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T-MOBILE US INC (TMUS) Stock Fundamental Analysis

NASDAQ:TMUS - Nasdaq - US8725901040 - Common Stock - Currency: USD

258.22  +3.04 (+1.19%)

After market: 228.559 -29.66 (-11.49%)

Fundamental Rating

5

Taking everything into account, TMUS scores 5 out of 10 in our fundamental rating. TMUS was compared to 22 industry peers in the Wireless Telecommunication Services industry. TMUS scores excellent on profitability, but there are concerns on its financial health. While showing a medium growth rate, TMUS is valued expensive at the moment.


Dividend Valuation Growth Profitability Health

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9

1. Profitability

1.1 Basic Checks

In the past year TMUS was profitable.
In the past year TMUS had a positive cash flow from operations.
In the past 5 years TMUS has always been profitable.
Each year in the past 5 years TMUS had a positive operating cash flow.
TMUS Yearly Net Income VS EBIT VS OCF VS FCFTMUS Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10B 20B

1.2 Ratios

Looking at the Return On Assets, with a value of 5.74%, TMUS belongs to the top of the industry, outperforming 81.82% of the companies in the same industry.
Looking at the Return On Equity, with a value of 19.99%, TMUS belongs to the top of the industry, outperforming 86.36% of the companies in the same industry.
With a decent Return On Invested Capital value of 7.77%, TMUS is doing good in the industry, outperforming 68.18% of the companies in the same industry.
TMUS had an Average Return On Invested Capital over the past 3 years of 6.22%. This is in line with the industry average of 6.03%.
The last Return On Invested Capital (7.77%) for TMUS is above the 3 year average (6.22%), which is a sign of increasing profitability.
Industry RankSector 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%
TMUS Yearly ROA, ROE, ROICTMUS Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15

1.3 Margins

TMUS has a better Profit Margin (14.53%) than 90.91% of its industry peers.
In the last couple of years the Profit Margin of TMUS has grown nicely.
TMUS's Operating Margin of 23.08% is fine compared to the rest of the industry. TMUS outperforms 77.27% of its industry peers.
In the last couple of years the Operating Margin of TMUS has grown nicely.
TMUS has a Gross Margin of 63.61%. This is amongst the best in the industry. TMUS outperforms 81.82% of its industry peers.
In the last couple of years the Gross Margin of TMUS has grown nicely.
Industry RankSector 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%
TMUS Yearly Profit, Operating, Gross MarginsTMUS Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20 40 60

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3

2. Health

2.1 Basic Checks

TMUS has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for TMUS has been reduced compared to 1 year ago.
Compared to 5 years ago, TMUS has more shares outstanding
TMUS has a worse debt/assets ratio than last year.
TMUS Yearly Shares OutstandingTMUS Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M 1B
TMUS Yearly Total Debt VS Total AssetsTMUS Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50B 100B 150B 200B

2.2 Solvency

TMUS has an Altman-Z score of 1.98. This is not the best score and indicates that TMUS is in the grey zone with still only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 1.98, TMUS belongs to the top of the industry, outperforming 81.82% of the companies in the same industry.
TMUS has a debt to FCF ratio of 7.20. This is a slightly negative value and a sign of low solvency as TMUS would need 7.20 years to pay back of all of its debts.
With a Debt to FCF ratio value of 7.20, TMUS perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
A Debt/Equity ratio of 1.33 is on the high side and indicates that TMUS has dependencies on debt financing.
TMUS has a Debt to Equity ratio of 1.33. This is in the lower half of the industry: TMUS underperforms 63.64% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.33
Debt/FCF 7.2
Altman-Z 1.98
ROIC/WACC1
WACC7.74%
TMUS Yearly LT Debt VS Equity VS FCFTMUS Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20B 40B 60B

2.3 Liquidity

A Current Ratio of 1.21 indicates that TMUS should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.21, TMUS is doing worse than 63.64% of the companies in the same industry.
A Quick Ratio of 1.13 indicates that TMUS should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.13, TMUS is doing worse than 63.64% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.21
Quick Ratio 1.13
TMUS Yearly Current Assets VS Current LiabilitesTMUS Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B 20B

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5

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 32.83% over the past year.
TMUS 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.
Measured over the past years, TMUS 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

Based on estimates for the next years, TMUS will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.75% on average per year.
The Revenue is expected to grow by 5.20% on average over the next years.
EPS Next Y12.11%
EPS Next 2Y15.46%
EPS Next 3Y16.24%
EPS Next 5Y16.75%
Revenue Next Year7.23%
Revenue Next 2Y6.28%
Revenue Next 3Y5.67%
Revenue Next 5Y5.2%

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.
TMUS Yearly Revenue VS EstimatesTMUS Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 20B 40B 60B 80B 100B
TMUS Yearly EPS VS EstimatesTMUS Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 10 20 30

