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 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
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.
TDS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
TDS has a worse Return On Assets (-0.87%) than 76.19% of its industry peers.
The Return On Equity of TDS (-2.32%) is worse than 71.43% of its industry peers.
TDS's Return On Invested Capital of 0.80% is on the low side compared to the rest of the industry. TDS is outperformed by 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 6.35%.
| 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 better Gross Margin (57.56%) than 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
TDS has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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.
With a Altman-Z score value of 0.95, TDS perfoms like the industry average, outperforming 42.86% of the companies in the same 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.
The Debt to FCF ratio of TDS (12.39) is worse than 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.
TDS has a Debt to Equity ratio (0.80) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | 12.39 | ||
| Altman-Z | 0.95 |
ROIC/WACC0.11
WACC7.08%
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.
With an excellent Current ratio value of 1.74, TDS belongs to the best of the industry, outperforming 95.24% of the companies in the same industry.
A Quick Ratio of 1.55 indicates that TDS should not have too much problems paying its short term obligations.
The Quick ratio of TDS (1.55) is better than 90.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.74 | ||
| Quick Ratio | 1.55 |
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%.
TDS shows a decrease in Revenue. In the last year, the revenue decreased by -5.14%.
The Revenue has been decreasing by -0.83% on average over the past years.
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.
The Revenue is expected to decrease by -1.56% on average over the next years.
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
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
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
The rest of the industry has a similar Enterprise Value to EBITDA ratio as TDS.
TDS's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.43 | ||
| EV/EBITDA | 7.61 |
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
TDS has a Yearly Dividend Yield of 8.02%, which is a nice return.
TDS's Dividend Yield is rather good when compared to the industry average which is at 51.86. TDS pays more dividend than 95.24% of the companies in the same industry.
TDS's Dividend Yield is rather good when compared to the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.02% |
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.
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%
38.75
+0.48 (+1.25%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners96.34%
Inst Owner Change0.53%
Ins Owners1.13%
Ins Owner Change23.19%
Market Cap4.42B
Analysts74.29
Price Target49.98 (28.98%)
Short Float %6.33%
Short Ratio5.7
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.02% |
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)4.26%
PT rev (3m)-3.92%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-58.49%
EPS NY rev (1m)0%
EPS NY rev (3m)-236.97%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.75%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.98%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 0.91 | ||
| P/FCF | 13.43 | ||
| P/OCF | 3.99 | ||
| P/B | 0.87 | ||
| P/tB | 13.23 | ||
| EV/EBITDA | 7.61 |
EPS(TTM)-1.05
EYN/A
EPS(NY)-0.37
Fwd EYN/A
FCF(TTM)2.89
FCFY7.45%
OCF(TTM)9.71
OCFY25.06%
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 | 0.95 |
F-Score7
WACC7.08%
ROIC/WACC0.11
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 Year4621.32%
EBIT Next 3Y258.76%
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%