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T-MOBILE US INC (TMUS) Stock Fundamental Analysis

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

241.51  +3.25 (+1.36%)

After market: 241.408 -0.1 (-0.04%)

Fundamental Rating

5

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. TMUS has an excellent profitability rating, but there are concerns on its financial health. TMUS is valied quite expensively at the moment, while it does show a decent growth rate.


Dividend Valuation Growth Profitability Health

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9

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.
Each year in the past 5 years TMUS has been profitable.
In the past 5 years TMUS always reported a positive cash flow from operatings.
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

TMUS's Return On Assets of 5.55% is amongst the best of the industry. TMUS outperforms 80.95% of its industry peers.
With an excellent Return On Equity value of 19.50%, TMUS belongs to the best of the industry, outperforming 90.48% of the companies in the same industry.
With a decent Return On Invested Capital value of 7.52%, TMUS is doing good in the industry, outperforming 66.67% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for TMUS is in line with the industry average of 6.34%.
The 3 year average ROIC (6.22%) for TMUS is below the current ROIC(7.52%), indicating increased profibility in the last year.
Industry RankSector 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%
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

With an excellent Profit Margin value of 14.41%, TMUS belongs to the best of the industry, outperforming 95.24% of the companies in the same industry.
In the last couple of years the Profit Margin of TMUS has grown nicely.
With a decent Operating Margin value of 22.74%, TMUS is doing good in the industry, outperforming 76.19% of the companies in the same industry.
In the last couple of years the Operating Margin of TMUS has grown nicely.
TMUS has a Gross Margin of 63.85%. This is amongst the best in the industry. TMUS outperforms 80.95% of its industry peers.
In the last couple of years the Gross Margin of TMUS has grown nicely.
Industry RankSector 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%
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

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so TMUS is destroying value.
Compared to 1 year ago, TMUS has less shares outstanding
TMUS has more shares outstanding than it did 5 years ago.
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 1.87. 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 (1.87) than 80.95% of its industry peers.
TMUS has a debt to FCF ratio of 7.69. This is a slightly negative value and a sign of low solvency as TMUS would need 7.69 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 7.69, TMUS is in the better half of the industry, outperforming 61.90% of the companies in the same industry.
TMUS has a Debt/Equity ratio of 1.35. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.35, TMUS is not doing good in the industry: 61.90% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 1.35
Debt/FCF 7.69
Altman-Z 1.87
ROIC/WACC0.99
WACC7.62%
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 1.16 indicates that TMUS should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.16, TMUS is doing worse than 61.90% of the companies in the same industry.
A Quick Ratio of 1.08 indicates that TMUS should not have too much problems paying its short term obligations.
TMUS has a worse Quick ratio (1.08) than 61.90% of its industry peers.
Industry RankSector Rank
Current Ratio 1.16
Quick Ratio 1.08
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

TMUS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 39.46%, which is quite impressive.
The Earnings Per Share has been growing by 19.13% on average over the past years. This is quite good.
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, TMUS 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 Y12.53%
EPS Next 2Y15.74%
EPS Next 3Y16.27%
EPS Next 5Y15.7%
Revenue Next Year6.87%
Revenue Next 2Y5.95%
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.
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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2

4. Valuation

4.1 Price/Earnings Ratio

TMUS is valuated rather expensively with a Price/Earnings ratio of 23.56.
TMUS's Price/Earnings ratio is in line with the industry average.
TMUS's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.21.
TMUS is valuated rather expensively with a Price/Forward Earnings ratio of 18.64.
The rest of the industry has a similar Price/Forward Earnings ratio as TMUS.
TMUS is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.70, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 23.56
Fwd PE 18.64
TMUS Price Earnings VS Forward Price EarningsTMUS Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80 100

4.2 Price Multiples

TMUS's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. TMUS is more expensive than 66.67% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, TMUS is valued a bit more expensive than the industry average as 71.43% of the companies are valued more cheaply.
Industry RankSector Rank
P/FCF 23.03
EV/EBITDA 11.22
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 an expensive valuation of the company.
TMUS has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as TMUS's earnings are expected to grow with 16.27% in the coming years.
PEG (NY)1.88
PEG (5Y)1.23
EPS Next 2Y15.74%
EPS Next 3Y16.27%

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3

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 1.52%, TMUS has a reasonable but not impressive dividend return.
TMUS's Dividend Yield is comparable with the industry average which is at 5.00.
Compared to the average S&P500 Dividend Yield of 2.42, TMUS is paying slightly less dividend.
Industry RankSector Rank
Dividend Yield 1.52%

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
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 29.65% 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.
DP29.65%
EPS Next 2Y15.74%
EPS Next 3Y16.27%
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 (7/1/2025, 9:12:13 PM)

After market: 241.408 -0.1 (-0.04%)

241.51

+3.25 (+1.36%)

Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)04-24 2025-04-24/amc
Earnings (Next)07-23 2025-07-23/amc
Inst Owners37.4%
Inst Owner Change-0.98%
Ins Owners0.38%
Ins Owner Change-0.03%
Market Cap274.22B
Analysts77.78
Price Target275.11 (13.91%)
Short Float %3.2%
Short Ratio3.05
Dividend
Industry RankSector Rank
Dividend Yield 1.52%
Yearly Dividend2.82
Dividend Growth(5Y)111.33%
DP29.65%
Div Incr Years1
Div Non Decr Years1
Ex-Date05-30 2025-05-30 (0.88)
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)0.12%
PT rev (3m)4.75%
EPS NQ rev (1m)-0.11%
EPS NQ rev (3m)-1.62%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)0.02%
Revenue NQ rev (1m)-0.09%
Revenue NQ rev (3m)1.24%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)1.01%
Valuation
Industry RankSector Rank
PE 23.56
Fwd PE 18.64
P/S 3.32
P/FCF 23.03
P/OCF 11.4
P/B 4.49
P/tB N/A
EV/EBITDA 11.22
EPS(TTM)10.25
EY4.24%
EPS(NY)12.95
Fwd EY5.36%
FCF(TTM)10.49
FCFY4.34%
OCF(TTM)21.19
OCFY8.77%
SpS72.83
BVpS53.82
TBVpS-47.31
PEG (NY)1.88
PEG (5Y)1.23
Profitability
Industry RankSector 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 RankSector 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 1.87
F-Score8
WACC7.62%
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 Y12.53%
EPS Next 2Y15.74%
EPS Next 3Y16.27%
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 2Y5.95%
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%