NYSE:TDS

Stock Analysis Report

Telephone and Data Systems

Executive Summary

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.

Snowflake

Fundamentals

Established dividend payer and good value.

Risks

  • Telephone and Data Systems has significant price volatility in the past 3 months.

Similar Companies

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


Market Performance


7 Day Return

-3.6%

NYSE:TDS

-0.4%

US Wireless Telecom

0.8%

US Market


1 Year Return

-15.0%

NYSE:TDS

6.5%

US Wireless Telecom

1.9%

US Market

TDS underperformed the Wireless Telecom industry which returned 6.3% over the past year.

TDS underperformed the Market in United States of America which returned 2.1% over the past year.


Share holder returns

TDSIndustryMarket
7 Day-3.6%-0.4%0.8%
30 Day4.7%1.4%3.4%
90 Day-22.3%-3.6%2.1%
1 Year-13.2%-15.0%7.7%6.5%4.2%1.9%
3 Year4.0%-2.7%37.7%32.3%46.7%37.2%
5 Year18.2%6.0%38.4%24.7%62.3%44.5%

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 based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

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 Based on Earnings

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

Telephone and Data Systems earnings are not expected to grow next year, we can't assess if its growth is good value.


Price Based on Value of Assets

Telephone and Data Systems is good value based on assets compared to the US Wireless Telecom industry average.


Next Steps

Future Growth

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

-17.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Telephone and Data Systems's revenue is expected to grow by 0.5% yearly, however this is not considered high growth (20% yearly).

Telephone and Data Systems's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.

Telephone and Data Systems's revenue growth is positive but not above the United States of America market average.

Telephone and Data Systems's earnings are expected to decrease over the next 1-3 years, this is below the United States of America market average.

Telephone and Data Systems's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Telephone and Data Systems is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

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

37.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

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 negative, it can't be compared to the 5-year average.

Telephone and Data Systems's 1-year earnings growth is negative, it can't be compared to the US Wireless Telecom industry average.


Return on Equity

Telephone and Data Systems has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Telephone and Data Systems used its assets less efficiently than the US Wireless Telecom industry average last year based on Return on Assets.


Return on Capital Employed

Telephone and Data Systems has improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Telephone and Data Systems's financial position?


Financial Position Analysis

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.


Debt to Equity History and Analysis

Telephone and Data Systems's level of debt (44.9%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (33.6% vs 44.9% today).

Debt is well covered by operating cash flow (47.3%, 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).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.9x debt.


Next Steps

Dividend

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

2.56%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Telephone and Data Systems's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.43%).

Telephone and Data Systems's dividend is below the markets top 25% of dividend payers in United States of America (3.67%).

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

Dividends paid are well covered by earnings (2.1x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (2.9x coverage).


Next Steps

Management

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

7.5yrs

Average management tenure


CEO

Ted Carlson (72yo)

33.7yrs

Tenure

US$6,576,397

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

Ted's remuneration is about average for companies of similar size in United States of America.

Ted's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

7.5yrs

Average Tenure

63.5yo

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.


Board Age and Tenure

12.7yrs

Average Tenure

65.5yo

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.


Insider Trading

Telephone and Data Systems individual insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

