T-MOBILE US INC (TMUS) Stock Fundamental Analysis
NASDAQ:TMUS - Nasdaq - US8725901040 - Common Stock - Currency: USD
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.
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.
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 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
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 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.
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.
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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.33 | ||
| Debt/FCF | 7.2 | ||
| Altman-Z | 1.92 |
ROIC/WACC1
WACC7.74%
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 Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.21 | ||
| Quick Ratio | 1.13 |
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.
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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.75 | ||
| Fwd PE | 18.71 |
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 Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.19 | ||
| EV/EBITDA | 10.93 |
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%
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 Rank | Sector 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
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%
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)
Earnings (Next)
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 Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.48% |
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)-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 Rank | Sector 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 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%
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 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 | 1.92 |
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%