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Telephone and Data Systems

NYSE:TDS
Snowflake Description

Established dividend payer and good value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
TDS
NYSE
$4B
Market Cap
  1. Home
  2. US
  3. Telecom
Company description

Telephone and Data Systems, Inc., a telecommunications company, provides wireless, cable and wireline broadband, TV, voice, and hosted and managed services in the United States. The last earnings update was 14 days ago. More info.


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TDS Share Price and Events
7 Day Returns
-4.1%
NYSE:TDS
-0.3%
US Wireless Telecom
-3.9%
US Market
1 Year Returns
18.6%
NYSE:TDS
16.3%
US Wireless Telecom
1.4%
US Market
TDS Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Telephone and Data Systems (TDS) -4.1% -3.7% -15.2% 18.6% 12.7% 15.8%
US Wireless Telecom -0.3% -1.2% 0.3% 16.3% 46.5% 1.4%
US Market -3.9% -3.6% 1.8% 1.4% 35.8% 40.8%
1 Year Return vs Industry and Market
  • TDS outperformed the Wireless Telecom industry which returned 16.3% over the past year.
  • TDS outperformed the Market in United States of America which returned 1.4% over the past year.
Price Volatility
TDS
Industry
5yr Volatility vs Market
Related Companies

TDS Value

 Is Telephone and Data Systems undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Telephone and Data Systems to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Telephone and Data Systems.

NYSE:TDS Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 4 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.5%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:TDS
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Wireless Telecom Unlevered Beta Simply Wall St/ S&P Global 0.33
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.334 (1 + (1- 21%) (98.89%))
0.729
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.8 * 5.96%)
7.5%

Discounted Cash Flow Calculation for NYSE:TDS using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Telephone and Data Systems is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:TDS DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 7.5%)
2019 66.50 Analyst x2 61.86
2020 216.00 Analyst x1 186.92
2021 356.00 Analyst x1 286.58
2022 418.95 Est @ 17.68% 313.73
2023 474.24 Est @ 13.2% 330.37
2024 521.94 Est @ 10.06% 338.23
2025 562.96 Est @ 7.86% 339.37
2026 598.54 Est @ 6.32% 335.65
2027 629.92 Est @ 5.24% 328.61
2028 658.20 Est @ 4.49% 319.41
Present value of next 10 years cash flows $2,840.74
NYSE:TDS DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $658.20 × (1 + 2.73%) ÷ (7.5% – 2.73%)
$14,181.32
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $14,181.32 ÷ (1 + 7.5%)10
$6,881.97
NYSE:TDS Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $2,840.74 + $6,881.97
$9,722.71
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $9,722.71 / 114.06
$85.24
NYSE:TDS Discount to Share Price
Calculation Result
Value per share (USD) From above. $85.24
Current discount Discount to share price of $30.80
= -1 x ($30.80 - $85.24) / $85.24
63.9%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Telephone and Data Systems is available for.
Intrinsic value
>50%
Share price is $30.8 vs Future cash flow value of $85.24
Current Discount Checks
For Telephone and Data Systems to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Telephone and Data Systems's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Telephone and Data Systems's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Telephone and Data Systems's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Telephone and Data Systems's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:TDS PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $1.37
NYSE:TDS Share Price ** NYSE (2019-05-15) in USD $30.8
United States of America Wireless Telecom Industry PE Ratio Median Figure of 7 Publicly-Listed Wireless Telecom Companies 24.62x
United States of America Market PE Ratio Median Figure of 3,087 Publicly-Listed Companies 17.79x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Telephone and Data Systems.

NYSE:TDS PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:TDS Share Price ÷ EPS (both in USD)

= 30.8 ÷ 1.37

22.4x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Telephone and Data Systems is good value based on earnings compared to the US Wireless Telecom industry average.
  • Telephone and Data Systems is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Telephone and Data Systems's expected growth come at a high price?
Raw Data
NYSE:TDS PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 22.4x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts
2.1%per year
United States of America Wireless Telecom Industry PEG Ratio Median Figure of 6 Publicly-Listed Wireless Telecom Companies 2.34x
United States of America Market PEG Ratio Median Figure of 2,113 Publicly-Listed Companies 1.52x

*Line of best fit is calculated by linear regression .

