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T-Mobile US Inc TMUS

Morningstar Rating
$175.53 +0.39 (0.22%)
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Company Report

T-Mobile's Planned US Cellular Acquisition Should Add Value

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—even if T-Mobile management insists on calling these "optimizations." This environment should support profitability and expanding cash flow.

Price vs Fair Value

TMUS is trading at a 50% premium.
Price
$175.53
Fair Value
$423.00
Uncertainty
Medium
1-Star Price
$982.00
5-Star Price
$298.00
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

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.

Bears

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.

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News

Trading Information

Previous Close Price
$175.14
Day Range
$173.83176.55
52-Week Range
$131.47185.42
Bid/Ask
$174.95 / $175.75
Market Cap
$206.27 Bil
Volume/Avg
3.1 Mil / 5.0 Mil

Key Statistics

Price/Earnings (Normalized)
21.26
Price/Sales
2.66
Dividend Yield (Trailing)
1.11%
Dividend Yield (Forward)
1.48%
Total Yield
6.95%

Company Profile

Deutsche Telekom merged its T-Mobile USA unit with prepaid specialist MetroPCS in 2013, and that firm merged with Sprint in 2020, creating the second-largest wireless carrier in the us T-Mobile now serves 77 million postpaid and 21 million prepaid phone customers, equal to around 30% of the us retail wireless market. The firm entered the fixed-wireless broadband market aggressively in 2021 and now serves more than 5 million residential and business customers. In addition, T-Mobile provides wholesale services to resellers.
Sector
Communication Services
Industry
Telecom Services
Stock Style Box
Large Core
Total Number of Employees
67,000

Competitors

Valuation

Metric
TMUS
T
CMCSA
Price/Earnings (Normalized)
21.268.279.52
Price/Book Value
3.331.291.85
Price/Sales
2.661.121.32
Price/Cash Flow
7.943.355.76
Price/Earnings
TMUS
T
CMCSA

Financial Strength

Metric
TMUS
T
CMCSA
Quick Ratio
0.730.300.54
Current Ratio
0.940.700.66
Interest Coverage
4.423.625.82
Quick Ratio
TMUS
T
CMCSA

Profitability

Metric
TMUS
T
CMCSA
Return on Assets (Normalized)
4.83%4.00%6.39%
Return on Equity (Normalized)
15.54%15.59%20.23%
Return on Invested Capital (Normalized)
7.04%7.87%10.84%
Return on Assets
TMUS
T
CMCSA
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