T-MOBILE US INC (TM5.DE) Stock Fundamental Analysis
FRA:TM5 - Deutsche Boerse Ag - US8725901040 - Common Stock - Currency: EUR
Overall TM5 gets a fundamental rating of 6 out of 10. We evaluated TM5 against 6 industry peers in the Wireless Telecommunication Services industry. While TM5 belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. While showing a medium growth rate, TM5 is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year TM5 was profitable.
In the past year TM5 had a positive cash flow from operations.
Each year in the past 5 years TM5 has been profitable.
In the past 5 years TM5 always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.74%, TM5 belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
Looking at the Return On Equity, with a value of 19.99%, TM5 belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
TM5's Return On Invested Capital of 7.77% is amongst the best of the industry. TM5 outperforms 83.33% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TM5 is in line with the industry average of 6.41%.
The last Return On Invested Capital (7.77%) for TM5 is above the 3 year average (6.22%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.74% | ||
| ROE | 19.99% | ||
| ROIC | 7.77% |
ROA(3y)3.56%
ROA(5y)2.74%
ROE(3y)11.65%
ROE(5y)8.8%
ROIC(3y)6.22%
ROIC(5y)5.29%
1.3 Margins
TM5 has a Profit Margin of 14.53%. This is amongst the best in the industry. TM5 outperforms 83.33% of its industry peers.
TM5's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 23.08%, TM5 belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
In the last couple of years the Operating Margin of TM5 has grown nicely.
With an excellent Gross Margin value of 63.61%, TM5 belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
TM5's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.08% | ||
| PM (TTM) | 14.53% | ||
| GM | 63.61% |
OM growth 3Y21.03%
OM growth 5Y9.44%
PM growth 3Y54.54%
PM growth 5Y12.57%
GM growth 3Y3.8%
GM growth 5Y1.56%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), TM5 is creating some value.
The number of shares outstanding for TM5 has been reduced compared to 1 year ago.
Compared to 5 years ago, TM5 has more shares outstanding
The debt/assets ratio for TM5 is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 1.93 indicates that TM5 is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 1.93, TM5 is in line with its industry, outperforming 50.00% of the companies in the same industry.
The Debt to FCF ratio of TM5 is 7.20, which is on the high side as it means it would take TM5, 7.20 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 7.20, TM5 is doing good in the industry, outperforming 66.67% of the companies in the same industry.
A Debt/Equity ratio of 1.33 is on the high side and indicates that TM5 has dependencies on debt financing.
With a Debt to Equity ratio value of 1.33, TM5 is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.33 | ||
| Debt/FCF | 7.2 | ||
| Altman-Z | 1.93 |
ROIC/WACC1.03
WACC7.54%
2.3 Liquidity
A Current Ratio of 1.21 indicates that TM5 should not have too much problems paying its short term obligations.
TM5 has a Current ratio (1.21) which is in line with its industry peers.
A Quick Ratio of 1.13 indicates that TM5 should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.13, TM5 perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.21 | ||
| Quick Ratio | 1.13 |
3. Growth
3.1 Past
TM5 shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 32.83%, which is quite impressive.
The Earnings Per Share has been growing by 19.13% on average over the past years. This is quite good.
The Revenue has been growing slightly by 6.27% in the past year.
Measured over the past years, TM5 shows a quite strong growth in Revenue. The Revenue has been growing by 12.59% on average per year.
EPS 1Y (TTM)32.83%
EPS 3Y58.9%
EPS 5Y19.13%
EPS Q2Q%14.06%
Revenue 1Y (TTM)6.27%
Revenue growth 3Y0.53%
Revenue growth 5Y12.59%
Sales Q2Q%6.88%
3.2 Future
The Earnings Per Share is expected to grow by 15.70% on average over the next years. This is quite good.
Based on estimates for the next years, TM5 will show a small growth in Revenue. The Revenue will grow by 4.92% on average per year.
EPS Next Y12.11%
EPS Next 2Y15.46%
EPS Next 3Y16.24%
EPS Next 5Y15.7%
Revenue Next Year6.8%
Revenue Next 2Y5.97%
Revenue Next 3Y5.44%
Revenue Next 5Y4.92%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
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
A Price/Earnings ratio of 22.83 indicates a rather expensive valuation of TM5.
Compared to the rest of the industry, the Price/Earnings ratio of TM5 is on the same level as its industry peers.
TM5 is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.61, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 18.77, TM5 is valued on the expensive side.
66.67% of the companies in the same industry are cheaper than TM5, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 37.13, TM5 is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.83 | ||
| Fwd PE | 18.77 |
4.2 Price Multiples
66.67% of the companies in the same industry are cheaper than TM5, based on the Enterprise Value to EBITDA ratio.
TM5's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.27 | ||
| EV/EBITDA | 10.97 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates TM5 does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of TM5 may justify a higher PE ratio.
TM5's earnings are expected to grow with 16.24% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.88
PEG (5Y)1.19
EPS Next 2Y15.46%
EPS Next 3Y16.24%
5. Dividend
5.1 Amount
TM5 has a Yearly Dividend Yield of 1.42%. Purely for dividend investing, there may be better candidates out there.
TM5's Dividend Yield is a higher than the industry average which is at 2.74.
