TELEPHONE AND DATA SYSTEMS (TDS) Stock Fundamental Analysis
USA - NYSE:TDS - US8794338298 - Common Stock
39.71 USD
+0.62 (+1.59%)
39.71 USD
0 (0%)
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. 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.
In multiple years TDS reported negative net income over the last 5 years.
TDS had a positive operating cash flow in each of the past 5 years.
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.
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.
TDS's Return On Invested Capital of 0.69% is on the low side compared to the rest of the industry. TDS is outperformed by 77.27% of its industry peers.
The Average Return On Invested Capital over the past 3 years 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.
TDS's Operating Margin has declined in the last couple of years.
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
TDS has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, TDS has more shares outstanding
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 (0.95) which is in line with 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 (9.99) which is comparable to the rest of the industry.
TDS has a Debt/Equity ratio of 0.81. This is a neutral value indicating TDS is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.81, TDS perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.81 | ||
| Debt/FCF | 9.99 | ||
| Altman-Z | 0.95 |
ROIC/WACC0.09
WACC7.5%
2.3 Liquidity
A Current Ratio of 1.78 indicates that TDS should not have too much problems paying its short term obligations.
The Current ratio of TDS (1.78) is better than 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.
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
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.
Looking at the last year, TDS shows a decrease in Revenue. The Revenue has decreased by -3.80% 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)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.
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
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
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 | 11.22 | ||
| EV/EBITDA | 7.59 |
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 7.81%, 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 | 7.81% |
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
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-79.82%
EPS Next 2Y22.19%
EPS Next 3Y10.97%
39.71
+0.62 (+1.59%)
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 Cap4.57B
Revenue(TTM)4.96B
Net Income(TTM)-109.00M
Analysts74.29
Price Target51 (28.43%)
Short Float %6.89%
Short Ratio6.81
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.81% |
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 | 0.95 | ||
| P/FCF | 11.22 | ||
| P/OCF | 4.06 | ||
| P/B | 0.91 | ||
| P/tB | 17.17 | ||
| EV/EBITDA | 7.59 |
EPS(TTM)-0.17
EYN/A
EPS(NY)-0.44
Fwd EYN/A
FCF(TTM)3.54
FCFY8.91%
OCF(TTM)9.79
OCFY24.66%
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
WACC7.5%
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%.