NYSE:T

Stock Analysis Report

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Executive Summary

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


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: T has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.9%

T

3.5%

US Telecom

4.0%

US Market


1 Year Return

-11.0%

T

-9.3%

US Telecom

5.0%

US Market

Return vs Industry: T underperformed the US Telecom industry which returned -9.3% over the past year.

Return vs Market: T underperformed the US Market which returned 5% over the past year.


Shareholder returns

TIndustryMarket
7 Day1.9%3.5%4.0%
30 Day-7.0%-6.6%-1.1%
90 Day1.4%1.1%21.1%
1 Year-5.5%-11.0%-4.9%-9.3%7.2%5.0%
3 Year-2.7%-17.2%9.2%-5.4%36.0%27.1%
5 Year13.6%-12.6%17.6%-7.7%65.3%46.9%

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

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: T ($30.49) is trading below our estimate of fair value ($76.97)

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


Price To Earnings Ratio

PE vs Industry: T is poor value based on its PE Ratio (15.4x) compared to the Telecom industry average (12x).

PE vs Market: T is good value based on its PE Ratio (15.4x) compared to the US market (16.5x).


Price to Earnings Growth Ratio

PEG Ratio: T is poor value based on its PEG Ratio (2x)


Price to Book Ratio

PB vs Industry: T is good value based on its PB Ratio (1.2x) compared to the US Telecom industry average (1.3x).


Next Steps

Future Growth

How is AT&T forecast to perform in the next 1 to 3 years based on estimates from 28 analysts?

7.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: T's forecast earnings growth (7.7% per year) is above the savings rate (2.2%).

Earnings vs Market: T's earnings (7.7% per year) are forecast to grow slower than the US market (22.8% per year).

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

Revenue vs Market: T's revenue (0.6% per year) is forecast to grow slower than the US market (9.3% per year).

High Growth Revenue: T's revenue (0.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: T's Return on Equity is forecast to be low in 3 years time (12.4%).


Next Steps

Past Performance

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

16.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: T has high quality earnings.

Growing Profit Margin: T's current net profit margins (8%) are lower than last year (10.6%).


Past Earnings Growth Analysis

Earnings Trend: T's earnings have grown by 16.1% per year over the past 5 years.

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

Earnings vs Industry: T had negative earnings growth (-23.5%) over the past year, making it difficult to compare to the Telecom industry average (-10.9%).


Return on Equity

High ROE: T's Return on Equity (8%) is considered low.


Next Steps

Financial Health

How is AT&T's financial position?


Financial Position Analysis

Short Term Liabilities: T's short term assets ($52.7B) do not cover its short term liabilities ($69.7B).

Long Term Liabilities: T's short term assets ($52.7B) do not cover its long term liabilities ($280.2B).


Debt to Equity History and Analysis

Debt Level: T's debt to equity ratio (88.5%) is considered high.

Reducing Debt: T's debt to equity ratio has reduced from 115.7% to 88.5% over the past 5 years.

Debt Coverage: T's debt is well covered by operating cash flow (26.9%).

Interest Coverage: T's interest payments on its debt are well covered by EBIT (3.5x coverage).


Balance Sheet


Next Steps

Dividend

What is AT&T current dividend yield, its reliability and sustainability?

6.82%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: T's dividend (6.82%) is higher than the bottom 25% of dividend payers in the US market (1.67%).

High Dividend: T's dividend (6.82%) is in the top 25% of dividend payers in the US market (4.5%)


Stability and Growth of Payments

Stable Dividend: T's dividends per share have been stable in the past 10 years.

Growing Dividend: T's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (104.4%), T's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: T's dividends in 3 years are forecast to be covered by earnings (61.5% payout ratio).


Next Steps

Management

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

7.3yrs

Average management tenure


CEO

John Stankey (57yo)

no data

Tenure

US$22,473,006

Compensation

Mr. John T. Stankey has been Chief Executive Officer of AT&T Inc. since July 1, 2020 and as its Director since June 1, 2020. He served as President and Chief Operating Officer at AT&T Inc. from October 201 ...


CEO Compensation Analysis

Compensation vs Market: John's total compensation ($USD22.47M) is above average for companies of similar size in the US market ($USD11.50M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Randall Stephenson
Executive Chairman13.08yrsUS$32.03m0.034% $74.1m
John Stankey
CEO & Directorno dataUS$22.47m0.0086% $18.6m
John Stephens
Senior Executive VP & CFO9.08yrsUS$16.73m0.010% $22.1m
David McAtee
Senior Executive VP & General Counsel4.75yrsUS$9.35m0.0019% $4.1m
Jeffery McElfresh
Chief Executive Officer of AT&T Communications LLC0.75yrUS$7.68m0.00095% $2.1m
Andre Fuetsch
Chief Technology Officer & President AT&T Labsno datano datano data
Michael Viola
Senior Vice President of Investor Relationsno datano datano data
David Huntley
Senior EVP & Chief Compliance Officer5.58yrsno data0.00098% $2.1m
Larry Solomon
Chief Communications Officer12.75yrsno datano data
Rick Moore
Senior Vice President of Corporate Development13.08yrsno datano data

7.3yrs

Average Tenure

60yo

Average Age

Experienced Management: T's management team is seasoned and experienced (7.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Randall Stephenson
Executive Chairman13.08yrsUS$32.03m0.034% $74.1m
John Stankey
CEO & Directorno dataUS$22.47m0.0086% $18.6m
Glenn Hutchins
Independent Director6.08yrsUS$372.56k0.0024% $5.1m
William Kennard
Independent Director5.67yrsUS$373.50kno data
Beth Mooney
Independent Director6.83yrsUS$423.75k0.00040% $869.0k
Michael McCallister
Independent Director7.42yrsUS$374.14k0.00074% $1.6m
Scott Ford
Independent Director8.08yrsUS$380.00k0.0011% $2.5m
Matthew Rose
Lead Independent Directorno dataUS$451.73k0.0029% $6.3m
Cynthia Taylor
Independent Director7.08yrsUS$360.00k0.000080% $173.8k
Samuel Di Piazza
Independent Director5yrsUS$405.00k0.00048% $1.0m

6.8yrs

Average Tenure

61.5yo

Average Age

Experienced Board: T'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: T insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

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


Key Information

  • Name: AT&T Inc.
  • Ticker: T
  • Exchange: NYSE
  • Founded: 1983
  • Industry: Integrated Telecommunication Services
  • Sector: Telecom
  • Market Cap: US$217.241b
  • Shares outstanding: 7.13b
  • 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
TBVL (Bolsa de Valores de Lima)YesCommon SharesPEUSDNov 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.PRANYSE (New York Stock Exchange)5 DEP RP PFD AUSUSDDec 2019
T.PRCNYSE (New York Stock Exchange)4.7 DP SHS PFD CUSUSDFeb 2020

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 and video advertising services. The company was formerly known as SBC Communications Inc. and changed its name to AT&T Inc. in November 2005. AT&T Inc. was incorporated 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 Analysis2020/07/06 23:53
End of Day Share Price2020/07/06 00:00
Earnings2020/03/31
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.