T-MOBILE US INC (TMUS) Stock Fundamental Analysis
NASDAQ:TMUS - Nasdaq - US8725901040 - Common Stock - Currency: USD
Taking everything into account, TMUS scores 5 out of 10 in our fundamental rating. TMUS was compared to 21 industry peers in the Wireless Telecommunication Services industry. While TMUS belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. TMUS is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
TMUS had positive earnings in the past year.
TMUS had a positive operating cash flow in the past year.
In the past 5 years TMUS has always been profitable.
Each year in the past 5 years TMUS had a positive operating cash flow.
1.2 Ratios
TMUS has a better Return On Assets (5.55%) than 80.95% of its industry peers.
Looking at the Return On Equity, with a value of 19.50%, TMUS belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
The Return On Invested Capital of TMUS (7.52%) is better than 66.67% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TMUS is in line with the industry average of 6.27%.
The 3 year average ROIC (6.22%) for TMUS 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
TMUS's Profit Margin of 14.41% is amongst the best of the industry. TMUS outperforms 95.24% of its industry peers.
TMUS's Profit Margin has improved in the last couple of years.
TMUS's Operating Margin of 22.74% is fine compared to the rest of the industry. TMUS outperforms 76.19% of its industry peers.
TMUS's Operating Margin has improved in the last couple of years.
TMUS's Gross Margin of 63.85% is amongst the best of the industry. TMUS outperforms 80.95% of its industry peers.
TMUS'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
TMUS has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for TMUS has been reduced compared to 1 year ago.
TMUS has more shares outstanding than it did 5 years ago.
TMUS has a worse debt/assets ratio than last year.
2.2 Solvency
TMUS has an Altman-Z score of 1.89. 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.
TMUS has a better Altman-Z score (1.89) than 76.19% of its industry peers.
The Debt to FCF ratio of TMUS is 7.69, which is on the high side as it means it would take TMUS, 7.69 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of TMUS (7.69) is better than 61.90% of its industry peers.
A Debt/Equity ratio of 1.35 is on the high side and indicates that TMUS has dependencies on debt financing.
TMUS has a Debt to Equity ratio of 1.35. This is in the lower half of the industry: TMUS underperforms 61.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.35 | ||
| Debt/FCF | 7.69 | ||
| Altman-Z | 1.89 |
ROIC/WACC0.97
WACC7.78%
2.3 Liquidity
TMUS has a Current Ratio of 1.16. This is a normal value and indicates that TMUS is financially healthy and should not expect problems in meeting its short term obligations.
TMUS has a Current ratio (1.16) which is in line with its industry peers.
TMUS has a Quick Ratio of 1.08. This is a normal value and indicates that TMUS is financially healthy and should not expect problems in meeting its short term obligations.
TMUS has a Quick ratio (1.08) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.16 | ||
| Quick Ratio | 1.08 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 39.46% over the past year.
The Earnings Per Share has been growing by 19.13% on average over the past years. This is quite good.
Looking at the last year, TMUS shows a small growth in Revenue. The Revenue has grown by 5.31% in the last 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)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, TMUS will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.07% on average per year.
The Revenue is expected to grow by 5.10% on average over the next years.
EPS Next Y12.57%
EPS Next 2Y15.54%
EPS Next 3Y15.98%
EPS Next 5Y16.07%
Revenue Next Year6.88%
Revenue Next 2Y5.97%
Revenue Next 3Y5.46%
Revenue Next 5Y5.1%
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
Based on the Price/Earnings ratio of 23.53, the valuation of TMUS can be described as rather expensive.
TMUS's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 26.60. TMUS is around the same levels.
With a Price/Forward Earnings ratio of 18.69, TMUS is valued on the expensive side.
TMUS's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of TMUS to the average of the S&P500 Index (22.43), we can say TMUS is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.53 | ||
| Fwd PE | 18.69 |
4.2 Price Multiples
66.67% of the companies in the same industry are cheaper than TMUS, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TMUS indicates a slightly more expensive valuation: TMUS is more expensive than 71.43% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23 | ||
| EV/EBITDA | 11.31 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of TMUS may justify a higher PE ratio.
TMUS's earnings are expected to grow with 15.98% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.87
PEG (5Y)1.23
EPS Next 2Y15.54%
EPS Next 3Y15.98%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.37%, TMUS has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 5.43, TMUS has a dividend in line with its industry peers.
With a Dividend Yield of 1.37, TMUS pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.37% |
5.2 History
The dividend of TMUS is nicely growing with an annual growth rate of 111.33%!
TMUS has paid a dividend for less than 5 years, so there is no long track record yet.
Dividend Growth(5Y)111.33%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
TMUS pays out 29.65% of its income as dividend. This is a sustainable payout ratio.
The dividend of TMUS is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP29.65%
EPS Next 2Y15.54%
EPS Next 3Y15.98%
241.21
-3.04 (-1.24%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners38.63%
Inst Owner Change-1.14%
Ins Owners0.67%
Ins Owner Change0.03%
Market Cap273.88B
Analysts77.78
Price Target274.77 (13.91%)
Short Float %2.65%
Short Ratio2.64
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.37% |
Yearly Dividend2.82
Dividend Growth(5Y)111.33%
DP29.65%
Div Incr Years1
Div Non Decr Years1
Ex-Date
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)2.81%
PT rev (3m)8.52%
EPS NQ rev (1m)-0.68%
EPS NQ rev (3m)-1.51%
EPS NY rev (1m)0.65%
EPS NY rev (3m)0.05%
Revenue NQ rev (1m)1.38%
Revenue NQ rev (3m)1.33%
Revenue NY rev (1m)1.01%
Revenue NY rev (3m)1.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.53 | ||
| Fwd PE | 18.69 | ||
| P/S | 3.31 | ||
| P/FCF | 23 | ||
| P/OCF | 11.39 | ||
| P/B | 4.48 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.31 |
EPS(TTM)10.25
EY4.25%
EPS(NY)12.91
Fwd EY5.35%
FCF(TTM)10.49
FCFY4.35%
OCF(TTM)21.19
OCFY8.78%
SpS72.83
BVpS53.82
TBVpS-47.31
PEG (NY)1.87
PEG (5Y)1.23
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 | 1.89 |
F-Score8
WACC7.78%
ROIC/WACC0.97
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 5Y16.07%
Revenue 1Y (TTM)5.31%
Revenue growth 3Y0.53%
Revenue growth 5Y12.59%
Sales Q2Q%6.59%
Revenue Next Year6.88%
Revenue Next 2Y5.97%
Revenue Next 3Y5.46%
Revenue Next 5Y5.1%
EBIT growth 1Y19.84%
EBIT growth 3Y21.67%
EBIT growth 5Y23.21%
EBIT Next Year87.94%
EBIT Next 3Y29.77%
EBIT Next 5Y19.43%
FCF growth 1Y319.92%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y41.61%
OCF growth 3Y17.01%
OCF growth 5Y26.71%