T-MOBILE US INC (TMUS) Stock Fundamental Analysis
USA - NASDAQ:TMUS - US8725901040 - Common Stock
219.99 USD
-7.41 (-3.26%)
220.3 USD
+0.31 (+0.14%)
We assign a fundamental rating of 5 out of 10 to TMUS. TMUS was compared to 22 industry peers in the Wireless Telecommunication Services industry. TMUS has an excellent profitability rating, but there are some minor concerns on its financial health. While showing a medium growth rate, TMUS is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year TMUS was profitable.
TMUS had a positive operating cash flow in the past year.
Each year in the past 5 years TMUS has 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 (5.74%) than 81.82% of its industry peers.
TMUS has a Return On Equity of 19.99%. This is amongst the best in the industry. TMUS outperforms 86.36% 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 72.73% 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 5.84%.
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 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
Looking at the Profit Margin, with a value of 14.53%, TMUS belongs to the top of the industry, outperforming 86.36% of the companies in the same industry.
In the last couple of years the Profit Margin of TMUS has grown nicely.
Looking at the Operating Margin, with a value of 23.08%, TMUS is in the better half of the industry, outperforming 77.27% of the companies in the same industry.
In the last couple of years the Operating Margin of TMUS has grown nicely.
Looking at the Gross Margin, with a value of 63.61%, TMUS belongs to the top of the industry, outperforming 81.82% of the companies in the same industry.
In the last couple of years the Gross Margin of TMUS has grown nicely.
| 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) just above the Cost of Capital (WACC), TMUS is creating some value.
Compared to 1 year ago, TMUS has less shares outstanding
Compared to 5 years ago, TMUS has more shares outstanding
The debt/assets ratio for TMUS is higher compared to a year ago.
2.2 Solvency
TMUS has an Altman-Z score of 1.86. 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 (1.86) than 77.27% of its industry peers.
The Debt to FCF ratio of TMUS is 7.20, which is on the high side as it means it would take TMUS, 7.20 years of fcf income to pay off all of its debts.
TMUS has a Debt to FCF ratio (7.20) which is comparable to the rest of the industry.
A Debt/Equity ratio of 1.33 is on the high side and indicates that TMUS has dependencies on debt financing.
The Debt to Equity ratio of TMUS (1.33) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.33 | ||
| Debt/FCF | 7.2 | ||
| Altman-Z | 1.86 |
ROIC/WACC1.06
WACC7.3%
2.3 Liquidity
A Current Ratio of 1.21 indicates that TMUS should not have too much problems paying its short term obligations.
TMUS has a Current ratio of 1.21. This is comparable to the rest of the industry: TMUS outperforms 45.45% of its industry peers.
TMUS has a Quick Ratio of 1.13. 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 (1.13) which 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
TMUS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 32.83%, which is quite impressive.
Measured over the past years, TMUS shows a quite strong growth in Earnings Per Share. The EPS has been growing by 19.13% on average per year.
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
The Earnings Per Share is expected to grow by 16.62% on average over the next years. This is quite good.
The Revenue is expected to grow by 5.51% on average over the next years.
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
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.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 20.75, 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 27.67. TMUS is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 16.73 indicates a correct valuation of TMUS.
The rest of the industry has a similar Price/Forward Earnings ratio as TMUS.
TMUS is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.33, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.75 | ||
| Fwd PE | 16.73 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TMUS is valued a bit more expensive than 63.64% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, TMUS is valued a bit more expensive than 68.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.07 | ||
| EV/EBITDA | 10.44 |
4.3 Compensation for Growth
TMUS's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
TMUS has an outstanding profitability rating, which may justify a higher PE ratio.
TMUS's earnings are expected to grow with 16.97% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.46
PEG (5Y)1.08
EPS Next 2Y16.6%
EPS Next 3Y16.97%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.62%, TMUS has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 8.60, TMUS is paying slightly less dividend.
Compared to the average S&P500 Dividend Yield of 2.35, TMUS is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.62% |
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
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 2Y16.6%
EPS Next 3Y16.97%
219.99
-7.41 (-3.26%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners39.36%
Inst Owner Change0.06%
Ins Owners0.38%
Ins Owner Change-0.49%
Market Cap247.58B
Revenue(TTM)84.05B
Net Income(TTM)12.21B
Analysts76.22
Price Target274.9 (24.96%)
Short Float %2.58%
Short Ratio3.03
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.62% |
Yearly Dividend2.82
Dividend Growth(5Y)111.33%
DP30.87%
Div Incr Years1
Div Non Decr Years1
Ex-Date
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%
PT rev (3m)-0.08%
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 | 20.75 | ||
| Fwd PE | 16.73 | ||
| P/S | 2.95 | ||
| P/FCF | 20.07 | ||
| P/OCF | 9.7 | ||
| P/B | 4.05 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.44 |
EPS(TTM)10.6
EY4.82%
EPS(NY)13.15
Fwd EY5.98%
FCF(TTM)10.96
FCFY4.98%
OCF(TTM)22.68
OCFY10.31%
SpS74.69
BVpS54.3
TBVpS-45.07
PEG (NY)1.46
PEG (5Y)1.08
Graham Number113.8
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%
ROICexgc growth 3Y22.86%
ROICexgc 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
WACC7.3%
ROIC/WACC1.06
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%