United States Cellular Corp. (USM) 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.

Telephone & Data Systems, Inc.

Anterix, Inc.

T-Mobile US, Inc.

Gogo, Inc.

AT&T, Inc.

United States Cellular Corp.

Liberty Broadband Corp.

Globalstar, Inc.

Spok Holdings, Inc.

Why is United States Cellular Corp. ?

Poor Management Efficiency with a low ROCE of 2.05%

The company has been able to generate a Return on Capital Employed (avg) of 2.05% signifying low profitability per unit of total capital (equity and debt)

Company has a low Debt to Equity ratio (avg) at times

Poor long term growth as Operating profit has grown by an annual rate -3.66% of over the last 5 years

Positive results in Jun 25

DEBT-EQUITY RATIO (HY) Lowest at 74.09 %
INVENTORY TURNOVER RATIO(HY) Highest at 17.35 times
EPS(Q) Highest at USD 0.35

With ROCE of 1.80%, it has a risky valuation with a 1.12 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 -18.77%, its profits have risen by 58% ; the PEG ratio of the company is 0.9

Underperformed the market in the last 1 year

Even though the market (S&P 500) has generated returns of 14.11% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -18.77% 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 United States Cellular Corp. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

United States Cellular Corp.

-42.78%

-0.23

42.10%

S&P 500

20.78%

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)

-13.86%

EBIT Growth (5y)

-16.39%

EBIT to Interest (avg)

0.95

Debt to EBITDA (avg)

3.21

Net Debt to Equity (avg)

0.61

Sales to Capital Employed (avg)

0.44

Tax Ratio

2.94%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

42.29%

ROCE (avg)

2.05%

ROE (avg)

2.35%

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

1.57

EV to EBIT

58.68

EV to EBITDA

9.70

EV to Capital Employed

1.46

EV to Sales

2.41

PEG Ratio

0.10

Dividend Yield

70.38%

ROCE (Latest)

2.50%

ROE (Latest)

9.58%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bullish

Bollinger Bands

Bearish

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

No Trend

OBV

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

12What is working for the Company

NET PROFIT(HY)

At USD 99.87 MM has Grown at 364.5%

ROCE(HY)

Highest at 10.68%

RAW MATERIAL COST(Y)

Fallen by -671.77% (YoY

-16What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD 64.67 MM

NET SALES(Q)

At USD 52.01 MM has Fallen at -89.13%

INVENTORY TURNOVER RATIO(HY)

Lowest at 7.64 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 2.29 times

Here's what is working for United States Cellular Corp.

Net Profit

At USD 99.87 MM has Grown at 364.5%

Year on Year (YoY)

MOJO Watch

Net Profit trend is very positive

Net Profit (USD MM)

Raw Material Cost

Fallen by -671.77% (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 United States Cellular Corp.

Net Sales

At USD 52.01 MM has Fallen at -89.13%

over average net sales of the previous four periods of USD 478.61 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (USD MM)

Operating Cash Flow

Lowest at USD 64.67 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Inventory Turnover Ratio

Lowest at 7.64 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 2.29 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio