About T-Mobile US, Inc.
T-Mobile US, Inc., together with its subsidiaries, provides wireless communications services in the United States, Puerto Rico, and the United States Virgin Islands. The company offers voice, messaging, and data services to postpaid, prepaid, and wholesale and other services customers. It also provides wireless devices, including smartphones, wearables, tablets, home broadband gateways, headsets, and other mobile communication devices, as well as accessories; financing through equipment installment plans; reinsurance for device insurance policies and extended warranty contracts. The company offers services under the T-Mobile, Metro by T-Mobile, and Mint Mobile brands through its owned and operated retail stores, customer care channels, national retailers, and its websites, as well as through T-Mobile, Metro by T-Mobile, and Mint Mobile apps. It also sells devices to dealers and other third-party distributors for resale through independent third-party retail outlets and various third-party websites. It has 700 MHz wireless spectrum licenses. The company was founded in 1994 and is headquartered in Bellevue, Washington. T-Mobile US, Inc. operates as a subsidiary of Deutsche Telekom AG.
T-Mobile US, Inc. (TMUS) is a Communication Services company in the Telecom Services industry with a market capitalisation of $175.5B. The stock trades at 17.12x trailing earnings and yields 2.89%.
- Sector
- Communication Services
- Industry
- Telecom Services
- Market cap
- $175.5B
- P/E ratio
- 17.12
- Forward P/E
- 11.33
- EPS (TTM)
- $9.56
- Revenue (TTM)
- $92.2B
- Free cash flow
- $11.3B
- Profit margin
- 11.5%
- Dividend yield
- 2.89%
- Beta
- 0.33
- Shares outstanding
- 1.1B
Financial health: Fair6.8/10
6 strengths, 2 concerns. Weakest points: debt to equity, current ratio.
- Debt to equity: 1.46 (Concern, benchmark < 0.5) — Debt of 1.46x equity is high against the 0.5x benchmark. It has deteriorated over the last 4 years.
- Net debt vs cash flow: 4.5y (Watch, benchmark < 4 years) — Net debt of $80.7B is 4.5x annual free cash flow — about 4 years of cash flow to repay.
- Current ratio: 1.00 (Concern, benchmark > 1.5) — Short-term assets cover only 1.00x 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: 18.0% (Strong, benchmark > 15%) — Earns 18.0% on shareholder equity, comfortably past the > 15% mark.
- Gross margin: 63.0% (Strong, benchmark > 40%) — Keeps 63.0% of revenue after the direct cost of sales, comfortably past the > 40% mark.
- Net margin: 11.5% (Strong, benchmark > 10%) — Turns 11.5% of revenue into profit, comfortably past the > 10% mark.
- Free cash flow: $18.0B (Strong, benchmark positive) — Generated $18.0B of free cash flow after capital spending. It has improved over the last 4 years.
- Revenue growth: 7.9% (Watch, benchmark > 10%) — Revenue changed 7.9% year on year, short of the > 10% mark.
- Earnings growth: 5.3% (Watch, benchmark > 10%) — Earnings changed 5.3% year on year, short of the > 10% mark.
- PEG ratio: 0.59 (Strong, benchmark < 1) — At 0.59, the price looks cheap relative to expected growth — Lynch treated 1.0 as fair value.
- Payout ratio: 41.2% (Strong, benchmark < 60%) — Pays out 41.2% of earnings as dividends, leaving room to keep paying.