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3

4. Valuation

4.1 Price/Earnings Ratio

TMUS is valuated rather expensively with a Price/Earnings ratio of 24.36.
Compared to the rest of the industry, the Price/Earnings ratio of TMUS is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 26.85. TMUS is around the same levels.
A Price/Forward Earnings ratio of 20.03 indicates a rather expensive valuation of TMUS.
The rest of the industry has a similar Price/Forward Earnings ratio as TMUS.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.98, TMUS is valued a bit cheaper.
Industry RankSector Rank
PE 24.36
Fwd PE 20.03
TMUS Price Earnings VS Forward Price EarningsTMUS Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

TMUS's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, TMUS is valued a bit more expensive than the industry average as 72.73% of the companies are valued more cheaply.
Industry RankSector Rank
P/FCF 23.55
EV/EBITDA 11.42
TMUS Per share dataTMUS EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 -20 40 -40 60

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates TMUS does not grow enough to justify the current Price/Earnings ratio.
TMUS has an outstanding profitability rating, which may justify a higher PE ratio.
TMUS's earnings are expected to grow with 16.24% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.01
PEG (5Y)1.27
EPS Next 2Y15.46%
EPS Next 3Y16.24%

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3

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 1.41%, TMUS has a reasonable but not impressive dividend return.
TMUS's Dividend Yield is slightly below the industry average, which is at 6.04.
Compared to an average S&P500 Dividend Yield of 2.36, TMUS's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 1.41%

5.2 History

The dividend of TMUS is nicely growing with an annual growth rate of 111.33%!
TMUS has been paying a dividend for less than 5 years, so it still needs to build a track record.
Dividend Growth(5Y)111.33%
Div Incr Years1
Div Non Decr Years1
TMUS Yearly Dividends per shareTMUS Yearly Dividends per shareYearly Dividends per share 2023 2024 2025 0.5 1 1.5 2 2.5

5.3 Sustainability

TMUS pays out 30.87% of its income as dividend. This is a sustainable payout ratio.
TMUS'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%
TMUS Yearly Income VS Free CF VS DividendTMUS Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5B -5B 10B
TMUS Dividend Payout.TMUS Dividend Payout, showing the Payout Ratio.TMUS Dividend Payout.PayoutRetained Earnings

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T-MOBILE US INC

NASDAQ:TMUS (8/19/2025, 6:24:08 PM)

After market: 228.559 -29.66 (-11.49%)

258.22

+3.04 (+1.19%)

Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)07-23 2025-07-23/amc
Earnings (Next)10-21 2025-10-21/amc
Inst Owners37.96%
Inst Owner Change-1.9%
Ins Owners0.38%
Ins Owner Change-0.25%
Market Cap290.61B
Analysts76.22
Price Target274.67 (6.37%)
Short Float %2.59%
Short Ratio2.63
Dividend
Industry RankSector Rank
Dividend Yield 1.41%
Yearly Dividend2.82
Dividend Growth(5Y)111.33%
DP30.87%
Div Incr Years1
Div Non Decr Years1
Ex-Date08-29 2025-08-29 (0.88)
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)-0.16%
PT rev (3m)-0.04%
EPS NQ rev (1m)0.44%
EPS NQ rev (3m)-0.43%
EPS NY rev (1m)0%
EPS NY rev (3m)0.24%
Revenue NQ rev (1m)0.87%
Revenue NQ rev (3m)1.53%
Revenue NY rev (1m)0.4%
Revenue NY rev (3m)0.33%
Valuation
Industry RankSector Rank
PE 24.36
Fwd PE 20.03
P/S 3.46
P/FCF 23.55
P/OCF 11.38
P/B 4.76
P/tB N/A
EV/EBITDA 11.42
EPS(TTM)10.6
EY4.11%
EPS(NY)12.89
Fwd EY4.99%
FCF(TTM)10.96
FCFY4.25%
OCF(TTM)22.68
OCFY8.78%
SpS74.69
BVpS54.3
TBVpS-45.07
PEG (NY)2.01
PEG (5Y)1.27
Profitability
Industry RankSector 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 RankSector 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 1.98
F-Score8
WACC7.74%
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)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 5Y16.75%
Revenue 1Y (TTM)6.27%
Revenue growth 3Y0.53%
Revenue growth 5Y12.59%
Sales Q2Q%6.88%
Revenue Next Year7.23%
Revenue Next 2Y6.28%
Revenue Next 3Y5.67%
Revenue Next 5Y5.2%
EBIT growth 1Y19.54%
EBIT growth 3Y21.67%
EBIT growth 5Y23.21%
EBIT Next Year89.14%
EBIT Next 3Y30.3%
EBIT Next 5Y19.95%
FCF growth 1Y220.63%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y48.99%
OCF growth 3Y17.01%
OCF growth 5Y26.71%