Telephone & Data Systems, Inc. (TDS) 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

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Why is Telephone & Data Systems, Inc. ?

Weak Long Term Fundamental Strength with a -12.94% CAGR growth in Operating Profits over the last 5 years

Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of 0.95
The company has been able to generate a Return on Equity (avg) of 2.37% signifying low profitability per unit of shareholders funds

Positive results in Jun 25

RAW MATERIAL COST(Y) Fallen by 0.82% (YoY)
INVENTORY TURNOVER RATIO(HY) Highest at 21.42 times
EPS(Q) Highest at USD -0.04

With ROCE of 1.43%, it has a risky valuation with a 0.93 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 12.79%, its profits have fallen by -1.6%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Telephone & Data Systems, 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 Telephone & Data Systems, Inc. for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Telephone & Data Systems, Inc.

14.96%

2.42

34.36%

S&P 500

13.68%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-10.62%

EBIT Growth (5y)

-26.31%

EBIT to Interest (avg)

0.95

Debt to EBITDA (avg)

3.24

Net Debt to Equity (avg)

0.76

Sales to Capital Employed (avg)

0.55

Tax Ratio

10.34%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

2.27%

ROE (avg)

2.37%

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

1.02

EV to EBIT

85.27

EV to EBITDA

7.64

EV to Capital Employed

1.02

EV to Sales

1.84

PEG Ratio

0.26

Dividend Yield

20.79%

ROCE (Latest)

1.20%

ROE (Latest)

4.15%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

No Trend

Bullish

OBV

No Trend

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

24What is working for the Company

ROCE(HY)

Highest at 2.54%

DEBT-EQUITY RATIO (HY)

Lowest at 12.12 %

INTEREST COVERAGE RATIO(Q)

The company hardly has any interest cost

PRE-TAX PROFIT(Q)

Highest at USD 85.3 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 5.16 times

OPERATING PROFIT MARGIN(Q)

Highest at 29.62 %

NET PROFIT(Q)

At USD 55.23 MM has Grown at 68.84%

EPS(Q)

Highest at USD 0.33

-14What is not working for the Company

NET SALES(Q)

At USD 330.71 MM has Fallen at -65.98%

OPERATING CASH FLOW(Y)

Lowest at USD 589.89 MM

RAW MATERIAL COST(Y)

Grown by 95.71% (YoY

Here's what is working for Telephone & Data Systems, Inc.

Pre-Tax Profit

At USD 85.3 MM has Grown at 213.93%

over average net sales of the previous four periods of USD 27.17 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (USD MM)

Pre-Tax Profit

Highest at USD 85.3 MM and Grown

In each period in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (USD MM)

Debt-Equity Ratio

Lowest at 12.12 % and Grown

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

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Operating Profit Margin

Highest at 29.62 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Net Profit

At USD 55.23 MM has Grown at 68.84%

over average net sales of the previous four periods of USD 32.71 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (USD MM)

EPS

Highest at USD 0.33

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (USD)

Debtors Turnover Ratio

Highest at 5.16 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Here's what is not working for Telephone & Data Systems, Inc.

Net Sales

At USD 330.71 MM has Fallen at -65.98%

over average net sales of the previous four periods of USD 972.13 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (USD MM)

Operating Cash Flow

Lowest at USD 589.89 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Raw Material Cost

Grown by 95.71% (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