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

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 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 hold?

Overall Portfolio exposure to United States Cellular Corp. 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 United States Cellular Corp. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

United States Cellular Corp.

-32.62%

-0.23

42.10%

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)

-6.79%

EBIT Growth (5y)

-19.45%

EBIT to Interest (avg)

0.95

Debt to EBITDA (avg)

3.21

Net Debt to Equity (avg)

0.61

Sales to Capital Employed (avg)

0.49

Tax Ratio

2.94%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

39.79%

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

1.68

EV to EBIT

73.46

EV to EBITDA

7.27

EV to Capital Employed

1.59

EV to Sales

1.63

PEG Ratio

0.17

Dividend Yield

66.78%

ROCE (Latest)

2.17%

ROE (Latest)

8.23%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bullish

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

No Trend

Mildly Bearish

OBV

Mildly Bearish

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

21What is working for the Company

NET SALES(HY)

At USD 107.45 MM has Grown at 107.32%

NET PROFIT(HY)

Higher at USD 179.74 MM

ROCE(HY)

Highest at 5.11%

RAW MATERIAL COST(Y)

Fallen by -262.96% (YoY

OPERATING PROFIT MARGIN(Q)

Highest at 36.67 %

PRE-TAX PROFIT(Q)

At USD 65.09 MM has Grown at 51.51%

-11What is not working for the Company

NET SALES(Q)

At USD 60.33 MM has Fallen at -87.17%

OPERATING CASH FLOW(Y)

Lowest at USD 200.84 MM

INTEREST(Q)

At USD 11.99 MM has Grown at 35.39%

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

Net Profit

At USD 179.74 MM has Grown at 271.69%

Year on Year (YoY)

MOJO Watch

Net Profit trend is very positive

Net Profit (USD MM)

Net Profit

Higher at USD 179.74 MM

than preceding 12 month period ended Dec 2025

MOJO Watch

In the half year the company has already crossed Net Profit of the previous twelve months

Net Profit (USD MM)

Operating Profit Margin

Highest at 36.67 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

At USD 65.09 MM has Grown at 51.51%

over average net sales of the previous four periods of USD 42.96 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (USD MM)

Raw Material Cost

Fallen by -262.96% (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 60.33 MM has Fallen at -87.17%

over average net sales of the previous four periods of USD 470.05 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (USD MM)

Interest

At USD 11.99 MM has Grown at 35.39%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Operating Cash Flow

Lowest at USD 200.84 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)