NYSE:TDS PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 22.4x ÷ 2.1%

10.92x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Telephone and Data Systems is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Telephone and Data Systems's assets?
Raw Data
NYSE:TDS PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $40.43
NYSE:TDS Share Price * NYSE (2019-05-15) in USD $30.8
United States of America Wireless Telecom Industry PB Ratio Median Figure of 13 Publicly-Listed Wireless Telecom Companies 2.22x
United States of America Market PB Ratio Median Figure of 5,195 Publicly-Listed Companies 1.83x
NYSE:TDS PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:TDS Share Price ÷ Book Value per Share (both in USD)

= 30.8 ÷ 40.43

0.76x

* Primary Listing of Telephone and Data Systems.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Telephone and Data Systems is good value based on assets compared to the US Wireless Telecom industry average.
X
Value checks
We assess Telephone and Data Systems's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Wireless Telecom industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Wireless Telecom industry average (and greater than 0)? (1 check)
  5. Telephone and Data Systems has a total score of 4/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

TDS Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
2.1%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Telephone and Data Systems expected to grow at an attractive rate?
  • Telephone and Data Systems's earnings growth is positive but not above the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Telephone and Data Systems's earnings growth is positive but not above the United States of America market average.
  • Telephone and Data Systems's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:TDS Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:TDS Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts 2.1%
NYSE:TDS Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 4 Analysts 1.8%
United States of America Wireless Telecom Industry Earnings Growth Rate Market Cap Weighted Average 18.1%
United States of America Wireless Telecom Industry Revenue Growth Rate Market Cap Weighted Average 3.6%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:TDS Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:TDS Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 5,424 1,186 147 2
2020-12-31 5,365 1,121 140 3
2019-12-31 5,254 1,017 118 4
NYSE:TDS Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 5,141 1,130 155
2018-12-31 5,109 1,017 135
2018-09-30 5,085 967 406
2018-06-30 5,039 881 178
2018-03-31 5,031 853 155
2017-12-31 5,044 776 153
2017-09-30 5,028 765 -140
2017-06-30 5,090 740 54
2017-03-31 5,139 673 72
2016-12-31 5,155 782 43
2016-09-30 5,137 701 48
2016-06-30 5,198 652 86

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Telephone and Data Systems's earnings are expected to grow by 2.1% yearly, however this is not considered high growth (20% yearly).
  • Telephone and Data Systems's revenue is expected to grow by 1.8% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:TDS Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below

All data from Telephone and Data Systems Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:TDS Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 0.96 0.97 0.94 2.00
2020-12-31 0.99 1.09 0.89 3.00
2019-12-31 1.06 1.13 1.01 4.00
NYSE:TDS Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 1.37
2018-12-31 1.21
2018-09-30 3.63
2018-06-30 1.59
2018-03-31 1.39
2017-12-31 1.38
2017-09-30 -1.26
2017-06-30 0.49
2017-03-31 0.65
2016-12-31 0.39
2016-09-30 0.44
2016-06-30 0.79

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Telephone and Data Systems is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Telephone and Data Systems's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Telephone and Data Systems has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

TDS Past Performance

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

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Telephone and Data Systems's growth in the last year to its industry (Wireless Telecom).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Telephone and Data Systems has delivered over 20% year on year earnings growth in the past 5 years.
  • Telephone and Data Systems's 1-year earnings growth is less than its 5-year average (0% vs 31%)
  • Telephone and Data Systems's earnings growth has exceeded the US Wireless Telecom industry average in the past year (0% vs -11.8%).
Earnings and Revenue History
Telephone and Data Systems's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Telephone and Data Systems Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:TDS Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 5,141.00 155.00 1,696.00
2018-12-31 5,109.00 135.00 1,694.00
2018-09-30 5,085.00 406.00 1,669.00
2018-06-30 5,039.00 178.00 1,673.00
2018-03-31 5,031.00 155.00 1,677.00
2017-12-31 5,044.00 153.00 1,689.00
2017-09-30 5,028.00 -140.00 1,709.00
2017-06-30 5,090.00 54.00 1,726.00
2017-03-31 5,139.00 72.00 1,735.00
2016-12-31 5,155.00 43.00 1,762.00
2016-09-30 5,137.00 48.00 1,756.00
2016-06-30 5,198.00 86.00 1,767.00
2016-03-31 5,178.00 81.00 1,774.00
2015-12-31 5,210.00 219.00 1,781.00
2015-09-30 5,199.06 203.45 1,790.22
2015-06-30 5,105.08 36.41 1,804.24
2015-03-31 5,065.48 -8.65 1,840.14
2014-12-31 5,009.00 -136.00 1,865.00
2014-09-30 4,895.89 -125.92 1,912.88
2014-06-30 4,796.85 -19.40 1,924.73
2014-03-31 4,788.63 158.71 1,924.54
2013-12-31 4,901.24 141.88 1,947.78
2013-09-30 5,063.93 106.09 1,952.17
2013-06-30 5,253.06 144.72 1,981.52
2013-03-31 5,348.06 30.98 2,013.21
2012-12-31 5,345.28 81.81 2,033.90
2012-09-30 5,315.80 117.47 2,057.21
2012-06-30 5,271.11 159.65 2,043.67

