NYSE:USM

Stock Analysis Report

United States Cellular

Executive Summary

United States Cellular Corporation provides wireless telecommunications services in the United States.

Snowflake

Fundamentals

Proven track record with mediocre balance sheet.

Risks

  • United States Cellular has significant price volatility in the past 3 months.

Similar Companies

Share Price & News

How has United States Cellular's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

3.9%

NYSE:USM

0.9%

US Wireless Telecom

1.1%

US Market


1 Year Return

-10.9%

NYSE:USM

6.3%

US Wireless Telecom

2.1%

US Market

USM underperformed the Wireless Telecom industry which returned 7.6% over the past year.

USM underperformed the Market in United States of America which returned 2% over the past year.


Share holder returns

USMIndustryMarket
7 Day3.9%0.9%1.1%
30 Day11.9%2.2%3.7%
90 Day-22.6%-3.6%2.3%
1 Year-10.9%-10.9%7.4%6.3%4.4%2.1%
3 Year7.1%7.1%40.8%35.2%47.0%37.4%
5 Year7.9%7.9%39.0%25.2%61.6%43.8%

Price Volatility Vs. Market

How volatile is United States Cellular's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is United States Cellular undervalued based on future cash flows and its price relative to the stock market?

23.8x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

United States Cellular's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

United States Cellular's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

United States Cellular is overvalued based on earnings compared to the US Wireless Telecom industry average.

United States Cellular is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

United States Cellular earnings are not expected to grow next year, we can't assess if its growth is good value.


Price Based on Value of Assets

United States Cellular is good value based on assets compared to the US Wireless Telecom industry average.


Next Steps

Future Growth

How is United States Cellular expected to perform in the next 1 to 3 years based on estimates from 5 analysts?

-2.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

United States Cellular's revenue is expected to grow by 0.6% yearly, however this is not considered high growth (20% yearly).

United States Cellular's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.

United States Cellular's revenue growth is positive but not above the United States of America market average.

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

United States Cellular'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

United States Cellular is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has United States Cellular performed over the past 5 years?

15.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

United States Cellular's year on year earnings growth rate has been positive over the past 5 years.

United States Cellular's 1-year earnings growth exceeds its 5-year average (113.4% vs 15.3%)

United States Cellular's earnings growth has exceeded the US Wireless Telecom industry average in the past year (113.4% vs 7.7%).


Return on Equity

United States Cellular has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

United States Cellular used its assets less efficiently than the US Wireless Telecom industry average last year based on Return on Assets.


Return on Capital Employed

United States Cellular has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is United States Cellular's financial position?


Financial Position Analysis

United States Cellular is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

United States Cellular's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

United States Cellular's level of debt (38.6%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has increased over the past 5 years (25.7% vs 38.6% today).

Debt is well covered by operating cash flow (50.8%, 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 covered by short term assets, assets are 1.1x debt.


Next Steps

Dividend

What is United States Cellular's current dividend yield, its reliability and sustainability?


Dividend Yield and Payments Analysis

Unable to evaluate United States Cellular's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate United States Cellular's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as United States Cellular has not reported any payouts.

Unable to verify if United States Cellular's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as United States Cellular has not reported any payouts.


Future Payout to Shareholders

No need to calculate the sustainability of United States Cellular's dividends in 3 years as they are not expected to pay a notable one for United States of America.


Next Steps

Management

What is the CEO of United States Cellular's salary, the management and board of directors tenure and is there insider trading?

5.4yrs

Average management tenure


CEO

Ken Meyers (65yo)

6.3yrs

Tenure

US$8,600,136

Compensation

Mr. Kenneth R. Meyers, also known as Ken, has been the Chief Executive Officer and President of United States Cellular Corporation since June 22, 2013. Mr. Meyers served as the Chief Financial Officer and  ...


CEO Compensation Analysis

Ken's remuneration is higher than average for companies of similar size in United States of America.

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


Management Age and Tenure

5.4yrs

Average Tenure

61yo

Average Age

The average tenure for the United States Cellular management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

16.2yrs

Average Tenure

65.5yo

Average Age

The average tenure for the United States Cellular board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

