NYSE:USM

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United States Cellular

Executive Summary

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


Snowflake Analysis

Undervalued with solid track record.


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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-2.8%

USM

-1.3%

US Wireless Telecom

-1.1%

US Market


1 Year Return

-22.1%

USM

27.2%

US Wireless Telecom

15.6%

US Market

Return vs Industry: USM underperformed the US Wireless Telecom industry which returned 28.5% over the past year.

Return vs Market: USM underperformed the US Market which returned 17.8% over the past year.


Shareholder returns

USMIndustryMarket
7 Day-2.8%-1.3%-1.1%
30 Day-1.0%-0.1%4.2%
90 Day-3.5%4.1%6.3%
1 Year-22.1%-22.1%27.7%27.2%18.2%15.6%
3 Year-19.0%-19.0%58.6%54.9%39.6%30.4%
5 Year-32.5%-32.5%127.4%117.5%79.5%59.2%

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?

43.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: USM ($29.28) is trading below our estimate of fair value ($51.69)

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 (13.9x) compared to the US Wireless Telecom industry average (23x).

PE vs Market: USM is good value based on its PE Ratio (13.9x) compared to the US market (19.1x).


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 (2.5x).


Next Steps

Future Growth

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

-13.6%

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 (-13.6% per year).

Earnings vs Market: USM's earnings are forecast to decline over the next 3 years (-13.6% per year).

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

Revenue vs Market: USM's revenue (1.1% per year) is forecast to grow slower than the US market (9.9% per year).

High Growth Revenue: USM's revenue (1.1% 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 (2.8%).


Next Steps

Past Performance

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

6.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: USM has high quality earnings.

Growing Profit Margin: USM's current net profit margins (4.5%) are higher than last year (3.6%).


Past Earnings Growth Analysis

Earnings Trend: USM's earnings have grown by 6.5% per year over the past 5 years.

Accelerating Growth: USM's earnings growth over the past year (26%) exceeds its 5-year average (6.5% per year).

Earnings vs Industry: USM earnings growth over the past year (26%) exceeded the Wireless Telecom industry 14.3%.


Return on Equity

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


Next Steps

Financial Health

How is United States Cellular's financial position?


Financial Position Analysis

Short Term Liabilities: USM's short term assets ($1.7B) exceed its short term liabilities ($697.0M).

Long Term Liabilities: USM's short term assets ($1.7B) do not cover its long term liabilities ($3.5B).


Debt to Equity History and Analysis

Debt Level: USM's debt to equity ratio (37.5%) is considered satisfactory.

Reducing Debt: USM's debt to equity ratio has increased from 33% to 37.5% over the past 5 years.

Debt Coverage: USM's debt is well covered by operating cash flow (57.7%).

Interest Coverage: USM's interest payments on its debt are not well covered by EBIT (1.6x coverage).


Balance Sheet


Next Steps

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?

1.8yrs

Average management tenure


CEO

Laurent Therivel (45 yo)

0.25

Tenure

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 ...


Leadership Team

NamePositionTenureCompensationOwnership
Douglas Chambers
Executive VP1.33yrsUS$515.91kno data
Michael Irizarry
Executive VPno dataUS$2.81m0%
$ 0
Deirdre Drake
Executive VP & Chief People Officer6.5yrsUS$1.94m0%
$ 0
Jay Ellison
Special Advisor to President & CEOno dataUS$2.89m0%
$ 0
Laurent Therivel
President0.25yrno datano data
Anita Kroll
Chief Accounting Officer1.33yrsno datano data
Julie Mathews
Director of Investor Relationsno datano datano data
Stephen Fitzell
General Counsel & Assistant Secretaryno datano datano data
Jay Spenchian
Senior Vice President of Marketing3.25yrsno datano data
Kevin Lowell
Senior Vice President of Information Technology1.75yrsno datano data
John Gockley
Senior Vice President of Legal & Regulatory Affairs1.75yrsno datano data
Eric Jagher
Senior Vice President of Retail Sales & Operationsno datano datano data

1.8yrs

Average Tenure

56yo

Average Age

Experienced Management: USM's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Michael Irizarry
Executive VPno dataUS$2.81m0%
$ 0
Laurent Therivel
President0.25yrno datano data
Peter Sereda
Non-Independent Director6.08yrsno datano data
Gregory Josefowicz
Independent Director11.42yrsUS$236.50k0.021%
$ 521.9k
Harry Harczak
Independent Director17.75yrsUS$215.50k0.012%
$ 314.3k
Walter C. Carlson
Non-Independent Director31.75yrsUS$192.25k0.033%
$ 818.0k
J. Crowley
Independent Director22.75yrsUS$237.00k0.0061%
$ 154.5k
Paul-Henri Denuit
Director Emeritus3.42yrsUS$211.25kno data
LeRoy Carlson
Chairman of the Board31.75yrsno datano data
Ronald Daly
Independent Director16.75yrsUS$208.00k0.0046%
$ 116.8k
Kurt Thaus
Non-Independent Director6.08yrsno datano data
Cecelia Stewart
Independent Director7.58yrsUS$231.25k0.019%
$ 468.0k

11.4yrs

Average Tenure

64.5yo

Average Age

Experienced Board: USM's board of directors are seasoned and experienced ( 11.4 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

Ownership Breakdown

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


Top Shareholders

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$2.516b
  • Shares outstanding: 85.94m
  • 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 Analysis2020/10/26 23:40
End of Day Share Price2020/10/26 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.