| Snowflake Score | |
|---|---|
| Valuation | 2/6 |
| Future Growth | 3/6 |
| Past Performance | 0/6 |
| Financial Health | 3/6 |
| Dividends | 0/6 |
TMUS Stock Overview
T-Mobile US, Inc., together with its subsidiaries, provides mobile communications services in the United States, Puerto Rico, and the United States Virgin Islands.
T-Mobile US Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$146.46 |
| 52 Week High | US$147.68 |
| 52 Week Low | US$101.51 |
| Beta | 0.48 |
| 1 Month Change | 8.55% |
| 3 Month Change | 15.93% |
| 1 Year Change | 1.05% |
| 3 Year Change | 88.37% |
| 5 Year Change | 132.48% |
| Change since IPO | 786.56% |
Recent News & Updates
Samsung Galaxy Z Fold4, Z Flip4 smartphones come to T-Mobile
T-Mobile (NASDAQ:TMUS) has added Samsung's (OTCPK:SSNLF) new Galaxy Z Fold4 and Z Flip4 smartphones for new and existing customers, including small businesses. The new Samsung Galaxy Watch5 series - which includes the Galaxy Watch5 and Galaxy Watch5 Pro - and a new color of the Samsung Galaxy S22 smartphone have also come to T-Mobile. The devices are now available for pre-order and can be found at T-Mobile stores from August 26. CEO Mike Sievert said: "Customers can get up to $1000 off the new Samsung devices [...] paired with our most popular plan, Magenta MAX, and families get more than $225 a month in extra benefits including Netflix On Us, free in-flight Wi-Fi, free international high-speed data and more."
Why T-Mobile Is A Buy After Q2 Earnings
T-Mobile missed earnings estimates but gave impressive forward guidance. The company raised guidance across the board. Management forecasts over 6 million postpaid net customer additions and over 10% core adjusted EBITDA growth. The company is ahead in the 5G market. It is leveraging its advantages to enter the high speed internet service business. I think the shares are cheap, trading at just over 10 times EV/core adjusted EBITDA. Investment Thesis T-Mobile (TMUS) is the leading pure play mobile internet company. The business has shown strong core EBITDA growth. We're seeing a decline in expenses related to their merger with Sprint. I believe T-Mobile is set to return strong free cash flow to shareholders. In the long term, I think T-Mobile is a great way to invest in the shift to 5G. The company is also leading a broad transformation away from legacy internet companies. This, combined with their relatively cheap valuation, makes me bullish on the company. Strong guidance and growth plans T-Mobile's most recent quarterly results were very strong. The company added a record number of customers to its postpaid plans. Management raised guidance across the board, boosting both their revenue and profitability outlook. It was a strong quarter for T-Mobile's subscriber services. The business added a net of 1.7 million postpaid customers, including 723 thousand wireless phones. The company then raised its subscriber growth guidance by over 10%. 2022 postpaid customer growth is now projected to be 6 to 6.3 million subscribers. On their earnings call, management pointed out that T-Mobile added more quarterly postpaid customers than AT&T (T) and Verizon (VZ) combined. T-Mobile Postpaid Account Growth (T-Mobile Q2 2022 Investor Factbook) T-Mobile's postpaid service revenues grew by 9% year over year. Core adjusted EBITDA was up 10% year over year. These results demonstrate that T-Mobile is generating solid growth. This is especially impressive in an industry with a slower total growth rate. I like T-Mobile's position as a pure play mobile internet company. This strategy allows leadership to effectively focus on adding customers across market segments. T-Mobile is positioned as the leader in the 5G space. According to market data collected by Ookla, T-Mobile has the highest 5G availability. Their 5G speeds are also faster than both AT&T and Verizon. Management has consistently described T-Mobile's service as two years ahead of its competitors. T-Mobile 5G Geographic Coverage (T-Mobile Q2 2022 Investor Factbook) But by itself, T-Mobile's earnings release wasn't great. Revenue slightly missed expectations, and EPS showed a net loss of $0.09. The company