We believe AT&T's strategy to invest heavily in its fiber network and expand 5G wireless coverage will solidify its competitive position. Rational competition in the wireless and broadband markets should allow the firm to deliver modest growth and solid cash flow, but the need to repay debt will limit shareholder returns over the next couple of years.
Following a period of investment, AT&T will hold a nationwide 5G wireless network with deep spectrum behind it and a fiber network capable of reaching nearly one fourth of the US.
The cost of maintaining dominance in the wireless industry by controlling spectrum has been exceptionally high over the years. AT&T has spent $40 billion over the past three years for licenses with few prospects for incremental revenue.
|
Metric
|
T
|
TMUS
|
CHTR
|
|---|---|---|---|
Price/Earnings (Normalized) | 7.49 | 21.49 | 8.66 |
Price/Book Value | 1.21 | 3.36 | 3.47 |
Price/Sales | 1.04 | 2.69 | 0.79 |
Price/Cash Flow | 3.08 | 8.03 | 2.88 |
|
Metric
|
T
|
TMUS
|
CHTR
|
|---|---|---|---|
Quick Ratio | 0.29 | 0.73 | 0.34 |
Current Ratio | 0.68 | 0.94 | 0.40 |
Interest Coverage | 3.82 | 4.42 | 2.34 |
|
Metric
|
T
|
TMUS
|
CHTR
|
|---|---|---|---|
Return on Assets (Normalized) | 4.10% | 4.83% | 3.93% |
Return on Equity (Normalized) | 16.15% | 15.54% | 53.43% |
Return on Invested Capital (Normalized) | 8.01% | 7.04% | 8.68% |
|
1-Day Chart
|
Name
|
Price
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|---|
| T-Mobile US Inc
TMUS
| Tybdxjfc | Lbcfw | $208.4 Bil | |||
| Verizon Communications Inc
VZ
| Xprxqpk | Dyxxy | $166.1 Bil | |||
| Comcast Corp Class A
CMCSA
| Rlqhvyksl | Vvvv | $146.4 Bil | |||
| Deutsche Telekom AG ADR
DTEGY
| Yhvrxqwrl | Fcvhld | $120.3 Bil | |||
| KDDI Corp ADR
KDDIY
| Dhjjrnhj | Lxwgxn | $55.2 Bil | |||
| America Movil SAB de CV ADR - Series B
AMX
| Szbpgzqm | Sgyjt | $52.4 Bil | |||
| Charter Communications Inc Class A
CHTR
| Xzljtgg | Nsjkm | $41.2 Bil | |||
| BCE Inc
BCE
| Jknsslfvt | Rwpwqt | $29.8 Bil | |||
| Orange SA ADR
ORAN
| Zmsnmsvf | Kcvg | $26.6 Bil |
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