NasdaqGS:TMUS

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.

Rewards

Trading at 55.3% below its fair value

Earnings are forecast to grow 16.5% per year

Risk Analysis

Has a high level of debt

Profit margins (7.5%) are lower than last year (11.6%)



Snowflake Analysis

Fair value 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: TMUS has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.1%

TMUS

-0.6%

US Wireless Telecom

0.3%

US Market


1 Year Return

18.3%

TMUS

4.8%

US Wireless Telecom

18.5%

US Market

Return vs Industry: TMUS exceeded the US Wireless Telecom industry which returned 4.8% over the past year.

Return vs Market: TMUS matched the US Market which returned 18.5% over the past year.


Shareholder returns

TMUSIndustryMarket
7 Day0.1%-0.6%0.3%
30 Day-4.0%-3.9%1.5%
90 Day-0.8%-4.9%5.7%
1 Year18.3%18.3%6.0%4.8%21.1%18.5%
3 Year38.5%38.5%7.8%4.0%45.9%36.4%
5 Year207.9%207.9%87.3%72.0%71.4%52.5%

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

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: TMUS ($77.74) is trading below our estimate of fair value ($173.72)

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


Price To Earnings Ratio

PE vs Industry: TMUS is good value based on its PE Ratio (19.7x) compared to the Wireless Telecom industry average (22.2x).

PE vs Market: TMUS is poor value based on its PE Ratio (19.7x) compared to the US market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: TMUS is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: TMUS is overvalued based on its PB Ratio (2.4x) compared to the US Wireless Telecom industry average (2.3x).


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?

16.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TMUS's forecast earnings growth (16.5% per year) is above the savings rate (1.7%).

Earnings vs Market: TMUS's earnings (16.5% per year) are forecast to grow faster than the US market (14.2% per year).

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

Revenue vs Market: TMUS's revenue (5.1% per year) is forecast to grow slower than the US market (7.4% per year).

High Growth Revenue: TMUS's revenue (5.1% 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 (14.3%).


Next Steps

Past Performance

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

42.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TMUS has high quality earnings.

Growing Profit Margin: TMUS's current net profit margins (7.5%) are lower than last year (11.6%).


Past Earnings Growth Analysis

Earnings Trend: TMUS's earnings have grown significantly by 42.6% 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 (-32.1%) over the past year, making it difficult to compare to the Wireless Telecom industry average (-39.1%).


Return on Equity

High ROE: TMUS's Return on Equity (12.1%) 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: TMUS's short term assets ($8.5B) do not cover its short term liabilities ($12.9B).

Long Term Liabilities: TMUS's short term assets ($8.5B) do not cover its long term liabilities ($45.5B).


Debt to Equity History and Analysis

Debt Level: TMUS's debt to equity ratio (96.6%) is considered high.

Reducing Debt: TMUS's debt to equity ratio has reduced from 155.7% to 96.6% over the past 5 years.

Debt Coverage: TMUS's debt is well covered by operating cash flow (23.3%).

Interest Coverage: TMUS's interest payments on its debt are well covered by EBIT (5.5x coverage).


Balance Sheet

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

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


Next Steps

Dividend

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

0.66%

Forecast Dividend Yield


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage7.5%forecastin3Years0.7%

Current dividend yield vs market & industry

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

High Dividend: Unable to evaluate TMUS'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 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.


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 TMUS's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of T-Mobile US's salary, the management and board of directors tenure and is there insider trading?

6.8yrs

Average management tenure


CEO

John Legere (60yo)

6.7yrs

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 ($USD66.54M) is above average for companies of similar size in the US market ($USD11.01M).

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


Management Age and Tenure

6.8yrs

Average Tenure

58yo

Average Age

Experienced Management: TMUS's management team is seasoned and experienced (6.8 years average tenure).


Board Age and Tenure

6.7yrs

Average Tenure

56.5yo

Average Age

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


Insider Trading

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


Recent Insider Transactions

SellUS$156,42021 Feb 19
Elizabeth McAuliffe
EntityIndividual
Shares2,250
Max PriceUS$69.52

Ownership Breakdown

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


Management Team

  • Mike Sievert (50yo)

    President

    • Tenure: 1.8yrs
    • Compensation: US$35.65m
  • John Legere (60yo)

    CEO & Director

    • Tenure: 6.7yrs
    • Compensation: US$66.54m
  • David Carey (65yo)

    Executive Vice President of Corporate Services

    • Tenure: 6.8yrs
    • Compensation: US$15.85m
  • J. Carter (60yo)

    Executive VP & CFO

    • Tenure: 14.8yrs
    • Compensation: US$8.47m
  • Neville Ray (56yo)

    President of Technology

    • Tenure: 9yrs
    • Compensation: US$25.77m
  • David Miller (58yo)

    Executive VP

    • Tenure: 17.7yrs
  • Nils Paellmann

    Vice President – Investor Relations

    • Tenure: 0yrs
  • Peter Osvaldik (42yo)

    Senior VP of Finance & Chief Accounting Officer

    • Tenure: 3.5yrs
  • Cody Sanford

    Chief Information Officer & Executive VP

    • Tenure: 0yrs
  • Janice Kapner

    Executive Vice President of Communications & Community Engagement

    • Tenure: 3.5yrs

Board Members

  • Larry Guffey (52yo)

    Independent Director

    • Tenure: 6.7yrs
    • Compensation: US$325.27k
  • Mike Sievert (50yo)

    President

    • Tenure: 1.8yrs
    • Compensation: US$35.65m
  • John Legere (60yo)

    CEO & Director

    • Tenure: 6.7yrs
    • Compensation: US$66.54m
  • Kelvin Westbrook (63yo)

    Independent Director

    • Tenure: 6.7yrs
    • Compensation: US$365.74k
  • Srikant T. Datar (66yo)

    Independent Director

    • Tenure: 6.7yrs
    • Compensation: US$380.99k
  • Thorsten Langheim (53yo)

    Director

    • Tenure: 6.7yrs
  • Tim Höttges (57yo)

    Chairman of the Board

    • Tenure: 6.7yrs
  • Raphael Kübler (56yo)

    Director

    • Tenure: 6.7yrs
  • Teresa Taylor (55yo)

    Lead Independent Director

    • Tenure: 6.6yrs
    • Compensation: US$383.27k
  • Bruno Jacobfeuerborn (58yo)

    Director

    • Tenure: 5.5yrs

Company Information

T-Mobile US, Inc.'s company bio, 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
  • Market Cap: US$66.743b
  • Shares outstanding: 855.57m
  • 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

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  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/09 00:39
End of Day Share Price2019/12/06 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.