US CELLULAR CORP (USM) Stock Fundamental Analysis
NYSE:USM - US9116841084 - Common Stock
77.01 USD
+2.76 (+3.72%)
77.9 USD
+0.89 (+1.16%)
We assign a fundamental rating of 3 out of 10 to USM. USM was compared to 21 industry peers in the Wireless Telecommunication Services industry. Both the profitability and the financial health of USM get a neutral evaluation. Nothing too spectacular is happening here. USM is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
USM had positive earnings in the past year.
In the past year USM had a positive cash flow from operations.
Of the past 5 years USM 4 years were profitable.
Each year in the past 5 years USM had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of -0.38%, USM is not doing good in the industry: 72.73% of the companies in the same industry are doing better.
With a Return On Equity value of -0.85%, USM is not doing good in the industry: 72.73% of the companies in the same industry are doing better.
USM has a Return On Invested Capital (1.10%) which is in line with its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for USM is significantly below the industry average of 6.09%.
The last Return On Invested Capital (1.10%) for USM is above the 3 year average (1.05%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.38% | ||
| ROE | -0.85% | ||
| ROIC | 1.1% |
ROA(3y)0.13%
ROA(5y)0.85%
ROE(3y)0.32%
ROE(5y)1.91%
ROIC(3y)1.05%
ROIC(5y)1.3%
1.3 Margins
USM has a Operating Margin (3.58%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of USM has grown nicely.
USM's Gross Margin of 57.26% is fine compared to the rest of the industry. USM outperforms 68.18% of its industry peers.
USM's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.58% | ||
| PM (TTM) | N/A | ||
| GM | 57.26% |
OM growth 3Y-6.02%
OM growth 5Y3.54%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.86%
GM growth 5Y0.4%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so USM is destroying value.
The number of shares outstanding for USM remains at a similar level compared to 1 year ago.
USM has less shares outstanding than it did 5 years ago.
The debt/assets ratio for USM has been reduced compared to a year ago.
2.2 Solvency
USM has an Altman-Z score of 1.53. This is a bad value and indicates that USM is not financially healthy and even has some risk of bankruptcy.
USM's Altman-Z score of 1.53 is fine compared to the rest of the industry. USM outperforms 72.73% of its industry peers.
The Debt to FCF ratio of USM is 8.09, which is on the high side as it means it would take USM, 8.09 years of fcf income to pay off all of its debts.
USM has a Debt to FCF ratio (8.09) which is comparable to the rest of the industry.
USM has a Debt/Equity ratio of 0.62. This is a neutral value indicating USM is somewhat dependend on debt financing.
The Debt to Equity ratio of USM (0.62) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 8.09 | ||
| Altman-Z | 1.53 |
ROIC/WACC0.14
WACC7.62%
2.3 Liquidity
USM has a Current Ratio of 1.70. This is a normal value and indicates that USM is financially healthy and should not expect problems in meeting its short term obligations.
USM has a Current ratio of 1.70. This is in the better half of the industry: USM outperforms 63.64% of its industry peers.
A Quick Ratio of 1.48 indicates that USM should not have too much problems paying its short term obligations.
USM's Quick ratio of 1.48 is fine compared to the rest of the industry. USM outperforms 68.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.7 | ||
| Quick Ratio | 1.48 |
3. Growth
3.1 Past
USM shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.32%.
USM shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -13.19% yearly.
The Revenue has decreased by -3.48% in the past year.
USM shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.29% yearly.
EPS 1Y (TTM)7.32%
EPS 3Y-26.25%
EPS 5Y-13.19%
EPS Q2Q%80%
Revenue 1Y (TTM)-3.48%
Revenue growth 3Y-2.93%
Revenue growth 5Y-1.29%
Sales Q2Q%-1.19%
3.2 Future
Based on estimates for the next years, USM will show a small growth in Earnings Per Share. The EPS will grow by 0.20% on average per year.
The Revenue is expected to decrease by -42.63% on average over the next years. This is quite bad
EPS Next Y15.94%
EPS Next 2Y25.09%
EPS Next 3Y21.15%
EPS Next 5Y0.2%
Revenue Next Year-2.84%
Revenue Next 2Y-1.42%
Revenue Next 3Y-1.07%
Revenue Next 5Y-42.63%
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 accelerating.
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
Based on the Price/Earnings ratio of 87.51, the valuation of USM can be described as expensive.
Based on the Price/Earnings ratio, USM is valued a bit more expensive than the industry average as 72.73% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Earnings ratio of 27.13, USM is valued quite expensively.
With a Price/Forward Earnings ratio of 69.32, USM can be considered very expensive at the moment.
72.73% of the companies in the same industry are cheaper than USM, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of USM to the average of the S&P500 Index (22.76), we can say USM is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 87.51 | ||
| Fwd PE | 69.32 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, USM is valued a bit more expensive than 63.64% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, USM is valued a bit more expensive than 63.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.54 | ||
| EV/EBITDA | 11.58 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
A more expensive valuation may be justified as USM's earnings are expected to grow with 21.15% in the coming years.
