tiprankstipranks
Trending News
More News >
AT&T (T)
NYSE:T

AT&T (T) AI Stock Analysis

Compare
41,127 Followers

Top Page

T

AT&T

(NYSE:T)

73Outperform
AT&T's overall stock score reflects its strong financial stability and positive earnings call outcomes. While technical indicators show a neutral to slightly bullish trend, high leverage remains a concern. The company's attractive dividend yield and strategic focus on growth areas like fiber and mobility enhance its long-term appeal, despite valuation being on the fair side.
Positive Factors
Customer Growth
Post-paid phone net additions exceeded expectations, indicating strong customer growth.
Share Buyback
AT&T plans to begin share buybacks earlier than anticipated, with at least $3B completed by year-end.
Negative Factors
Churn Impact
AT&T experienced outsized postpaid phone churn which could prove more expensive due to meaningful working capital needs.
Operational Expenses
Expected elevated churn together with higher device upgrades could drive incremental operational expenses and free cash flow pressures.

AT&T (T) vs. S&P 500 (SPY)

AT&T Business Overview & Revenue Model

Company DescriptionAT&T Inc. is a leading telecommunications company headquartered in the United States. It operates primarily in the telecommunications sector, providing a wide range of services including wireless communications, broadband, and video services. AT&T is known for its extensive wireless network, catering to both consumer and business markets. The company also offers internet and pay-TV services, positioning itself as a comprehensive provider of communication solutions.
How the Company Makes MoneyAT&T makes money primarily through its wireless communications services, which include voice, data, and text services to individual consumers and businesses. This segment generates significant revenue from monthly subscription plans, device sales, and prepaid services. Additionally, AT&T earns revenue from its broadband services, offering high-speed internet to residential and business customers. The company also derives income from its entertainment segment, which includes video services through platforms like DIRECTV. Key revenue streams include service fees, equipment sales, and advertising. Partnerships with device manufacturers and content providers enhance its offerings and contribute to its earnings.

AT&T Financial Statement Overview

Summary
AT&T demonstrates financial stability with strong gross margins and cash flow generation, although profitability metrics have faced pressure. The high leverage poses a risk but is partially mitigated by the company's consistent operating cash flow.
Income Statement
70
Positive
AT&T's gross profit margin is strong, indicating effective cost management, with a gross profit of $95.36 billion on $122.34 billion of revenue for 2024. However, the net profit margin has decreased compared to the prior year, reflecting tighter profit constraints. Revenue growth has been stagnant, with a slight decline from 2023 to 2024. EBIT and EBITDA margins are healthy but show room for improvement to enhance overall profitability.
Balance Sheet
65
Positive
The debt-to-equity ratio remains high, indicating AT&T's reliance on debt financing, with a total debt of $140.92 billion against $118.25 billion in equity. Return on equity has decreased, aligning with reduced net income, thus affecting shareholder returns. The equity ratio is stable at approximately 29.94%, suggesting a balanced asset-financing strategy, but further strengthening of equity could reduce financial risk.
Cash Flow
75
Positive
Operating cash flow is robust, with a slightly increasing trend, reaching $38.77 billion in 2024. The reduction in free cash flow is a concern, though it remains positive at $18.51 billion, ensuring operational flexibility. The ratio of operating cash flow to net income is strong, indicating efficient conversion of income into cash.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
122.34B122.43B120.74B134.04B171.76B
Gross Profit
95.36B72.31B69.89B73.63B91.84B
EBIT
19.05B23.46B-4.59B25.90B6.41B
EBITDA
44.04B45.32B21.07B53.72B33.57B
Net Income Common Stockholders
10.95B14.40B-8.52B20.08B-5.18B
Balance SheetCash, Cash Equivalents and Short-Term Investments
3.30B6.72B3.70B19.22B9.74B
Total Assets
394.80B407.06B402.85B551.62B525.76B
Total Debt
140.92B154.90B154.68B195.83B179.45B
Net Debt
137.63B148.18B150.98B176.61B169.71B
Total Liabilities
274.57B287.64B296.40B367.77B346.52B
Stockholders Equity
118.25B103.30B97.50B166.33B161.67B
Cash FlowFree Cash Flow
18.51B20.46B12.40B25.43B27.45B
Operating Cash Flow
38.77B38.31B32.02B41.96B43.13B
Investing Cash Flow
-18.07B-19.66B-25.80B-32.09B-13.55B
Financing Cash Flow
-24.71B-15.61B-23.74B1.58B-32.01B

AT&T Technical Analysis

Technical Analysis Sentiment
Positive
Last Price26.81
Price Trends
50DMA
26.69
Positive
100DMA
24.75
Positive
200DMA
22.52
Positive
Market Momentum
MACD
0.13
Positive
RSI
49.48
Neutral
STOCH
65.76
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For T, the sentiment is Positive. The current price of 26.81 is below the 20-day moving average (MA) of 27.11, above the 50-day MA of 26.69, and above the 200-day MA of 22.52, indicating a neutral trend. The MACD of 0.13 indicates Positive momentum. The RSI at 49.48 is Neutral, neither overbought nor oversold. The STOCH value of 65.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for T.

