NYSE:T

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Established dividend payer and slightly overvalued.


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

-3.0%

T

0.2%

US Telecom

0.9%

US Market


1 Year Return

27.6%

T

12.0%

US Telecom

15.5%

US Market

Return vs Industry: T exceeded the US Telecom industry which returned 12% over the past year.

Return vs Market: T exceeded the US Market which returned 15.5% over the past year.


Shareholder returns

TIndustryMarket
7 Day-3.0%0.2%0.9%
30 Day-0.6%0.8%4.7%
90 Day7.4%9.5%6.6%
1 Year35.7%27.6%17.8%12.0%18.1%15.5%
3 Year16.0%-1.9%27.8%9.2%48.0%38.5%
5 Year42.1%8.2%41.8%9.4%62.1%44.2%

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?

41.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: T ($39.63) is trading below our estimate of fair value ($64.63)

Significantly Below Fair Value: T is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: T is poor value based on its PE Ratio (17.7x) compared to the Telecom industry average (16.5x).

PE vs Market: T is good value based on its PE Ratio (17.7x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: T is poor value based on its PEG Ratio (1.7x)


Price to Book Ratio

PB vs Industry: T is overvalued based on its PB Ratio (1.6x) compared to the US Telecom industry average (1.4x).


Next Steps

Future Growth

How is AT&T forecast to perform in the next 1 to 3 years based on estimates from 25 analysts?

10.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: T's forecast earnings growth (10.3% per year) is above the savings rate (2.7%).

Earnings vs Market: T's earnings (10.3% 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 (0.2% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: T's revenue (0.2% 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 (14%).


Next Steps

Past Performance

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

20.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: T has high quality earnings.

Growing Profit Margin: T's current net profit margins (9%) are lower than last year (20.4%).


Past Earnings Growth Analysis

Earnings Trend: T's earnings have grown significantly by 20.8% 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 (-51.2%) over the past year, making it difficult to compare to the Telecom industry average (-43.1%).


Return on Equity

High ROE: T's Return on Equity (9%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is AT&T's financial position?


Financial Position Analysis

Short Term Liabilities: T's short term assets ($50.7B) do not cover its short term liabilities ($68.1B)

Long Term Liabilities: T's short term assets ($50.7B) do not cover its long term liabilities (286.3B)


Debt to Equity History and Analysis

Debt Level: T's debt to equity ratio (87.4%) is considered high.

Reducing Debt: T's debt to equity ratio has increased from 82.3% to 87.4% over the past 5 years.

Debt Coverage: T's debt is well covered by operating cash flow (28.7%).

Interest Coverage: T's interest payments on its debt are well covered by EBIT (3.3x coverage).


Balance Sheet

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

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


Next Steps

Dividend

What is AT&T's current dividend yield, its reliability and sustainability?

5.37%

Current Dividend Yield


Dividend Yield vs Market

company5.4%marketbottom25%1.4%markettop25%3.7%industryaverage4.7%forecastin3Years5.5%

Current dividend yield vs market & industry

Notable Dividend: T's dividend (5.15%) is higher than the bottom 25% of dividend payers in the US market (1.43%).

High Dividend: T's dividend (5.15%) is in the top 25% of dividend payers in the US market (3.65%)


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 (91.2%), 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 (53.2% payout ratio).


Next Steps

Management

What is the CEO of AT&T's salary, the management and board of directors tenure and is there insider trading?

4.9yrs

Average management tenure


CEO

Randall Stephenson (58yo)

12.4yrs

Tenure

US$29,118,118

Compensation

Mr. Randall L. Stephenson has been the Chief Executive Officer and Chairman of New Cingular Wireless PCS, LLC since June 2007 and also serves as its President since June 2007. Mr. Stephenson serves as Chai ...


CEO Compensation Analysis

Compensation vs Market: Randall's total compensation ($USD29.12M) is above average for companies of similar size in the US market ($USD11.01M).

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


Management Age and Tenure

4.9yrs

Average Tenure

59yo

Average Age

Experienced Management: T's management team is considered experienced (4.9 years average tenure).


