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

Verizon Communications, Inc.

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T-Mobile US, Inc.

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Liberty Broadband Corp.

Globalstar, Inc.

Spok Holdings, Inc.

Why is T-Mobile US, Inc. ?

Low ability to service debt as the company has a high Debt to EBITDA ratio of 2.93 times

Low ability to service debt as the company has a high Debt to EBITDA ratio of 2.93 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)

Healthy long term growth as Net Sales has grown by an annual rate of 5.24% and Operating profit at 16.17%

OPERATING CASH FLOW(Y) Highest at USD 28,325 MM
DIVIDEND PAYOUT RATIO(Y) Highest at 44.89%
DIVIDEND PER SHARE(HY) Highest at USD 9.03

With ROCE of 12.70%, it has a very expensive valuation with a 2.17 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 -18.68%, its profits have risen by 0.5% ; the PEG ratio of the company is 4.7

Reducing Promoter Confidence

Promoters have decreased their stake in the company by -1.45% over the previous quarter and currently hold 2.61% of the company
Promoters decreasing their stake may signify reduced confidence in the future of the business

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to T-Mobile US, Inc. should be less than 10%
Overall Portfolio exposure to Telecom - Equipment & Accessories should be less than 30%

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

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is T-Mobile US, Inc. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

T-Mobile US, Inc.

-18.68%

0.09

25.10%

S&P 500

22.24%

1.67

13.28%

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

44.34%

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

3.93

EV to EBIT

17.09

EV to EBITDA

9.95

EV to Capital Employed

2.17

EV to Sales

3.64

PEG Ratio

4.73

Dividend Yield

1.87%

ROCE (Latest)

12.70%

ROE (Latest)

19.57%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

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 28,325 MM

DIVIDEND PAYOUT RATIO(Y)

Highest at 44.89%

DIVIDEND PER SHARE(HY)

Highest at USD 9.03

OPERATING PROFIT(Q)

Highest at USD 8,868 MM

-2What is not working for the Company

RAW MATERIAL COST(Y)

Grown by 8.25% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 210.09 %

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

Operating Cash Flow

Highest at USD 28,325 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)

Operating Profit

Highest at USD 8,868 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (USD MM)

Dividend per share

Highest at USD 9.03

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Dividend Payout Ratio

Highest at 44.89%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Depreciation

Highest at USD 3,817 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.

Debt-Equity Ratio

Highest at 210.09 %

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

Raw Material Cost

Grown by 8.25% (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