PEG (NY)5.49
PEG (5Y)N/A
EPS Next 2Y25.09%
EPS Next 3Y21.15%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.49%, USM is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 8.15, USM pays a better dividend. On top of this USM pays more dividend than 81.82% of the companies listed in the same industry.
USM's Dividend Yield is rather good when compared to the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.49% |
5.2 History
USM is new to the dividend game and has less than 3 years of track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DP0%
EPS Next 2Y25.09%
EPS Next 3Y21.15%
77.01
+2.76 (+3.72%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst OwnersN/A
Inst Owner Change5.38%
Ins OwnersN/A
Ins Owner Change22.83%
Market Cap6.55B
Analysts75.56
Price Target76.61 (-0.52%)
Short Float %9.97%
Short Ratio4.12
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.49% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)76.69%
Min EPS beat(2)-39.44%
Max EPS beat(2)192.83%
EPS beat(4)3
Avg EPS beat(4)73.51%
Min EPS beat(4)-39.44%
Max EPS beat(4)192.83%
EPS beat(8)5
Avg EPS beat(8)113.75%
EPS beat(12)6
Avg EPS beat(12)56.53%
EPS beat(16)8
Avg EPS beat(16)47.35%
Revenue beat(2)0
Avg Revenue beat(2)-2.98%
Min Revenue beat(2)-5.4%
Max Revenue beat(2)-0.57%
Revenue beat(4)0
Avg Revenue beat(4)-2.4%
Min Revenue beat(4)-5.4%
Max Revenue beat(4)-0.57%
Revenue beat(8)1
Avg Revenue beat(8)-2.52%
Revenue beat(12)3
Avg Revenue beat(12)-2.02%
Revenue beat(16)3
Avg Revenue beat(16)-2.08%
PT rev (1m)2.74%
PT rev (3m)1.35%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.26%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 87.51 | ||
| Fwd PE | 69.32 | ||
| P/S | 1.76 | ||
| P/FCF | 18.54 | ||
| P/OCF | 7.79 | ||
| P/B | 1.43 | ||
| P/tB | 1636.46 | ||
| EV/EBITDA | 11.58 |
EPS(TTM)0.88
EY1.14%
EPS(NY)1.11
Fwd EY1.44%
FCF(TTM)4.15
FCFY5.39%
OCF(TTM)9.88
OCFY12.83%
SpS43.66
BVpS53.94
TBVpS0.05
PEG (NY)5.49
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.38% | ||
| ROE | -0.85% | ||
| ROCE | 1.39% | ||
| ROIC | 1.1% | ||
| ROICexc | 1.12% | ||
| ROICexgc | 2.19% | ||
| OM | 3.58% | ||
| PM (TTM) | N/A | ||
| GM | 57.26% | ||
| FCFM | 9.51% |
ROA(3y)0.13%
ROA(5y)0.85%
ROE(3y)0.32%
ROE(5y)1.91%
ROIC(3y)1.05%
ROIC(5y)1.3%
ROICexc(3y)1.07%
ROICexc(5y)1.37%
ROICexgc(3y)2.08%
ROICexgc(5y)2.45%
ROCE(3y)1.33%
ROCE(5y)1.64%
ROICexcg growth 3Y-6.62%
ROICexcg growth 5Y1.42%
ROICexc growth 3Y-9.23%
ROICexc growth 5Y-3.33%
OM growth 3Y-6.02%
OM growth 5Y3.54%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.86%
GM growth 5Y0.4%
F-Score5
Asset Turnover0.36
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 8.09 | ||
| Debt/EBITDA | 3.55 | ||
| Cap/Depr | 73.45% | ||
| Cap/Sales | 13.12% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 105.53% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.7 | ||
| Quick Ratio | 1.48 | ||
| Altman-Z | 1.53 |
F-Score5
WACC7.62%
ROIC/WACC0.14
Cap/Depr(3y)121.94%
Cap/Depr(5y)166.9%
Cap/Sales(3y)20.71%
Cap/Sales(5y)28.01%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)7.32%
EPS 3Y-26.25%
EPS 5Y-13.19%
EPS Q2Q%80%
EPS Next Y15.94%
EPS Next 2Y25.09%
EPS Next 3Y21.15%
EPS Next 5Y0.2%
Revenue 1Y (TTM)-3.48%
Revenue growth 3Y-2.93%
Revenue growth 5Y-1.29%
Sales Q2Q%-1.19%
Revenue Next Year-2.84%
Revenue Next 2Y-1.42%
Revenue Next 3Y-1.07%
Revenue Next 5Y-42.63%
EBIT growth 1Y-23.56%
EBIT growth 3Y-8.78%
EBIT growth 5Y2.21%
EBIT Next Year20168.2%
EBIT Next 3Y476.6%
EBIT Next 5Y95.74%
FCF growth 1Y406.96%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y49.47%
OCF growth 3Y3.26%
OCF growth 5Y4.05%