US CELLULAR CORP (USM) Stock Fundamental Analysis
NYSE:USM - New York Stock Exchange, Inc. - US9116841084 - Common Stock - Currency: USD
Taking everything into account, USM scores 3 out of 10 in our fundamental rating. USM was compared to 21 industry peers in the Wireless Telecommunication Services industry. The financial health of USM is average, but 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.
In the past year USM had a positive cash flow from operations.
USM had positive earnings in 4 of the past 5 years.
In the past 5 years USM always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of -0.38%, USM is doing worse than 66.67% of the companies in the same industry.
USM has a worse Return On Equity (-0.85%) than 66.67% 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.
Measured over the past 3 years, the Average Return On Invested Capital for USM is significantly below the industry average of 6.34%.
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 in the lower half of the industry: USM underperforms 76.19% of its industry peers.
In the last couple of years the Operating Margin of USM has grown nicely.
USM has a Gross Margin (57.26%) which is in line with 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.
USM has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for USM has been reduced compared to 5 years ago.
The debt/assets ratio for USM has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.41, we must say that USM is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.41, USM is in the better half of the industry, outperforming 66.67% 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 has a Debt to FCF ratio (8.09) which is in line with its industry peers.
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 | 1.41 |
ROIC/WACC0.14
WACC7.69%
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 better Current ratio (1.70) than 66.67% of its industry peers.
A Quick Ratio of 1.48 indicates that USM should not have too much problems paying 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
USM shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.46%.
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 -4.11% 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)7.46%
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
The Earnings Per Share is expected to grow by 31.56% on average over the next years. This is a very strong growth
The Revenue is expected to decrease by -0.31% on average over the next years.
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
Based on the Price/Earnings ratio of 89.15, 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 71.43% of the companies are valued more cheaply.
USM's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.21.
A Price/Forward Earnings ratio of 57.78 indicates a quite expensive valuation of USM.
Based on the Price/Forward Earnings ratio, USM is valued a bit more expensive than the industry average as 76.19% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.70, USM is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 89.15 | ||
| Fwd PE | 57.78 |
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 61.90% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, USM is valued a bit more expensive than 61.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.46 | ||
| EV/EBITDA | 10.21 |
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.
A more expensive valuation may be justified as USM's earnings are expected to grow with 21.15% in the coming years.
PEG (NY)5.59
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 |
64.19
+0.22 (+0.34%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners29.22%
Inst Owner Change1.85%
Ins Owners0.94%
Ins Owner Change30.39%
Market Cap5.46B
Analysts75.56
Price Target74.57 (16.17%)
Short Float %7.83%
Short Ratio4.55
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)-1.35%
PT rev (3m)-0.85%
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)0.26%
Revenue NQ rev (3m)-0.4%
Revenue NY rev (1m)0.08%
Revenue NY rev (3m)-1.94%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 89.15 | ||
| Fwd PE | 57.78 | ||
| P/S | 1.47 | ||
| P/FCF | 15.46 | ||
| P/OCF | 6.5 | ||
| P/B | 1.19 | ||
| P/tB | 1364.04 | ||
| EV/EBITDA | 10.21 |
EPS(TTM)0.72
EY1.12%
EPS(NY)1.11
Fwd EY1.73%
FCF(TTM)4.15
FCFY6.47%
OCF(TTM)9.88
OCFY15.4%
SpS43.66
BVpS53.94
TBVpS0.05
PEG (NY)5.59
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 | 1.41 |
F-Score5
WACC7.69%
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)7.46%
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%