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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Anterix, Inc.

AT&T, Inc.

United States Cellular Corp.

Telephone & Data Systems, Inc.

Verizon Communications, Inc.

Liberty Broadband Corp.

T-Mobile US, Inc.

Spok Holdings, Inc.

Gogo, Inc.

Globalstar, Inc.

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 14.44%, its profits have fallen by -1.6%

Consistent Returns over the last 3 years

Along with generating 14.44% returns in the last 1 year, the stock has outperformed S&P 500 in each of the last 3 annual periods

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.

15.02%

2.53

34.54%

S&P 500

13.22%

0.64

20.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-1.50%

EBIT Growth (5y)

-12.94%

EBIT to Interest (avg)

0.95

Debt to EBITDA (avg)

3.24

Net Debt to Equity (avg)

0.76

Sales to Capital Employed (avg)

0.54

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

0.87

EV to EBIT

64.66

EV to EBITDA

7.72

EV to Capital Employed

0.93

EV to Sales

1.70

PEG Ratio

Dividend Yield

0.38%

ROCE (Latest)

1.43%

ROE (Latest)

1.67%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

RSI

No Signal

Bollinger Bands

Sideways

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

No Trend

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

3What is working for the Company

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

-12What is not working for the Company

NET PROFIT(Q)

At USD 12 MM has Fallen at -44.58%

INTEREST(Q)

At USD 70 MM has Grown at 14.75%

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

EPS

Highest at USD -0.04

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (USD)

Inventory Turnover Ratio

Highest at 21.42 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by 0.82% (YoY)

MOJO Watch

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

Raw Material Cost as a percentage of Sales

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

Net Profit

At USD 12 MM has Fallen at -44.58%

over average net sales of the previous four periods of USD 21.65 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Interest

At USD 70 MM has Grown at 14.75%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)