attributed $1.00 per share of this loss to merger related costs. There was also a $0.29 per share impairment of Sprint's wireline assets and a $0.23 per share expense related to a cyberattack settlement. Fortunately, most of these special charges won't have long term effects on the company. Increasing incremental revenue I find T-Mobile's incremental revenue growth compelling. The company is driving solid per user revenue increases without direct price hikes. The company's postpaid average revenue per account increased 3.3% year over year. Their postpaid average revenue per user increased by 2.8% year over year. Postpaid ARPA is expected to increase 3% for the full year. T-Mobile has committed to keeping prices steady for the time being. Most of this growth is from extra purchases of premium or value add services. T-Mobile Postpaid ARPA and ARPU Growth (T-Mobile Q2 2022 Investor Factbook) I think there are some risks to this strategy. As inflation increases, it may make it difficult for T-Mobile to keep up top line growth. The company is trying to capitalize on its lower cost, fixed rate pricing to generate new business. This may make it difficult to grow if industry churn decreases. But I don't see much evidence of this happening right now. So far, these headwinds seem manageable. New markets in broadband internet In addition to strong results in its core business, T-Mobile's newer products are performing very well. The company's high speed internet service posted especially strong results. The company's internet services are an important component of T-Mobile's growth strategy. They add a separate service outside of the company's mobile phone offerings. It's an opportunity to generate extra incremental revenue from existing customers in exchange for a useful service. This creates the potential for T-Mobile to grow much faster than the industry. It's also an opportunity to compete with traditional internet providers. Legacy internet companies typically have low customer satisfaction and the space is open for disruption. T-Mobile High Speed Internet Customer Growth (T-Mobile Q2 2022 Investor Factbook) T-Mobile added 560 thousand new customers to their internet service during the quarter. The company now has 1.54 million customers, a 436% year over year increase. It's the company's third consecutive quarter leading the industry in net adds. I think this is a great opportunity and T-Mobile is making the most of it. The final stages of the merger T-Mobile continues to make solid progress integrating Sprint's assets into their business. The company now expects Sprint's network to be fully shut down by the end of next quarter. Management even raised their merger synergies guidance by $200 million. Ongoing merger costs have been the primary headwind for T-Mobile's earnings. But these expenditures are in their final stages. Almost all of Sprint's customers are on T-Mobile's network. Management discussed the last steps on their latest earnings call. And speaking of network, we just hit some major integration milestones. Just over two years since we closed the merger, we have successfully shutdown most of the Sprint network. As of the end of the quarter, we had cumulatively decommissioned nearly two-thirds of the 35,000 targeted sites and can now report that we will be substantially complete by the end of Q3 this current quarter, remarkable work by the team to deliver these milestones ahead even of our recent year-end target and more than one year earlier than our original merger plan... Merger-related costs, which are not included in core adjusted EBITDA and are expected to be between $4.7 billion and $5.0 billion before taxes, primarily representing network activities. With Q2 being the peak quarter, we expect that Q3 will be closer to Q1 levels, and then taper off in Q4.
Shareholder Returns
| TMUS | US Wireless Telecom | US Market | |
|---|---|---|---|
| 7D | 1.3% | 0.2% | 1.3% |
| 1Y | 1.0% | -4.3% | -11.7% |
Return vs Industry: TMUS exceeded the US Wireless Telecom industry which returned -4.3% over the past year.
Return vs Market: TMUS exceeded the US Market which returned -11.7% over the past year.
