T-Mobile US, Inc. Fundamental Analysis
T-Mobile US, Inc. (TM5.DE) shows moderate financial fundamentals with a PE ratio of 18.80, profit margin of 11.65%, and ROE of 17.82%. The company generates $89.0B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 58.7/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze TM5.DE's fundamental strength across five key dimensions:
Efficiency Score
WeakTM5.DE struggles to generate sufficient returns from assets.
Valuation Score
ExcellentTM5.DE trades at attractive valuation levels.
Growth Score
ModerateTM5.DE shows steady but slowing expansion.
Financial Health Score
ModerateTM5.DE shows balanced financial health with some risks.
Profitability Score
ModerateTM5.DE maintains healthy but balanced margins.
Key Financial Metrics
Is TM5.DE Expensive or Cheap?
P/E Ratio
TM5.DE trades at 18.80 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, TM5.DE's PEG of -2.48 indicates potential undervaluation.
Price to Book
The market values T-Mobile US, Inc. at 3.50 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 2.31 times EBITDA. This is generally considered low.
How Well Does TM5.DE Make Money?
Net Profit Margin
For every $100 in sales, T-Mobile US, Inc. keeps $11.65 as profit after all expenses.
Operating Margin
Core operations generate 20.83 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $17.82 in profit for every $100 of shareholder equity.
ROA
T-Mobile US, Inc. generates $4.93 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
T-Mobile US, Inc. generates strong operating cash flow of $27.84B, reflecting robust business health.
Free Cash Flow
T-Mobile US, Inc. generates strong free cash flow of $16.99B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $15.70 in free cash annually.
FCF Yield
TM5.DE converts 9.01% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
18.80
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-2.48
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.50
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.12
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
2.17
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.09
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.18
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.10
vs 25 benchmark
How TM5.DE Stacks Against Its Sector Peers
| Metric | TM5.DE Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 18.80 | 20.22 | Neutral |
| ROE | 17.82% | 554.00% | Weak |
| Net Margin | 11.65% | -232.00% (disorted) | Strong |
| Debt/Equity | 2.17 | 0.75 | Weak (High Leverage) |
| Current Ratio | 1.09 | 1.99 | Neutral |
| ROA | 4.93% | 8.00% | Weak |
TM5.DE outperforms its industry in 1 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews T-Mobile US, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Growth, Technology, Streaming
EPS CAGR
N/A
Industry Style: Growth, Technology, Streaming
FCF CAGR
N/A
Industry Style: Growth, Technology, Streaming