T Stock Overview
AT&T Inc. provides telecommunication, media, and technology services worldwide.
Price History & Performance
|Historical stock prices|
|Current Share Price||US$23.89|
|52 Week High||US$33.88|
|52 Week Low||US$23.85|
|1 Month Change||-5.42%|
|3 Month Change||-12.87%|
|1 Year Change||-16.90%|
|3 Year Change||-24.66%|
|5 Year Change||-38.16%|
|Change since IPO||47.58%|
Recent News & Updates
AT&T: Management Won't Be Able To Keep Its Word On Future Dividends
In early May, AT&T’s management had mentioned that they would like to give dividends in the range of 40% to 43% of FCF to investors after spinoff. This would be equal to $1.12 per share according to current FCF and outstanding shares. However, since that announcement AT&T has lost a quarter of its stock value which would make it hard for the management to keep its word. At the current price and looking at the valuation of Warner Bros. Discovery, the dividend yield for the remaining AT&T shares after spinoff could be over 7.5%. Investors should be prepared for a much lower dividend after the management’s ambiguous reply in recent quarterly earnings.
AT&T: Taking A Closer Look At The Bear Arguments
I delve more into some of the bearish arguments that have been put forward against AT&T. I find some of these to be straightforward-enough to brush aside - not because they're not legitimate grievances, but either because they're backward-looking, or are probably more than priced-in. These concerns include the upcoming dividend cut, past performance and doubts about management, doubts about NewCo's competitiveness, and the One America News controversy. One that's worth paying closer attention is potential structural weakness in the face of competition. The key question for investors, again, though, is whether this is priced-in, already. The recent bounce in Discovery stock has implied further erosion in the market cap for AT&T RemainCo.
AT&T: At $25 A Share, 8% Dividend, And The WarnerMedia Spinoff, It Is Worth A Look
The market continues to perceive AT&T as dead money which could be a long-term opportunity for investors with a long time horizon and a strong stomach. AT&T's decline continues regardless of the fact that they continue to generate tremendous amounts of revenue, tens of billions in FCF, and their debt level is manageable. I think management's decision to spinoff WarnerMedia and combine it with Discovery will unlock value for shareholders as the new entity will have tremendous growth potential. Based on today's numbers and using revenue as the valuation metric for the spinoff, legacy T on the low end would still generate a dividend that exceeds 5%.
AT&T Moves Through Reorienting The Company With Strong Potential
AT&T has strong earnings with revenues from its core businesses continuing to improve and increase. We expect the company to continue paying out strong shareholder rewards with strong FCF for its debt. The TimeWarner stock decrease will support a strong increase in AT&T's share price.
|T||US Telecom||US Market|
Return vs Industry: T underperformed the US Telecom industry which returned -12.1% over the past year.
Return vs Market: T underperformed the US Market which returned 21.3% over the past year.
|T Average Weekly Movement||2.3%|
|Telecom Industry Average Movement||6.6%|
|Market Average Movement||6.0%|
|10% most volatile stocks in US Market||15.0%|
|10% least volatile stocks in US Market||2.3%|
Stable Share Price: T is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 2% a week.
Volatility Over Time: T's weekly volatility (2%) has been stable over the past year.
About the Company
AT&T Inc. provides telecommunication, media, and technology services worldwide. The company operates through Communications, WarnerMedia, and Latin America segments. The Communications segment offers wireless voice and data communications services; video and targeted advertising services; broadband, including fiber, and legacy telephony internet and voice communication; and wireline telecom services.
AT&T Fundamentals Summary
|T fundamental statistics|
Is T overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|T income statement (TTM)|
|Cost of Revenue||US$82.92b|
Last Reported Earnings
Sep 30, 2021
Next Earnings Date
Jan 26, 2022
|Earnings per share (EPS)||0.13|
|Net Profit Margin||0.54%|
How did T perform over the long term?See historical performance and comparison
8.7%Current Dividend Yield
Is AT&T undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: T ($23.89) is trading below our estimate of fair value ($98.06)
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 (180.7x) compared to the US Telecom industry average (16.4x).
PE vs Market: T is poor value based on its PE Ratio (180.7x) compared to the US market (17.1x).
Price to Earnings Growth Ratio
PEG Ratio: T is poor value based on its PEG Ratio (33.9x)
Price to Book Ratio
PB vs Industry: T is good value based on its PB Ratio (1x) compared to the US Telecom industry average (2.8x).
How is AT&T forecast to perform in the next 1 to 3 years based on estimates from 19 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: T's forecast earnings growth (5.3% per year) is above the savings rate (2%).
Earnings vs Market: T's earnings (5.3% per year) are forecast to grow slower than the US market (14.3% per year).
High Growth Earnings: T's earnings are forecast to grow, but not significantly.
Revenue vs Market: T's revenue is expected to decline over the next 3 years (-0.8% per year).
High Growth Revenue: T's revenue is forecast to decline over the next 3 years (-0.8% 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 (13.5%).
How has AT&T performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: T has a large one-off loss of $21.3B impacting its September 30 2021 financial results.
Growing Profit Margin: T's current net profit margins (0.5%) are lower than last year (6.3%).
Past Earnings Growth Analysis
Earnings Trend: T's earnings have declined by 26% 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 (-91.4%) over the past year, making it difficult to compare to the Telecom industry average (36%).
Return on Equity
High ROE: T's Return on Equity (1.4%) is considered low.
How is AT&T's financial position?
Financial Position Analysis
Short Term Liabilities: T's short term assets ($57.2B) do not cover its short term liabilities ($81.6B).
Long Term Liabilities: T's short term assets ($57.2B) do not cover its long term liabilities ($284.2B).
Debt to Equity History and Analysis
Debt Level: T's net debt to equity ratio (89%) is considered high.
Reducing Debt: T's debt to equity ratio has reduced from 103.1% to 100.7% over the past 5 years.
Debt Coverage: T's debt is well covered by operating cash flow (22.3%).
Interest Coverage: T's interest payments on its debt are well covered by EBIT (4.5x coverage).
What is AT&T current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: T's dividend (8.71%) is higher than the bottom 25% of dividend payers in the US market (1.32%).
High Dividend: T's dividend (8.71%) is in the top 25% of dividend payers in the US market (3.58%)
Stability and Growth of Payments
Stable Dividend: T's dividends per share have been stable in the past 10 years.
Growing Dividend: T's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its high payout ratio (1578.1%), T's dividend payments are not well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: T's dividends in 3 years are forecast to be covered by earnings (55% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
John Stankey (58 yo)
Mr. John T. Stankey has been Chief Executive Officer of AT&T Inc. since July 1, 2020 and as its Director since June 1, 2020. He has been President of AT&T Inc. He served as President and Chief Operating Of...
CEO Compensation Analysis
Compensation vs Market: John's total compensation ($USD21.02M) is above average for companies of similar size in the US market ($USD11.11M).
Compensation vs Earnings: John's compensation has been consistent with company performance over the past year.
Experienced Management: T's management team is seasoned and experienced (6.1 years average tenure).
Experienced Board: T's board of directors are considered experienced (6.3 years average tenure).
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
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
AT&T Inc.'s employee growth, exchange listings and data sources
- Name: AT&T Inc.
- Ticker: T
- Exchange: NYSE
- Founded: 1983
- Industry: Integrated Telecommunication Services
- Sector: Telecom
- Market Cap: US$172.955b
- Shares outstanding: 7.14b
- Website: https://www.att.com
Number of Employees
- AT&T Inc.
- 208 South Akard Street
- United States
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/11/30 00:10|
|End of Day Share Price||2021/11/29 00:00|
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.