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T-MOBILE US INC (TMUS) Stock Fundamental Analysis

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

241.14  +1.89 (+0.79%)

Fundamental Rating

5

Overall TMUS gets a fundamental rating of 5 out of 10. We evaluated TMUS against 21 industry peers in the Wireless Telecommunication Services industry. TMUS scores excellent on profitability, but 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.


Dividend Valuation Growth Profitability Health

9

1. Profitability

1.1 Basic Checks

TMUS had positive earnings in the past year.
In the past year TMUS had a positive cash flow from operations.
In the past 5 years TMUS has always 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 5.74% is amongst the best of the industry. TMUS outperforms 85.71% of its industry peers.
TMUS has a better Return On Equity (19.99%) than 90.48% of its industry peers.
Looking at the Return On Invested Capital, with a value of 7.77%, TMUS is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for TMUS is in line with the industry average of 6.33%.
The 3 year average ROIC (6.22%) for TMUS is below the current ROIC(7.77%), indicating increased profibility in the last year.
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

With an excellent Profit Margin value of 14.53%, TMUS belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
In the last couple of years the Profit Margin of TMUS has grown nicely.
TMUS's Operating Margin of 23.08% is amongst the best of the industry. TMUS outperforms 80.95% of its industry peers.
TMUS's Operating Margin has improved in the last couple of years.
The Gross Margin of TMUS (63.61%) is better than 80.95% of its industry peers.
TMUS's Gross Margin has improved in the last couple of years.
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

4

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), TMUS 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
Compared to 1 year ago, TMUS has a worse debt to assets ratio.
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

An Altman-Z score of 1.92 indicates that TMUS is not a great score, but indicates only limited risk for bankruptcy at the moment.
TMUS has a Altman-Z score of 1.92. This is amongst the best in the industry. TMUS outperforms 85.71% of its industry peers.
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 decent Debt to FCF ratio value of 7.20, TMUS is doing good in the industry, outperforming 61.90% of the companies in the same industry.
TMUS has a Debt/Equity ratio of 1.33. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.33, TMUS is doing worse than 61.90% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 1.33
Debt/FCF 7.2
Altman-Z 1.92
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.
With a Current ratio value of 1.21, TMUS is not doing good in the industry: 61.90% of the companies in the same industry are doing better.
A Quick Ratio of 1.13 indicates that TMUS should not have too much problems paying its short term obligations.
TMUS's Quick ratio of 1.13 is on the low side compared to the rest of the industry. TMUS is outperformed by 61.90% of its industry peers.
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

5

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 32.83% over the past year.
The Earnings Per Share has been growing by 19.13% on average over the past years. This is quite good.
TMUS shows a small growth in Revenue. In the last year, the Revenue has grown by 6.27%.
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

The Earnings Per Share is expected to grow by 15.70% on average over the next years. This is quite good.
Based on estimates for the next years, TMUS will show a small growth in Revenue. The Revenue will grow by 4.92% on average per year.
EPS Next Y12.11%
EPS Next 2Y15.46%
EPS Next 3Y16.24%
EPS Next 5Y15.7%
Revenue Next Year7.23%
Revenue Next 2Y6.28%
Revenue Next 3Y5.67%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
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

2

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 22.75, TMUS is valued on the expensive side.
TMUS's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 27.91. TMUS is around the same levels.
With a Price/Forward Earnings ratio of 18.71, TMUS is valued on the expensive side.
TMUS's Price/Forward Earnings is on the same level as the industry average.
TMUS's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 37.11.
Industry RankSector Rank
PE 22.75
Fwd PE 18.71
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

61.90% of the companies in the same industry are cheaper than TMUS, based on the Enterprise Value to EBITDA ratio.
71.43% of the companies in the same industry are cheaper than TMUS, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 22.19
EV/EBITDA 10.93
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.
A more expensive valuation may be justified as TMUS's earnings are expected to grow with 16.24% in the coming years.
PEG (NY)1.88
PEG (5Y)1.19
EPS Next 2Y15.46%
EPS Next 3Y16.24%

3

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 1.48%, TMUS has a reasonable but not impressive dividend return.
TMUS's Dividend Yield is slightly below the industry average, which is at 56.52.
TMUS's Dividend Yield is slightly below the S&P500 average, which is at 2.32.
Industry RankSector Rank
Dividend Yield 1.48%

5.2 History

On average, the dividend of TMUS grows each year by 111.33%, which is quite nice.
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

T-MOBILE US INC

NASDAQ:TMUS (7/30/2025, 3:24:05 PM)

241.14

+1.89 (+0.79%)

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 Owners37.4%
Inst Owner Change-0.24%
Ins Owners0.38%
Ins Owner Change-0.14%
Market Cap273.80B
Analysts77.78
Price Target270.94 (12.36%)
Short Float %2.89%
Short Ratio2.97
Dividend
Industry RankSector Rank
Dividend Yield 1.48%
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)-1.52%
PT rev (3m)-0.52%
EPS NQ rev (1m)-0.26%
EPS NQ rev (3m)-0.54%
EPS NY rev (1m)-0.37%
EPS NY rev (3m)0.24%
Revenue NQ rev (1m)-0.16%
Revenue NQ rev (3m)0.8%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)0.89%
Valuation
Industry RankSector Rank
PE 22.75
Fwd PE 18.71
P/S 3.26
P/FCF 22.19
P/OCF 10.73
P/B 4.48
P/tB N/A
EV/EBITDA 10.93
EPS(TTM)10.6
EY4.4%
EPS(NY)12.89
Fwd EY5.35%
FCF(TTM)10.87
FCFY4.51%
OCF(TTM)22.48
OCFY9.32%
SpS74.03
BVpS53.82
TBVpS-44.67
PEG (NY)1.88
PEG (5Y)1.19
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 1.92
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 5Y15.7%
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 5Y4.92%
EBIT growth 1Y19.54%
EBIT growth 3Y21.67%
EBIT growth 5Y23.21%
EBIT Next Year88.34%
EBIT Next 3Y29.81%
EBIT Next 5Y19.44%
FCF growth 1Y220.63%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y48.99%
OCF growth 3Y17.01%
OCF growth 5Y26.71%