Board Age and Tenure

6.4yrs

Average Tenure

62.5yo

Average Age

Experienced Board: T's board of directors are considered experienced (6.4 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

BuyUS$207,13507 Feb 19
Michael McCallister
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares7,000
Max PriceUS$29.59
BuyUS$999,53506 Feb 19
Geoffrey Yang
EntityIndividual
Shares33,558
Max PriceUS$29.79

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 12.7%.


Management Team

  • Rick Moore (67yo)

    Senior Vice President of Corporate Development

    • Tenure: 12.4yrs
  • Randall Stephenson (58yo)

    Chairman & CEO

    • Tenure: 12.4yrs
    • Compensation: US$29.12m
  • John Stankey (56yo)

    President

    • Tenure: 0.8yrs
    • Compensation: US$16.55m
  • Larry Solomon

    Chief Communications Officer

    • Tenure: 12.1yrs
  • John Stephens (60yo)

    Senior EVP & CFO

    • Tenure: 8.4yrs
    • Compensation: US$15.64m
  • Mike Viola (65yo)

    Senior Vice President of Investor Relations

    • Tenure: 0yrs
  • Lori Lee (53yo)

    Global Marketing Officer and CEO of AT&T Latin America

    • Tenure: 4.6yrs
  • David Huntley (60yo)

    Senior Executive VP & Chief Compliance Officer

    • Tenure: 4.9yrs
  • David McAtee (50yo)

    Senior Executive VP & General Counsel

    • Tenure: 4.1yrs
    • Compensation: US$12.85m
  • Angela Santone

    Chief Administrative Officer

    • Tenure: 0.5yrs

Board Members

  • Glenn Hutchins (63yo)

    Independent Director

    • Tenure: 5.4yrs
    • Compensation: US$310.00k
  • Bill Kennard (62yo)

    Independent Director

    • Tenure: 5yrs
    • Compensation: US$310.00k
  • Beth Mooney (64yo)

    Independent Director

    • Tenure: 6.2yrs
    • Compensation: US$310.00k
  • Mike McCallister (67yo)

    Independent Director

    • Tenure: 6.8yrs
    • Compensation: US$324.66k
  • Scott Ford (56yo)

    Independent Director

    • Tenure: 7.4yrs
    • Compensation: US$325.00k
  • Matt Rose (59yo)

    Lead Director

    • Tenure: 0yrs
    • Compensation: US$399.11k
  • Laura Tyson (72yo)

    Independent Director

    • Tenure: 20.1yrs
    • Compensation: US$360.15k
  • Cindy Taylor (57yo)

    Independent Director

    • Tenure: 6.4yrs
    • Compensation: US$333.15k
  • Randall Stephenson (58yo)

    Chairman & CEO

    • Tenure: 12.4yrs
    • Compensation: US$29.12m
  • Sam Di Piazza (68yo)

    Independent Director

    • Tenure: 4.3yrs
    • Compensation: US$350.00k

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$277.590b
  • Shares outstanding: 7.31b
  • 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
TSWX (SIX Swiss Exchange)YesCommon SharesCHCHFNov 1983
ATTWBAG (Wiener Boerse AG)YesCommon SharesATEURNov 1983
T *BMV (Bolsa Mexicana de Valores)YesCommon SharesMXMXNNov 1983
SOBAXTRA (XETRA Trading Platform)YesCommon SharesDEEURNov 1983
SOBADB (Deutsche Boerse AG)YesCommon SharesDEEURNov 1983
TNYSE (New York Stock Exchange)YesCommon SharesUSUSDNov 1983
TBVC (Bolsa de Valores de Colombia)YesCommon SharesCOCOPNov 1983
2342429SWX (SIX Swiss Exchange)YesCommon SharesCHCHFNov 1983
TSNSE (Santiago Stock Exchange)YesCommon SharesCLUSDNov 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

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 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/20 00:03
End of Day Share Price2019/11/19 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.