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Telephone and Data Systems has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Telephone and Data Systems used its assets less efficiently than the US Wireless Telecom industry average last year based on Return on Assets.
  • Telephone and Data Systems has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Telephone and Data Systems's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Wireless Telecom industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Telephone and Data Systems has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

TDS Health

 How is Telephone and Data Systems's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Telephone and Data Systems's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Telephone and Data Systems is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Telephone and Data Systems's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Telephone and Data Systems's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.7x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Telephone and Data Systems Company Filings, last reported 1 month ago.

NYSE:TDS Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 5,368.00 3,474.00 976.00
2018-12-31 5,304.00 2,439.00 938.00
2018-09-30 5,261.00 2,442.00 1,062.00
2018-06-30 5,183.00 2,447.00 873.00
2018-03-31 5,150.00 2,451.00 779.00
2017-12-31 4,893.00 2,457.00 719.00
2017-09-30 4,560.00 2,463.00 884.00
2017-06-30 4,793.00 2,440.00 791.00
2017-03-31 4,792.00 2,443.00 896.00
2016-12-31 4,751.00 2,445.00 900.00
2016-09-30 4,755.00 2,448.00 985.00
2016-06-30 4,737.00 2,450.00 899.00
2016-03-31 4,710.00 2,451.00 1,054.00
2015-12-31 4,705.00 2,454.00 985.00
2015-09-30 4,703.74 2,219.09 865.43
2015-06-30 4,649.43 1,994.18 631.55
2015-03-31 4,624.72 1,994.26 635.12
2014-12-31 4,456.16 1,941.88 471.90
2014-09-30 4,485.81 1,719.56 613.08
2014-06-30 4,626.09 1,719.72 914.90
2014-03-31 4,678.94 1,721.45 912.97
2013-12-31 4,670.63 1,721.72 880.12
2013-09-30 4,672.85 1,722.89 756.25
2013-06-30 4,682.86 1,722.54 1,356.77
2013-03-31 4,631.45 1,722.66 892.30
2012-12-31 4,656.82 1,722.80 856.18
2012-09-30 4,763.85 1,529.80 769.86
2012-06-30 4,722.70 1,531.12 764.69
  • Telephone and Data Systems's level of debt (64.7%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (36.8% vs 64.7% today).
  • Debt is well covered by operating cash flow (32.5%, greater than 20% of total debt).
  • Interest payments on debt are not well covered by earnings (EBIT is 1.5x annual interest expense, ideally 3x coverage).
X
Financial health checks
We assess Telephone and Data Systems's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Telephone and Data Systems has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

