T-Mobile US Inc TMUS

Morningstar Rating
$163.64 +1.91 (1.18%)
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Company Report

T-Mobile's Growth Is Slowing as Rivals Push Back

T-Mobile’s brand and reputation, coupled with a strong network and spectrum position, should drive strong market share gains over the next couple of years. In the longer term, however, we expect AT&T and Verizon to match T-Mobile, and that market share will stabilize among the three carriers. While competition is currently elevated, a rational competitive landscape should emerge, allowing for stable pricing, disciplined investment, and expanding cash flow.

Price vs Fair Value

TMUS is trading within a range we consider fairly valued.
Price
$161.73
Fair Value
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Uncertainty
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1-Star Price
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5-Star Price
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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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Trading Information

Previous Close Price
$161.73
Day Range
$160.81–164.57
52-Week Range
$160.81–233.26
Bid/Ask
$163.03 / $164.01
Shares Outstanding
1.07B
Market Cap
$175.53B
Volume/Avg
3M / 5M

Key Statistics

Price/Earnings (Normalized)
14.48
Price/Sales
1.94
Dividend Yield (Trailing)
2.52%
Dividend Yield (Forward)
2.89%
Dividend Payment Schedule
Mar, Jun, Sep, Dec
Total Yield
9.48%

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 about 86 million postpaid and 26 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 8 million residential and business customers with its wireless network. It also serves 1 million fiber broadband customers through joint ventures with fiber network owners. T-Mobile owns a stake in these firms, which provide wholesale access to their networks. In addition, T-Mobile provides wholesale services to wireless resellers.
Sector
Communication Services
Industry
Telecom Services
Stock Style Box
Large Value
Total Number of Employees
75,000

Competitors

Valuation

Metric
TMUS
VZ
T
Price/Earnings (Normalized)
14.489.4210.66
Price/Book Value
3.091.851.51
Price/Sales
1.941.391.35
Price/Cash Flow
5.724.704.45
Price/Earnings
TMUS
VZ
T

Financial Strength

Metric
TMUS
VZ
T
Quick Ratio
0.540.500.49
Current Ratio
0.920.640.97
Interest Coverage
4.443.894.64
Quick Ratio
TMUS
VZ
T

Profitability

Metric
TMUS
VZ
T
Return on Assets (Normalized)
5.90%4.06%4.36%
Return on Equity (Normalized)
21.68%15.75%16.75%
Return on Invested Capital (Normalized)
8.82%7.53%8.68%
Return on Assets
TMUS
VZ
T

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