Price Volatility
| TMUS volatility | |
|---|---|
| TMUS Average Weekly Movement | 3.6% |
| Wireless Telecom Industry Average Movement | 6.9% |
| Market Average Movement | 7.8% |
| 10% most volatile stocks in US Market | 16.9% |
| 10% least volatile stocks in US Market | 3.2% |
Stable Share Price: TMUS is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: TMUS's weekly volatility (4%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1994 | 75,000 | Mike Sievert | https://www.t-mobile.com |
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 108.7 million customers in the postpaid, prepaid, and wholesale markets. It also provides wireless devices, including smartphones, wearables, and tablets and other mobile communication devices, as well as wireless devices and accessories.
T-Mobile US Fundamentals Summary
| TMUS fundamental statistics | |
|---|---|
| Market Cap | US$183.67b |
| Earnings (TTM) | US$1.72b |
| Revenue (TTM) | US$80.23b |
106.9x
P/E Ratio2.3x
P/S RatioIs TMUS overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| TMUS income statement (TTM) | |
|---|---|
| Revenue | US$80.23b |
| Cost of Revenue | US$33.68b |
| Gross Profit | US$46.55b |
| Other Expenses | US$44.83b |
| Earnings | US$1.72b |
Last Reported Earnings
Jun 30, 2022
Next Earnings Date
n/a
| Earnings per share (EPS) | 1.37 |
| Gross Margin | 58.02% |
| Net Profit Margin | 2.14% |
| Debt/Equity Ratio | 101.4% |
How did TMUS perform over the long term?
See historical performance and comparisonValuation
Is TMUS undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score
2/6Valuation Score 2/6
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast
Key Valuation Metric
Which metric is best to use when looking at relative valuation for TMUS?
Other financial metrics that can be useful for relative valuation.
| What is TMUS's n/a Ratio? | |
|---|---|
| n/a Ratio | 0x |
| n/a | n/a |
| Market Cap | US$183.67b |
| Key Statistics | |
|---|---|
| Enterprise Value/Revenue | 3.6x |
| Enterprise Value/EBITDA | 11.3x |
| PEG Ratio | 2.9x |
Price to Earnings Ratio vs Peers
How does TMUS's PE Ratio compare to its peers?
| TMUS PE Ratio vs Peers |
|---|
| Company | PE | Estimated Growth | Market Cap |
|---|---|---|---|
| Peer Average | 13x | ||
TIGO Millicom International Cellular | 3.9x | 16.8% | US$2.7b |
USM United States Cellular | 19.7x | -12.1% | US$2.6b |
VZ Verizon Communications | 9.1x | 4.8% | US$189.6b |
TDS Telephone and Data Systems | 19.2x | -3.8% | US$1.9b |
TMUS T-Mobile US | 106.9x | 37.2% | US$183.7b |
Price-To-Earnings vs Peers: TMUS is expensive based on its Price-To-Earnings Ratio (106.9x) compared to the peer average (13x).
Price to Earnings Ratio vs Industry
How does TMUS's PE Ratio compare vs other companies in the Global Wireless Telecom Industry?
Price-To-Earnings vs Industry: TMUS is expensive based on its Price-To-Earnings Ratio (106.9x) compared to the US Wireless Telecom industry average (19.6x)
Price to Earnings Ratio vs Fair Ratio
What is TMUS's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.
| Fair Ratio | |
|---|---|
| Current PE Ratio | 106.9x |
| Fair PE Ratio | 19.8x |
Price-To-Earnings vs Fair Ratio: TMUS is expensive based on its Price-To-Earnings Ratio (106.9x) compared to the estimated Fair Price-To-Earnings Ratio (19.8x).
Share Price vs Fair Value
What is the Fair Price of TMUS when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: TMUS ($146.46) is trading below our estimate of fair value ($503.2)
Significantly Below Fair Value: TMUS is trading below fair value by more than 20%.
Analyst Price Targets
What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?
Analyst Forecast: Target price is less than 20% higher than the current share price.
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Future Growth
How is T-Mobile US forecast to perform in the next 1 to 3 years based on estimates from 28 analysts?
Future Growth Score
3/6Future Growth Score 3/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE
37.2%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: TMUS's forecast earnings growth (37.2% per year) is above the savings rate (1.9%).
