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T-Mobile US (TMUS) Stock Analysis

Here is a fundamental analysis of T-Mobile US (TMUS), benchmarking its profitability, financial strength, dividend and valuation against its industry group peers.

Performance

Cumulative Growth

TMUS
GSPC
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T-Mobile US (TMUS) vs. S&P 500 (GSPC): Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for T-Mobile US (TMUS) and S&P 500 (GSPC). Returns over one year are annualized.

Performance at a Glance

T-Mobile US (TMUS) metric values compared with Telecommunication Services industry-group medians
MetricCurrent stock: TMUSIndustry group median
1-Year Return-15.76%34.69%

Risk

Drawdown

TMUS
GSPC
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T-Mobile US (TMUS) vs. S&P 500 (GSPC): Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Risk at a Glance

T-Mobile US (TMUS) metric values compared with Telecommunication Services industry-group medians
MetricCurrent stock: TMUSIndustry group median
1-Year Volatility25.03%37.68%
Beta0.310.70

Company Profile

Company profile fields for T-Mobile US (TMUS)
Profile ItemTMUS
NameT-Mobile US, Inc.
Country/RegionUnited States
GICS SectorCommunication Services
GICS Industry GroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
GICS Sub-IndustryWireless Telecommunication Services
Market Capitalization204.64 billion USD
CurrencyUSD
ExchangeNasdaq
Listing DateApril 19, 2007
Security TypeCommon Stock

Valuation

Price-to-Earnings Ratio (TTM)

T-Mobile US (TMUS) trades at P/E ratio of 20.07, near the industry’s usual earnings multiple. The stock is not showing a clear peer discount or premium on trailing earnings.

TMUS

Telecommunication Services industry group

20.07

Group distribution
Max
36.60
Q3
21.85
TMUS
20.07
Median
16.62
Q1
8.57
Min
2.87
Largest peers
CHT
28.99
TMUS
20.07
AMX
16.62
VZ
11.73
T
7.76
VOD
--
SATS
--
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Where T-Mobile US (TMUS) stands on P/E ratio within its Telecommunication Services peer group — the box is the group’s distribution and the dots its largest members.

Price-to-Sales Ratio (TTM)

T-Mobile US (TMUS) trades at 2.26 on P/S ratio, roughly in the peer group’s normal range. The market is not making a strong cheap-or-rich statement about its revenue base.

TMUS

Telecommunication Services industry group

2.26

Group distribution
Max
3.67
Q3
2.31
TMUS
2.26
Median
0.90
Q1
0.39
Min
0.00
Largest peers
TMUS
2.26
SATS
2.23
VZ
1.44
T
1.29
VOD
0.88
CHT
0.15
AMX
0.09
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Where T-Mobile US (TMUS) stands on P/S ratio within its Telecommunication Services peer group — the box is the group’s distribution and the dots its largest members.

Price-to-Book Ratio (MRQ)

T-Mobile US (TMUS) trades at 3.67 on P/B ratio, roughly in line with the industry’s normal price-to-book range. Its balance sheet is not being priced at a clear discount or premium versus peers.

TMUS

Telecommunication Services industry group

3.67

Group distribution
Max
8.01
Q3
4.28
TMUS
3.67
Median
1.88
Q1
0.80
Min
0.01
Largest peers
CHT
11.41
SATS
5.86
AMX
3.89
TMUS
3.67
VZ
1.94
T
1.50
VOD
1.23
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Where T-Mobile US (TMUS) stands on P/B ratio within its Telecommunication Services peer group — the box is the group’s distribution and the dots its largest members.

Valuation at a Glance

T-Mobile US (TMUS) metric values compared with Telecommunication Services industry-group medians
MetricCurrent stock: TMUSIndustry group median
Price-to-Earnings Ratio (TTM)20.0716.62
Price-to-Sales Ratio (TTM)2.260.90
Price-to-Book Ratio (MRQ)3.671.88
Free Cash Flow Yield5.45%10.77%

Profitability

Return on Equity (TTM)

T-Mobile US (TMUS) posts ROE of 18.03%, in the upper peer quartile. That suggests the company earns more from each dollar of shareholders’ equity than most industry peers, a useful capital-efficiency signal.

TMUS

Telecommunication Services industry group

18.03%

Group distribution
Max
43.27%
TMUS
18.03%
Q3
17.95%
Median
6.68%
Q1
-17.20%
Min
-47.97%
Largest peers
AMX
21.13%
T
18.37%
TMUS
18.03%
VZ
17.20%
CHT
9.99%
VOD
0.11%
SATS
-112.28%
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Where T-Mobile US (TMUS) stands on ROE within its Telecommunication Services peer group — the box is the group’s distribution and the dots its largest members.

Net Profit Margin (TTM)

T-Mobile US (TMUS) keeps 11.65% of revenue as net profit, roughly in line with the peer group’s normal net margin range. Its full cost stack is taking a typical share of sales for the industry.

