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.


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%

TDS

2.4%

US Wireless Telecom

1.0%

US Market


1 Year Return

-20.4%

TDS

4.8%

US Wireless Telecom

6.7%

US Market

Return vs Industry: TDS underperformed the US Wireless Telecom industry which returned 4.8% over the past year.

Return vs Market: TDS underperformed the US Market which returned 6.7% over the past year.


Share holder returns

TDSIndustryMarket
7 Day3.6%2.4%1.0%
30 Day-5.6%-2.3%-1.8%
90 Day-21.1%-6.2%-1.8%
1 Year-18.7%-20.4%6.1%4.8%9.1%6.7%
3 Year1.1%-5.4%31.2%26.5%46.1%36.6%
5 Year17.6%5.4%52.9%39.0%66.9%48.6%

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

Undervalued: TDS ($25.36) is trading below our estimate of fair value ($53.3)

Significantly Undervalued: TDS is trading below fair value by more than 20%.


Price Based on Earnings

PE vs Industry: TDS is good value based on its PE Ratio (18.5x) compared to the Wireless Telecom industry average (21.8x).

PE vs Market: TDS is poor value based on its PE Ratio (18.5x) compared to the US market (17.5x).


Price Based on Expected Growth

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


Price Based on Value of Assets

PB vs Industry: TDS is good value based on its PB Ratio (0.6x) compared to the US Wireless Telecom industry average (1.9x).


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

Earnings vs Savings Rate: TDS's earnings are forecast to decline over the next 3 years (-17.4% per year).

Earnings vs Market: TDS's earnings are forecast to decline over the next 3 years (-17.4% per year).

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

Revenue vs Market: TDS's revenue (0.5% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: TDS's revenue (0.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: TDS's Return on Equity is forecast to be low in 3 years time (3.9%).


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

Earnings Trend: TDS has become profitable over the past 5 years, growing earnings by 37.5% per year.

Accelerating Growth: TDS's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: TDS had negative earnings growth (-12.9%) over the past year, making it difficult to compare to the Wireless Telecom industry average (7.7%).


Return on Equity

High ROE: TDS's Return on Equity (3.4%) is considered low.


Return on Assets

ROA vs Industry: TDS's Return on Assets is below or equal to the Wireless Telecom industry average last year.


Return on Capital Employed

ROCE Improving: TDS has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Telephone and Data Systems's financial position?


Financial Position Analysis

Short Term Liabilities: TDS's short term assets ($2.2B) exceeds its short term liabilities ($925.0M)

Long Term Liabilities: TDS's short term assets (2.2B) do not cover its long term liabilities (4.5B)


Debt to Equity History and Analysis

Debt Level: TDS's debt to equity ratio (44.9%) is considered high

Reducing Debt: TDS's debt to equity ratio has increased from 33.6% to 44.9% over the past 5 years.

Debt Coverage: TDS's debt is well covered by operating cash flow (47.3%).

Interest Coverage: TDS's interest payments on its debt are not well covered by EBIT (1.5x coverage).


Balance Sheet

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

Debt Coverage by Assets: TDS's 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?

2.62%

Expected Dividend Yield


Dividend Yield vs Market

company2.6%marketbottom25%1.5%markettop25%3.8%industryaverage5.0%forecastin3Years2.6%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: TDS's dividend (2.6%) is higher than the bottom 25% of dividend payers in the US market (1.46%).

High Dividend: TDS's dividend (2.6%) is low compared to the top 25% of dividend payers in the US market (3.77%).

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 (47.4%), 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 well covered by earnings (35% payout ratio).


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?

7.6yrs

Average management tenure


CEO

Ted Carlson (72yo)

33.8yrs

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

Compensation vs. Market: Ted's total compensation ($USD6.58M) is about average for companies of similar size in the US market ($USD5.11M).

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


Management Age and Tenure

7.6yrs

Average Tenure

63.5yo

Average Age

Experienced Management: TDS's management team is seasoned and experienced (7.6 years average tenure).


Board Age and Tenure

12.8yrs

Average Tenure

65.5yo

Average Age

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


Insider Trading

Insider Buying: TDS insiders have bought more shares than they have sold 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
BuyUS$15,31202 Jul 19
GAMCO Investors, Inc.
EntityCompany
Shares500
Max PriceUS$30.62
SellUS$324,27302 Jul 19
GAMCO Investors, Inc.
EntityCompany
Shares78,702
Max PriceUS$33.20
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
Independent 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
Independent Director
Shares350
Max PriceUS$31.79
SellUS$8,75306 Dec 18
Clarence Davis
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares250
Max PriceUS$35.01
SellUS$10,40716 Nov 18
Clarence Davis
EntityIndividual
Role
Member of the Board of Directors
Independent 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: 21.7yrs
    • Compensation: US$2.30m
  • Peter Sereda (60yo)

    Executive VP & CFO

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

    President

    • Tenure: 33.8yrs
    • Compensation: US$6.58m
  • Stephen Fitzell

    General Counsel & Assistant Secretary

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

    Chief Information Officer & Senior VP

    • Tenure: 15.8yrs
  • Julie Mathews

    Director of Investor Relations

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

    Senior Vice President of Technology

    • Tenure: 7.6yrs
  • Daniel DeWitt (67yo)

    Senior Vice President of Human Resources

    • Tenure: 2.8yrs
  • 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)

    Independent Director

    • Tenure: 10.4yrs
    • Compensation: US$206.36k
  • Chris O'Leary (60yo)

    Independent Director

    • Tenure: 13.8yrs
    • Compensation: US$245.36k
  • Ken Meyers (65yo)

    Director

    • Tenure: 12.8yrs
    • Compensation: US$8.60m
  • Letitia G. Carlson (58yo)

    Director

    • Tenure: 23.8yrs
    • Compensation: US$188.86k
  • Walter C. Carlson (65yo)

    Chairman of the Board

    • Tenure: 17.8yrs
    • Compensation: US$225.86k
  • George Off (72yo)

    Independent Director

    • Tenure: 22.8yrs
    • Compensation: US$249.36k
  • Ted Carlson (72yo)

    President

    • Tenure: 33.8yrs
    • Compensation: US$6.58m
  • Clarence Davis (77yo)

    Independent Director

    • Tenure: 10.4yrs
    • Compensation: US$215.61k
  • Prudence Carlson (67yo)

    Director

    • Tenure: 11.4yrs
    • Compensation: US$188.86k
  • Kim Dixon (56yo)

    Independent Director

    • Tenure: 2.4yrs
    • 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$2.904b
  • 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 Analysis2019/10/14 01:30
End of Day Share Price2019/10/11 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.

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