DB:TM5

Stock Analysis Report

Executive Summary

T-Mobile US, Inc., together with its subsidiaries, provides mobile communications services in the United States, Puerto Rico, and the United States Virgin Islands.


Snowflake Analysis

Proven track record with mediocre balance sheet.


Similar Companies

Share Price & News

How has T-Mobile US's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: TM5's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

4.7%

TM5

2.7%

DE Wireless Telecom

-0.9%

DE Market


1 Year Return

44.0%

TM5

6.9%

DE Wireless Telecom

12.8%

DE Market

Return vs Industry: TM5 exceeded the German Wireless Telecom industry which returned 7.1% over the past year.

Return vs Market: TM5 exceeded the German Market which returned 12.8% over the past year.


Shareholder returns

TM5IndustryMarket
7 Day4.7%2.7%-0.9%
30 Day23.5%0.6%-0.4%
90 Day27.6%0.2%2.3%
1 Year44.0%44.0%12.1%6.9%16.3%12.8%
3 Year55.6%55.6%2.0%-14.3%15.8%5.7%
5 Year212.6%208.0%1.6%-24.2%19.7%3.3%

Price Volatility Vs. Market

How volatile is T-Mobile US's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is T-Mobile US 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: TM5 (€91.47) is trading below our estimate of fair value (€218.45)

Significantly Below Fair Value: TM5 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: TM5 is poor value based on its PE Ratio (24.3x) compared to the Wireless Telecom industry average (24.1x).

PE vs Market: TM5 is poor value based on its PE Ratio (24.3x) compared to the German market (20.8x).


Price to Earnings Growth Ratio

PEG Ratio: TM5 is poor value based on its PEG Ratio (2.1x)


Price to Book Ratio

PB vs Industry: TM5 is overvalued based on its PB Ratio (2.9x) compared to the XE Wireless Telecom industry average (2.1x).


Next Steps

Future Growth

How is T-Mobile US forecast to perform in the next 1 to 3 years based on estimates from 21 analysts?

11.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TM5's forecast earnings growth (11.6% per year) is above the savings rate (-0.4%).

Earnings vs Market: TM5's earnings (11.6% per year) are forecast to grow slower than the German market (13% per year).

High Growth Earnings: TM5's earnings are forecast to grow, but not significantly.

Revenue vs Market: TM5's revenue (4.6% per year) is forecast to grow slower than the German market (5.2% per year).

High Growth Revenue: TM5's revenue (4.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TM5's Return on Equity is forecast to be low in 3 years time (15.9%).


Next Steps

Past Performance

How has T-Mobile US performed over the past 5 years?

37.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TM5 has high quality earnings.

Growing Profit Margin: TM5's current net profit margins (7.7%) are higher than last year (6.7%).


Past Earnings Growth Analysis

Earnings Trend: TM5's earnings have grown significantly by 37.8% per year over the past 5 years.

Accelerating Growth: TM5's earnings growth over the past year (20.1%) is below its 5-year average (37.8% per year).

Earnings vs Industry: TM5 earnings growth over the past year (20.1%) exceeded the Wireless Telecom industry 14.3%.


Return on Equity

High ROE: TM5's Return on Equity (12%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is T-Mobile US's financial position?


Financial Position Analysis

Short Term Liabilities: TM5's short term assets ($9.3B) do not cover its short term liabilities ($12.5B).

Long Term Liabilities: TM5's short term assets ($9.3B) do not cover its long term liabilities ($45.6B).


Debt to Equity History and Analysis

Debt Level: TM5's debt to equity ratio (90.9%) is considered high.

Reducing Debt: TM5's debt to equity ratio has reduced from 137.6% to 90.9% over the past 5 years.

Debt Coverage: TM5's debt is well covered by operating cash flow (26.1%).

Interest Coverage: TM5's interest payments on its debt are well covered by EBIT (5.7x coverage).


Balance Sheet

Inventory Level: TM5 has a high level of physical assets or inventory.

Debt Coverage by Assets: TM5's debt is not covered by short term assets (assets are 0.4x debt).


Next Steps

Dividend

What is T-Mobile US's current dividend yield, its reliability and sustainability?

1.44%

Forecast Dividend Yield


Dividend Yield vs Market

companyn/amarketbottom25%1.3%markettop25%3.6%industryaverage4.8%forecastin3Years1.4%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate TM5's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate TM5's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if TM5's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if TM5's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of TM5's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

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

6.9yrs

Average management tenure


CEO

John Legere (60yo)

6.8yrs

Tenure

US$66,538,206

Compensation

Mr. John J. Legere has been the Chief Executive Officer of T-Mobile US, Inc. since April 30, 2013. He was its President from April 30, 2013 to June 13, 2018. Mr. Legere has been Chief Executive Officer, Pr ...