TMUS

Telecommunication Services industry group

11.65%

Group distribution
Max
41.74%
Q3
12.36%
TMUS
11.65%
Median
5.02%
Q1
-11.20%
Min
-31.47%
Largest peers
T
16.94%
CHT
16.24%
VZ
12.46%
TMUS
11.65%
AMX
9.23%
VOD
-0.98%
SATS
-97.56%
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Where T-Mobile US (TMUS) stands on net margin within its Telecommunication Services peer group — the box is the group’s distribution and the dots its largest members.

Operating Profit Margin (TTM)

T-Mobile US (TMUS) turns 24.01% of revenue into operating profit, putting operating margin in the upper peer quartile. Before financing and taxes enter the picture, the day-to-day business keeps more of each sales dollar than most industry peers.

TMUS

Telecommunication Services industry group

24.01%

Group distribution
Max
35.60%
TMUS
24.01%
Q3
21.32%
Median
12.69%
Q1
4.41%
Min
-8.71%
Largest peers
VZ
25.19%
TMUS
24.01%
T
22.72%
CHT
21.84%
AMX
21.33%
SATS
8.91%
VOD
7.78%
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Where T-Mobile US (TMUS) stands on operating margin within its Telecommunication Services peer group — the box is the group’s distribution and the dots its largest members.

Profitability at a Glance

T-Mobile US (TMUS) metric values compared with Telecommunication Services industry-group medians
MetricCurrent stock: TMUSIndustry group median
Return on Equity (TTM)18.03%6.68%
Return on Assets (TTM)5.87%2.86%
Net Profit Margin (TTM)11.65%5.02%
Operating Profit Margin (TTM)24.01%12.69%
Gross Profit Margin (TTM)63.28%56.37%

Financial Strength

Current Ratio (MRQ)

T-Mobile US (TMUS) has current ratio of 1.09, in the healthier middle range for its industry. The short-term asset cushion looks balanced relative to peers rather than stretched thin.

TMUS

Telecommunication Services industry group

1.09

Group distribution
Max
2.39
Q3
1.66
Median
1.11
TMUS
1.09
Q1
0.92
Min
0.25
Largest peers
CHT
1.64
VOD
1.14
TMUS
1.09
T
0.92
AMX
0.72
VZ
0.64
SATS
0.30
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Where T-Mobile US (TMUS) stands on current ratio within its Telecommunication Services peer group — the box is the group’s distribution and the dots its largest members.

Debt-to-Equity Ratio (MRQ)

T-Mobile US (TMUS) has debt-to-equity ratio of 2.19, in the higher-leverage quartile for its industry. The heavier reliance on borrowing can make earnings, rates, or refinancing conditions matter more.

TMUS

Telecommunication Services industry group

2.19

Group distribution
Max
3.82
TMUS
2.19
Q3
2.12
Median
1.02
Q1
0.65
Min
0.00
Largest peers
SATS
5.15
TMUS
2.19
VZ
1.92
AMX
1.71
T
1.25
VOD
1.00
CHT
0.10
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Where T-Mobile US (TMUS) stands on debt-to-equity ratio within its Telecommunication Services peer group — the box is the group’s distribution and the dots its largest members.

Financial Strength at a Glance

T-Mobile US (TMUS) metric values compared with Telecommunication Services industry-group medians
MetricCurrent stock: TMUSIndustry group median
Current Ratio (MRQ)1.091.11
Debt-to-Equity Ratio (MRQ)2.191.02
Net Debt / EBITDA3.503.82

Dividends

Dividend Yield (TTM)

T-Mobile US (TMUS) has dividend yield of 2.16%, in the industry’s normal income range. It provides a meaningful dividend without the red flag of an unusually high headline yield.

TMUS

Telecommunication Services industry group

2.16%

Group distribution
Max
8.73%
Q3
3.71%
TMUS
2.16%
Median
0.44%
Q1
0.00%
Min
0.00%
Largest peers
VZ
5.88%
T
4.71%
CHT
3.59%
VOD
3.56%
TMUS
2.16%
AMX
2.04%
SATS
0.00%
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Where T-Mobile US (TMUS) stands on dividend yield within its Telecommunication Services peer group — the box is the group’s distribution and the dots its largest members.

Dividend Payout Ratio (TTM)

T-Mobile US (TMUS) has payout ratio of 40.38%, within the industry’s typical payout band. The dividend shares profits with investors while leaving earnings coverage that looks normal for the peer group.

TMUS

Telecommunication Services industry group

40.38%

Group distribution
Max
149.01%
Q3
60.13%
TMUS
40.38%
Median
7.71%
Q1
0.00%
Min
0.00%
Largest peers
VOD
101.44%
CHT
96.91%
VZ
67.44%
TMUS
40.38%
T
36.51%
AMX
36.06%
SATS
0.00%
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Where T-Mobile US (TMUS) stands on payout ratio within its Telecommunication Services peer group — the box is the group’s distribution and the dots its largest members.

Dividends at a Glance

T-Mobile US (TMUS) metric values compared with Telecommunication Services industry-group medians
MetricCurrent stock: TMUSIndustry group median
Dividend Yield (TTM)2.16%0.44%
Dividend Payout Ratio (TTM)40.38%7.71%