T-MOBILE US INC (TMUS)
US8725901040 - Common Stock
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. While TMUS belongs to the best of the industry regarding profitability, there are 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
In the past year TMUS was profitable.
In the past year TMUS had a positive cash flow from operations.
TMUS had positive earnings in each of the past 5 years.
Each year in the past 5 years TMUS had a positive operating cash flow.
1.2 Ratios
The Return On Assets of TMUS (4.00%) is better than 61.90% of its industry peers.
TMUS has a better Return On Equity (12.85%) than 76.19% of its industry peers.
With a decent Return On Invested Capital value of 6.34%, TMUS is doing good in the industry, outperforming 71.43% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for TMUS is below the industry average of 7.50%.
The last Return On Invested Capital (6.34%) for TMUS is above the 3 year average (5.36%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4% | ||
| ROE | 12.85% | ||
| ROIC | 6.34% |
ROA(3y)2.23%
ROA(5y)2.44%
ROE(3y)6.98%
ROE(5y)7.54%
ROIC(3y)5.36%
ROIC(5y)5.33%
1.3 Margins
TMUS's Profit Margin of 10.59% is fine compared to the rest of the industry. TMUS outperforms 66.67% of its industry peers.
TMUS's Profit Margin has improved in the last couple of years.
TMUS has a better Operating Margin (19.44%) than 76.19% of its industry peers.
TMUS's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 62.39%, TMUS is in the better half of the industry, outperforming 71.43% 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 | 19.44% | ||
| PM (TTM) | 10.59% | ||
| GM | 62.39% |
OM growth 3Y14.03%
OM growth 5Y9.67%
PM growth 3Y33.2%
PM growth 5Y9.69%
GM growth 3Y1.52%
GM growth 5Y1.6%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), TMUS is destroying value.
Compared to 1 year ago, TMUS has less shares outstanding
Compared to 5 years ago, TMUS has more shares outstanding
TMUS has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.47, we must say that TMUS is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of TMUS (1.47) is better than 71.43% of its industry peers.
The Debt to FCF ratio of TMUS is 10.49, which is on the high side as it means it would take TMUS, 10.49 years of fcf income to pay off all of its debts.
TMUS has a Debt to FCF ratio of 10.49. This is in the better half of the industry: TMUS outperforms 61.90% of its industry peers.
A Debt/Equity ratio of 1.24 is on the high side and indicates that TMUS has dependencies on debt financing.
The Debt to Equity ratio of TMUS (1.24) is worse than 61.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.24 | ||
| Debt/FCF | 10.49 | ||
| Altman-Z | 1.47 |
ROIC/WACC0.84
WACC7.58%
2.3 Liquidity
A Current Ratio of 0.91 indicates that TMUS may have some problems paying its short term obligations.
The Current ratio of TMUS (0.91) is worse than 66.67% of its industry peers.
TMUS has a Quick Ratio of 0.91. This is a bad value and indicates that TMUS is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of TMUS (0.83) is worse than 80.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.83 |
3. Growth
3.1 Past
TMUS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 168.60%, which is quite impressive.
The Earnings Per Share has been growing by 15.44% on average over the past years. This is quite good.
The Revenue has decreased by -1.27% in the past year.
Measured over the past years, TMUS shows a quite strong growth in Revenue. The Revenue has been growing by 12.65% on average per year.
EPS 1Y (TTM)168.6%
EPS 3Y31.04%
EPS 5Y15.44%
EPS growth Q2Q41.53%
Revenue 1Y (TTM)-1.27%
Revenue growth 3Y4.73%
Revenue growth 5Y12.65%
Revenue growth Q2Q1.01%
3.2 Future
The Earnings Per Share is expected to grow by 20.89% on average over the next years. This is a very strong growth
Based on estimates for the next years, TMUS will show a small growth in Revenue. The Revenue will grow by 3.13% on average per year.
EPS Next Y30.75%
EPS Next 2Y27.56%
EPS Next 3Y23.9%
EPS Next 5Y20.89%
Revenue Next Year3.47%
Revenue Next 2Y3.52%
Revenue Next 3Y3.48%
Revenue Next 5Y3.13%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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
TMUS is valuated rather expensively with a Price/Earnings ratio of 23.56.
TMUS's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 25.20. TMUS is around the same levels.
A Price/Forward Earnings ratio of 18.02 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 21.60, TMUS is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.56 | ||
| Fwd PE | 18.02 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TMUS is valued a bit more expensive than 71.43% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, TMUS is valued a bit more expensive than 71.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.01 | ||
| EV/EBITDA | 9.48 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
TMUS has a very decent profitability rating, which may justify a higher PE ratio.
TMUS's earnings are expected to grow with 23.90% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.77
PEG (5Y)1.53
EPS Next 2Y27.56%
EPS Next 3Y23.9%
5. Dividend
5.1 Amount
TMUS has a Yearly Dividend Yield of 1.62%.
TMUS's Dividend Yield is comparable with the industry average which is at 6.21.
TMUS's Dividend Yield is slightly below the S&P500 average, which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.62% |
5.2 History
The dividend of TMUS is nicely growing with an annual growth rate of 55.47%!
TMUS has paid a dividend for less than 5 years, so there is no long track record yet.
Dividend Growth(5Y)55.47%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
TMUS pays out 8.98% 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.
DP8.98%
EPS Next 2Y27.56%
EPS Next 3Y23.9%
T-MOBILE US INC
NASDAQ:TMUS (4/23/2024, 7:00:00 PM)
Premarket: 163.26 +0.01 (+0.01%)163.25
+0.89 (+0.55%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
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Market Cap193.76B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.62% |
Dividend Growth(5Y)
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Surprises & Revisions
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.56 | ||
| Fwd PE | 18.02 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
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FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.77
PEG (5Y)1.53
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4% | ||
| ROE | 12.85% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 19.44% | ||
| PM (TTM) | 10.59% | ||
| GM | 62.39% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.38
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.24 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.83 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)168.6%
EPS 3Y31.04%
EPS 5Y
EPS growth Q2Q
EPS Next Y30.75%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-1.27%
Revenue growth 3Y4.73%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
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EBIT Next 5Y
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