NasdaqGS:TMUS

Stock Analysis Report

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Executive Summary

T-Mobile US, Inc., through its subsidiaries, provides wireless services for branded postpaid and prepaid, and wholesale customers in the United States, Puerto Rico, and the United States Virgin Islands. More Details


Snowflake Analysis

Moderate growth potential and slightly overvalued.


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 is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: TMUS's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

3.0%

TMUS

1.0%

US Wireless Telecom

0.3%

US Market


1 Year Return

60.4%

TMUS

46.4%

US Wireless Telecom

21.1%

US Market

Return vs Industry: TMUS exceeded the US Wireless Telecom industry which returned 46.4% over the past year.

Return vs Market: TMUS exceeded the US Market which returned 21.1% over the past year.


Shareholder returns

TMUSIndustryMarket
7 Day3.0%1.0%0.3%
30 Day1.6%-1.2%3.3%
90 Day18.5%15.7%14.2%
1 Year60.4%60.4%46.8%46.4%23.8%21.1%
3 Year103.5%103.5%72.9%69.0%45.0%35.4%
5 Year243.6%243.6%174.4%164.0%127.7%102.3%

Long-Term 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 ($132.3) is trading below our estimate of fair value ($289.06)

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


Price To Earnings Ratio

PE vs Industry: TMUS is poor value based on its PE Ratio (50.5x) compared to the US Wireless Telecom industry average (41.6x).

PE vs Market: TMUS is poor value based on its PE Ratio (50.5x) compared to the US market (21.2x).


Price to Earnings Growth Ratio

PEG Ratio: TMUS is poor value based on its PEG Ratio (1.6x)


Price to Book Ratio

PB vs Industry: TMUS is overvalued based on its PB Ratio (2.5x) compared to the US Wireless Telecom industry average (2.2x).


Next Steps

Future Growth

How is T-Mobile US forecast to perform in the next 1 to 3 years based on estimates from 26 analysts?

30.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TMUS's forecast earnings growth (30.7% per year) is above the savings rate (2%).

Earnings vs Market: TMUS's earnings (30.7% per year) are forecast to grow faster than the US market (21.5% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: TMUS's revenue (4.6% per year) is forecast to grow slower than the US market (10.4% per year).

High Growth Revenue: TMUS'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: TMUS's Return on Equity is forecast to be low in 3 years time (12.4%).


Next Steps

Past Performance

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

21.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TMUS has a large one-off loss of $2.5B impacting its September 30 2020 financial results.

Growing Profit Margin: TMUS's current net profit margins (4.6%) are lower than last year (7.5%).


Past Earnings Growth Analysis

Earnings Trend: TMUS's earnings have grown significantly by 21.5% 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 (-18.3%) over the past year, making it difficult to compare to the Wireless Telecom industry average (77.1%).


Return on Equity

High ROE: TMUS's Return on Equity (4.3%) is considered low.


Next Steps

Financial Health

How is T-Mobile US's financial position?


Financial Position Analysis

Short Term Liabilities: TMUS's short term assets ($19.5B) do not cover its short term liabilities ($19.8B).

Long Term Liabilities: TMUS's short term assets ($19.5B) do not cover its long term liabilities ($108.1B).


Debt to Equity History and Analysis

Debt Level: TMUS's debt to equity ratio (103.5%) is considered high.

Reducing Debt: TMUS's debt to equity ratio has reduced from 131.8% to 103.5% over the past 5 years.

Debt Coverage: TMUS's debt is not well covered by operating cash flow (10%).

Interest Coverage: TMUS's interest payments on its debt are well covered by EBIT (3.8x coverage).


Balance Sheet


Next Steps

Dividend

What is T-Mobile US current dividend yield, its reliability and sustainability?


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.


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

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

2.7yrs

Average management tenure


CEO

Mike Sievert (50 yo)

0.75

Tenure

US$16,369,704

Compensation

Mr. G. Michael Sievert, also known as Mike, has been Chief Executive Officer of T-Mobile US, Inc. since April 1, 2020. He is President at T-Mobile US, Inc. since June 13, 2018. He serves as Chief Executive...


CEO Compensation Analysis

Compensation vs Market: Mike's total compensation ($USD16.37M) is above average for companies of similar size in the US market ($USD10.54M).

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


Leadership Team

NamePositionTenureCompensationOwnership
G. Sievert
President0.75yrUS$16.37m0.030%
$ 47.7m
Neville Ray
President of Technologyno dataUS$11.18m0.022%
$ 34.9m
Peter Osvaldik
Executive VP & CFO0.50yrno data0.0021%
$ 3.3m
Dara Bazzano
Senior VP & Chief Accounting Officer0.50yrno datano data
Sunil Lingayat
Chief of Cyber Security Strategy & Technologyno datano datano data
Cody Sanford
Chief Information Officer & Executive VPno datano datano data
Jud Henry
Senior Vice President of Investor Relationsno datano datano data
David Miller
Executive VP18.75yrsno data0.0060%
$ 9.6m
Janice Kapner
Executive Vice President of Communications & Community Engagement4.58yrsno datano data
Doug Chartier
Senior Vice President of Sales and Marketing12.08yrsno datano data
Matthew Staneff
Executive VP & Chief Marketing Officerno datano data0.0037%
$ 6.0m
Deeanne King
Executive VP & Chief Human Resources Officerno datano data0.0028%
$ 4.5m

2.7yrs

Average Tenure

51yo

Average Age

Experienced Management: TMUS's management team is considered experienced (2.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
G. Sievert
President0.75yrUS$16.37m0.030%
$ 47.7m
Lawrence Guffey
Independent Director7.75yrsUS$412.79k0.0021%
$ 3.3m
Kelvin Westbrook
Independent Director7.75yrsUS$455.52k0.0022%
$ 3.6m
Srikant T. Datar
Independent Director7.75yrsUS$465.45k0.0029%
$ 4.6m
Thorsten Langheim
Director7.75yrsno datano data
Timotheus Höttges
Chairman of the Board7.75yrsno datano data
Raphael Kübler
Director7.75yrsno datano data
Teresa Taylor
Lead Independent Director7.67yrsUS$472.24k0.0023%
$ 3.7m
Dominique Leroy
Director0.17yrno datano data
Raul Claure
Independent Director0.75yrno data0.57%
$ 913.5m
Christian Illek
Director2.17yrsno datano data
Stephen Kappes
Independent Director0.75yrno data0.00068%
$ 1.1m

7.7yrs

Average Tenure

56yo

Average Age

Experienced Board: TMUS's board of directors are considered experienced (7.7 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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 45.1%.


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: TMUS
  • Exchange: NasdaqGS
  • Founded: 1994
  • Industry: Wireless Telecommunication Services
  • Sector: Telecom
  • Market Cap: US$161.168b
  • Shares outstanding: 1.24b
  • 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

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 2 REPR 1 COMBRBRLJan 2020

Biography

T-Mobile US, Inc., through its subsidiaries, provides wireless services for branded postpaid and prepaid, and wholesale customers in the United States, Puerto Rico, and the United States Virgin Islands. Th...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/20 23:10
End of Day Share Price2021/01/20 00:00
Earnings2020/09/30
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.