US CELLULAR CORP (USM) Stock Fundamental Analysis
NYSE:USM - New York Stock Exchange, Inc. - US9116841084 - Common Stock - Currency: USD
USM gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 21 industry peers in the Wireless Telecommunication Services industry. USM scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. 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.
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
The Return On Assets of USM (-0.38%) is worse than 66.67% of its industry peers.
The Return On Equity of USM (-0.85%) is worse than 66.67% of its industry peers.
Looking at the Return On Invested Capital, with a value of 1.10%, USM is doing worse than 76.19% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for USM is significantly below the industry average of 6.35%.
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
Looking at the Operating Margin, with a value of 3.58%, USM is doing worse than 76.19% of the companies in the same industry.
In the last couple of years the Operating Margin of USM has grown nicely.
USM's Gross Margin of 57.26% is in line compared to the rest of the industry. USM outperforms 52.38% 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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.
USM has a better debt/assets ratio than last year.
2.2 Solvency
USM has an Altman-Z score of 1.49. This is a bad value and indicates that USM is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of USM (1.49) is better than 76.19% of its industry peers.
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 (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.
With a Debt to Equity ratio value of 0.62, USM perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 8.09 | ||
| Altman-Z | 1.49 |
ROIC/WACC0.15
WACC7.56%
2.3 Liquidity
A Current Ratio of 1.70 indicates that USM should not have too much problems paying 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 61.90% 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.
USM has a better Quick ratio (1.48) than 71.43% 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 7.46% over the past year.
The earnings per share for USM have been decreasing by -13.19% on average. This is quite bad
USM shows a decrease in Revenue. In the last year, the revenue decreased by -4.11%.
Measured over the past years, USM shows a decrease in Revenue. The Revenue has been decreasing by -1.29% on average per year.
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
Based on estimates for the next years, USM will show a very strong growth in Earnings Per Share. The EPS will grow by 31.56% on average per year.
USM is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.31% yearly.
EPS Next Y15.94%
EPS Next 2Y25.09%
EPS Next 3Y21.15%
EPS Next 5Y31.56%
Revenue Next Year-2.84%
Revenue Next 2Y-1.42%
Revenue Next 3Y-1.07%
Revenue Next 5Y-0.31%
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
USM is valuated quite expensively with a Price/Earnings ratio of 102.74.
Based on the Price/Earnings ratio, USM is valued a bit more expensive than 71.43% of the companies in the same industry.
USM's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 26.99.
With a Price/Forward Earnings ratio of 66.58, 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 76.19% of the companies in the same industry.
USM is valuated expensively when we compare the Price/Forward Earnings ratio to 36.36, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 102.74 | ||
| Fwd PE | 66.58 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, USM is valued a bit more expensive than the industry average as 66.67% of the companies are valued more cheaply.
Based on the Price/Free Cash Flow ratio, USM is valued a bit more expensive than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.81 | ||
| EV/EBITDA | 11.12 |
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)6.45
PEG (5Y)N/A
EPS Next 2Y25.09%
EPS Next 3Y21.15%
5. Dividend
5.1 Amount
No dividends for USM!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
73.97
+1.3 (+1.79%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners29.22%
Inst Owner Change0.09%
Ins Owners0.94%
Ins Owner Change29.4%
Market Cap6.29B
Analysts75.56
Price Target74.57 (0.81%)
Short Float %8.22%
Short Ratio4.47
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%
PT rev (3m)-3.52%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-19.55%
EPS NY rev (1m)0%
EPS NY rev (3m)-28.09%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.4%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.86%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 102.74 | ||
| Fwd PE | 66.58 | ||
| P/S | 1.69 | ||
| P/FCF | 17.81 | ||
| P/OCF | 7.49 | ||
| P/B | 1.37 | ||
| P/tB | 1571.86 | ||
| EV/EBITDA | 11.12 |
EPS(TTM)0.72
EY0.97%
EPS(NY)1.11
Fwd EY1.5%
FCF(TTM)4.15
FCFY5.61%
OCF(TTM)9.88
OCFY13.36%
SpS43.66
BVpS53.94
TBVpS0.05
PEG (NY)6.45
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 | 1.49 |
F-Score5
WACC7.56%
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 3Y21.15%
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-2.84%
Revenue Next 2Y-1.42%
Revenue Next 3Y-1.07%
Revenue Next 5Y-0.31%
EBIT growth 1Y-23.56%
EBIT growth 3Y-8.78%
EBIT growth 5Y2.21%
EBIT Next Year19886.2%
EBIT Next 3Y467.35%
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%