TDS Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.14%
Current annual income from Telephone and Data Systems dividends. Estimated to be 2.16% next year.
If you bought $2,000 of Telephone and Data Systems shares you are expected to receive $43 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Telephone and Data Systems's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.46%).
  • Telephone and Data Systems's dividend is below the markets top 25% of dividend payers in United States of America (3.71%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:TDS Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below
United States of America Wireless Telecom Industry Average Dividend Yield Market Cap Weighted Average of 6 Stocks 6.6%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 1997 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.5%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:TDS Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 0.67 2.00
2020-12-31 0.67 3.00
2019-12-31 0.67 3.00
NYSE:TDS Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-02-22 0.660 2.077
2018-11-16 0.640 1.832
2018-08-16 0.640 2.044
2018-05-24 0.640 2.397
2018-02-23 0.640 2.310
2017-08-16 0.620 2.273
2017-05-26 0.620 2.193
2017-02-24 0.620 2.325
2016-11-22 0.592 2.004
2016-08-18 0.592 2.202
2016-05-27 0.592 2.001
2016-02-19 0.592 2.095
2015-11-03 0.564 2.219
2015-08-20 0.564 2.104
2015-05-22 0.564 1.920
2015-02-25 0.564 2.104
2014-11-24 0.536 2.173
2014-08-21 0.536 2.146
2014-05-22 0.536 2.093
2014-02-26 0.536 2.088
2013-11-15 0.510 1.940
2013-08-22 0.510 1.747
2013-05-24 0.510 2.029
2013-02-26 0.510 2.306
2012-11-16 0.490 2.076
2012-08-23 0.490 1.975
2012-05-17 0.490 2.238
2012-02-28 0.490 2.087
2011-11-17 0.432 1.729
2011-08-25 0.432 2.035
2011-05-19 0.432 1.643
2011-03-01 0.432 1.420
2010-11-18 0.414 1.254
2010-08-27 0.414 1.356
2010-05-27 0.414 1.408
2010-02-23 0.414 1.339
2009-11-19 0.396 1.327
2009-08-21 0.396 1.429
2009-05-22 0.396 1.531

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Telephone and Data Systems's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.1x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.9x coverage).
X
Income/ dividend checks
We assess Telephone and Data Systems's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Telephone and Data Systems afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Telephone and Data Systems has a total score of 5/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

TDS Management

 What is the CEO of Telephone and Data Systems's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Ted Carlson
COMPENSATION $6,576,397
AGE 71
TENURE AS CEO 33.3 years
CEO Bio

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 since 1989. Mr. Carlson is also Telephone and Data Systems, Inc. (“TDS”)’s President and Chief Executive Officer. He has been TDS’ President since 1981 and Chief Executive Officer since 1986 and he has been Directors since 1968. He has been a Director of TDS Telecom (“TDS Tele”) since 1988 and the Chairman (an Executive Officer) of TDS Tele since 1990. Mr. Carlson was previously a Director and Chairman (an Executive Officer) of former TDS subsidiaries Aerial Communications, Inc. and American Paging, Inc. Mr. Carlson has bachelor’s degree from Harvard College and an MBA from Harvard Graduate School of Business.

CEO Compensation
  • Ted's compensation has been consistent with company performance over the past year.
  • Ted's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Telephone and Data Systems management team in years:

7.6
Average Tenure
59
Average Age
  • The average tenure for the Telephone and Data Systems management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Ted Carlson

TITLE
President
COMPENSATION
$7M
AGE
71
TENURE
33.3 yrs

Doug Chambers

TITLE
Senior VP of Finance & Chief Accounting Officer
COMPENSATION
$821K
AGE
48
TENURE
1 yrs

Scott Williamson

TITLE
Senior Vice President of Acquisitions & Corporate Development
COMPENSATION
$2M
AGE
67
TENURE
21.3 yrs

Doug Shuma

TITLE
Consultant
COMPENSATION
$232K
AGE
57
TENURE
0.9 yrs

Joe Hanley

TITLE
Senior Vice President of Technology
AGE
51
TENURE
7.2 yrs

Kurt Thaus

TITLE
Chief Information Officer & Senior VP
AGE
59
TENURE
15.3 yrs

Julie Mathews

TITLE
Director of Investor Relations

Stephen Fitzell

TITLE
General Counsel & Assistant Secretary

Daniel DeWitt

TITLE
Senior Vice President of Human Resources
AGE
66
TENURE
2.3 yrs

Peter Sereda

TITLE
Senior Vice President of Finance
AGE
59
TENURE
8 yrs
Board of Directors Tenure

Average tenure and age of the Telephone and Data Systems board of directors in years:

13.3
Average Tenure
65.5
Average Age
  • The average tenure for the Telephone and Data Systems board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

