US CELLULAR CORP (USM)
US9116841084 - Common Stock
We assign a fundamental rating of 3 out of 10 to USM. USM was compared to 22 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 is quite expensive at the moment. It does show a decent growth rate.
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.
Each year in the past 5 years USM has been profitable.
In the past 5 years USM always reported a positive cash flow from operatings.
1.2 Ratios
USM's Return On Assets of 0.51% is on the low side compared to the rest of the industry. USM is outperformed by 71.43% of its industry peers.
USM has a worse Return On Equity (1.19%) than 71.43% of its industry peers.
USM has a worse Return On Invested Capital (1.24%) than 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 7.93%.
The 3 year average ROIC (1.18%) for USM is below the current ROIC(1.24%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.51% | ||
| ROE | 1.19% | ||
| ROIC | 1.24% |
ROA(3y)0.76%
ROA(5y)1.24%
ROE(3y)1.74%
ROE(5y)2.69%
ROIC(3y)1.18%
ROIC(5y)1.33%
1.3 Margins
With a Profit Margin value of 1.41%, USM is not doing good in the industry: 76.19% of the companies in the same industry are doing better.
In the last couple of years the Profit Margin of USM has declined.
USM has a worse Operating Margin (3.94%) than 76.19% of its industry peers.
In the last couple of years the Operating Margin of USM has remained more or less at the same level.
USM has a Gross Margin of 55.73%. This is comparable 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 | 3.94% | ||
| PM (TTM) | 1.41% | ||
| GM | 55.73% |
OM growth 3Y-6.22%
OM growth 5Y0.84%
PM growth 3Y-37.54%
PM growth 5Y-18.23%
GM growth 3Y0.1%
GM growth 5Y0.31%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so USM 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.
The debt/assets ratio for USM has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.07, we must say that USM is in the distress zone and has some risk of bankruptcy.
USM has a better Altman-Z score (1.07) than 61.90% of its industry peers.
The Debt to FCF ratio of USM is 23.94, which is on the high side as it means it would take USM, 23.94 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of USM (23.94) is worse than 66.67% of its industry peers.
A Debt/Equity ratio of 0.66 indicates that USM is somewhat dependend on debt financing.
USM has a Debt to Equity ratio (0.66) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | 23.94 | ||
| Altman-Z | 1.07 |
ROIC/WACC0.19
WACC6.56%
2.3 Liquidity
A Current Ratio of 1.55 indicates that USM should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.55, USM is doing good in the industry, outperforming 66.67% of the companies in the same industry.
A Quick Ratio of 1.33 indicates that USM should not have too much problems paying its short term obligations.
USM's Quick ratio of 1.33 is fine compared to the rest of the industry. USM outperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.55 | ||
| Quick Ratio | 1.33 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 82.35% over the past year.
Measured over the past years, USM shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -18.46% on average per year.
USM shows a decrease in Revenue. In the last year, the revenue decreased by -6.31%.
Measured over the past years, USM shows a decrease in Revenue. The Revenue has been decreasing by -0.31% on average per year.
EPS 1Y (TTM)82.35%
EPS 3Y-37.59%
EPS 5Y-18.46%
EPS growth Q2Q148.48%
Revenue 1Y (TTM)-6.31%
Revenue growth 3Y-1.09%
Revenue growth 5Y-0.31%
Revenue growth Q2Q-4.67%
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 27.89% on average per year.
USM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.93% yearly.
EPS Next Y54.03%
EPS Next 2Y40.31%
EPS Next 3Y37.89%
EPS Next 5Y27.89%
Revenue Next Year-1.7%
Revenue Next 2Y-1.02%
Revenue Next 3Y0.37%
Revenue Next 5Y0.93%
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
A Price/Earnings ratio of 70.90 indicates a quite expensive valuation of USM.
Based on the Price/Earnings ratio, USM is valued a bit more expensive than 76.19% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.83. USM is valued rather expensively when compared to this.
A Price/Forward Earnings ratio of 46.03 indicates a quite expensive valuation of USM.
Compared to the rest of the industry, the Price/Forward Earnings ratio of USM indicates a rather expensive valuation: USM more expensive than 80.95% of the companies listed in the same industry.
USM is valuated expensively when we compare the Price/Forward Earnings ratio to 20.47, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 70.9 | ||
| Fwd PE | 46.03 |
4.2 Price Multiples
66.67% of the companies in the same industry are cheaper than USM, based on the Enterprise Value to EBITDA ratio.
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 | 17.95 | ||
| EV/EBITDA | 6.47 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
USM's earnings are expected to grow with 37.89% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.31
PEG (5Y)N/A
EPS Next 2Y40.31%
EPS Next 3Y37.89%
5. Dividend
5.1 Amount
No dividends for USM!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
US CELLULAR CORP
NYSE:USM (5/16/2024, 7:23:17 PM)
After market: 43.96 0 (0%)43.96
-0.58 (-1.3%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap2.30B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
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Div Incr Years
Div Non Decr Years
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Surprises & Revisions
EPS beat(2)
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EPS beat(16)
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PT rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 70.9 | ||
| Fwd PE | 46.03 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.31
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.51% | ||
| ROE | 1.19% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 3.94% | ||
| PM (TTM) | 1.41% | ||
| GM | 55.73% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.36
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.55 | ||
| Quick Ratio | 1.33 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)82.35%
EPS 3Y-37.59%
EPS 5Y
EPS growth Q2Q
EPS Next Y54.03%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-6.31%
Revenue growth 3Y-1.09%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
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