Why is United States Cellular Corp. ?
1
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)
2
Company has a low Debt to Equity ratio (avg) at times
3
Poor long term growth as Operating profit has grown by an annual rate -3.66% of over the last 5 years
4
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
5
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 -21.09%, its profits have risen by 58% ; the PEG ratio of the company is 0.9
6
Underperformed the market in the last 1 year
- Even though the market (S&P 500) has generated returns of 13.22% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -21.09% returns
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.
-21.82%
-0.23
42.33%
S&P 500
12.66%
0.65
20.20%
Quality key factors
Factor
Value
Sales Growth (5y)
-1.64%
EBIT Growth (5y)
-3.66%
EBIT to Interest (avg)
0.95
Debt to EBITDA (avg)
3.21
Net Debt to Equity (avg)
0.61
Sales to Capital Employed (avg)
0.50
Tax Ratio
2.94%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
31.56%
ROCE (avg)
2.05%
ROE (avg)
2.35%
Valuation Key Factors 
Factor
Value
P/E Ratio
54
Industry P/E
Price to Book Value
1.19
EV to EBIT
62.10
EV to EBITDA
9.39
EV to Capital Employed
1.12
EV to Sales
2.23
PEG Ratio
0.92
Dividend Yield
NA
ROCE (Latest)
1.80%
ROE (Latest)
2.22%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Mildly Bearish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
Mildly Bullish
Mildly Bullish
Technical Movement
3What is working for the Company
DEBT-EQUITY RATIO
(HY)
Lowest at 74.09 %
INVENTORY TURNOVER RATIO(HY)
Highest at 17.35 times
EPS(Q)
Highest at USD 0.35
-2What is not working for the Company
INTEREST(Q)
At USD 45 MM has Grown at 12.5%
Here's what is working for United States Cellular Corp.
EPS
Highest at USD 0.35
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (USD)
Debt-Equity Ratio
Lowest at 74.09 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Inventory Turnover Ratio
Highest at 17.35 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Here's what is not working for United States Cellular Corp.
Interest
At USD 45 MM has Grown at 12.5%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
Non Operating Income
Highest at USD 1.22 MM
in the last five periodsMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating income






