NYSE:TDS

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Telephone and Data Systems

Market Cap

US$2.3b

Last Updated

2021/08/03 23:39 UTC

Data Sources

Company Financials +

Share Price & News

How has Telephone and Data Systems's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: TDS is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: TDS's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

-12.3%

TDS

-1.1%

US Wireless Telecom

0.9%

US Market


1 Year Return

3.2%

TDS

28.5%

US Wireless Telecom

34.7%

US Market

Return vs Industry: TDS underperformed the US Wireless Telecom industry which returned 31.2% over the past year.

Return vs Market: TDS underperformed the US Market which returned 34.4% over the past year.


Shareholder returns

TDSIndustryMarket
7 Day-12.3%-1.1%0.9%
30 Day-12.3%-2.9%0.2%
90 Day-15.9%5.6%4.7%
1 Year6.4%3.2%29.9%28.5%36.8%34.7%
3 Year-25.5%-31.5%90.6%83.5%62.5%52.4%
5 Year-24.2%-33.3%142.0%124.0%123.1%98.4%

Long-Term Price Volatility Vs. Market

How volatile is Telephone and Data Systems's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

10.77x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: TDS ($20.26) is trading above our estimate of fair value ($18.69)

Significantly Below Fair Value: TDS is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: TDS is good value based on its PE Ratio (10.8x) compared to the US Wireless Telecom industry average (29.5x).

PE vs Market: TDS is good value based on its PE Ratio (10.8x) compared to the US market (17.9x).


Price to Earnings Growth Ratio

PEG Ratio: TDS's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


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 (2.7x).


Future Growth

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

-9.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TDS's earnings are forecast to decline over the next 3 years (-9.1% per year).

Earnings vs Market: TDS's earnings are forecast to decline over the next 3 years (-9.1% per year).

High Growth Earnings: TDS's earnings are forecast to decline over the next 3 years.

Revenue vs Market: TDS's revenue (1.7% per year) is forecast to grow slower than the US market (9.2% per year).

High Growth Revenue: TDS's revenue (1.7% 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?

23.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TDS has high quality earnings.

Growing Profit Margin: TDS's current net profit margins (4.1%) are higher than last year (2.5%).


Past Earnings Growth Analysis

Earnings Trend: TDS's earnings have grown significantly by 23.3% per year over the past 5 years.

Accelerating Growth: TDS's earnings growth over the past year (63.4%) exceeds its 5-year average (23.3% per year).

Earnings vs Industry: TDS earnings growth over the past year (63.4%) exceeded the Wireless Telecom industry 51.4%.


Return on Equity

High ROE: TDS's Return on Equity (4.2%) 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 ($2.6B) exceed its short term liabilities ($963.0M).

Long Term Liabilities: TDS's short term assets ($2.6B) do not cover its long term liabilities ($6.4B).


Debt to Equity History and Analysis

Debt Level: TDS's debt to equity ratio (65.9%) is considered high.

Reducing Debt: TDS's debt to equity ratio has increased from 52% to 65.9% over the past 5 years.

Debt Coverage: TDS's debt is well covered by operating cash flow (33.3%).

Interest Coverage: TDS's interest payments on its debt are not well covered by EBIT (1.9x coverage).


Balance Sheet


Dividend

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

3.45%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: TDS's dividend (3.46%) is higher than the bottom 25% of dividend payers in the US market (1.32%).

High Dividend: TDS's dividend (3.46%) is low compared to the top 25% of dividend payers in the US market (3.57%).


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 (36.4%), 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 (57.6% payout ratio).


Next Steps

Management

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

2.2yrs

Average management tenure


CEO

Ted Carlson (74 yo)

35.58yrs

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 ($USD9.51M) is above average for companies of similar size in the US market ($USD3.71M).

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 (2.2 years average tenure).


Board Members

Experienced Board: TDS's board of directors are seasoned and experienced ( 12.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: TDS insiders have only sold shares 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 company bio, 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$2.317b
  • Shares outstanding: 114.39m
  • 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


Biography

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 offer...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/08/03 23:39
End of Day Share Price2021/08/03 00:00
Earnings2021/03/31
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.