company background image
TDS

Telephone and Data SystemsNYSE:TDS Stock Report

Market Cap

US$2.2b

7D

0.8%

1Y

12.9%

Updated

21 Oct, 2021

Data

Company Financials +
TDS fundamental analysis
Snowflake Score
Valuation4/6
Future Growth0/6
Past Performance2/6
Financial Health2/6
Dividends6/6

TDS Overview

Telephone and Data Systems, Inc., a telecommunications company, provides communications services in the United States.

Telephone and Data Systems Competitors

T-Mobile US

NasdaqGS:TMUS

US$145.8b

United States Cellular

NYSE:USM

US$2.8b

Oracle

NYSE:ORCL

US$263.3b

Comcast

NasdaqGS:CMCS.A

US$248.0b

Price History & Performance

Summary of all time highs, changes and price drops for Telephone and Data Systems
Historical stock prices
Current Share PriceUS$19.52
52 Week HighUS$16.38
52 Week LowUS$26.51
Beta1.12
1 Month Change1.51%
3 Month Change-14.69%
1 Year Change12.90%
3 Year Change-36.52%
5 Year Change-25.98%
Change since IPO-9.71%

Recent News & Updates

Oct 21
What Is Telephone and Data Systems, Inc.'s (NYSE:TDS) Share Price Doing?

What Is Telephone and Data Systems, Inc.'s (NYSE:TDS) Share Price Doing?

While Telephone and Data Systems, Inc. ( NYSE:TDS ) might not be the most widely known stock at the moment, it received...

Sep 12
Telephone and Data Systems (NYSE:TDS) Has Announced A Dividend Of US$0.17

Telephone and Data Systems (NYSE:TDS) Has Announced A Dividend Of US$0.17

The board of Telephone and Data Systems, Inc. ( NYSE:TDS ) has announced that it will pay a dividend on the 30th of...

Aug 29
Telephone and Data Systems (NYSE:TDS) Will Pay A Dividend Of US$0.17

Telephone and Data Systems (NYSE:TDS) Will Pay A Dividend Of US$0.17

Telephone and Data Systems, Inc.'s ( NYSE:TDS ) investors are due to receive a payment of US$0.17 per share on 30th of...

Jul 15
Is Now An Opportune Moment To Examine Telephone and Data Systems, Inc. (NYSE:TDS)?

Is Now An Opportune Moment To Examine Telephone and Data Systems, Inc. (NYSE:TDS)?

Telephone and Data Systems, Inc. ( NYSE:TDS ), is not the largest company out there, but it saw significant share price...

Shareholder Returns

TDSUS Wireless TelecomUS Market
7D0.8%4.4%3.8%
1Y12.9%9.2%31.5%

Return vs Industry: TDS exceeded the US Wireless Telecom industry which returned 5.7% over the past year.

Return vs Market: TDS underperformed the US Market which returned 30.5% over the past year.

Price Volatility

Is TDS's price volatile compared to industry and market?
TDS volatility
TDS Beta1.12
Industry Beta0.61
Market Beta1

Stable Share Price: TDS is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: TDS's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19689,200Ted Carlsonhttps://www.tdsinc.com

Telephone and Data Systems, Inc., a telecommunications company, provides communications services in the United States. It operates through three segments: UScellular, Wireline, and Cable. The company offers wireless solutions to consumers and business and government customers, including a suite of connected Internet of things (IoT) solutions, and software applications for monitor and control, business automation/operations, communication, asset management, smart water solutions, and end-to-end IoT solutions; wireless priority services and quality priority and preemption options; smartphones and other handsets, tablets, wearables, mobile hotspots, routers, and IoT devices; and accessories, such as cases, screen protectors, chargers, and memory cards, as well as consumer electronics, including headphones, smart speakers, and home automation and business management solutions.

Telephone and Data Systems Fundamentals Summary

How do Telephone and Data Systems's earnings and revenue compare to its market cap?
TDS fundamental statistics
Market CapUS$2.24b
Earnings (TTM)US$168.00m
Revenue (TTM)US$5.33b

13.3x

P/E Ratio

0.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
TDS income statement (TTM)
RevenueUS$5.33b
Cost of RevenueUS$2.46b
Gross ProfitUS$2.87b
ExpensesUS$2.70b
EarningsUS$168.00m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)1.46
Gross Margin53.83%
Net Profit Margin3.15%
Debt/Equity Ratio55.1%

How did TDS perform over the long term?

See historical performance and comparison

Dividends

3.6%

Current Dividend Yield

47%

Payout Ratio

Valuation

Is Telephone and Data Systems undervalued compared to its fair value and its price relative to the market?

