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T

AT&TNYSE:T Stock Report

Market Cap

US$173.0b

7D

-3.3%

1Y

-16.9%

Updated

30 Nov, 2021

Data

Company Financials +
T fundamental analysis
Snowflake Score
Valuation3/6
Future Growth1/6
Past Performance0/6
Financial Health3/6
Dividends5/6

T Stock Overview

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

AT&T Competitors

Verizon Communications

NYSE:VZ

US$217.4b

IDT

NYSE:IDT

US$1.5b

Consolidated Communications Holdings

NasdaqGS:CNSL

US$749.5m

Ooma

NYSE:OOMA

US$442.0m

Price History & Performance

Summary of all time highs, changes and price drops for AT&T
Historical stock prices
Current Share PriceUS$23.89
52 Week HighUS$33.88
52 Week LowUS$23.85
Beta0.66
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 IPO47.58%

Recent News & Updates

Nov 30

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.

Nov 24

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.

Nov 08

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%.

Oct 25

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.

Shareholder Returns

TUS TelecomUS Market
7D-3.3%-1.3%-0.9%
1Y-16.9%-12.1%23.3%

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.

Price Volatility

Is T's price volatile compared to industry and market?
T volatility
T Average Weekly Movement2.3%
Telecom Industry Average Movement6.6%
Market Average Movement6.0%
10% most volatile stocks in US Market15.0%
10% least volatile stocks in US Market2.3%

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

FoundedEmployeesCEOWebsite
1983230,760John Stankeyhttps://www.att.com

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

How do AT&T's earnings and revenue compare to its market cap?
T fundamental statistics
Market CapUS$172.96b
Earnings (TTM)US$944.00m
Revenue (TTM)US$173.60b

180.7x

P/E Ratio

1.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
T income statement (TTM)
RevenueUS$173.60b
Cost of RevenueUS$82.92b
Gross ProfitUS$90.68b
ExpensesUS$89.73b
EarningsUS$944.00m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

Jan 26, 2022

Earnings per share (EPS)0.13
Gross Margin52.23%
Net Profit Margin0.54%
Debt/Equity Ratio100.7%

How did T perform over the long term?

See historical performance and comparison

Dividends

8.7%

Current Dividend Yield

1,578%

Payout Ratio

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 ($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).


Future Growth

How is AT&T forecast to perform in the next 1 to 3 years based on estimates from 19 analysts?

5.3%

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%).


Past Performance

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

-26.0%

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.


Financial Health

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).


Balance Sheet


Dividend

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

8.71%

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).


Next Steps

Management

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

6.1yrs

Average management tenure


CEO

John Stankey (58 yo)

1.33yrs

Tenure

US$21,020,917

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 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.


Leadership Team

Experienced Management: T's management team is seasoned and experienced (6.1 years average tenure).


Board Members

Experienced Board: T's board of directors are considered experienced (6.3 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 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$172.955b
  • Shares outstanding: 7.14b
  • Website: https://www.att.com

Number of Employees


Location

  • AT&T Inc.
  • 208 South Akard Street
  • Dallas
  • Texas
  • 75202
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/11/30 00:10
End of Day Share Price2021/11/29 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


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.