WBAG:ATT

Stock Analysis Report

Executive Summary

AT&T Inc. provides telecommunication, media, and technology services worldwide.

Rewards

Trading at 61% below its fair value

Earnings are forecast to grow 11.18% per year

Pays a high and reliable dividend of 5.44%

Risk Analysis

Has a high level of debt

Dividend of 5.44% is not well covered by earnings

Profit margins (7.7%) are lower than last year (11.3%)

Shareholders have been diluted in the past year



Snowflake Analysis

Established dividend payer and good value.


Similar Companies

Share Price & News

How has AT&T's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ATT has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.6%

ATT

3.0%

AT Telecom

0.1%

AT Market


1 Year Return

31.4%

ATT

6.4%

AT Telecom

4.3%

AT Market

Return vs Industry: ATT exceeded the Austrian Telecom industry which returned 6.4% over the past year.

Return vs Market: ATT exceeded the Austrian Market which returned 4.3% over the past year.


Shareholder returns

ATTIndustryMarket
7 Day1.6%3.0%0.1%
30 Day2.2%3.7%-0.3%
90 Day6.1%1.6%0.2%
1 Year39.2%31.4%11.8%6.4%8.1%4.3%
3 Yearn/a9.7%-3.8%25.9%14.5%
5 Yearn/a-5.0%-23.4%53.9%32.6%

Price Volatility Vs. Market

How volatile is AT&T's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is AT&T undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ATT (€35.3) is trading below our estimate of fair value (€90.57)

Significantly Below Fair Value: ATT is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: ATT is good value based on its PE Ratio (20.1x) compared to the Telecom industry average (22.2x).

PE vs Market: ATT is poor value based on its PE Ratio (20.1x) compared to the Austrian market (14.2x).


Price to Earnings Growth Ratio

PEG Ratio: ATT is poor value based on its PEG Ratio (1.8x)


Price to Book Ratio

PB vs Industry: ATT is good value based on its PB Ratio (1.5x) compared to the XE Telecom industry average (1.8x).


Next Steps

Future Growth

How is AT&T forecast to perform in the next 1 to 3 years based on estimates from 26 analysts?

11.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ATT's forecast earnings growth (11.2% per year) is above the savings rate (-0.1%).

Earnings vs Market: ATT's earnings (11.2% per year) are forecast to grow faster than the Austrian market (9.8% per year).

High Growth Earnings: ATT's earnings are forecast to grow, but not significantly.

Revenue vs Market: ATT's revenue (0.3% per year) is forecast to grow slower than the Austrian market (2.7% per year).

High Growth Revenue: ATT's revenue (0.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ATT's Return on Equity is forecast to be low in 3 years time (14.4%).


Next Steps

Past Performance

How has AT&T performed over the past 5 years?

20.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ATT has high quality earnings.

Growing Profit Margin: ATT's current net profit margins (7.7%) are lower than last year (11.3%).


Past Earnings Growth Analysis

Earnings Trend: ATT's earnings have grown significantly by 20.5% per year over the past 5 years.

Accelerating Growth: ATT's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: ATT had negative earnings growth (-28.2%) over the past year, making it difficult to compare to the Telecom industry average (4%).


Return on Equity

High ROE: ATT's Return on Equity (7.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is AT&T's financial position?


Financial Position Analysis

Short Term Liabilities: ATT's short term assets ($54.8B) do not cover its short term liabilities ($68.6B).

Long Term Liabilities: ATT's short term assets ($54.8B) do not cover its long term liabilities ($281.4B).


Debt to Equity History and Analysis

Debt Level: ATT's debt to equity ratio (79%) is considered high.

Reducing Debt: ATT's debt to equity ratio has reduced from 92.7% to 79% over the past 5 years.

Debt Coverage: ATT's debt is well covered by operating cash flow (30.5%).

Interest Coverage: ATT's interest payments on its debt are well covered by EBIT (3.5x coverage).


Balance Sheet

Inventory Level: ATT has a high level of physical assets or inventory.

Debt Coverage by Assets: ATT's debt is not covered by short term assets (assets are 0.3x debt).


Next Steps

Dividend

What is AT&T's current dividend yield, its reliability and sustainability?

5.44%

Current Dividend Yield


Dividend Yield vs Market

company5.4%marketbottom25%1.6%markettop25%4.5%industryaverage4.8%forecastin3Years5.6%

Current dividend yield vs market & industry

Notable Dividend: ATT's dividend (5.44%) is higher than the bottom 25% of dividend payers in the Austrian market (1.58%).

High Dividend: ATT's dividend (5.44%) is in the top 25% of dividend payers in the Austrian market (4.47%)


Stability and Growth of Payments

Stable Dividend: ATT's dividends per share have been stable in the past 10 years.

Growing Dividend: ATT's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (107.9%), ATT's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ATT's dividends in 3 years are forecast to be covered by earnings (52.4% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.2yrs

Average management tenure


CEO

Randall Stephenson (58yo)

12.7yrs

Tenure

US$29,118,118

Compensation

Mr. Randall L. Stephenson has been the Chief Executive Officer and Chairman of New Cingular Wireless PCS, LLC since June 2007 and also serves as its President since June 2007. Mr. Stephenson serves as Chai ...


CEO Compensation Analysis

Compensation vs Market: Randall's total compensation ($USD29.12M) is above average for companies of similar size in the Austrian market ($USD3.58M).