4.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TDS ($19.68) is trading below our estimate of fair value ($20.36)

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


Price To Earnings Ratio

PE vs Industry: TDS is good value based on its PE Ratio (13.4x) compared to the US Wireless Telecom industry average (107.8x).

PE vs Market: TDS is good value based on its PE Ratio (13.4x) compared to the US market (18.1x).


Price to Earnings Growth Ratio

PEG Ratio: TDS is poor value based on its PEG Ratio (19.1x)


Price to Book Ratio

PB vs Industry: TDS is good value based on its PB Ratio (0.5x) compared to the US Wireless Telecom industry average (2.2x).


Future Growth

How is Telephone and Data Systems forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

0.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TDS's forecast earnings growth (0.7% per year) is below the savings rate (2%).

Earnings vs Market: TDS's earnings (0.7% per year) are forecast to grow slower than the US market (15.1% per year).

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

Revenue vs Market: TDS's revenue (1.8% per year) is forecast to grow slower than the US market (9.9% per year).

High Growth Revenue: TDS's revenue (1.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TDS's Return on Equity is forecast to be low in 3 years time (2.7%).


Past Performance

How has Telephone and Data Systems performed over the past 5 years?

21.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TDS has high quality earnings.

Growing Profit Margin: TDS's current net profit margins (3.2%) are lower than last year (3.2%).


Past Earnings Growth Analysis

Earnings Trend: TDS's earnings have grown significantly by 21.9% per year over the past 5 years.

Accelerating Growth: TDS's earnings growth over the past year (2.4%) is below its 5-year average (21.9% per year).

Earnings vs Industry: TDS earnings growth over the past year (2.4%) underperformed the Wireless Telecom industry 2.4%.


Return on Equity

High ROE: TDS's Return on Equity (3.5%) is considered low.


Financial Health

How is Telephone and Data Systems's financial position?


Financial Position Analysis

Short Term Liabilities: TDS's short term assets ($2.0B) exceed its short term liabilities ($986.0M).

Long Term Liabilities: TDS's short term assets ($2.0B) do not cover its long term liabilities ($5.7B).


Debt to Equity History and Analysis

Debt Level: TDS's debt to equity ratio (55.1%) is considered high.

Reducing Debt: TDS's debt to equity ratio has increased from 51.7% to 55.1% over the past 5 years.

Debt Coverage: TDS's debt is well covered by operating cash flow (36.1%).

Interest Coverage: TDS's interest payments on its debt are not well covered by EBIT (1.4x coverage).


Balance Sheet


Dividend

What is Telephone and Data Systems's current dividend yield, its reliability and sustainability?

3.59%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: TDS's dividend (3.56%) is higher than the bottom 25% of dividend payers in the US market (1.29%).

High Dividend: TDS's dividend (3.56%) is in the top 25% of dividend payers in the US market (3.49%)


Stability and Growth of Payments

Stable Dividend: TDS's dividends per share have been stable in the past 10 years.

Growing Dividend: TDS's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (46.8%), TDS's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: TDS's dividends in 3 years are forecast to be covered by earnings (55.5% payout ratio).


Next Steps

Management

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

2.3yrs

Average management tenure


CEO

Ted Carlson (74 yo)

35.75yrs

Tenure

US$9,512,073

Compensation

Mr. LeRoy T. Carlson, Jr., also known as Ted, as a Director of United States Cellular Corporation (“U.S. Cellular”) since 1984. Mr. Carlson has been the Chairman (an Executive Officer) of U.S.Cellular sin...


CEO Compensation Analysis

Compensation vs Market: Ted's total compensation ($USD9.51M) is above average for companies of similar size in the US market ($USD3.57M).

Compensation vs Earnings: Ted's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: TDS's management team is considered experienced (2.3 years average tenure).


Board Members

Experienced Board: TDS's board of directors are seasoned and experienced ( 12.9 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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Telephone and Data Systems, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Telephone and Data Systems, Inc.
  • Ticker: TDS
  • Exchange: NYSE
  • Founded: 1968
  • Industry: Wireless Telecommunication Services
  • Sector: Telecom
  • Market Cap: US$2.240b
  • Shares outstanding: 114.75m
  • Website: https://www.tdsinc.com

Number of Employees


Location

  • Telephone and Data Systems, Inc.
  • 30 North LaSalle Street
  • Suite 4000
  • Chicago
  • Illinois
  • 60602
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/21 22:51
End of Day Share Price2021/10/21 00:00
Earnings2021/06/30
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.