T-MOBILE US INC (TM5.DE) Stock Fundamental Analysis
FRA:TM5 - Deutsche Boerse Ag - US8725901040 - Common Stock - Currency: EUR
Taking everything into account, TM5 scores 5 out of 10 in our fundamental rating. TM5 was compared to 6 industry peers in the Wireless Telecommunication Services industry. While TM5 has a great profitability rating, there are quite some 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.
TM5 had a positive operating cash flow in the past year.
In the past 5 years TM5 has always been profitable.
Each year in the past 5 years TM5 had a positive operating cash flow.
1.2 Ratios
TM5 has a better Return On Assets (5.55%) than 83.33% of its industry peers.
Looking at the Return On Equity, with a value of 19.50%, TM5 belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
The Return On Invested Capital of TM5 (7.52%) is better than 83.33% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TM5 is in line with the industry average of 6.26%.
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.
TM5's Profit Margin has improved in the last couple of years.
TM5's Operating Margin of 22.74% is amongst the best of the industry. TM5 outperforms 100.00% of its industry peers.
In the last couple of years the Operating Margin of TM5 has grown nicely.
The Gross Margin of TM5 (63.85%) is better than 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
TM5 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, TM5 has less shares outstanding
TM5 has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, TM5 has a worse debt to assets ratio.
2.2 Solvency
TM5 has an Altman-Z score of 1.90. This is not the best score and indicates that TM5 is in the grey zone with still only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 1.90, TM5 perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
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 fine compared to the rest of the industry. TM5 outperforms 66.67% 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.
The Debt to Equity ratio of TM5 (1.35) is worse than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.35 | ||
| Debt/FCF | 7.69 | ||
| Altman-Z | 1.9 |
ROIC/WACC0.99
WACC7.58%
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.
Looking at the Current ratio, with a value of 1.16, TM5 is in line with its industry, outperforming 50.00% of the companies in the same industry.
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 in line compared to the rest of the industry. TM5 outperforms 50.00% 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.
Measured over the past years, TM5 shows a quite strong growth in Earnings Per Share. The EPS has been growing by 19.13% on average per year.
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.
The Revenue is expected to grow by 4.92% on average over the next years.
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.
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
With a Price/Earnings ratio of 23.94, TM5 is valued on the expensive side.
TM5's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 28.04. TM5 is around the same levels.
The Price/Forward Earnings ratio is 19.04, which indicates a rather expensive current valuation of TM5.
TM5's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 37.64. TM5 is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.94 | ||
| Fwd PE | 19.04 |
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 | 23.4 | ||
| EV/EBITDA | 11.42 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
TM5 has an outstanding profitability rating, which 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)1.98
PEG (5Y)1.25
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.
Compared to an average industry Dividend Yield of 2.84, TM5 pays a bit more dividend than its industry peers.
Compared to the average S&P500 Dividend Yield of 2.35, TM5 is paying slightly less dividend.
| 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
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 2Y15.46%
EPS Next 3Y16.24%
FRA:TM5 (7/25/2025, 7:00:00 PM)
208.75
-1.55 (-0.74%)
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 Cap237.03B
Analysts77.78
Price Target233.23 (11.73%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.42% |
Yearly Dividend2.41
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)-3.74%
PT rev (3m)-5.62%
EPS NQ rev (1m)-0.72%
EPS NQ rev (3m)-1.5%
EPS NY rev (1m)-0.37%
EPS NY rev (3m)0.24%
Revenue NQ rev (1m)0.28%
Revenue NQ rev (3m)1.56%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)0.94%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.94 | ||
| Fwd PE | 19.04 | ||
| P/S | 3.37 | ||
| P/FCF | 23.4 | ||
| P/OCF | 11.58 | ||
| P/B | 4.56 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.42 |
EPS(TTM)8.72
EY4.18%
EPS(NY)10.97
Fwd EY5.25%
FCF(TTM)8.92
FCFY4.27%
OCF(TTM)18.02
OCFY8.63%
SpS61.95
BVpS45.78
TBVpS-40.24
PEG (NY)1.98
PEG (5Y)1.25
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 | 1.9 |
F-Score8
WACC7.58%
ROIC/WACC0.99
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 Y12.11%
EPS Next 2Y15.46%
EPS Next 3Y16.24%
EPS Next 5Y15.7%
Revenue 1Y (TTM)5.31%
Revenue growth 3Y0.53%
Revenue growth 5Y12.59%
Sales Q2Q%6.59%
Revenue Next Year6.8%
Revenue Next 2Y5.97%
Revenue Next 3Y5.44%
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%