TELEPHONE AND DATA SYSTEMS (TDS) Stock Fundamental Analysis
USA - NYSE:TDS - US8794338298 - Common Stock
38.7 USD
-1.01 (-2.54%)
38.71 USD
+0.01 (+0.03%)
We assign a fundamental rating of 3 out of 10 to TDS. TDS was compared to 22 industry peers in the Wireless Telecommunication Services industry. The financial health of TDS is average, but 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.
In the past 5 years TDS always reported a positive cash flow from operatings.
1.2 Ratios
TDS has a worse Return On Assets (-0.81%) than 77.27% of its industry peers.
With a Return On Equity value of -2.18%, TDS is not doing good in the industry: 77.27% of the companies in the same industry are doing better.
The Return On Invested Capital of TDS (0.69%) is worse than 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 5.83%.
| 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
The Operating Margin of TDS (2.27%) is worse than 72.73% of its industry peers.
In the last couple of years the Operating Margin of TDS has declined.
Looking at the Gross Margin, with a value of 57.74%, TDS is in the better half of the industry, outperforming 72.73% of the companies in the same industry.
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
TDS has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
TDS has more shares outstanding than it did 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 0.96. This is a bad value and indicates that TDS is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 0.96, TDS perfoms like the industry average, outperforming 45.45% of the companies in the same industry.
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.
TDS has a Debt to FCF ratio (9.99) which is in line with its industry peers.
A Debt/Equity ratio of 0.81 indicates that TDS is somewhat dependend on debt financing.
TDS has a Debt to Equity ratio of 0.81. This is comparable to the rest of the industry: TDS outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.81 | ||
| Debt/FCF | 9.99 | ||
| Altman-Z | 0.96 |
ROIC/WACC0.09
WACC7.48%
2.3 Liquidity
TDS has a Current Ratio of 1.78. 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 Current ratio value of 1.78, TDS belongs to the best of the industry, outperforming 81.82% of the companies in the same industry.
A Quick Ratio of 1.65 indicates that TDS should not have too much problems paying its short term obligations.
TDS has a better Quick ratio (1.65) than 77.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.78 | ||
| Quick Ratio | 1.65 |
3. Growth
3.1 Past
TDS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 80.46%, which is quite impressive.
TDS shows a decrease in Revenue. In the last year, the revenue decreased by -3.80%.
The Revenue has been decreasing by -0.83% on average over the past years.
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
TDS is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.97% yearly.
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
The Price/Earnings Ratio is negative for TDS. In the last year negative earnings were reported.
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
The rest of the industry has a similar Enterprise Value to EBITDA ratio as TDS.
TDS's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.93 | ||
| EV/EBITDA | 7.66 |
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 86.36% 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
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.
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%
38.7
-1.01 (-2.54%)
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 Cap4.45B
Revenue(TTM)4.96B
Net Income(TTM)-109.00M
Analysts74.29
Price Target51 (31.78%)
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 | 0.93 | ||
| P/FCF | 10.93 | ||
| P/OCF | 3.95 | ||
| P/B | 0.89 | ||
| P/tB | 16.73 | ||
| EV/EBITDA | 7.66 |
EPS(TTM)-0.17
EYN/A
EPS(NY)-0.44
Fwd EYN/A
FCF(TTM)3.54
FCFY9.15%
OCF(TTM)9.79
OCFY25.3%
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 | 0.96 |
F-Score6
WACC7.48%
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%.