US CELLULAR CORP (USM) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:USM • US9116841084
77.01 USD
+2.76 (+3.72%)
At close: Aug 11, 2025
77.9 USD
+0.89 (+1.16%)
After Hours: 8/11/2025, 8:07:46 PM
Taking everything into account, USM scores 3 out of 10 in our fundamental rating. USM was compared to 22 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 has a expensive valuation and it also scores bad on growth.
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.
- In the past 5 years USM always reported a positive cash flow from operatings.
1.2 Ratios
- The Return On Assets of USM (-0.38%) is worse than 72.73% of its industry peers.
- Looking at the Return On Equity, with a value of -0.85%, USM is doing worse than 72.73% of the companies in the same industry.
- With a Return On Invested Capital value of 1.10%, USM perfoms like the industry average, outperforming 40.91% of the companies in the same industry.
- USM had an Average Return On Invested Capital over the past 3 years of 1.05%. This is significantly below the industry average of 6.60%.
- 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
- 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.
- In the last couple of years the Operating Margin of USM has grown nicely.
- 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.
- 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
- USM has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- The number of shares outstanding for USM remains at a similar level compared to 1 year ago.
- The number of shares outstanding for USM has been reduced compared to 5 years ago.
- USM has a better debt/assets ratio than last year.
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.
- 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.
- USM has a Debt to FCF ratio of 8.09. This is comparable 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 of 0.62. This is comparable to the rest of the industry: USM outperforms 59.09% of 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.
- 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.
- 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.
- 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.
- 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
- 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.
- 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
- The Price/Earnings ratio is 87.51, which means the current valuation is very expensive for USM.
- 72.73% of the companies in the same industry are cheaper than USM, based on the Price/Earnings ratio.
- USM's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 28.18.
- The Price/Forward Earnings ratio is 69.32, which means the current valuation is very expensive for USM.
- 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 (25.51), we can say USM is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 87.51 | ||
| Fwd PE | 69.32 |
4.2 Price Multiples
- USM's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. USM is more expensive than 63.64% of the companies in the same industry.
- USM's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. USM is 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 USM does not grow enough to justify the current Price/Earnings ratio.
- 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
- With a Yearly Dividend Yield of 7.49%, USM is a good candidate for dividend investing.
- USM's Dividend Yield is rather good when compared to the industry average which is at 6.47. USM pays more dividend than 81.82% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.83, USM pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.49% |
5.2 History
- USM does not have a reliable dividend history as it only pays dividend since a couple or years.
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)08-11 2025-08-11/amc
Earnings (Next)10-30 2025-10-30/bmo
Inst OwnersN/A
Inst Owner Change-0.76%
Ins OwnersN/A
Ins Owner Change-14.7%
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-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)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.
What is the valuation status for USM stock?
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.
What is the expected EPS growth for US CELLULAR CORP (USM) stock?
The Earnings per Share (EPS) of US CELLULAR CORP (USM) is expected to grow by 15.94% in the next year.
How sustainable is the dividend of US CELLULAR CORP (USM) stock?
The dividend rating of US CELLULAR CORP (USM) is 4 / 10 and the dividend payout ratio is 0%.