Walter C. Carlson

TITLE
Chairman of the Board
COMPENSATION
$226K
AGE
64
TENURE
17.3 yrs

Ted Carlson

TITLE
President
COMPENSATION
$7M
AGE
71

George Off

TITLE
Director
COMPENSATION
$249K
AGE
71
TENURE
22.3 yrs

Chris O'Leary

TITLE
Director
COMPENSATION
$245K
AGE
59
TENURE
13.3 yrs

Letitia G. Carlson

TITLE
Director
COMPENSATION
$189K
AGE
57
TENURE
23.3 yrs

Mitch Saranow

TITLE
Director
COMPENSATION
$226K
AGE
72
TENURE
15.3 yrs

Ken Meyers

TITLE
Director
COMPENSATION
$9M
AGE
64
TENURE
12.3 yrs

Prudence Carlson

TITLE
Director
COMPENSATION
$189K
AGE
66
TENURE
11 yrs

Clarence Davis

TITLE
Director
COMPENSATION
$216K
AGE
76
TENURE
10 yrs

Gary Sugarman

TITLE
Director
COMPENSATION
$206K
AGE
65
TENURE
10 yrs
Who owns this company?
Recent Insider Trading
  • Telephone and Data Systems insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
27. Mar 19 Sell Mitchell Saranow Individual 26. Mar 19 26. Mar 19 -4,000 $31.75 $-127,000
20. Mar 19 Sell Kenneth Meyers Individual 19. Mar 19 19. Mar 19 -40,000 $32.30 $-1,292,000
05. Mar 19 Sell Clarence Davis Individual 05. Mar 19 05. Mar 19 -350 $31.79 $-11,127
07. Feb 19 Sell James Butman Individual 06. Aug 18 06. Aug 18 -8,388 $29.19 $-244,846
18. Jan 19 Sell Kenneth Meyers Individual 10. Aug 18 10. Aug 18 -80,465 $29.90 $-2,405,904
06. Dec 18 Sell Clarence Davis Individual 06. Dec 18 06. Dec 18 -250 $35.01 $-8,753
16. Nov 18 Sell Clarence Davis Individual 15. Nov 18 15. Nov 18 -300 $34.69 $-10,407
14. Nov 18 Sell Peter Sereda Individual 13. Nov 18 13. Nov 18 -10,998 $35.31 $-388,339
31. Aug 18 Sell Clarence Davis Individual 30. Aug 18 30. Aug 18 -300 $30.47 $-9,141
09. Aug 18 Sell Douglas Chambers Individual 09. Aug 18 09. Aug 18 -5,532 $30.59 $-169,224
08. Aug 18 Sell Kurt Thaus Individual 07. Aug 18 08. Aug 18 -12,774 $30.19 $-379,586
07. Aug 18 Sell Joseph Hanley Individual 07. Aug 18 07. Aug 18 -7,960 $29.50 $-234,820
21. Jun 18 Sell Clarence Davis Individual 21. Jun 18 21. Jun 18 -2,573 $27.02 $-69,522
21. Jun 18 Sell Prudence Carlson Individual 20. Jun 18 20. Jun 18 -5,933 $27.10 $-160,784
13. Jun 18 Sell Mitchell Saranow Individual 13. Jun 18 13. Jun 18 -4,000 $26.66 $-106,640
07. Jun 18 Sell Clarence Davis Individual 07. Jun 18 07. Jun 18 -500 $26.29 $-13,145
X
Management checks
We assess Telephone and Data Systems's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Telephone and Data Systems has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

TDS News

Simply Wall St News

Read This Before Buying Telephone and Data Systems, Inc. (NYSE:TDS) Shares

So we'll take a look at whether insiders have been buying or selling shares in Telephone and Data Systems, Inc. … See our latest analysis for Telephone and Data Systems Telephone and Data Systems Insider Transactions Over The Last Year In the last twelve months, the biggest single sale by an insider was when the Director, Kenneth Meyers, sold US$2.4m worth of shares at a price of US$29.90 per share. … Insiders at Telephone and Data Systems Have Sold Stock Recently Over the last three months, we've seen significant insider selling at Telephone and Data Systems.

Simply Wall St -

Is Telephone and Data Systems, Inc.'s (NYSE:TDS) CEO Overpaid Relative To Its Peers?

This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. … View our latest analysis for Telephone and Data Systems … How Does Ted Carlson's Compensation Compare With Similar Sized Companies?

Simply Wall St -

How Do Analysts See Telephone and Data Systems, Inc. (NYSE:TDS) Performing In The Year Ahead?

(NYSE:TDS) released its earnings in December 2018,. … it seems that analyst expectations are fairly bearish, … the higher past 5-year average growth rate of 25%

Simply Wall St -

Here's What Telephone and Data Systems, Inc.'s (NYSE:TDS) P/E Ratio Is Telling Us

We'll show how you can use Telephone and Data Systems, Inc.'s (NYSE:TDS) P/E ratio to inform your assessment of the investment opportunity. … Based on the last twelve months, Telephone and Data Systems's P/E ratio is 26.33. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

The Telephone and Data Systems (NYSE:TDS) Share Price Is Up 17% And Shareholders Are Holding On

(NYSE:TDS) has fallen short of that second goal, with a share price rise of 17% over five years, which is below the market return. … One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price. … During five years of share price growth, Telephone and Data Systems actually saw its EPS drop 1.6% per year.

