United States Cellular Corporation Fundamental Analysis (NYSE: USM)
United States Cellular Corporation Fundamental Analysis (NYSE: USM)
United States Cellular Corporation (NYSE: USM) shows weak financial fundamentals with a PE ratio of 43.51, profit margin of -44.75%, and ROE of 33.43%. The company generates $-1.5B 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 -4.1/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze USM's fundamental strength across five key dimensions:
Efficiency Score
WeakUSM struggles to generate sufficient returns from assets.
Valuation Score
ModerateUSM shows balanced valuation metrics.
Growth Score
WeakUSM faces weak or negative growth trends.
Financial Health Score
ModerateUSM shows balanced financial health with some risks.
Profitability Score
WeakUSM struggles to sustain strong margins.
Key Financial Metrics
Is USM Expensive or Cheap?
P/E Ratio
USM trades at 43.51 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, USM's PEG of 0.06 indicates potential undervaluation.
Price to Book
The market values United States Cellular Corporation at 5.23 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 7.65 times EBITDA. This is generally considered low.
How Well Does USM Make Money?
Net Profit Margin
For every $100 in sales, United States Cellular Corporation keeps $-44.75 as profit after all expenses.
Operating Margin
Core operations generate -25.46 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $33.43 in profit for every $100 of shareholder equity.
ROA
United States Cellular Corporation generates $0.00 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
United States Cellular Corporation generates strong operating cash flow of $-421.06M, reflecting robust business health.
Free Cash Flow
United States Cellular Corporation generates strong free cash flow of $-319.37M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $-3.71 in free cash annually.
FCF Yield
USM converts -4.84% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
43.51
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.06
vs 25 benchmark
P/B Ratio
Price to book value ratio
5.23
vs 25 benchmark
P/S Ratio
Price to sales ratio
-4.31
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.42
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.00
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.33
vs 25 benchmark
ROA
Return on assets percentage
0.00
vs 25 benchmark
ROCE
Return on capital employed
-0.85
vs 25 benchmark
How USM Stacks Against Its Sector Peers
| Metric | USM Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 43.51 | 19.63 | Worse (Expensive) |
| ROE | 33.43% | 605.00% | Weak |
| Net Margin | -44.75% | 492.00% | Weak |
| Debt/Equity | 0.42 | 0.80 | Strong (Low Leverage) |
| Current Ratio | 0.00 | 1.90 | Weak Liquidity |
| ROA | 0.00% | 301.00% | Weak |
USM outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews United States Cellular Corporation'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