AT&T Risk Analysis

AT&T disclosed 22 risk factors in its most recent earnings report. AT&T reported the most risks in the “Macro & Political” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

AT&T Peers Comparison

Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
$128.18B8.1518.57%3.74%1.33%7.69%
TT
73
Outperform
$197.62B16.9111.38%4.14%0.50%-12.66%
AMAMX
72
Outperform
$52.26B34.077.78%2.98%3.15%-63.12%
72
Outperform
$264.30B27.1319.35%1.31%5.31%38.46%
71
Outperform
$59.20B10.6236.94%0.88%16.44%
VZVZ
66
Neutral
$184.54B10.5518.23%6.27%0.93%56.97%
59
Neutral
$13.73B6.72-2.47%3.83%2.30%-35.22%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
T
AT&T
26.81
10.63
65.70%
AMX
America Movil
16.99
-1.86
-9.87%
CHTR
Charter Communications
373.65
113.89
43.84%
CMCSA
Comcast
33.90
-3.69
-9.82%
VZ
Verizon
41.91
4.35
11.58%
TMUS
T Mobile US
232.77
70.81
43.72%

AT&T Earnings Call Summary

Earnings Call Date: Apr 23, 2025 | % Change Since: -0.56% | Next Earnings Date: Jul 23, 2025
Earnings Call Sentiment Neutral
AT&T started 2025 with strong performance in mobility and consumer wireline, driven by strategic investments in fiber and customer acquisition. However, challenges such as declining business wireline revenues and potential impacts from tariffs and increased churn present notable concerns.
Highlights
Solid Start to 2025
AT&T reported growth in consolidated service revenue and adjusted EBITDA, driven by strong postpaid phone and fiber net adds. Adjusted EPS and free cash flow also increased when excluding DIRECTV.
Fiber Expansion Success
AT&T is on track to exceed its target of passing over thirty million total locations with its fiber network by midyear 2025, ramping towards fifty million plus by 2029.
Strong Mobility and Consumer Wireline Performance
Total mobility revenues were up 4.7% year over year, with service revenues up 4.1%. Consumer wireline revenue grew by 5.1% year over year, driven by fiber revenue growth of 19%.
Successful Cost Management
AT&T reduced net debt by about one billion dollars in Q1 and plans to begin share repurchases this quarter, targeting at least three billion dollars by year-end.
Lowlights
Business Wireline Revenue Decline
Business wireline revenues declined approximately 9% year over year, primarily due to continued pressures on legacy and other transitional services.
Potential Impact of Tariffs
The announced tariffs could potentially increase the cost of smartphones, network, and technical equipment, impacting consumer and business demand.
Higher Upgrade Rates and Churn
AT&T saw an acceleration in consumer upgrade behavior and an increase in churn due to normalization and competitive offers, potentially impacting margins.
Company Guidance
During AT&T's First Quarter 2025 Earnings Call, the company provided guidance on several financial metrics. They reported a 2% increase in total revenues and a 1.2% rise in service revenues, with adjusted EBITDA growing by 4.4%. Adjusted EPS reached $0.51, marking a $0.03 increase from the previous year when excluding DIRECTV. The company's free cash flow for the first quarter was $3.1 billion, up by over $350 million on a comparable basis. Capital investment was reported at $4.5 billion. AT&T expects second-quarter capital investment to be between $4.5 billion and $5 billion and anticipates approximately $4 billion in free cash flow. The full-year free cash flow guidance remains at $16 billion plus. Growth was driven by strong performance in mobility and consumer wireline businesses, with postpaid phone net adds of 324,000 and fiber net adds of 261,000. The company also highlighted a strategic focus on customer acquisition and retention, emphasizing the benefits of their fiber and 5G playbook. Despite macroeconomic uncertainties, AT&T remains confident in achieving its financial targets for 2025 and plans to commence share repurchases in the second quarter, with at least $3 billion to be completed by year-end.

AT&T Corporate Events

Executive/Board ChangesShareholder Meetings
AT&T Director Glenn Hutchins Announces Departure
Neutral
Feb 5, 2025

Glenn H. Hutchins announced on January 30, 2025, that he will not seek re-election as a Director at AT&T’s 2025 Annual Meeting of Stockholders, although he will continue in his role until the meeting. This decision may impact AT&T’s board dynamics and strategic direction, influencing stakeholders and the company’s future governance.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.