TM5's Dividend Yield is slightly below the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.42% |
5.2 History
On average, the dividend of TM5 grows each year by 111.33%, which is quite nice.
Dividend Growth(5Y)111.33%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
TM5 pays out 30.87% of its income as dividend. This is a sustainable payout ratio.
TM5's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP30.87%
EPS Next 2Y15.46%
EPS Next 3Y16.24%
FRA:TM5 (7/30/2025, 7:00:00 PM)
209.8
+1.4 (+0.67%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners37.4%
Inst Owner ChangeN/A
Ins Owners0.38%
Ins Owner ChangeN/A
Market Cap238.22B
Analysts77.78
Price Target233.23 (11.17%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.42% |
Yearly Dividend2.41
Dividend Growth(5Y)111.33%
DP30.87%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.49%
Min EPS beat(2)2.7%
Max EPS beat(2)4.27%
EPS beat(4)4
Avg EPS beat(4)5.67%
Min EPS beat(4)2.7%
Max EPS beat(4)10.04%
EPS beat(8)7
Avg EPS beat(8)2.97%
EPS beat(12)11
Avg EPS beat(12)70.16%
EPS beat(16)15
Avg EPS beat(16)69.14%
Revenue beat(2)0
Avg Revenue beat(2)-1.06%
Min Revenue beat(2)-1.44%
Max Revenue beat(2)-0.68%
Revenue beat(4)1
Avg Revenue beat(4)-0.68%
Min Revenue beat(4)-1.44%
Max Revenue beat(4)0.63%
Revenue beat(8)2
Avg Revenue beat(8)-0.83%
Revenue beat(12)2
Avg Revenue beat(12)-1.67%
Revenue beat(16)2
Avg Revenue beat(16)-2.12%
PT rev (1m)-2.75%
PT rev (3m)-1.34%
EPS NQ rev (1m)-0.26%
EPS NQ rev (3m)-0.54%
EPS NY rev (1m)-0.37%
EPS NY rev (3m)0.24%
Revenue NQ rev (1m)-0.16%
Revenue NQ rev (3m)0.8%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)0.89%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.83 | ||
| Fwd PE | 18.77 | ||
| P/S | 3.27 | ||
| P/FCF | 22.27 | ||
| P/OCF | 10.76 | ||
| P/B | 4.5 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.97 |
EPS(TTM)9.19
EY4.38%
EPS(NY)11.18
Fwd EY5.33%
FCF(TTM)9.42
FCFY4.49%
OCF(TTM)19.49
OCFY9.29%
SpS64.19
BVpS46.66
TBVpS-38.73
PEG (NY)1.88
PEG (5Y)1.19
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.74% | ||
| ROE | 19.99% | ||
| ROCE | 10.18% | ||
| ROIC | 7.77% | ||
| ROICexc | 8.21% | ||
| ROICexgc | 21.63% | ||
| OM | 23.08% | ||
| PM (TTM) | 14.53% | ||
| GM | 63.61% | ||
| FCFM | 14.68% |
ROA(3y)3.56%
ROA(5y)2.74%
ROE(3y)11.65%
ROE(5y)8.8%
ROIC(3y)6.22%
ROIC(5y)5.29%
ROICexc(3y)6.39%
ROICexc(5y)5.46%
ROICexgc(3y)16.31%
ROICexgc(5y)13.76%
ROCE(3y)8.33%
ROCE(5y)7.1%
ROICexcg growth 3Y22.86%
ROICexcg growth 5Y6.74%
ROICexc growth 3Y20.69%
ROICexc growth 5Y2.1%
OM growth 3Y21.03%
OM growth 5Y9.44%
PM growth 3Y54.54%
PM growth 5Y12.57%
GM growth 3Y3.8%
GM growth 5Y1.56%
F-Score8
Asset Turnover0.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.33 | ||
| Debt/FCF | 7.2 | ||
| Debt/EBITDA | 2.54 | ||
| Cap/Depr | 104.31% | ||
| Cap/Sales | 15.69% | ||
| Interest Coverage | 5.13 | ||
| Cash Conversion | 79.67% | ||
| Profit Quality | 101.01% | ||
| Current Ratio | 1.21 | ||
| Quick Ratio | 1.13 | ||
| Altman-Z | 1.93 |
F-Score8
WACC7.54%
ROIC/WACC1.03
Cap/Depr(3y)102.13%
Cap/Depr(5y)103.35%
Cap/Sales(3y)16.88%
Cap/Sales(5y)18.77%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)32.83%
EPS 3Y58.9%
EPS 5Y19.13%
EPS Q2Q%14.06%
EPS Next Y12.11%
EPS Next 2Y15.46%
EPS Next 3Y16.24%
EPS Next 5Y15.7%
Revenue 1Y (TTM)6.27%
Revenue growth 3Y0.53%
Revenue growth 5Y12.59%
Sales Q2Q%6.88%
Revenue Next Year6.8%
Revenue Next 2Y5.97%
Revenue Next 3Y5.44%
Revenue Next 5Y4.92%
EBIT growth 1Y19.54%
EBIT growth 3Y21.67%
EBIT growth 5Y23.21%
EBIT Next Year88.34%
EBIT Next 3Y29.81%
EBIT Next 5Y19.44%
FCF growth 1Y220.63%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y48.99%
OCF growth 3Y17.01%
OCF growth 5Y26.71%