peers.
A Quick Ratio of 1.65 indicates that TDS should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.65, TDS is doing good in 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 for TDS have decreased strongly by -223.33% in the last year.
Looking at the last year, TDS shows a decrease in Revenue. The Revenue has decreased by -5.62% in the last year.
TDS shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.83% yearly.
EPS 1Y (TTM)-223.33%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%61.54%
Revenue 1Y (TTM)-5.62%
Revenue growth 3Y-2.34%
Revenue growth 5Y-0.83%
Sales Q2Q%-4.2%
3.2 Future
The Earnings Per Share is expected to grow by 10.97% on average over the next years. This is quite good.
TDS is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -1.71% yearly.
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
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
The Price/Earnings Ratio is negative for TDS. In the last year negative earnings were reported.
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.
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 | 10.89 | ||
| EV/EBITDA | 7.56 |
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 7.61%, which is a nice return.
Compared to an average industry Dividend Yield of 8.56, TDS pays a better dividend. On top of this TDS pays more dividend than 81.82% of the companies listed in the same industry.
TDS's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.61% |
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
The earnings of TDS are negative and hence is the payout ratio. TDS will probably not be able to sustain this dividend level.
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%
38.53
-0.28 (-0.72%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners95.4%
Inst Owner Change-0.03%
Ins Owners1%
Ins Owner Change9.08%
Market Cap4.43B
Analysts74.29
Price Target51 (32.36%)
Short Float %6.97%
Short Ratio5.21
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.61% |
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)6.38%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-338.65%
EPS NY rev (1m)16.55%
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 | 10.89 | ||
| P/OCF | 3.94 | ||
| P/B | 0.89 | ||
| P/tB | 16.66 | ||
| EV/EBITDA | 7.56 |
EPS(TTM)-0.97
EYN/A
EPS(NY)-0.44
Fwd EYN/A
FCF(TTM)3.54
FCFY9.19%
OCF(TTM)9.79
OCFY25.41%
SpS41.77
BVpS43.51
TBVpS2.31
PEG (NY)N/A
PEG (5Y)N/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%
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-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
WACC8.65%
ROIC/WACC0.08
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)-223.33%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%61.54%
EPS Next Y45.12%
EPS Next 2Y22.19%
EPS Next 3Y10.97%
EPS Next 5YN/A
Revenue 1Y (TTM)-5.62%
Revenue growth 3Y-2.34%
Revenue growth 5Y-0.83%
Sales Q2Q%-4.2%
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%