T-Mobile US, Inc.
T-Mobile US, Inc. Fundamental Analysis
T-Mobile US, Inc. (TMUS.SW) shows moderate financial fundamentals with a PE ratio of 10.68, profit margin of 14.29%, and ROE of 14.90%. The company generates $120.8B in annual revenue with moderate year-over-year growth of 3.62%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 50.0/100 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 TMUS.SW's fundamental strength across five key dimensions:
Efficiency Score
WeakTMUS.SW struggles to generate sufficient returns from assets.
Valuation Score
ModerateTMUS.SW shows balanced valuation metrics.
Growth Score
ModerateTMUS.SW shows steady but slowing expansion.
Financial Health Score
ModerateTMUS.SW shows balanced financial health with some risks.
Profitability Score
WeakTMUS.SW struggles to sustain strong margins.
Key Financial Metrics
Is TMUS.SW Expensive or Cheap?
P/E Ratio
TMUS.SW trades at 10.68 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, TMUS.SW's PEG of 3.75 indicates potential overvaluation.
Price to Book
The market values T-Mobile US, Inc. at 1.74 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 4.82 times EBITDA. This is generally considered low.
How Well Does TMUS.SW Make Money?
Net Profit Margin
For every $100 in sales, T-Mobile US, Inc. keeps $14.29 as profit after all expenses.
Operating Margin
Core operations generate 22.72 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $14.90 in profit for every $100 of shareholder equity.
ROA
T-Mobile US, Inc. generates $4.67 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 $36.50B, reflecting robust business health.
Free Cash Flow
T-Mobile US, Inc. generates strong free cash flow of $23.17B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $9.33 in free cash annually.
FCF Yield
TMUS.SW converts 5.73% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
10.68
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
3.75
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.74
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.35
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.93
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.21
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.15
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.08
vs 25 benchmark
How TMUS.SW Stacks Against Its Sector Peers
| Metric | TMUS.SW Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 10.68 | 22.85 | Better (Cheaper) |
| ROE | 14.90% | 996.00% | Weak |
| Net Margin | 14.29% | -61392.00% (disorted) | Strong |
| Debt/Equity | 1.93 | 1.12 | Weak (High Leverage) |
| Current Ratio | 1.21 | 1.65 | Neutral |
| ROA | 4.67% | -583086.00% (disorted) | Weak |
TMUS.SW outperforms its industry in 2 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
32.40%
Industry Style: Growth, Technology, Streaming
High GrowthEPS CAGR
139.30%
Industry Style: Growth, Technology, Streaming
High GrowthFCF CAGR
139.10%
Industry Style: Growth, Technology, Streaming
High Growth