CEO Compensation Analysis

Compensation vs Market: John's total compensation ($USD66.54M) is above average for companies of similar size in the German market ($USD4.38M).

Compensation vs Earnings: John's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
John Legere
CEO & Director6.8yrsUS$66.54m0.20% $154.3m
G. Sievert
President2yrsUS$35.65m0.047% $36.8m
J. Carter
Executive VP & CFO14.9yrsUS$8.47m0.0030% $2.3m
Neville Ray
President of Technology9.2yrsUS$25.77m0.033% $26.0m
David Carey
Executive Vice President of Corporate Services7yrsUS$15.85m0.028% $21.7m
Peter Osvaldik
Senior VP of Finance & Chief Accounting Officer3.7yrsno data0.0023% $1.8m
Cody Sanford
Chief Information Officer & Executive VP0yrsno datano data
Nils Paellmann
Vice President – Investor Relations0yrsno datano data
David Miller
Executive VP17.8yrsno data0.014% $10.7m
Janice Kapner
Executive Vice President of Communications & Community Engagement3.7yrsno datano data

6.9yrs

Average Tenure

58yo

Average Age

Experienced Management: TM5's management team is seasoned and experienced (6.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
John Legere
CEO & Director6.8yrsUS$66.54m0.20% $154.3m
G. Sievert
President2yrsUS$35.65m0.047% $36.8m
Lawrence Guffey
Independent Director6.8yrsUS$325.27k0.0028% $2.2m
Kelvin Westbrook
Independent Director6.8yrsUS$365.74k0.0028% $2.2m
Srikant T. Datar
Independent Director6.8yrsUS$380.99k0.0022% $1.7m
Thorsten Langheim
Director6.8yrsno datano data
Timotheus Höttges
Chairman of the Board6.8yrsno datano data
Raphael Kübler
Director6.8yrsno datano data
Teresa Taylor
Lead Independent Director6.8yrsUS$383.27k0.0028% $2.2m
Bruno Jacobfeuerborn
Director5.7yrsno datano data

6.8yrs

Average Tenure

56.5yo

Average Age

Experienced Board: TM5's board of directors are considered experienced (6.8 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

T-Mobile US, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: T-Mobile US, Inc.
  • Ticker: TM5
  • Exchange: DB
  • Founded: 1994
  • Industry: Wireless Telecommunication Services
  • Sector: Telecom
  • Market Cap: US$84.468b
  • Listing Market Cap: US$77.761b
  • Shares outstanding: 856.93m
  • Website: https://www.t-mobile.com

Number of Employees


Location

  • T-Mobile US, Inc.
  • 12920 SE 38th Street
  • Bellevue
  • Washington
  • 98006
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TMUSNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDMay 2013
TM5DB (Deutsche Boerse AG)YesCommon StockDEEURMay 2013
TMUSSWX (SIX Swiss Exchange)YesCommon StockCHCHFMay 2013
0R2LLSE (London Stock Exchange)YesCommon StockGBUSDMay 2013
TMUSWBAG (Wiener Boerse AG)YesCommon StockATEURMay 2013
TM5ETLX (Eurotlx)YesCommon StockITEURMay 2013
TMUS *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNMay 2013
T1MU34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH REPR 2 COMBRBRLJan 2020

Biography

T-Mobile US, Inc., together with its subsidiaries, provides mobile communications services in the United States, Puerto Rico, and the United States Virgin Islands. The company offers voice, messaging, and data services to 83.1 million customers in the postpaid, prepaid, and wholesale markets. It also provides wireless devices, including smartphones, tablets, and other mobile communication devices, as well as accessories that are manufactured by various suppliers. In addition, the company offers services, devices, and accessories under the T-Mobile and Metro by T-Mobile brands through its owned and operated retail stores, third party distributors, and its Websites. It also sells its devices to dealers and other third party distributors for resale through independent third-party retail outlets and various third-party Websites. As of December 31, 2018, T-Mobile US, Inc. operated approximately 2,200 T-Mobile and MetroPCS retail locations, including stores and kiosks. The company was founded in 1994 and is headquartered in Bellevue, Washington. T-Mobile US, Inc. operates as a subsidiary of Deutsche Telekom Holding B.V. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/23 23:01
End of Day Share Price2020/02/21 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.