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USM

United States Cellular NYSE:USM Stock Report

Last Price

US$26.54

Market Cap

US$2.3b

7D

-0.4%

1Y

-17.6%

Updated

28 Sep, 2022

Data

Company Financials +
USM fundamental analysis
Snowflake Score
Valuation3/6
Future Growth0/6
Past Performance2/6
Financial Health2/6
Dividends0/6

USM Stock Overview

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

United States Cellular Competitors

Price History & Performance

Summary of all time highs, changes and price drops for United States Cellular
Historical stock prices
Current Share PriceUS$26.54
52 Week HighUS$33.67
52 Week LowUS$25.44
Beta0.61
1 Month Change-9.82%
3 Month Change-8.36%
1 Year Change-17.58%
3 Year Change-21.80%
5 Year Change-29.40%
Change since IPO-16.08%

Recent News & Updates

Sep 05
United States Cellular (NYSE:USM) Is Looking To Continue Growing Its Returns On Capital

United States Cellular (NYSE:USM) Is Looking To Continue Growing Its Returns On Capital

What trends should we look for it we want to identify stocks that can multiply in value over the long term? Amongst...

Shareholder Returns

USMUS Wireless TelecomUS Market
7D-0.4%-1.0%-2.0%
1Y-17.6%0.1%-20.3%

Return vs Industry: USM underperformed the US Wireless Telecom industry which returned -0.7% over the past year.

Return vs Market: USM exceeded the US Market which returned -22.1% over the past year.

Price Volatility

Is USM's price volatile compared to industry and market?
USM volatility
USM Average Weekly Movement4.0%
Wireless Telecom Industry Average Movement6.8%
Market Average Movement6.9%
10% most volatile stocks in US Market15.8%
10% least volatile stocks in US Market2.8%

Stable Share Price: USM is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: USM's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19834,700LT Therivelhttps://www.uscellular.com

United States Cellular Corporation provides wireless telecommunications services in the United States. The company offers wireless services, including voice, messaging, and data services. It also provides devices, such as smartphones and other handsets, tablets, wearables, mobile hotspots, routers, and internet of things devices.

United States Cellular Fundamentals Summary

How do United States Cellular's earnings and revenue compare to its market cap?
USM fundamental statistics
Market CapUS$2.27b
Earnings (TTM)US$131.00m
Revenue (TTM)US$4.12b

17.3x

P/E Ratio

0.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
USM income statement (TTM)
RevenueUS$4.12b
Cost of RevenueUS$1.90b
Gross ProfitUS$2.23b
Other ExpensesUS$2.10b
EarningsUS$131.00m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)1.53
Gross Margin54.00%
Net Profit Margin3.18%
Debt/Equity Ratio68.7%

How did USM perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is USM undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for USM?

Other financial metrics that can be useful for relative valuation.

USM key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.5x
Enterprise Value/EBITDA7.2x
PEG Ratio-1.4x

Price to Earnings Ratio vs Peers

How does USM's PE Ratio compare to its peers?

USM PE Ratio vs Peers
The above table shows the PE ratio for USM vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average13x
TIGO Millicom International Cellular
2.9x15.3%US$2.0b
TDS Telephone and Data Systems
16.7x-7.8%US$1.7b
PTNR Partner Communications
26.4xn/aUS$1.4b
GOGO Gogo
5.8x-1.1%US$1.6b
USM United States Cellular
17.3x-12.1%US$2.3b

Price-To-Earnings vs Peers: USM is expensive based on its Price-To-Earnings Ratio (17.3x) compared to the peer average (13x).


Price to Earnings Ratio vs Industry

How does USM's PE Ratio compare vs other companies in the Global Wireless Telecom Industry?

Price-To-Earnings vs Industry: USM is expensive based on its Price-To-Earnings Ratio (17.3x) compared to the Global Wireless Telecom industry average (14.8x)


Price to Earnings Ratio vs Fair Ratio

What is USM's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

USM PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio17.3x
Fair PE Ratio11.6x

Price-To-Earnings vs Fair Ratio: USM is expensive based on its Price-To-Earnings Ratio (17.3x) compared to the estimated Fair Price-To-Earnings Ratio (11.6x).


Share Price vs Fair Value

What is the Fair Price of USM when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: USM ($26.54) is trading below our estimate of fair value ($329.4)

Significantly Below Fair Value: USM is trading below fair value by more than 20%.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


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Future Growth

How is United States Cellular forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


-12.1%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: USM's earnings are forecast to decline over the next 3 years (-12.1% per year).

Earnings vs Market: USM's earnings are forecast to decline over the next 3 years (-12.1% per year).

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

Revenue vs Market: USM's revenue (0.8% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: USM's revenue (0.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: USM's Return on Equity is forecast to be low in 3 years time (3.6%).


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Past Performance

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

Past Performance Score

2/6

Past Performance Score 2/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


22.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: USM has high quality earnings.

Growing Profit Margin: USM's current net profit margins (3.2%) are lower than last year (4.5%).


Past Earnings Growth Analysis

Earnings Trend: USM's earnings have grown significantly by 22.5% per year over the past 5 years.

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

Earnings vs Industry: USM had negative earnings growth (-29.2%) over the past year, making it difficult to compare to the Wireless Telecom industry average (-29.2%).


Return on Equity

High ROE: USM's Return on Equity (3%) is considered low.


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Financial Health

How is United States Cellular's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: USM's short term assets ($1.7B) exceed its short term liabilities ($982.0M).

Long Term Liabilities: USM's short term assets ($1.7B) do not cover its long term liabilities ($5.4B).


