Telephone and Data Systems, Inc.
Telephone and Data Systems, Inc. Fundamental Analysis
Telephone and Data Systems, Inc. (TDS-PV) shows weak financial fundamentals with a PE ratio of 35.66, profit margin of 6.19%, and ROE of 2.69%. The company generates $4.1B in annual revenue with weak year-over-year growth of -75.26%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -39.7/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze TDS-PV's fundamental strength across five key dimensions:
Efficiency Score
WeakTDS-PV struggles to generate sufficient returns from assets.
Valuation Score
ModerateTDS-PV shows balanced valuation metrics.
Growth Score
ModerateTDS-PV shows steady but slowing expansion.
Financial Health Score
ExcellentTDS-PV maintains a strong and stable balance sheet.
Profitability Score
ModerateTDS-PV maintains healthy but balanced margins.
Key Financial Metrics
Is TDS-PV Expensive or Cheap?
P/E Ratio
TDS-PV trades at 35.66 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, TDS-PV's PEG of 0.01 indicates potential undervaluation.
Price to Book
The market values Telephone and Data Systems, Inc. at 0.96 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 6.54 times EBITDA. This is generally considered low.
How Well Does TDS-PV Make Money?
Net Profit Margin
For every $100 in sales, Telephone and Data Systems, Inc. keeps $6.19 as profit after all expenses.
Operating Margin
Core operations generate -1.10 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $2.69 in profit for every $100 of shareholder equity.
ROA
Telephone and Data Systems, Inc. generates $1.61 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Telephone and Data Systems, Inc. produces operating cash flow of $912.81M, showing steady but balanced cash generation.
Free Cash Flow
Telephone and Data Systems, Inc. generates weak or negative free cash flow of $109.16M, restricting financial flexibility.
FCF Per Share
Each share generates $0.49 in free cash annually.
FCF Yield
TDS-PV converts 1.31% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
35.66
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.01
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.96
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.05
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.25
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.43
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.03
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
-0.00
vs 25 benchmark
How TDS-PV Stacks Against Its Sector Peers
| Metric | TDS-PV Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 35.66 | 23.97 | Worse (Expensive) |
| ROE | 2.69% | 990.00% | Weak |
| Net Margin | 6.19% | -58825.00% (disorted) | Weak |
| Debt/Equity | 0.25 | 0.75 | Strong (Low Leverage) |
| Current Ratio | 3.43 | 1.70 | Strong Liquidity |
| ROA | 1.61% | -6510.00% (disorted) | Weak |
TDS-PV outperforms its industry in 2 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Telephone and Data Systems, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-76.73%
Industry Style: Growth, Technology, Streaming
DecliningEPS CAGR
-102.73%
Industry Style: Growth, Technology, Streaming
DecliningFCF CAGR
-61.89%
Industry Style: Growth, Technology, Streaming
Declining