US CELLULAR CORP (USM) Stock Fundamental Analysis
NYSE:USM - New York Stock Exchange, Inc. - US9116841084 - Common Stock - Currency: USD
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. While USM seems to be doing ok healthwise, there are quite some concerns on its profitability. USM does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
USM had positive earnings in the past year.
USM had a positive operating cash flow in the past year.
Of the past 5 years USM 4 years were profitable.
In the past 5 years USM always reported a positive cash flow from operatings.
1.2 Ratios
USM has a Return On Assets of -0.38%. This is in the lower half of the industry: USM underperforms 71.43% of its industry peers.
USM has a worse Return On Equity (-0.85%) than 71.43% of its industry peers.
USM's Return On Invested Capital of 1.10% is on the low side compared to the rest of the industry. USM is outperformed by 76.19% of its industry peers.
The Average Return On Invested Capital over the past 3 years for USM is significantly below the industry average of 6.26%.
The 3 year average ROIC (1.05%) for USM is below the current ROIC(1.10%), indicating increased profibility in the last year.
| 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
The Operating Margin of USM (3.58%) is worse than 76.19% of its industry peers.
USM's Operating Margin has improved in the last couple of years.
USM has a Gross Margin (57.26%) which is comparable to the rest of the industry.
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.
Compared to 1 year ago, USM has about the same amount of shares outstanding.
Compared to 5 years ago, USM has less shares outstanding
USM has a better debt/assets ratio than last year.
2.2 Solvency
USM has an Altman-Z score of 1.39. This is a bad value and indicates that USM is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.39, USM is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
USM has a debt to FCF ratio of 8.09. This is a slightly negative value and a sign of low solvency as USM would need 8.09 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 8.09, USM is in line with its industry, outperforming 42.86% of the companies in the same industry.
A Debt/Equity ratio of 0.62 indicates that USM is somewhat dependend on debt financing.
USM's Debt to Equity ratio of 0.62 is in line compared to the rest of the industry. USM outperforms 57.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 8.09 | ||
| Altman-Z | 1.39 |
ROIC/WACC0.15
WACC7.53%
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.
Looking at the Current ratio, with a value of 1.70, USM is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
USM has a Quick Ratio of 1.48. This is a normal value and indicates that USM is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Quick ratio value of 1.48, USM is doing good in the industry, outperforming 76.19% of the companies in the same industry.
| 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 7.46% over the past year.
USM shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -13.19% yearly.
Looking at the last year, USM shows a decrease in Revenue. The Revenue has decreased by -4.11% in the last year.
The Revenue has been decreasing by -1.29% on average over the past years.
EPS 1Y (TTM)7.46%
EPS 3Y-26.25%
EPS 5Y-13.19%
EPS Q2Q%5%
Revenue 1Y (TTM)-4.11%
Revenue growth 3Y-2.93%
Revenue growth 5Y-1.29%
Sales Q2Q%-6.21%
3.2 Future
USM is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 31.56% yearly.
Based on estimates for the next years, USM will show a decrease in Revenue. The Revenue will decrease by -0.31% on average per year.
EPS Next Y15.94%
EPS Next 2Y25.09%
EPS Next 3Y-3.08%
EPS Next 5Y31.56%
Revenue Next Year-2.92%
Revenue Next 2Y-1.18%
Revenue Next 3Y-0.75%
Revenue Next 5Y-0.31%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 85.83, USM can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of USM indicates a slightly more expensive valuation: USM is more expensive than 71.43% of the companies listed in the same industry.
USM's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 26.68.
With a Price/Forward Earnings ratio of 55.63, USM can be considered very expensive at the moment.
USM's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. USM is more expensive than 71.43% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of USM to the average of the S&P500 Index (22.50), we can say USM is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 85.83 | ||
| Fwd PE | 55.63 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, USM is valued a bit more expensive than the industry average as 61.90% of the companies are valued more cheaply.
USM's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. USM is more expensive than 61.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.88 | ||
| EV/EBITDA | 9.96 |
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 decrease with -3.08% in the coming years. This may justify a cheaper valuation.
PEG (NY)5.39
PEG (5Y)N/A
EPS Next 2Y25.09%
EPS Next 3Y-3.08%
5. Dividend
5.1 Amount
USM does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
61.8
+0.77 (+1.26%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners26.28%
Inst Owner Change1.77%
Ins Owners0.56%
Ins Owner Change30.88%
Market Cap5.25B
Analysts75.56
Price Target75.59 (22.31%)
Short Float %6.68%
Short Ratio3.95
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
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)0.51%
PT rev (3m)-4.44%
EPS NQ rev (1m)-19.55%
EPS NQ rev (3m)-10.61%
EPS NY rev (1m)-28.09%
EPS NY rev (3m)-25.4%
Revenue NQ rev (1m)-0.66%
Revenue NQ rev (3m)0.11%
Revenue NY rev (1m)-1.78%
Revenue NY rev (3m)-1.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 85.83 | ||
| Fwd PE | 55.63 | ||
| P/S | 1.42 | ||
| P/FCF | 14.88 | ||
| P/OCF | 6.25 | ||
| P/B | 1.15 | ||
| P/tB | 1313.25 | ||
| EV/EBITDA | 9.96 |
EPS(TTM)0.72
EY1.17%
EPS(NY)1.11
Fwd EY1.8%
FCF(TTM)4.15
FCFY6.72%
OCF(TTM)9.88
OCFY15.99%
SpS43.66
BVpS53.94
TBVpS0.05
PEG (NY)5.39
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 | 1.39 |
F-Score5
WACC7.53%
ROIC/WACC0.15
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)7.46%
EPS 3Y-26.25%
EPS 5Y-13.19%
EPS Q2Q%5%
EPS Next Y15.94%
EPS Next 2Y25.09%
EPS Next 3Y-3.08%
EPS Next 5Y31.56%
Revenue 1Y (TTM)-4.11%
Revenue growth 3Y-2.93%
Revenue growth 5Y-1.29%
Sales Q2Q%-6.21%
Revenue Next Year-2.92%
Revenue Next 2Y-1.18%
Revenue Next 3Y-0.75%
Revenue Next 5Y-0.31%
EBIT growth 1Y-23.56%
EBIT growth 3Y-8.78%
EBIT growth 5Y2.21%
EBIT Next Year20757.2%
EBIT Next 3Y484.74%
EBIT Next 5Y183.49%
FCF growth 1Y406.96%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y49.47%
OCF growth 3Y3.26%
OCF growth 5Y4.05%