Compensation vs Earnings: Randall's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Randall Stephenson
Chairman & CEO12.7yrsUS$29.12m0.031% $79.4m
John Stankey
President1.1yrsUS$16.55m0.0084% $21.5m
John Stephens
Senior EVP & CFO8.7yrsUS$15.64m0.0094% $24.0m
David McAtee
Senior Executive VP & General Counsel4.3yrsUS$12.85m0.0016% $4.1m
Michael Viola
Senior Vice President of Investor Relations0yrsno datano data
David Huntley
Senior Executive VP & Chief Compliance Officer5.2yrsno data0.00086% $2.2m
Larry Solomon
Chief Communications Officer12.3yrsno datano data
Rick Moore
Senior Vice President of Corporate Development12.7yrsno datano data
Lori Lee
Global Marketing Officer and CEO of AT&T Latin America4.8yrsno data0.0022% $5.5m
Kirk McDonald
Chief Marketing Officer of AT&T’s Advertising & Analytics company2.3yrsno datano data

5.2yrs

Average Tenure

58yo

Average Age

Experienced Management: ATT's management team is seasoned and experienced (5.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Randall Stephenson
Chairman & CEO12.7yrsUS$29.12m0.031% $79.4m
Glenn Hutchins
Independent Director5.7yrsUS$310.00k0.0023% $5.9m
William Kennard
Independent Director5.3yrsUS$310.00kno data
Beth Mooney
Independent Director6.4yrsUS$310.00k0.00040% $1.0m
Michael McCallister
Independent Director7yrsUS$324.66k0.00071% $1.8m
Scott Ford
Independent Director7.7yrsUS$325.00k0.0011% $2.9m
Matthew Rose
Lead Director0yrsUS$399.11k0.0029% $7.4m
Laura Tyson
Independent Director20.3yrsUS$360.15kno data
Cynthia Taylor
Independent Director6.7yrsUS$333.15k0.000080% $205.2k
Samuel Di Piazza
Independent Director4.6yrsUS$350.00k0.00048% $1.2m

6.7yrs

Average Tenure

62.5yo

Average Age

Experienced Board: ATT's board of directors are considered experienced (6.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: ATT insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 8%.


Top Shareholders

Company Information

AT&T Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: AT&T Inc.
  • Ticker: ATT
  • Exchange: WBAG
  • Founded: 1983
  • Industry: Integrated Telecommunication Services
  • Sector: Telecom
  • Market Cap: US$277.504b
  • Listing Market Cap: US$256.524b
  • Shares outstanding: 7.26b
  • Website: https://www.att.com

Number of Employees


Location

  • AT&T Inc.
  • 208 South Akard Street
  • Dallas
  • Texas
  • 75202
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TNYSE (New York Stock Exchange)YesCommon SharesUSUSDNov 1983
T *BMV (Bolsa Mexicana de Valores)YesCommon SharesMXMXNNov 1983
SOBAXTRA (XETRA Trading Platform)YesCommon SharesDEEURNov 1983
SOBADB (Deutsche Boerse AG)YesCommon SharesDEEURNov 1983
TSWX (SIX Swiss Exchange)YesCommon SharesCHCHFNov 1983
TBVC (Bolsa de Valores de Colombia)YesCommon SharesCOCOPNov 1983
TSNSE (Santiago Stock Exchange)YesCommon SharesCLUSDNov 1983
TETLX (Eurotlx)YesCommon SharesITEURNov 1983
2342429SWX (SIX Swiss Exchange)YesCommon SharesCHCHFNov 1983
ATTWBAG (Wiener Boerse AG)YesCommon SharesATEURNov 1983
TBASE (Buenos Aires Stock Exchange)CEDEAR EACH 3 REP 1 USD1ARARSSep 2000
ATTB34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EA REPR 1 COM SHSBRBRLDec 2011
T.PRAOTCPK (Pink Sheets LLC)5 DEP RP PFD AUSUSDDec 2019

Biography

AT&T Inc. provides telecommunication, media, and technology services worldwide. The company operates through four segments: Communications, WarnerMedia, Latin America, and Xandr. The Communications segment provides wireless and wireline telecom, video, and broadband and Internet services; video entertainment services using satellite, IP-based, and streaming options; and audio programming services under the AT&T, Cricket, AT&T PREPAID, and DIRECTV brands to residential and business customers. This segment also sells handsets, wirelessly enabled computers, and wireless data cards manufactured by various suppliers for use with company’s voice and data services, as well as various accessories, such as carrying cases and hands-free devices through the company-owned stores, agents, and third-party retail stores. The WarnerMedia segment primarily produces, distributes, and licenses television programming and feature films; distributes home entertainment products in physical and digital formats; and produces and distributes mobile and console games, and consumer products, as well as offers brand licensing services. It also operates cable networks, multichannel premium pay television, and over-the-top services; and digital media properties. The Latin America segment offers video entertainment and audio programming services under the DIRECTV and SKY brands primarily to residential customers; pay-TV services, including HD sports video content; and postpaid and prepaid wireless services under the AT&T and Unefon brands, as well as sells various handsets through company-owned stores, agents, and third-party retail stores. The Xandr segment provides digital advertising services. It has a strategic alliance with Microsoft Corp. to deliver customer offerings; and Amdocs Limited. The company was formerly known as SBC Communications Inc. and changed its name to AT&T Inc. in November 2005. AT&T Inc. was founded in 1983 and is based in Dallas, Texas. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/18 23:31
End of Day Share Price2020/02/18 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.