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TELEPHONE AND DATA SYSTEMS (TDS) Stock Fundamental Analysis

NYSE:TDS - New York Stock Exchange, Inc. - US8794338298 - Common Stock - Currency: USD

36.43  -1.22 (-3.24%)

After market: 36.43 0 (0%)

Fundamental Rating

2

We assign a fundamental rating of 2 out of 10 to TDS. TDS was compared to 21 industry peers in the Wireless Telecommunication Services industry. TDS may be in some trouble as it scores bad on both profitability and health. TDS is valued expensive and it does not seem to be growing. Finally TDS also has an excellent dividend rating.


Dividend Valuation Growth Profitability Health

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2

1. Profitability

1.1 Basic Checks

TDS had negative earnings in the past year.
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.
TDS Yearly Net Income VS EBIT VS OCF VS FCFTDS Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 500M -500M 1B 1.5B

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 76.19% of its industry peers.
With a Return On Equity value of -2.32%, TDS is not doing good in the industry: 71.43% of the companies in the same industry are doing better.
With a Return On Invested Capital value of 0.80%, TDS is not doing good in the industry: 80.95% 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 significantly below the industry average of 6.34%.
Industry RankSector 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%
TDS Yearly ROA, ROE, ROICTDS Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5 -5 -10

1.3 Margins

TDS has a Operating Margin of 2.64%. 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.
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 RankSector 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%
TDS Yearly Profit, Operating, Gross MarginsTDS Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 40

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3

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), TDS is destroying value.
TDS has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, TDS has less shares outstanding
The debt/assets ratio for TDS is higher compared to a year ago.
TDS Yearly Shares OutstandingTDS Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M 80M 100M
TDS Yearly Total Debt VS Total AssetsTDS Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B

2.2 Solvency

TDS has an Altman-Z score of 0.94. This is a bad value and indicates that TDS is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of TDS (0.94) is worse than 61.90% of its industry peers.
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 has a Debt to FCF ratio of 12.39. This is in the lower half of the industry: TDS underperforms 61.90% of its industry peers.
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 RankSector Rank
Debt/Equity 0.8
Debt/FCF 12.39
Altman-Z 0.94
ROIC/WACC0.1
WACC7.85%
TDS Yearly LT Debt VS Equity VS FCFTDS Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 1B 2B 3B 4B 5B

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.
TDS has a better Current ratio (1.74) than 95.24% 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.
With an excellent Quick ratio value of 1.55, TDS belongs to the best of the industry, outperforming 95.24% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.74
Quick Ratio 1.55
TDS Yearly Current Assets VS Current LiabilitesTDS Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B

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1

3. Growth

3.1 Past

TDS shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -208.82%.
Looking at the last year, TDS shows a decrease in Revenue. The Revenue has decreased by -5.14% 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)-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

TDS is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.26% yearly.
Based on estimates for the next years, TDS will show a decrease in Revenue. The Revenue will decrease by -1.56% on average per year.
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.
TDS Yearly Revenue VS EstimatesTDS Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 1B 2B 3B 4B 5B
TDS Yearly EPS VS EstimatesTDS Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 0 1 -1

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1

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 RankSector Rank
PE N/A
Fwd PE N/A
TDS Price Earnings VS Forward Price EarningsTDS Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 50 -50 100

4.2 Price Multiples

The rest of the industry has a similar Enterprise Value to EBITDA ratio as TDS.
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 RankSector Rank
P/FCF 12.62
EV/EBITDA 7.36
TDS Per share dataTDS EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 20 30 40

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%

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7

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 8.28%, TDS is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 5.75, TDS pays a better dividend. On top of this TDS pays more dividend than 100.00% 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 2.34.
Industry RankSector Rank
Dividend Yield 8.28%

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.
Dividend Growth(5Y)6.94%
Div Incr Years0
Div Non Decr Years0
TDS Yearly Dividends per shareTDS Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.2 0.4 0.6

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-73.73%
EPS Next 2Y25.2%
EPS Next 3Y13.26%
TDS Yearly Income VS Free CF VS DividendTDS Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200M -200M -400M

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TELEPHONE AND DATA SYSTEMS

NYSE:TDS (7/18/2025, 8:15:04 PM)

After market: 36.43 0 (0%)

36.43

-1.22 (-3.24%)

Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)05-02 2025-05-02/bmo
Earnings (Next)07-31 2025-07-31/bmo
Inst Owners95.64%
Inst Owner Change0%
Ins Owners1.12%
Ins Owner Change23.3%
Market Cap4.15B
Analysts74.29
Price Target47.94 (31.59%)
Short Float %6.79%
Short Ratio6.53
Dividend
Industry RankSector Rank
Dividend Yield 8.28%
Yearly Dividend0.92
Dividend Growth(5Y)6.94%
DP-73.73%
Div Incr Years0
Div Non Decr Years0
Ex-Date06-16 2025-06-16 (0.04)
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)-7.84%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-62.71%
EPS NY rev (1m)0%
EPS NY rev (3m)-236.97%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.22%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.77%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE N/A
P/S 0.86
P/FCF 12.62
P/OCF 3.75
P/B 0.82
P/tB 12.43
EV/EBITDA 7.36
EPS(TTM)-1.05
EYN/A
EPS(NY)-0.37
Fwd EYN/A
FCF(TTM)2.89
FCFY7.92%
OCF(TTM)9.71
OCFY26.66%
SpS42.6
BVpS44.54
TBVpS2.93
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector 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 RankSector 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 0.94
F-Score7
WACC7.85%
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%