Telephone & Data Systems, Inc. Experiences Revision in Its Stock Evaluation Amid Financial Trends

Telephone & Data Systems, Inc. has recently undergone a financial trend adjustment, reflecting notable shifts in its performance metrics. The company reported a flat financial performance for the quarter ending December 2025, yet several key indicators highlight strengths in its operations. The return on capital employed (ROCE) stands at 2.54%, marking a significant achievement for the company. Additionally, the debt-equity ratio is notably low at 12.12%, indicating a strong balance sheet with minimal reliance on debt. The interest coverage ratio suggests that the company faces negligible interest costs, further enhancing its financial stability. Pre-tax profit reached USD 85.3 million, while net profit surged to USD 55.23 million, reflecting a substantial growth rate of 68.84%. The earnings per share (EPS) also reached a high of USD 0.33, showcasing profitability. However, challenges persist, particularly with net sales, which fell to USD 330.71 million, a decline of 65.98%. Operating cash flow is at its lowest, recorded at USD 589.89 million, and raw material costs have surged by 95.71% year-over-year. In terms of market performance, Telephone & Data Systems has outperformed the S&P 500 over various time frames, particularly over the past year and three years, indicating a strong recovery trajectory compared to broader market trends.