About AT&T Inc.
AT&T Inc. provides telecommunications and technology services worldwide. It operates through two segments, Communications and Latin America. The Communications segment offers wireless voice and data communications services; and sells handsets, wireless data cards, wireless computing devices, carrying cases/protective covers, and wireless chargers through its own company-owned stores, agents, and third-party retail stores. It also provides AT&T Dedicated Internet, fiber ethernet and broadband, fixed wireless, and hosted and managed professional services; and copper-based voice and data, Virtual Private Networks (VPN), wholesale, outsourcing, and IP, as well as customer premises equipment for multinational corporations, small and mid-sized businesses, governmental, and wholesale customers. In addition, this segment offers broadband services, including fiber connections, legacy telephony voice communication services, and other VoIP services and equipment to residential customers. This segment markets its communications services and products under the AT&T, AT&T Business, Cricket, AT&T PREPAID, AT&T Fiber, and AT&T Internet Air brand names. Its Latin America segment provides postpaid and prepaid wireless services in Mexico under the AT&T and Unefon brand names, as well as sells smartphones through its stores, agents and third-party retail stores. The company was formerly known as SBC Communications Inc. and changed its name to AT&T Inc. in 2005. AT&T Inc. was incorporated in 1983 and is based in Dallas, Texas.
AT&T Inc. (T) is a Communication Services company in the Telecom Services industry with a market capitalisation of $178.6B. The stock trades at 8.60x trailing earnings and yields 4.26%.
- Sector
- Communication Services
- Industry
- Telecom Services
- Market cap
- $178.6B
- P/E ratio
- 8.60
- Forward P/E
- 10.16
- EPS (TTM)
- $3.03
- Revenue (TTM)
- $127.2B
- Free cash flow
- $10.1B
- Profit margin
- 16.9%
- Dividend yield
- 4.26%
- Beta
- 0.43
- Shares outstanding
- 6.9B
Financial health: Fair6.5/10
6 strengths, 3 concerns. Weakest points: debt to equity, net debt vs cash flow, current ratio.
- Debt to equity: 1.07 (Concern, benchmark < 0.5) — Debt of 1.07x equity is high against the 0.5x benchmark. It has improved over the last 4 years.
- Net debt vs cash flow: 6.0y (Concern, benchmark < 4 years) — Net debt of $116.5B is 6.0x annual free cash flow — about 6 years of cash flow to repay.
- Current ratio: 0.91 (Concern, benchmark > 1.5) — Short-term assets cover only 0.91x short-term liabilities — below 1.0, meaning bills due this year exceed the assets on hand to pay them. It has improved over the last 4 years.
- Return on equity: 19.5% (Strong, benchmark > 15%) — Earns 19.5% on shareholder equity, comfortably past the > 15% mark.
- Gross margin: 59.7% (Strong, benchmark > 40%) — Keeps 59.7% of revenue after the direct cost of sales, comfortably past the > 40% mark.
- Net margin: 17.5% (Strong, benchmark > 10%) — Turns 17.5% of revenue into profit, comfortably past the > 10% mark.
- Free cash flow: $19.4B (Strong, benchmark positive) — Generated $19.4B of free cash flow after capital spending. It has improved over the last 4 years.
- Revenue growth: 2.7% (Watch, benchmark > 10%) — Revenue changed 2.7% year on year, short of the > 10% mark.
- Earnings growth: 100.5% (Strong, benchmark > 10%) — Earnings changed 100.5% year on year, comfortably past the > 10% mark.
- Payout ratio: 37.3% (Strong, benchmark < 60%) — Pays out 37.3% of earnings as dividends, leaving room to keep paying.