T-MOBILE US INC (TM5.DE) Stock Fundamental Analysis
FRA:TM5 - Deutsche Boerse Ag - US8725901040 - Common Stock - Currency: EUR
We assign a fundamental rating of 6 out of 10 to TM5. TM5 was compared to 6 industry peers in the Wireless Telecommunication Services industry. While TM5 has a great profitability rating, there are some minor concerns on its financial health. TM5 has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
TM5 had positive earnings in the past year.
In the past year TM5 had a positive cash flow from operations.
TM5 had positive earnings in each of the past 5 years.
Each year in the past 5 years TM5 had a positive operating cash flow.
1.2 Ratios
TM5 has a Return On Assets of 5.55%. This is amongst the best in the industry. TM5 outperforms 83.33% of its industry peers.
TM5 has a better Return On Equity (19.50%) than 100.00% of its industry peers.
TM5 has a Return On Invested Capital of 7.52%. This is amongst the best in 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 6.11%.
The 3 year average ROIC (6.22%) for TM5 is below the current ROIC(7.52%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.55% | ||
| ROE | 19.5% | ||
| ROIC | 7.52% |
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
Looking at the Profit Margin, with a value of 14.41%, TM5 belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
In the last couple of years the Profit Margin of TM5 has grown nicely.
TM5 has a Operating Margin of 22.74%. This is amongst the best in the industry. TM5 outperforms 100.00% of its industry peers.
In the last couple of years the Operating Margin of TM5 has grown nicely.
TM5 has a Gross Margin of 63.85%. This is amongst the best in the industry. TM5 outperforms 83.33% of its industry peers.
TM5's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.74% | ||
| PM (TTM) | 14.41% | ||
| GM | 63.85% |
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.
The number of shares outstanding for TM5 has been increased compared to 5 years ago.
The debt/assets ratio for TM5 is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.79, we must say that TM5 is in the distress zone and has some risk of bankruptcy.
TM5 has a Altman-Z score of 1.79. This is comparable to the rest of the industry: TM5 outperforms 50.00% of its industry peers.
The Debt to FCF ratio of TM5 is 7.69, which is on the high side as it means it would take TM5, 7.69 years of fcf income to pay off all of its debts.
TM5's Debt to FCF ratio of 7.69 is amongst the best of the industry. TM5 outperforms 83.33% of its industry peers.
A Debt/Equity ratio of 1.35 is on the high side and indicates that TM5 has dependencies on debt financing.
TM5's Debt to Equity ratio of 1.35 is on the low side compared to the rest of the industry. TM5 is outperformed by 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.35 | ||
| Debt/FCF | 7.69 | ||
| Altman-Z | 1.79 |
ROIC/WACC1
WACC7.48%
2.3 Liquidity
TM5 has a Current Ratio of 1.16. This is a normal value and indicates that TM5 is financially healthy and should not expect problems in meeting its short term obligations.
TM5's Current ratio of 1.16 is fine compared to the rest of the industry. TM5 outperforms 66.67% of its industry peers.
A Quick Ratio of 1.08 indicates that TM5 should not have too much problems paying its short term obligations.
TM5's Quick ratio of 1.08 is fine compared to the rest of the industry. TM5 outperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.16 | ||
| Quick Ratio | 1.08 |
3. Growth
3.1 Past
TM5 shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 39.46%, which is quite impressive.
TM5 shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 19.13% yearly.
The Revenue has been growing slightly by 5.31% in the past year.
The Revenue has been growing by 12.59% on average over the past years. This is quite good.
EPS 1Y (TTM)39.46%
EPS 3Y58.9%
EPS 5Y19.13%
EPS Q2Q%29%
Revenue 1Y (TTM)5.31%
Revenue growth 3Y0.53%
Revenue growth 5Y12.59%
Sales Q2Q%6.59%
3.2 Future
Based on estimates for the next years, TM5 will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.70% on average per year.
TM5 is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.92% yearly.
EPS Next Y12.57%
EPS Next 2Y15.54%
EPS Next 3Y15.98%
EPS Next 5Y15.7%
Revenue Next Year6.87%
Revenue Next 2Y5.96%
Revenue Next 3Y5.46%
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
TM5 is valuated rather expensively with a Price/Earnings ratio of 21.64.
TM5's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of TM5 to the average of the S&P500 Index (26.35), we can say TM5 is valued inline with the index average.
A Price/Forward Earnings ratio of 17.18 indicates a rather expensive valuation of TM5.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TM5 is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of TM5 to the average of the S&P500 Index (22.19), we can say TM5 is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.64 | ||
| Fwd PE | 17.18 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TM5 is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, TM5 is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.15 | ||
| EV/EBITDA | 10.5 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
TM5 has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as TM5's earnings are expected to grow with 15.98% in the coming years.
