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USM

United States CellularNYSE:USM Stock Report

Market Cap

US$2.7b

7D

1.8%

1Y

4.5%

Updated

27 Sep, 2021

Data

Company Financials +
USM fundamental analysis
Snowflake Score
Valuation5/6
Future Growth0/6
Past Performance2/6
Financial Health2/6
Dividends0/6

USM Overview

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

United States Cellular Competitors

T-Mobile US

NasdaqGS:TMUS

US$159.5b

Telephone and Data Systems

NYSE:TDS

US$2.3b

Apple

NasdaqGS:AAPL

US$2.4t

Microsoft

NasdaqGS:MSFT

US$2.2t

Price History & Performance

Summary of all time highs, changes and price drops for United States Cellular
Historical stock prices
Current Share PriceUS$31.45
52 Week HighUS$28.19
52 Week LowUS$39.96
Beta0.63
1 Month Change-1.75%
3 Month Change-12.03%
1 Year Change4.45%
3 Year Change-28.77%
5 Year Change-13.36%
Change since IPO-0.55%

Recent News & Updates

Sep 22

United States Cellular: Approaching A Long-Term Buying Opportunity

Shares have stooped to the lows of their long-term consolidation area. Returns on deployed capital though finally beginning to increase. We will see a firm bottom soon enough here.

Sep 15
Does United States Cellular (NYSE:USM) Have A Healthy Balance Sheet?

Does United States Cellular (NYSE:USM) Have A Healthy Balance Sheet?

Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of...

Shareholder Returns

USMUS Wireless TelecomUS Market
7D1.8%1.7%2.0%
1Y4.5%12.1%32.8%

Return vs Industry: USM underperformed the US Wireless Telecom industry which returned 15.5% over the past year.

Return vs Market: USM underperformed the US Market which returned 35.3% over the past year.

Price Volatility

Is USM's price volatile compared to industry and market?
USM volatility
USM Beta0.63
Industry Beta0.58
Market Beta1

Stable Share Price: USM is not significantly more volatile than the rest 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
19835,000Laurent 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 wireless devices, such as handsets, tablets, mobile hotspots, home phones, and routers, as well as accessories; sells wireless devices to agents and other third-party distributors for resale; and offers option to purchase devices and accessories under instalment contracts.

United States Cellular Fundamentals Summary

How do United States Cellular's earnings and revenue compare to its market cap?
USM fundamental statistics
Market CapUS$2.73b
Earnings (TTM)US$185.00m
Revenue (TTM)US$4.14b

14.7x

P/E Ratio

0.7x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
USM income statement (TTM)
RevenueUS$4.14b
Cost of RevenueUS$1.90b
Gross ProfitUS$2.23b
ExpensesUS$2.05b
EarningsUS$185.00m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)2.13
Gross Margin54.00%
Net Profit Margin4.47%
Debt/Equity Ratio59.9%

How did USM perform over the long term?

See historical performance and comparison

Valuation

Is United States Cellular undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: USM ($31.45) is trading below our estimate of fair value ($234.31)

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


Price To Earnings Ratio

PE vs Industry: USM is good value based on its PE Ratio (14.7x) compared to the US Wireless Telecom industry average (107.9x).

PE vs Market: USM is good value based on its PE Ratio (14.7x) compared to the US market (17.9x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: USM is good value based on its PB Ratio (0.6x) compared to the US Wireless Telecom industry average (2x).


Future Growth

How is United States Cellular forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

-3.6%

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 (-3.6% per year).

Earnings vs Market: USM's earnings are forecast to decline over the next 3 years (-3.6% per year).

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

Revenue vs Market: USM's revenue (1.7% per year) is forecast to grow slower than the US market (9.8% per year).

High Growth Revenue: USM's revenue (1.7% 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%).


Past Performance

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

31.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: USM has a high level of non-cash earnings.

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


Past Earnings Growth Analysis

Earnings Trend: USM's earnings have grown significantly by 31.1% per year over the past 5 years.

Accelerating Growth: USM's earnings growth over the past year (2.8%) is below its 5-year average (31.1% per year).

Earnings vs Industry: USM earnings growth over the past year (2.8%) exceeded the Wireless Telecom industry 2.4%.


Return on Equity

High ROE: USM's Return on Equity (4.2%) is considered low.


Financial Health

How is United States Cellular's financial position?


Financial Position Analysis

Short Term Liabilities: USM's short term assets ($1.6B) exceed its short term liabilities ($751.0M).

Long Term Liabilities: USM's short term assets ($1.6B) do not cover its long term liabilities ($4.6B).


Debt to Equity History and Analysis

Debt Level: USM's debt to equity ratio (59.9%) is considered high.

Reducing Debt: USM's debt to equity ratio has increased from 44.3% to 59.9% over the past 5 years.

Debt Coverage: USM's debt is well covered by operating cash flow (33.5%).

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


Balance Sheet


Dividend

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


Dividend Yield vs Market

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.


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of USM's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

2.7yrs

Average management tenure


CEO

Laurent Therivel (45 yo)

1.17yrs

Tenure

US$9,234,730

Compensation

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


CEO Compensation Analysis

Compensation vs Market: Laurent's total compensation ($USD9.23M) is above average for companies of similar size in the US market ($USD5.28M).

Compensation vs Earnings: Insufficient data to compare Laurent's compensation with company performance.


Leadership Team

Experienced Management: USM's management team is considered experienced (2.7 years average tenure).


Board Members

Experienced Board: USM's board of directors are seasoned and experienced ( 12.3 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

Ownership Breakdown

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


Top Shareholders

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
  • Market Cap: US$2.728b
  • Shares outstanding: 86.74m
  • Website: https://www.uscellular.com

Number of Employees


Location

  • United States Cellular Corporation
  • 8410 West Bryn Mawr Avenue
  • Suite 700
  • Chicago
  • Illinois
  • 60631-3486
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/27 22:56
End of Day Share Price2021/09/27 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.