NYSE:USM

Stock Analysis Report

United States Cellular

Executive Summary

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

Snowflake

Mediocre balance sheet and slightly overvalued.


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

Stable Share Price: USM has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.7%

USM

-1.8%

US Wireless Telecom

0.7%

US Market


1 Year Return

-38.5%

USM

0.9%

US Wireless Telecom

13.7%

US Market

Return vs Industry: USM underperformed the US Wireless Telecom industry which returned 0.9% over the past year.

Return vs Market: USM underperformed the US Market which returned 13.7% over the past year.


Shareholder returns

USMIndustryMarket
7 Day-2.7%-1.8%0.7%
30 Day-5.6%-4.1%4.7%
90 Day-2.3%-2.7%6.1%
1 Year-38.5%-38.5%2.2%0.9%16.2%13.7%
3 Year-2.4%-2.4%18.1%14.2%48.8%39.2%
5 Year-8.1%-8.1%53.0%38.2%62.5%44.5%

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 compared to its fair value and its price relative to the market?

1.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: USM ($34.3) is trading below our estimate of fair value ($34.95)

Significantly Below Fair Value: USM is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: USM is poor value based on its PE Ratio (23.1x) compared to the Wireless Telecom industry average (21.3x).

PE vs Market: USM is poor value based on its PE Ratio (23.1x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: USM is poor value based on its PEG Ratio (2.3x)


Price to Book Ratio

PB vs Industry: USM is good value based on its PB Ratio (0.7x) compared to the US Wireless Telecom industry average (2.2x).


Next Steps

Future Growth

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

10.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: USM's forecast earnings growth (10.1% per year) is above the savings rate (2.7%).

Earnings vs Market: USM's earnings (10.1% per year) are forecast to grow slower than the US market (14.4% per year).

High Growth Earnings: USM's earnings are forecast to grow, but not significantly.

Revenue vs Market: USM's revenue (0.4% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: USM's revenue (0.4% 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 (5.1%).


Next Steps

Past Performance

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

12.3%

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 (10.2%).


Past Earnings Growth Analysis

Earnings Trend: USM has become profitable over the past 5 years, growing earnings by 12.3% per year.

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 (-67.7%) over the past year, making it difficult to compare to the Wireless Telecom industry average (-35.6%).


Return on Equity

High ROE: USM's Return on Equity (3.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is United States Cellular's financial position?


Financial Position Analysis

Short Term Liabilities: USM's short term assets ($1.8B) exceeds its short term liabilities ($850.0M)

Long Term Liabilities: USM's short term assets ($1.8B) do not cover its long term liabilities (3.2B)


Debt to Equity History and Analysis

Debt Level: USM's debt to equity ratio (38.4%) is considered satisfactory.

Reducing Debt: USM's debt to equity ratio has increased from 26.3% to 38.4% over the past 5 years.

Debt Coverage: USM's debt is well covered by operating cash flow (49.4%).

Interest Coverage: USM's interest payments on its debt are not well covered by EBIT (1.4x coverage).


Balance Sheet

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

Debt Coverage by Assets: USM's 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 vs Market

companyn/amarketbottom25%1.4%markettop25%3.6%industryaverage7.8%forecastin3Years0%

Current dividend yield vs market & industry

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

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

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

5.6yrs

Average management tenure


CEO

Ken Meyers (65yo)

6.4yrs

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

Compensation vs Market: Ken's total compensation ($USD8.60M) is above average for companies of similar size in the US market ($USD5.11M).

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


Management Age and Tenure

5.6yrs

Average Tenure

61yo

Average Age

Experienced Management: USM's management team is seasoned and experienced (5.6 years average tenure).


Board Age and Tenure

16.3yrs

Average Tenure

65.5yo

Average Age

Experienced Board: USM's board of directors are seasoned and experienced ( 16.3 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$83,68413 Nov 19
Gregory Josefowicz
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,374
Max PriceUS$35.25
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
Independent Director
Shares1,294
Max PriceUS$47.15
SellUS$100,23020 Mar 19
J. Crowley
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,115
Max PriceUS$47.39

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.9%.


Management Team

  • Ken Meyers (65yo)

    President

    • Tenure: 6.4yrs
    • Compensation: US$8.60m
  • Jay Ellison (66yo)

    Executive VP & COO

    • Tenure: 5.8yrs
    • Compensation: US$2.84m
  • Ted Carlson (72yo)

    Chairman of the Board

    • Tenure: 30.8yrs
  • Mike Irizarry (57yo)

    Executive VP and CTO of Engineering & Information Services

    • Tenure: 17.8yrs
    • Compensation: US$2.76m
  • Stephen Fitzell

    General Counsel & Assistant Secretary

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

    Executive VP

    • Tenure: 5.2yrs
    • Compensation: US$2.74m
  • Deirdre Drake (53yo)

    Executive VP & Chief Human Resources Officer

    • Tenure: 5.6yrs
    • Compensation: US$1.79m
  • Doug Chambers (49yo)

    Senior VP

    • Tenure: 0.4yrs
  • Ed Perez (52yo)

    Senior Vice President of Sales

    • Tenure: 5.3yrs
  • Anita Kroll

    Chief Accounting Officer

    • Tenure: 0.4yrs

Board Members

  • Peter Sereda (60yo)

    Director

    • Tenure: 5.2yrs
  • Greg Josefowicz (66yo)

    Independent Director

    • Tenure: 10.5yrs
    • Compensation: US$215.46k
  • Ken Meyers (65yo)

    President

    • Tenure: 6.4yrs
    • Compensation: US$8.60m
  • Harry Harczak (62yo)

    Independent Director

    • Tenure: 16.8yrs
    • Compensation: US$215.50k
  • Walter C. Carlson (65yo)

    Director

    • Tenure: 17.8yrs
    • Compensation: US$187.00k
  • J. Crowley (68yo)

    Independent Director

    • Tenure: 21.8yrs
    • Compensation: US$235.25k
  • Ted Carlson (72yo)

    Chairman of the Board

    • Tenure: 30.8yrs
  • Ronald Daly (72yo)

    Independent Director

    • Tenure: 15.8yrs
    • Compensation: US$206.25k
  • Steve Campbell (67yo)

    Executive VP

    • Tenure: 5.2yrs
    • Compensation: US$2.74m
  • Cece Stewart (60yo)

    Independent Director

    • Tenure: 6.7yrs
    • 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$2.955b
  • Shares outstanding: 86.15m
  • 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 Analysis2019/11/17 23:47
End of Day Share Price2019/11/15 00:00
Earnings2019/09/30
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.