186.03 USD
+0.64 (+0.35%)
185.283 USD
-0.75 (-0.4%)
TMUS gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 22 industry peers in the Wireless Telecommunication Services industry. TMUS has an excellent profitability rating, but there are concerns on its financial health. TMUS has a correct valuation and a medium 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.
- 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
- TMUS's Return On Assets of 5.47% is fine compared to the rest of the industry. TMUS outperforms 72.73% of its industry peers.
- The Return On Equity of TMUS (19.63%) is better than 77.27% of its industry peers.
- TMUS has a Return On Invested Capital of 7.71%. This is in the better half of the industry: TMUS outperforms 63.64% of its industry peers.
- TMUS had an Average Return On Invested Capital over the past 3 years of 6.22%. This is in line with the industry average of 6.24%.
- The last Return On Invested Capital (7.71%) for TMUS is above the 3 year average (6.22%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.47% | ||
| ROE | 19.63% | ||
| ROIC | 7.71% |
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
- TMUS has a Profit Margin of 13.83%. This is amongst the best in the industry. TMUS outperforms 81.82% of its industry peers.
- In the last couple of years the Profit Margin of TMUS has grown nicely.
- Looking at the Operating Margin, with a value of 22.69%, TMUS belongs to the top of the industry, outperforming 81.82% of the companies in the same industry.
- TMUS's Operating Margin has improved in the last couple of years.
- TMUS has a better Gross Margin (63.57%) than 81.82% of its industry peers.
- In the last couple of years the Gross Margin of TMUS has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.69% | ||
| PM (TTM) | 13.83% | ||
| GM | 63.57% |
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
- TMUS has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- TMUS has less shares outstanding than it did 1 year ago.
- Compared to 5 years ago, TMUS has more shares outstanding
- TMUS has a worse debt/assets ratio than last year.
2.2 Solvency
- TMUS has an Altman-Z score of 1.60. This is a bad value and indicates that TMUS is not financially healthy and even has some risk of bankruptcy.
- TMUS has a better Altman-Z score (1.60) than 68.18% of its industry peers.
- The Debt to FCF ratio of TMUS is 6.53, which is on the high side as it means it would take TMUS, 6.53 years of fcf income to pay off all of its debts.
- TMUS has a Debt to FCF ratio of 6.53. This is comparable to the rest of the industry: TMUS outperforms 59.09% of its industry peers.
- TMUS has a Debt/Equity ratio of 1.37. This is a high value indicating a heavy dependency on external financing.
- With a Debt to Equity ratio value of 1.37, TMUS perfoms like the industry average, outperforming 40.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.37 | ||
| Debt/FCF | 6.53 | ||
| Altman-Z | 1.6 |
ROIC/WACC0.95
WACC8.11%
2.3 Liquidity
- TMUS has a Current Ratio of 0.89. This is a bad value and indicates that TMUS is not financially healthy enough and could expect problems in meeting its short term obligations.
- With a Current ratio value of 0.89, TMUS perfoms like the industry average, outperforming 45.45% of the companies in the same industry.
- TMUS has a Quick Ratio of 0.89. 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 (0.80) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.89 | ||
| Quick Ratio | 0.8 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 20.64% over the past year.
- TMUS shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 19.13% yearly.
- TMUS shows a small growth in Revenue. In the last year, the Revenue has grown by 7.30%.
- 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)20.64%
EPS 3Y58.9%
EPS 5Y19.13%
EPS Q2Q%-0.77%
Revenue 1Y (TTM)7.3%
Revenue growth 3Y0.53%
Revenue growth 5Y12.59%
Sales Q2Q%8.9%
3.2 Future
- The Earnings Per Share is expected to grow by 16.24% 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 Y5.37%
EPS Next 2Y9.96%
EPS Next 3Y15.4%
EPS Next 5Y16.24%
Revenue Next Year9.05%
Revenue Next 2Y8.17%
Revenue Next 3Y6.9%
Revenue Next 5Y5.51%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
- 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 17.58, the valuation of TMUS can be described as rather expensive.
- TMUS's Price/Earnings ratio is a bit cheaper when compared to the industry. TMUS is cheaper than 63.64% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.21. TMUS is valued slightly cheaper when compared to this.
- With a Price/Forward Earnings ratio of 15.91, TMUS is valued correctly.
- Based on the Price/Forward Earnings ratio, TMUS is valued a bit more expensive than 63.64% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of TMUS to the average of the S&P500 Index (24.26), we can say TMUS is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.58 | ||
| Fwd PE | 15.91 |
4.2 Price Multiples
- TMUS's Enterprise Value to EBITDA is on the same level as the industry average.
- TMUS's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.07 | ||
| EV/EBITDA | 9.11 |
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.
- TMUS's earnings are expected to grow with 15.40% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.28
PEG (5Y)0.92
EPS Next 2Y9.96%
EPS Next 3Y15.4%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.05%, TMUS has a reasonable but not impressive dividend return.
- TMUS's Dividend Yield is slightly below the industry average, which is at 6.31.
- Compared to an average S&P500 Dividend Yield of 1.81, TMUS has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.05% |
5.2 History
- The dividend of TMUS is nicely growing with an annual growth rate of 111.33%!
- TMUS has been paying a dividend for over 5 years, so it has already some track record.
- The dividend of TMUS decreased recently.
Dividend Growth(5Y)111.33%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
- TMUS pays out 33.70% 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.
DP33.7%
EPS Next 2Y9.96%
EPS Next 3Y15.4%
T-MOBILE US INC / TMUS FAQ
What is the fundamental rating for TMUS stock?
ChartMill assigns a fundamental rating of 5 / 10 to TMUS.
Can you provide the valuation status for T-MOBILE US INC?
ChartMill assigns a valuation rating of 4 / 10 to T-MOBILE US INC (TMUS). This can be considered as Fairly Valued.
Can you provide the profitability details for T-MOBILE US INC?
T-MOBILE US INC (TMUS) has a profitability rating of 8 / 10.
Can you provide the financial health for TMUS stock?
The financial health rating of T-MOBILE US INC (TMUS) is 2 / 10.
Can you provide the dividend sustainability for TMUS stock?
The dividend rating of T-MOBILE US INC (TMUS) is 4 / 10 and the dividend payout ratio is 33.7%.