Debt to Equity History and Analysis

Debt Level: USM's net debt to equity ratio (61.8%) is considered high.

Reducing Debt: USM's debt to equity ratio has increased from 43.9% to 68.7% over the past 5 years.

Debt Coverage: USM's debt is well covered by operating cash flow (31.9%).

Interest Coverage: USM's interest payments on its debt are not well covered by EBIT (1.3x coverage).


Balance Sheet


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Dividend

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

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage

Dividend Yield vs Market

United States Cellular Dividend Yield vs Market
How does United States Cellular dividend yield compare to the market?
SegmentDividend Yield
Company (United States Cellular)n/a
Market Bottom 25% (US)1.6%
Market Top 25% (US)4.6%
Industry Average (Wireless Telecom)4.9%
Analyst forecast in 3 Years (United States Cellular)0%

Notable Dividend: Unable to evaluate USM's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate USM's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if USM's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if USM's dividend payments have been increasing.


Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as USM has not reported any payouts.


Discover strong dividend paying companies

Management

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

3.7yrs

Average management tenure


CEO

LT Therivel (47 yo)

2.17yrs

Tenure

US$6,438,260

Compensation

Mr. Laurent C. Therivel, also known as LT, serves as President, Chief Executive Officer and Director at United States Cellular Corporation since July 1, 2020. He serves as Director at Telephone & Data Syst...


CEO Compensation Analysis

LT Therivel's Compensation vs United States Cellular Earnings
How has LT Therivel's remuneration changed compared to United States Cellular's earnings?
DateTotal Comp.SalaryCompany Earnings
Jun 30 2022n/an/a

US$131m

Mar 31 2022n/an/a

US$144m

Dec 31 2021US$6mUS$786k

US$155m

Sep 30 2021n/an/a

US$133m

Jun 30 2021n/an/a

US$185m

Mar 31 2021n/an/a

US$218m

Dec 31 2020US$9mUS$378k

US$229m

Compensation vs Market: LT's total compensation ($USD6.44M) is about average for companies of similar size in the US market ($USD5.58M).

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


Leadership Team

Experienced Management: USM's management team is considered experienced (3.7 years average tenure).


Board Members

Experienced Board: USM's board of directors are considered experienced (7.4 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: USM insiders have only sold shares in the past 3 months.


Recent Insider Transactions

NYSE:USM Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
16 Aug 22SellUS$261,936Deirdre DrakeIndividual8,574US$30.55
11 Aug 22SellUS$1,504Deirdre DrakeIndividual49US$30.70
10 Aug 22SellUS$225,928Deirdre DrakeIndividual7,364US$30.68
12 May 22SellUS$97,310Ronald DalyIndividual3,359US$28.97
25 Mar 22SellUS$84,101J. CrowleyIndividual2,752US$30.56

Ownership Breakdown

What is the ownership structure of USM?
Owner TypeNumber of SharesOwnership Percentage
Individual Insiders835,2231.0%
Institutions14,341,87816.7%
Public Companies70,788,70382.3%

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Top 25 shareholders own 97.66% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
82.73%
Telephone and Data Systems, Inc.
70,788,703$1.9b0%no data
2.39%
Dimensional Fund Advisors LP
2,048,049$54.4m7.91%0.01%
2.19%
GAMCO Investors, Inc.
1,875,528$49.8m-1.86%0.21%
2.15%
BlackRock, Inc.
1,843,184$48.9m-3.76%no data
1.76%
The Vanguard Group, Inc.
1,509,503$40.1m17.68%no data
1.22%
Private Management Group, Inc.
1,046,819$27.8m1.72%1.29%
0.67%
Kenneth Meyers
570,671$15.1m0%no data
0.47%
State Street Global Advisors, Inc.
403,869$10.7m3.67%no data
0.46%
Edmond De Rothschild Asset Management (France)
390,000$10.4m-23.59%0.16%
0.45%
Renaissance Technologies LLC
384,462$10.2m-0.31%0.01%
0.4%
Loomis Sayles & Company, L.P.
340,787$9.0m-5.41%0.02%
0.35%
Millennium Management LLC
299,551$8.0m345.57%0.01%
0.31%
Charles Schwab Investment Management, Inc.
263,216$7.0m7.94%no data
0.3%
Geode Capital Management, LLC
253,019$6.7m-7.01%no data
0.26%
Northern Trust Global Investments
224,547$6.0m-2.16%no data
0.26%
Jacobs Levy Equity Management Inc
223,183$5.9m-2.25%0.05%
0.19%
First Trust Advisors LP
160,732$4.3m0.25%no data
0.17%
Jay Ellison
149,012$4.0m0%no data
0.17%
Denali Advisors, LLC
141,642$3.8m15.81%1.7%
0.15%
Norges Bank Investment Management
127,967$3.4m0%no data
0.13%
Lombard Odier Asset Management (USA) Corp
112,000$3.0m12%0.49%
0.13%
PanAgora Asset Management, Inc.
107,902$2.9m4.88%0.02%
0.12%
Morgan Stanley, Investment Banking and Brokerage Investments
99,918$2.7m-19.44%no data
0.12%
FMR LLC
98,520$2.6m21.87%no data
0.11%
American Century Investment Management Inc
96,637$2.6m45.74%no data

Company Information

United States Cellular Corporation's 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
  • Implied Market Cap: US$2.271b
  • Shares outstanding: 85.56m
  • Website: https://www.uscellular.com

Number of Employees


Location

  • United States Cellular Corporation
  • 8410 West Bryn Mawr Avenue
  • 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

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/09/28 00:00
End of Day Share Price2022/09/28 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.