US CELLULAR CORP (USM) Stock Fundamental Analysis
USA - NYSE:USM - US9116841084 - Common Stock
77.01 USD
+2.76 (+3.72%)
77.9 USD
+0.89 (+1.16%)
USM gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 22 industry peers in the Wireless Telecommunication Services industry. USM has only an average score on both its financial health and profitability. USM is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year USM was profitable.
In the past year USM had a positive cash flow from operations.
USM had positive earnings in 4 of the past 5 years.
Each year in the past 5 years USM had a positive operating cash flow.
1.2 Ratios
The Return On Assets of USM (-0.38%) is worse than 72.73% of its industry peers.
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.
Looking at the Return On Invested Capital, with a value of 1.10%, USM is in line with its industry, outperforming 40.91% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for USM is below the industry average of 5.80%.
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 of 3.58%. This is comparable to the rest of the industry: USM outperforms 40.91% of its industry peers.
USM's Operating Margin has improved in the last couple of years.
USM has a Gross Margin of 57.26%. This is in the better half of the industry: USM outperforms 68.18% of its industry peers.
In the last couple of years the Gross Margin of USM has remained more or less at the same level.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), USM is destroying value.
USM has about the same amout of shares outstanding than it did 1 year ago.
USM has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, USM has an improved debt to assets ratio.
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.
With a decent Altman-Z score value of 1.53, USM is doing good in the industry, outperforming 72.73% of the companies in the same industry.
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's Debt to FCF ratio of 8.09 is in line compared to the rest of the industry. USM outperforms 40.91% of its industry peers.
A Debt/Equity ratio of 0.62 indicates that USM is somewhat dependend on debt financing.
USM has a Debt to Equity ratio (0.62) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 8.09 | ||
| Altman-Z | 1.53 |
ROIC/WACC0.14
WACC7.62%
2.3 Liquidity
A Current Ratio of 1.70 indicates that USM should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.70, USM is doing good in the industry, outperforming 63.64% of the companies in the same industry.
A Quick Ratio of 1.48 indicates that USM should not have too much problems paying its short term obligations.
The Quick ratio of USM (1.48) is better than 68.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.7 | ||
| Quick Ratio | 1.48 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.32% over the past year.
The earnings per share for USM have been decreasing by -13.19% on average. This is quite bad
Looking at the last year, USM shows a decrease in Revenue. The Revenue has decreased by -3.48% in the last year.
The Revenue has been decreasing by -1.29% on average over the past years.
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
The Earnings Per Share is expected to grow by 0.20% on average over the next years.
USM is expected to show a very negative growth in Revenue. In the coming years, the Revenue will decrease by -42.63% yearly.
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
A Price/Earnings ratio of 87.51 indicates a quite expensive valuation of USM.
Compared to the rest of the industry, the Price/Earnings ratio of USM indicates a slightly more expensive valuation: USM is more expensive than 72.73% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.83, USM is valued quite expensively.
A Price/Forward Earnings ratio of 69.32 indicates a quite expensive valuation of USM.
USM's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. USM is more expensive than 72.73% of the companies in the same industry.
USM is valuated expensively when we compare the Price/Forward Earnings ratio to 32.68, which is the current average of the S&P500 Index.
| 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 the industry average as 63.64% of the companies are valued more cheaply.
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.
USM's earnings are expected to grow with 21.15% in the coming years. This may justify a more expensive valuation.
PEG (NY)5.49
PEG (5Y)N/A
EPS Next 2Y25.09%
EPS Next 3Y21.15%
5. Dividend
5.1 Amount
USM has a Yearly Dividend Yield of 7.49%, which is a nice return.
Compared to an average industry Dividend Yield of 8.83, USM pays a better dividend. On top of this USM pays more dividend than 81.82% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.37, USM pays a better dividend.
| 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 Change0.45%
Ins OwnersN/A
Ins Owner Change-9.5%
Market Cap6.55B
Revenue(TTM)3.77B
Net Income(TTM)-39.00M
Analysts75.56
Price Target76.61 (-0.52%)
Short Float %N/A
Short RatioN/A
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
Graham NumberN/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%
ROICexgc growth 3Y-6.62%
ROICexgc 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%
US CELLULAR CORP / USM FAQ
What is the fundamental rating for USM stock?
ChartMill assigns a fundamental rating of 3 / 10 to USM.
Can you provide the valuation status for US CELLULAR CORP?
ChartMill assigns a valuation rating of 1 / 10 to US CELLULAR CORP (USM). This can be considered as Overvalued.
How profitable is US CELLULAR CORP (USM) stock?
US CELLULAR CORP (USM) has a profitability rating of 4 / 10.
How financially healthy is US CELLULAR CORP?
The financial health rating of US CELLULAR CORP (USM) is 4 / 10.
Can you provide the expected EPS growth for USM stock?
The Earnings per Share (EPS) of US CELLULAR CORP (USM) is expected to grow by 15.94% in the next year.