SellUS$87,61030 Aug 19
Prudence Carlson
EntityIndividual
Role
Member of the Board of Directors
Director
Shares3,510
Max PriceUS$24.96
BuyUS$124,40020 Aug 19
Wade Oosterman
EntityIndividual
Shares5,000
Max PriceUS$24.88
SellUS$324,27302 Jul 19
GAMCO Investors, Inc.
EntityCompany
Shares78,702
Max PriceUS$33.20
BuyUS$15,31202 Jul 19
GAMCO Investors, Inc.
EntityCompany
Shares500
Max PriceUS$30.62
SellUS$1,107,01221 Jun 19
Scott Williamson
EntityIndividual
Role
Head of Corporate Development
Senior Vice President of Acquisitions & Corporate Development
Shares33,647
Max PriceUS$33.40
SellUS$72,72430 May 19
Clarence Davis
EntityIndividual
Role
Member of the Board of Directors
Director
Shares2,410
Max PriceUS$30.18
SellUS$498,54121 May 19
Joseph Hanley
EntityIndividual
Role
Chief Technology Officer
Senior Vice President of Technology
Shares15,867
Max PriceUS$31.42
SellUS$127,00027 Mar 19
Mitchell Saranow
EntityIndividual
Shares4,000
Max PriceUS$31.75
SellUS$1,292,00020 Mar 19
Kenneth Meyers
EntityIndividual
Role
Member of the Board of Directors
Director
Shares40,000
Max PriceUS$32.30
SellUS$11,12705 Mar 19
Clarence Davis
EntityIndividual
Role
Member of the Board of Directors
Director
Shares350
Max PriceUS$31.79
SellUS$8,75306 Dec 18
Clarence Davis
EntityIndividual
Role
Member of the Board of Directors
Director
Shares250
Max PriceUS$35.01
SellUS$10,40716 Nov 18
Clarence Davis
EntityIndividual
Role
Member of the Board of Directors
Director
Shares300
Max PriceUS$34.69
SellUS$388,33914 Nov 18
Peter Sereda
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares10,998
Max PriceUS$35.31

Ownership Breakdown


Management Team

  • Scott Williamson (68yo)

    Senior Vice President of Acquisitions & Corporate Development

    • Tenure: 21.6yrs
    • Compensation: US$2.30m
  • Peter Sereda (60yo)

    Executive VP & CFO

    • Tenure: 0.3yrs
  • Ted Carlson (72yo)

    President

    • Tenure: 33.7yrs
    • Compensation: US$6.58m
  • Stephen Fitzell

    General Counsel & Assistant Secretary

    • Tenure: 0yrs
  • Kurt Thaus (60yo)

    Chief Information Officer & Senior VP

    • Tenure: 15.7yrs
  • Julie Mathews

    Director of Investor Relations

    • Tenure: 0yrs
  • Joe Hanley (52yo)

    Senior Vice President of Technology

    • Tenure: 7.5yrs
  • Daniel DeWitt (67yo)

    Senior Vice President of Human Resources

    • Tenure: 2.7yrs
  • Theodore Wiessing

    Chief Security & Privacy Officer and VP of IT Operational Services

    • Tenure: 0yrs
  • Anita Kroll

    Chief Accounting Officer

    • Tenure: 0.3yrs

Board Members

  • Gary Sugarman (66yo)

    Director

    • Tenure: 10.3yrs
    • Compensation: US$206.36k
  • Chris O'Leary (60yo)

    Director

    • Tenure: 13.7yrs
    • Compensation: US$245.36k
  • Ken Meyers (65yo)

    Director

    • Tenure: 12.7yrs
    • Compensation: US$8.60m
  • Letitia G. Carlson (58yo)

    Director

    • Tenure: 23.7yrs
    • Compensation: US$188.86k
  • Walter C. Carlson (65yo)

    Chairman of the Board

    • Tenure: 17.7yrs
    • Compensation: US$225.86k
  • George Off (72yo)

    Director

    • Tenure: 22.7yrs
    • Compensation: US$249.36k
  • Ted Carlson (72yo)

    President

    • Tenure: 33.7yrs
    • Compensation: US$6.58m
  • Clarence Davis (77yo)

    Director

    • Tenure: 10.3yrs
    • Compensation: US$215.61k
  • Prudence Carlson (67yo)

    Director

    • Tenure: 11.3yrs
    • Compensation: US$188.86k
  • Kim Dixon (56yo)

    Director

    • Tenure: 2.3yrs
    • Compensation: US$183.56k

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$2.975b
  • Shares outstanding: 114.51m
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TDSNYSE (New York Stock Exchange)YesCommon SharesUSUSDJan 1980

Biography

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 s ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/17 23:51
End of Day Share Price2019/09/17 00:00
Earnings2019/06/30
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.