PEG (NY)1.72
PEG (5Y)1.13
EPS Next 2Y15.54%
EPS Next 3Y15.98%
5. Dividend
5.1 Amount
TM5 has a Yearly Dividend Yield of 1.59%.
Compared to an average industry Dividend Yield of 3.07, TM5 pays a bit more dividend than its industry peers.
Compared to the average S&P500 Dividend Yield of 2.42, TM5 is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.59% |
5.2 History
The dividend of TM5 is nicely growing with an annual growth rate of 111.33%!
Dividend Growth(5Y)111.33%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
29.65% of the earnings are spent on dividend by TM5. This is a low number and sustainable payout ratio.
TM5's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP29.65%
EPS Next 2Y15.54%
EPS Next 3Y15.98%
FRA:TM5 (6/20/2025, 5:20:39 PM)
193.22
+0.2 (+0.1%)
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 Cap219.39B
Analysts77.78
Price Target239.82 (24.12%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.59% |
Yearly Dividend2.45
Dividend Growth(5Y)111.33%
DP29.65%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.37%
Min EPS beat(2)2.7%
Max EPS beat(2)10.04%
EPS beat(4)4
Avg EPS beat(4)6.41%
Min EPS beat(4)2.7%
Max EPS beat(4)10.04%
EPS beat(8)7
Avg EPS beat(8)3.43%
EPS beat(12)11
Avg EPS beat(12)75.77%
EPS beat(16)15
Avg EPS beat(16)71.62%
Revenue beat(2)1
Avg Revenue beat(2)-0.03%
Min Revenue beat(2)-0.68%
Max Revenue beat(2)0.63%
Revenue beat(4)1
Avg Revenue beat(4)-0.53%
Min Revenue beat(4)-1.21%
Max Revenue beat(4)0.63%
Revenue beat(8)2
Avg Revenue beat(8)-0.97%
Revenue beat(12)2
Avg Revenue beat(12)-1.87%
Revenue beat(16)3
Avg Revenue beat(16)-1.96%
PT rev (1m)0.09%
PT rev (3m)-2.3%
EPS NQ rev (1m)-0.11%
EPS NQ rev (3m)-1.62%
EPS NY rev (1m)0%
EPS NY rev (3m)0.05%
Revenue NQ rev (1m)-0.09%
Revenue NQ rev (3m)1.24%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)1.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.64 | ||
| Fwd PE | 17.18 | ||
| P/S | 3.05 | ||
| P/FCF | 21.15 | ||
| P/OCF | 10.47 | ||
| P/B | 4.12 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.5 |
EPS(TTM)8.93
EY4.62%
EPS(NY)11.25
Fwd EY5.82%
FCF(TTM)9.14
FCFY4.73%
OCF(TTM)18.46
OCFY9.55%
SpS63.45
BVpS46.89
TBVpS-41.21
PEG (NY)1.72
PEG (5Y)1.13
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.55% | ||
| ROE | 19.5% | ||
| ROCE | 9.84% | ||
| ROIC | 7.52% | ||
| ROICexc | 8.02% | ||
| ROICexgc | 22.37% | ||
| OM | 22.74% | ||
| PM (TTM) | 14.41% | ||
| GM | 63.85% | ||
| FCFM | 14.4% |
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 Turnover0.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.35 | ||
| Debt/FCF | 7.69 | ||
| Debt/EBITDA | 2.61 | ||
| Cap/Depr | 95.3% | ||
| Cap/Sales | 14.69% | ||
| Interest Coverage | 5.05 | ||
| Cash Conversion | 76.25% | ||
| Profit Quality | 99.92% | ||
| Current Ratio | 1.16 | ||
| Quick Ratio | 1.08 | ||
| Altman-Z | 1.79 |
F-Score8
WACC7.48%
ROIC/WACC1
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)39.46%
EPS 3Y58.9%
EPS 5Y19.13%
EPS Q2Q%29%
EPS Next Y12.57%
EPS Next 2Y15.54%
EPS Next 3Y15.98%
EPS Next 5Y15.7%
Revenue 1Y (TTM)5.31%
Revenue growth 3Y0.53%
Revenue growth 5Y12.59%
Sales Q2Q%6.59%
Revenue Next Year6.87%
Revenue Next 2Y5.96%
Revenue Next 3Y5.46%
Revenue Next 5Y4.92%
EBIT growth 1Y19.84%
EBIT growth 3Y21.67%
EBIT growth 5Y23.21%
EBIT Next Year88.34%
EBIT Next 3Y29.81%
EBIT Next 5Y19.44%
FCF growth 1Y319.92%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y41.61%
OCF growth 3Y17.01%
OCF growth 5Y26.71%