United States Cellular individual insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$3,611,61923 Jul 19
GAMCO Investors, Inc.
EntityCompany
Shares72,210
Max PriceUS$50.02
SellUS$625,65020 Jun 19
Jay Ellison
EntityIndividual
Role
Chief Operating Officer
Executive VP & COO
Shares12,498
Max PriceUS$50.06
SellUS$226,55008 May 19
Steven Campbell
EntityIndividual
Role
Member of the Board of Directors
Executive VP
Shares4,703
Max PriceUS$48.17
SellUS$609,66206 May 19
Michael Irizarry
EntityIndividual
Role
Chief Technology Officer
Executive VP and CTO of Engineering & Information Services
Shares12,696
Max PriceUS$48.02
SellUS$61,01227 Mar 19
Ronald Daly
EntityIndividual
Role
Member of the Board of Directors
Director
Shares1,294
Max PriceUS$47.15
SellUS$100,23020 Mar 19
J. Crowley
EntityIndividual
Role
Member of the Board of Directors
Director
Shares2,115
Max PriceUS$47.39
SellUS$260,25008 Nov 18
Harry Harczak
EntityIndividual
Role
Member of the Board of Directors
Director
Shares5,000
Max PriceUS$52.05
SellUS$497,76006 Nov 18
Steven Campbell
EntityIndividual
Role
Member of the Board of Directors
Executive VP
Shares9,600
Max PriceUS$51.85
SellUS$131,61006 Nov 18
Michael Irizarry
EntityIndividual
Role
Chief Technology Officer
Executive VP and CTO of Engineering & Information Services
Shares2,515
Max PriceUS$52.33
SellUS$249,22206 Nov 18
Deirdre Drake
EntityIndividual
Role
Head of Human Resources
Executive VP & Chief Human Resources Officer
Shares4,654
Max PriceUS$53.55
SellUS$286,48206 Nov 18
Jay Ellison
EntityIndividual
Role
Chief Operating Officer
Executive VP & COO
Shares5,462
Max PriceUS$52.45
SellUS$14,647,78705 Nov 18
GAMCO Investors, Inc.
EntityCompany
Shares263,955
Max PriceUS$55.49
BuyUS$353,70805 Nov 18
GAMCO Investors, Inc.
EntityCompany
Shares7,166
Max PriceUS$55.49

Ownership Breakdown


Management Team

  • Ken Meyers (65yo)

    President

    • Tenure: 6.3yrs
    • Compensation: US$8.60m
  • Jay Ellison (66yo)

    Executive VP & COO

    • Tenure: 5.7yrs
    • Compensation: US$2.84m
  • Ted Carlson (72yo)

    Chairman of the Board

    • Tenure: 30.7yrs
  • Mike Irizarry (57yo)

    Executive VP and CTO of Engineering & Information Services

    • Tenure: 17.6yrs
    • Compensation: US$2.76m
  • Stephen Fitzell

    General Counsel & Assistant Secretary

    • Tenure: 0yrs
  • Steve Campbell (67yo)

    Executive VP

    • Tenure: 5yrs
    • Compensation: US$2.74m
  • Deirdre Drake (53yo)

    Executive VP & Chief Human Resources Officer

    • Tenure: 5.4yrs
    • Compensation: US$1.79m
  • Doug Chambers (49yo)

    Senior VP

    • Tenure: 0.3yrs
  • Ed Perez (52yo)

    Senior Vice President of Sales

    • Tenure: 5.2yrs
  • Anita Kroll

    Chief Accounting Officer

    • Tenure: 0.3yrs

Board Members

  • Peter Sereda (60yo)

    Director

    • Tenure: 5yrs
  • Greg Josefowicz (66yo)

    Director

    • Tenure: 10.3yrs
    • Compensation: US$215.46k
  • Ken Meyers (65yo)

    President

    • Tenure: 6.3yrs
    • Compensation: US$8.60m
  • Harry Harczak (62yo)

    Director

    • Tenure: 16.7yrs
    • Compensation: US$215.50k
  • Walter C. Carlson (65yo)

    Director

    • Tenure: 17.6yrs
    • Compensation: US$187.00k
  • J. Crowley (68yo)

    Director

    • Tenure: 21.7yrs
    • Compensation: US$235.25k
  • Ted Carlson (72yo)

    Chairman of the Board

    • Tenure: 30.7yrs
  • Ronald Daly (72yo)

    Director

    • Tenure: 15.7yrs
    • Compensation: US$206.25k
  • Steve Campbell (67yo)

    Executive VP

    • Tenure: 5yrs
    • Compensation: US$2.74m
  • Cece Stewart (60yo)

    Director

    • Tenure: 6.5yrs
    • Compensation: US$227.75k

Company Information

United States Cellular Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: United States Cellular Corporation
  • Ticker: USM
  • Exchange: NYSE
  • Founded: 1983
  • Industry: Wireless Telecommunication Services
  • Sector: Telecom
  • Market Cap: US$3.393b
  • Shares outstanding: 86.73m
  • Website: https://www.uscellular.com

Number of Employees


Location

  • United States Cellular Corporation
  • 8410 West Bryn Mawr
  • Suite 700
  • Chicago
  • Illinois
  • 60631
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
USMNYSE (New York Stock Exchange)YesCommon SharesUSUSDMay 1988
US7DB (Deutsche Boerse AG)YesCommon SharesDEEURMay 1988

Biography

United States Cellular Corporation provides wireless telecommunications services in the United States. The company offers postpaid and prepaid service plans with voice, messaging, and data usage option ser ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/16 23:41
End of Day Share Price2019/09/16 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.