T-Mobile US, Inc. (TMUS) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Anterix, Inc.

Gogo, Inc.

United States Cellular Corp.

AT&T, Inc.

Telephone & Data Systems, Inc.

Spok Holdings, Inc.

Verizon Communications, Inc.

Globalstar, Inc.

T-Mobile US, Inc.

Liberty Broadband Corp.

Why is T-Mobile US, Inc. ?

Low ability to service debt as the company has a high Debt to EBITDA ratio of 2.83 times

Low ability to service debt as the company has a high Debt to EBITDA ratio of 2.83 times
The company has been able to generate a Return on Capital Employed (avg) of 9.50% signifying low profitability per unit of total capital (equity and debt)

With ROCE of 12.70%, it has a very expensive valuation with a 2.20 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -18.42%, its profits have risen by 0.5% ; the PEG ratio of the company is 4.8

Reducing Promoter Confidence

Promoters have decreased their stake in the company by -1.55% over the previous quarter and currently hold 4.06% of the company
Promoters decreasing their stake may signify reduced confidence in the future of the business

Underperformed the market in the last 1 year

Even though the market (S&P 500) has generated returns of 13.68% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -18.42% returns

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Telecom - Equipment & Accessories)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is T-Mobile US, Inc. for you?

Low Risk, Medium Return

Absolute

Risk Adjusted

Volatility

T-Mobile US, Inc.

-18.38%

0.63

27.06%

S&P 500

13.68%

0.71

19.28%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

5.24%

EBIT Growth (5y)

16.17%

EBIT to Interest (avg)

4.26

Debt to EBITDA (avg)

2.83

Net Debt to Equity (avg)

1.33

Sales to Capital Employed (avg)

0.54

Tax Ratio

22.67%

Dividend Payout Ratio

37.66%

Pledged Shares

Institutional Holding

44.37%

ROCE (avg)

9.50%

ROE (avg)

12.89%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

4.00

EV to EBIT

17.32

EV to EBITDA

10.08

EV to Capital Employed

2.20

EV to Sales

3.69

PEG Ratio

4.82

Dividend Yield

1.83%

ROCE (Latest)

12.70%

ROE (Latest)

19.57%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bullish

Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

No Trend

OBV

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

6What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 27,950 MM

DIVIDEND PAYOUT RATIO(Y)

Highest at 54.19%

DIVIDEND PER SHARE(HY)

Highest at USD 8.86

NET SALES(Q)

Highest at USD 24,334 MM

-14What is not working for the Company

DEBT-EQUITY RATIO (HY)

Highest at 196.57 %

INTEREST COVERAGE RATIO(Q)

Lowest at 804.65

RAW MATERIAL COST(Y)

Grown by 6.66% (YoY

CASH AND EQV(HY)

Lowest at USD 9,475 MM

INVENTORY TURNOVER RATIO(HY)

Lowest at 23.06 times

INTEREST(Q)

Highest at USD 947 MM

OPERATING PROFIT(Q)

Lowest at USD 7,620 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 31.31 %

PRE-TAX PROFIT(Q)

Lowest at USD 2,828 MM

NET PROFIT(Q)

Lowest at USD 2,257.03 MM

EPS(Q)

Lowest at USD 1.88

Here's what is working for T-Mobile US, Inc.

Operating Cash Flow

Highest at USD 27,950 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Net Sales

Highest at USD 24,334 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Dividend per share

Highest at USD 8.86

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Dividend Payout Ratio

Highest at 54.19%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Depreciation

Highest at USD 3,756 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Here's what is not working for T-Mobile US, Inc.

Interest Coverage Ratio

Lowest at 804.65

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Debt-Equity Ratio

Highest at 196.57 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Interest

Highest at USD 947 MM

in the last five periods and Increased by 10.12% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Operating Profit

Lowest at USD 7,620 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (USD MM)

Operating Profit Margin

Lowest at 31.31 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at USD 2,828 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

Pre-Tax Profit

Fallen at -25.48%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

Net Profit

Lowest at USD 2,257.03 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

EPS

Lowest at USD 1.88

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (USD)

Cash and Eqv

Lowest at USD 9,475 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Inventory Turnover Ratio

Lowest at 23.06 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Raw Material Cost

Grown by 6.66% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales