TELEPHONE AND DATA SYSTEMS (TDS) Stock Fundamental Analysis
NYSE:TDS - US8794338298 - Common Stock
40.09 USD
-0.18 (-0.45%)
40.09 USD
0 (0%)
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 has a expensive valuation and it also scores bad on growth. Finally TDS also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
TDS had negative earnings in the past year.
TDS had a positive operating cash flow in the past year.
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.
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 76.19% of its industry peers.
With a Return On Equity value of -2.18%, TDS is not doing good in the industry: 76.19% of the companies in the same industry are doing better.
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 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 6.31%.
| 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
TDS has a worse Operating Margin (2.27%) than 76.19% 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 71.43% 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), TDS is destroying value.
The number of shares outstanding for TDS has been increased compared to 1 year ago.
The number of shares outstanding for TDS has been reduced compared to 5 years ago.
The debt/assets ratio for TDS is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.96, we must say that TDS is in the distress zone and has some risk of bankruptcy.
TDS has a Altman-Z score of 0.96. This is comparable to the rest of the industry: TDS outperforms 42.86% 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.
TDS has a worse Debt to FCF ratio (9.99) than 61.90% of its industry peers.
TDS has a Debt/Equity ratio of 0.81. This is a neutral value indicating TDS is somewhat dependend on debt financing.
TDS has a Debt to Equity ratio (0.81) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.81 | ||
| Debt/FCF | 9.99 | ||
| Altman-Z | 0.96 |
ROIC/WACC0.09
WACC7.87%
2.3 Liquidity
A Current Ratio of 1.78 indicates that TDS should not have too much problems paying its short term obligations.
TDS has a better Current ratio (1.78) than 80.95% of its industry peers.
A Quick Ratio of 1.65 indicates that TDS should not have too much problems paying its short term obligations.
The Quick ratio of TDS (1.65) is better than 76.19% 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 negative growth in Earnings Per Share. In the last year the EPS decreased by -223.33%.
Looking at the last year, TDS shows a decrease in Revenue. The Revenue has decreased by -5.62% in the last year.
Measured over the past years, TDS shows a decrease in Revenue. The Revenue has been decreasing by -0.83% on average per year.
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
TDS is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.43% yearly.
TDS is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -2.02% yearly.
EPS Next Y34.23%
EPS Next 2Y19.35%
EPS Next 3Y11.43%
EPS Next 5YN/A
Revenue Next Year-6.19%
Revenue Next 2Y-2.91%
Revenue Next 3Y-2.02%
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
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 | 11.33 | ||
| EV/EBITDA | 7.7 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y19.35%
EPS Next 3Y11.43%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.93%, TDS is a good candidate for dividend investing.
TDS's Dividend Yield is rather good when compared to the industry average which is at 8.10. 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 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.93% |
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
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 2Y19.35%
EPS Next 3Y11.43%
40.09
-0.18 (-0.45%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners96.34%
Inst Owner Change0.36%
Ins Owners1.13%
Ins Owner Change9.08%
Market Cap4.61B
Analysts74.29
Price Target51 (27.21%)
Short Float %7.01%
Short Ratio5.35
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.93% |
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)6.38%
PT rev (3m)-1.96%
EPS NQ rev (1m)-338.65%
EPS NQ rev (3m)-47.02%
EPS NY rev (1m)-51.08%
EPS NY rev (3m)-46.98%
Revenue NQ rev (1m)-0.42%
Revenue NQ rev (3m)-2.57%
Revenue NY rev (1m)-1.15%
Revenue NY rev (3m)-1.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 0.96 | ||
| P/FCF | 11.33 | ||
| P/OCF | 4.09 | ||
| P/B | 0.92 | ||
| P/tB | 17.33 | ||
| EV/EBITDA | 7.7 |
EPS(TTM)-0.97
EYN/A
EPS(NY)-0.49
Fwd EYN/A
FCF(TTM)3.54
FCFY8.83%
OCF(TTM)9.79
OCFY24.42%
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 | 0.96 |
F-Score6
WACC7.87%
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)-223.33%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%61.54%
EPS Next Y34.23%
EPS Next 2Y19.35%
EPS Next 3Y11.43%
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-6.19%
Revenue Next 2Y-2.91%
Revenue Next 3Y-2.02%
Revenue Next 5YN/A
EBIT growth 1Y-47.85%
EBIT growth 3Y-16.65%
EBIT growth 5Y-2.78%
EBIT Next Year4621.32%
EBIT Next 3Y258.76%
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%