Earnings vs Market: TMUS's earnings (37.2% per year) are forecast to grow faster than the US market (14.4% per year).
High Growth Earnings: TMUS's earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: TMUS's revenue (4.1% per year) is forecast to grow slower than the US market (7.9% per year).
High Growth Revenue: TMUS's revenue (4.1% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: TMUS's Return on Equity is forecast to be low in 3 years time (16.3%).
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Past Performance
How has T-Mobile US performed over the past 5 years?
Past Performance Score
0/6Past Performance Score 0/6
Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE
-5.7%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: TMUS has a large one-off loss of $5.6B impacting its June 30 2022 financial results.
Growing Profit Margin: TMUS's current net profit margins (2.1%) are lower than last year (4.9%).
Past Earnings Growth Analysis
Earnings Trend: TMUS's earnings have declined by 5.7% per year over the past 5 years.
Accelerating Growth: TMUS's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: TMUS had negative earnings growth (-56.1%) over the past year, making it difficult to compare to the Wireless Telecom industry average (-29.2%).
Return on Equity
High ROE: TMUS's Return on Equity (2.5%) is considered low.
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Financial Health
How is T-Mobile US's financial position?
Financial Health Score
3/6Financial Health Score 3/6
Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage
Financial Position Analysis
Short Term Liabilities: TMUS's short term assets ($17.5B) do not cover its short term liabilities ($20.6B).
Long Term Liabilities: TMUS's short term assets ($17.5B) do not cover its long term liabilities ($118.8B).
Debt to Equity History and Analysis
Debt Level: TMUS's net debt to equity ratio (96.9%) is considered high.
Reducing Debt: TMUS's debt to equity ratio has reduced from 142.8% to 101.4% over the past 5 years.
Debt Coverage: TMUS's debt is well covered by operating cash flow (20.5%).
Interest Coverage: TMUS's interest payments on its debt are well covered by EBIT (3.2x coverage).
Balance Sheet
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Dividend
What is T-Mobile US current dividend yield, its reliability and sustainability?
Dividend Score
0/6Dividend Score 0/6
Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage
Dividend Yield vs Market
Notable Dividend: Unable to evaluate TMUS's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate TMUS's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if TMUS's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if TMUS's dividend payments have been increasing.
Earnings Payout to Shareholders
Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: Unable to calculate sustainability of dividends as TMUS has not reported any payouts.
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Management
How experienced are the management team and are they aligned to shareholders interests?
2.1yrs
Average management tenure
CEO
Mike Sievert (52 yo)
4.17yrs
Tenure
US$22,610,659
Compensation
Mr. G. Michael Sievert, also known as Mike, is Chief Executive Officer and President at T-Mobile USA, Inc and has been its Director since 2018. He has served as the Chief Executive Officer of T-Mobile US,...
CEO Compensation Analysis
Compensation vs Market: Mike's total compensation ($USD22.61M) is above average for companies of similar size in the US market ($USD12.88M).
Compensation vs Earnings: Mike's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: TMUS's management team is considered experienced (2.1 years average tenure).
Board Members
Experienced Board: TMUS's board of directors are considered experienced (6.9 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 employee growth, exchange listings and data sources
Key Information
- Name: T-Mobile US, Inc.
- Ticker: TMUS
- Exchange: NasdaqGS
- Founded: 1994
- Industry: Wireless Telecommunication Services
- Sector: Telecom
- Implied Market Cap: US$183.667b
- Shares outstanding: 1.25b
- Website: https://www.t-mobile.com
Number of Employees
Location
- T-Mobile US, Inc.
- 12920 SE 38th Street
- Bellevue
- Washington
- 98006-1350
- United States
Listings
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/08/12 00:00 |
| End of Day Share Price | 2022/08/12 00:00 |
| Earnings | 2022/06/30 |
| Annual Earnings | 2021/12/31 |
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.