AT&T: Network Outage Shouldn’t Hurt Customer Growth
We don’t expect AT&T’s wireless network outage will have major long-term ramifications, but the firm could take a relatively small financial hit. We aren’t changing our $23 fair value estimate.
We don’t expect AT&T’s wireless network outage will have major long-term ramifications, but the firm could take a relatively small financial hit. We aren’t changing our $23 fair value estimate.
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 U.S.
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
|
CHTR
|
TMUS
|
---|---|---|---|
Price/Earnings (Normalized) | 7.18 | 9.13 | 20.12 |
Price/Book Value | 1.20 | 3.88 | 2.98 |
Price/Sales | 1.03 | 0.82 | 2.46 |
Price/Cash Flow | 3.08 | 3.02 | 7.55 |
Metric
|
T
|
CHTR
|
TMUS
|
---|---|---|---|
Quick Ratio | 0.33 | 0.28 | 0.68 |
Current Ratio | 0.71 | 0.31 | 0.91 |
Interest Coverage | 3.96 | 2.32 | 4.30 |
Metric
|
T
|
CHTR
|
TMUS
|
---|---|---|---|
Return on Assets (Normalized) | 4.17% | 3.92% | 4.58% |
Return on Equity (Normalized) | 16.72% | 55.87% | 14.49% |
Return on Invested Capital (Normalized) | 8.19% | 8.68% | 6.73% |
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Name
|
Morningstar Rating for Stocks
|
Economic Moat
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Market Cap
|
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TMUS
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