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
Trailing Returns
Performance at a Glance
| Metric | Current stock: TMUS | Industry group median |
|---|---|---|
| 1-Year Return | -15.76% | 34.69% |
Risk
Drawdown
Risk at a Glance
| Metric | Current stock: TMUS | Industry group median |
|---|---|---|
| 1-Year Volatility | 25.03% | 37.68% |
| Beta | 0.31 | 0.70 |
Company Profile
| Profile Item | TMUS |
|---|---|
| Name | T-Mobile US, Inc. |
| Country/Region | United States |
| GICS Sector | Communication Services |
| GICS Industry Group | Telecommunication Services |
| GICS Industry | Wireless Telecommunication Services |
| GICS Sub-Industry | Wireless Telecommunication Services |
| Market Capitalization | 204.64 billion USD |
| Currency | USD |
| Exchange | Nasdaq |
| Listing Date | April 19, 2007 |
| Security Type | Common 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
- --
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
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
Valuation at a Glance
| Metric | Current stock: TMUS | Industry group median |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 20.07 | 16.62 |
| Price-to-Sales Ratio (TTM) | 2.26 | 0.90 |
| Price-to-Book Ratio (MRQ) | 3.67 | 1.88 |
| Free Cash Flow Yield | 5.45% | 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%
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%
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%
Profitability at a Glance
| Metric | Current stock: TMUS | Industry 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
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
Financial Strength at a Glance
| Metric | Current stock: TMUS | Industry group median |
|---|---|---|
| Current Ratio (MRQ) | 1.09 | 1.11 |
| Debt-to-Equity Ratio (MRQ) | 2.19 | 1.02 |
| Net Debt / EBITDA | 3.50 | 3.82 |
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%
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%
Dividends at a Glance
| Metric | Current stock: TMUS | Industry group median |
|---|---|---|
| Dividend Yield (TTM) | 2.16% | 0.44% |
| Dividend Payout Ratio (TTM) | 40.38% | 7.71% |