T-Mobile’s brand and reputation, coupled with its strong network and spectrum position, should enable it to continue gaining market share. We also expect a rational competitive landscape will allow the firm and its rivals to steadily, if modestly, increase prices, supporting profitability and expanding cash flow.
After several years of unprecedented success, T-Mobile’s reputation with consumers is as strong as ever. In an increasingly rational competitive environment, the firm will continue growing market share while increasing revenue per customer.
T-Mobile will eventually need to step up network investments to keep pace with AT&T and Verizon, which have dense fixed-line networks at their disposal. A costly acquisition could be necessary.
|
Metric
|
TMUS
|
T
|
VZ
|
|---|---|---|---|
Price/Earnings (Normalized) | 20.38 | 6.85 | 8.43 |
Price/Book Value | 3.02 | 1.14 | 1.78 |
Price/Sales | 2.49 | 0.98 | 1.25 |
Price/Cash Flow | 7.65 | 2.94 | 4.37 |
|
Metric
|
TMUS
|
T
|
VZ
|
|---|---|---|---|
Quick Ratio | 0.68 | 0.33 | 0.51 |
Current Ratio | 0.91 | 0.71 | 0.69 |
Interest Coverage | 4.30 | 3.96 | 4.01 |
|
Metric
|
TMUS
|
T
|
VZ
|
|---|---|---|---|
Return on Assets (Normalized) | 4.58% | 4.17% | 4.66% |
Return on Equity (Normalized) | 14.49% | 16.72% | 18.99% |
Return on Invested Capital (Normalized) | 6.73% | 8.19% | 7.89% |
|
Ticker
|
Name
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|
VZ
| Verizon Communications Inc | Qgvznrb | Xlmcnq | $167.1 Bil | |
CMCSA
| Comcast Corp Class A | Mdffzll | Krnc | $160.3 Bil | |
T
| AT&T Inc | Rfnf | Rxkybw | $117.0 Bil | |
DTEGY
| Deutsche Telekom AG ADR | Sxsvvmchp | Tcntxy | $112.1 Bil | |
KDDIY
| KDDI Corp ADR | Fmcxzzg | Flvhvh | $59.0 Bil | |
AMX
| America Movil SAB de CV ADR - Series B | Xnrkfwwx | Mfrwjc | $57.3 Bil | |
CHTR
| Charter Communications Inc Class A | Blskvsgg | Qwhxgyy | $38.5 Bil | |
ORAN
| Orange SA ADR | Rdwtvzs | Gsgx | $31.3 Bil | |
BCE
| BCE Inc | Khkdzczl | Hzcqs | $30.3 Bil |
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