Simply Wall St -

Is It Too Late To Consider Buying Telephone and Data Systems, Inc. (NYSE:TDS)?

Telephone and Data Systems, Inc. … A question to answer is whether Telephone and Data Systems's current trading price of $31.56 reflective of the actual value of the? … Let’s take a look at Telephone and Data Systems’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change

Simply Wall St -

Telephone and Data Systems, Inc. (NYSE:TDS): Ex-Dividend Is In 3 Days

On the 29 March 2019, Telephone and Data Systems, Inc. … Let's take a look at Telephone and Data Systems's most recent financial data to examine its dividend characteristics in more detail. … View our latest analysis for Telephone and Data Systems?

Simply Wall St -

Telephone and Data Systems, Inc.'s (NYSE:TDS) Earnings Dropped -12%, Did Its Industry Show Weakness Too?

Measuring Telephone and Data Systems, Inc.'s (NYSE:TDS) track record of past performance is an insightful exercise for investors. … See our latest analysis for Telephone and Data Systems? … Furthermore, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 25%, indicating the rate at which TDS is growing has slowed down

Simply Wall St -

Should Telephone and Data Systems, Inc.’s (NYSE:TDS) Weak Investment Returns Worry You?

To be precise, we'll consider its Return On Capital Employed (ROCE), as that will inform our view of the quality of the business. … Return On Capital Employed (ROCE): What is it? … ROCE measures the 'return' (pre-tax profit) a company generates from capital employed in its business.

Simply Wall St -

How Financially Strong Is Telephone and Data Systems, Inc. (NYSE:TDS)?

Small-caps and large-caps are wildly popular among investors; however, mid-cap stocks, such as Telephone and Data Systems, Inc. … Note that this commentary is very high-level and solely focused on financial health, so I suggest you dig deeper yourself. … See our latest analysis for Telephone and Data Systems

Simply Wall St -

TDS Company Info

Description

Telephone and Data Systems, Inc., a telecommunications company, provides wireless, cable and wireline broadband, TV, voice, and hosted and managed services in the United States. It operates through three segments: U.S. Cellular, Wireline, and Cable. The company offers cellular services to postpaid and prepaid customers, including retail consumers, government entities, and small-to-mid-size business customers in industries, such as the construction, retail, agriculture, professional services, and real estate; and national plans with voice, messaging, and data usage options. It also provides wireless devices comprising handsets, tablets, mobile hotspots, home phones, and routers; accessories that include wireless essentials, which comprise cases, screen protectors, chargers, and memory cards, as well as various consumer electronics, such as headphones, smart speakers, wearables, and home automation products. In addition, the company offers telecommunications services to residential and commercial customers, as well as wholesale customers and wireless carriers; broadband and digital television (TV) video services; voice services comprising local and long-distance telephone, voice over Internet protocol (VoIP), find me follow me, collaboration, instant messaging, and other services; and network access services. Further, it provides business services, including data networking, Ethernet, broadband access, and VoIP services to small- and medium-sized businesses, as well as operates retail stores and kiosks. The company offers its services to approximately 6 million connections. It sells its products through retail sales, direct sales, third-party retailers, and independent agents, as well as through Website and telesales. The company was founded in 1968 and is headquartered in Chicago, Illinois.

Details
Name: Telephone and Data Systems, Inc.
TDS
Exchange: NYSE
Founded: 1968
$3,513,112,680
114,062,100
Website: http://www.tdsinc.com
Address: Telephone and Data Systems, Inc.
30 North LaSalle Street,
Suite 4000,
Chicago,
Illinois, 60602,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE TDS Common Shares New York Stock Exchange US USD 07. Jan 1980
Number of employees
Current staff
Staff numbers
9,400
Telephone and Data Systems employees.
Industry
Wireless Telecommunication Services
Telecom
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/16 01:32
End of day share price update: 2019/05/15 00:00
Last estimates confirmation: 2019/05/06
Last earnings filing: 2019/05/02
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.