T-MOBILE US INC (TM5.DE) Stock Fundamental Analysis
Europe - FRA:TM5 - US8725901040 - Common Stock
195.46 EUR
+0.28 (+0.14%)
TM5 gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 6 industry peers in the Wireless Telecommunication Services industry. While TM5 belongs to the best of the industry regarding profitability, there are concerns on its financial health. TM5 is quite expensive at the moment. It does show a decent growth rate.
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.
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 (5.74%) than 83.33% of its industry peers.
TM5 has a better Return On Equity (19.99%) than 100.00% of its industry peers.
TM5's Return On Invested Capital of 7.77% is amongst the best of the industry. TM5 outperforms 83.33% of its industry peers.
TM5 had an Average Return On Invested Capital over the past 3 years of 6.22%. This is in line with the industry average of 6.64%.
The 3 year average ROIC (6.22%) for TM5 is below the current ROIC(7.77%), indicating increased profibility in the last year.
| 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
With an excellent Profit Margin value of 14.53%, TM5 belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
TM5's Profit Margin has improved in the last couple of years.
TM5 has a better Operating Margin (23.08%) than 100.00% of its industry peers.
TM5's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 63.61%, TM5 belongs to the top 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) below the Cost of Capital (WACC), TM5 is destroying value.
Compared to 1 year ago, TM5 has less shares outstanding
The number of shares outstanding for TM5 has been increased compared to 5 years ago.
TM5 has a worse debt/assets ratio than last year.
2.2 Solvency
TM5 has an Altman-Z score of 1.86. 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.
TM5 has a Altman-Z score of 1.86. This is comparable to the rest of the industry: TM5 outperforms 50.00% of its industry peers.
TM5 has a debt to FCF ratio of 7.20. This is a slightly negative value and a sign of low solvency as TM5 would need 7.20 years to pay back of all of its debts.
TM5 has a worse Debt to FCF ratio (7.20) than 66.67% of its industry peers.
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 | 1.86 |
ROIC/WACC0.96
WACC8.11%
2.3 Liquidity
TM5 has a Current Ratio of 1.21. This is a normal value and indicates that TM5 is financially healthy and should not expect problems in meeting its short term obligations.
TM5 has a Current ratio (1.21) which is comparable to the rest of the industry.
A Quick Ratio of 1.13 indicates that TM5 should not have too much problems paying its short term obligations.
The Quick ratio of TM5 (1.13) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.21 | ||
| Quick Ratio | 1.13 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 32.83% over the past year.
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 6.27% in the past year.
TM5 shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 12.59% yearly.
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
TM5 is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.62% yearly.
Based on estimates for the next years, TM5 will show a small growth in Revenue. The Revenue will grow by 5.51% on average per year.
EPS Next Y14.19%
EPS Next 2Y16.6%
EPS Next 3Y16.97%
EPS Next 5Y16.62%
Revenue Next Year8.05%
Revenue Next 2Y7.03%
Revenue Next 3Y6.33%
Revenue Next 5Y5.51%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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
A Price/Earnings ratio of 21.55 indicates a rather expensive valuation of TM5.
TM5's Price/Earnings ratio is in line with the industry average.
TM5 is valuated rather cheaply when we compare the Price/Earnings ratio to 27.40, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 17.37 indicates a rather expensive valuation of TM5.
TM5's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of TM5 to the average of the S&P500 Index (22.94), we can say TM5 is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.55 | ||
| Fwd PE | 17.37 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TM5 is valued a bit more expensive than 66.67% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, TM5 is valued a bit more expensive than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.83 | ||
| EV/EBITDA | 10.47 |
4.3 Compensation for Growth
TM5's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of TM5 may justify a higher PE ratio.
A more expensive valuation may be justified as TM5's earnings are expected to grow with 16.97% in the coming years.
PEG (NY)1.52
PEG (5Y)1.13
EPS Next 2Y16.6%
EPS Next 3Y16.97%
5. Dividend
5.1 Amount
TM5 has a Yearly Dividend Yield of 1.62%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.92, TM5 pays a bit more dividend than its industry peers.
Compared to the average S&P500 Dividend Yield of 2.36, TM5 is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.62% |
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.
The dividend of TM5 is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP30.87%
EPS Next 2Y16.6%
EPS Next 3Y16.97%
FRA:TM5 (10/17/2025, 7:00:00 PM)
195.46
+0.28 (+0.14%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners39.36%
Inst Owner ChangeN/A
Ins Owners0.38%
Ins Owner ChangeN/A
Market Cap219.97B
Analysts76.22
Price Target236.21 (20.85%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.62% |
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)0.57%
PT rev (3m)1.28%
EPS NQ rev (1m)-11.59%
EPS NQ rev (3m)-11.8%
EPS NY rev (1m)-0.61%
EPS NY rev (3m)1.85%
Revenue NQ rev (1m)1.5%
Revenue NQ rev (3m)2.36%
Revenue NY rev (1m)0.55%
Revenue NY rev (3m)1.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.55 | ||
| Fwd PE | 17.37 | ||
| P/S | 3.06 | ||
| P/FCF | 20.83 | ||
| P/OCF | 10.07 | ||
| P/B | 4.2 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.47 |
EPS(TTM)9.07
EY4.64%
EPS(NY)11.26
Fwd EY5.76%
FCF(TTM)9.39
FCFY4.8%
OCF(TTM)19.42
OCFY9.93%
SpS63.94
BVpS46.48
TBVpS-38.58
PEG (NY)1.52
PEG (5Y)1.13
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 | 1.86 |
F-Score8
WACC8.11%
ROIC/WACC0.96
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 Y14.19%
EPS Next 2Y16.6%
EPS Next 3Y16.97%
EPS Next 5Y16.62%
Revenue 1Y (TTM)6.27%
Revenue growth 3Y0.53%
Revenue growth 5Y12.59%
Sales Q2Q%6.88%
Revenue Next Year8.05%
Revenue Next 2Y7.03%
Revenue Next 3Y6.33%
Revenue Next 5Y5.51%
EBIT growth 1Y19.54%
EBIT growth 3Y21.67%
EBIT growth 5Y23.21%
EBIT Next Year89.72%
EBIT Next 3Y30.47%
EBIT Next 5Y19.99%
FCF growth 1Y220.63%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y48.99%
OCF growth 3Y17.01%
OCF growth 5Y26.71%