Telephone & Data Systems (TDS) AI Stock Analysis

• Market Cap: $3.80B
• Dividend Yield: 0.45%
• Average Volume (3M): 1.12M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.65
• Revenue Growth: -3.80%
• EPS Growth: 83.27%
• Country: US
• Employees: 7,900
• Sector: Communication Services
• Sector Strength: 77
• Industry: Telecommunications Services
• EPS (TTM): -0.84
• Shares Outstanding: 107,208,070
• 10 Day Avg. Volume: 1,157,194
• 30 Day Avg. Volume: 1,121,659
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.85
• Price to Cash Flow (P/CF): 5.00
• P/FCF Ratio: 7.30
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $53.50
• Price Target Upside: 49.99% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

TDS's overall stock score reflects challenges in financial performance due to declining revenues and profitability, balanced somewhat by strong cash flow generation. While technical trends show moderate momentum, valuation metrics are less favorable. Strategic initiatives and leadership changes provide a positive outlook, but execution risks remain.

Telephone & Data Systems Business Overview & Revenue Model

Company Description

Telephone and Data Systems, Inc. (TDS) is a telecommunications company that provides wireless, broadband, video, and voice services to customers across the United States. The company operates through its primary business segments: U.S. Cellular, which offers wireless services and products, and TDS Telecom, which provides wireline and cable services. Established in 1969, TDS is headquartered in Chicago, Illinois, and focuses on delivering high-quality communications experiences to both urban and rural communities.

How the Company Makes Money

Telephone and Data Systems generates revenue primarily through its two main business segments, U.S. Cellular and TDS Telecom. U.S. Cellular, a subsidiary of TDS, earns money by providing wireless services, selling devices, and offering equipment installment plans to consumers and businesses. This includes revenue from voice, messaging, data, and other wireless services as well as handset and accessory sales. Meanwhile, TDS Telecom generates income through its wireline and cable services by offering broadband internet, video, and voice services to residential and commercial customers. The company leverages strategic partnerships with content providers and equipment manufacturers to enhance its service offerings. TDS also benefits from recurring revenue streams due to its subscription-based model, which ensures a stable cash flow from its extensive customer base.

Telephone & Data Systems Financial Statement Overview

Summary

Telephone & Data Systems faces challenges with declining revenues and profitability, impacting its income statement negatively. The balance sheet shows resilience with stable equity, but increasing debt levels pose future risks. Cash flow generation is a bright spot, but sustaining positive free cash flow and improving net income are crucial.

Income Statement

The company shows a declining revenue trend over the past years, with a noticeable decrease in the latest year. Net profit margins are negative, indicating losses, while EBIT and EBITDA margins have also suffered. The gross profit margin remains relatively strong, but overall profitability is under pressure due to high expenses or cost structure challenges.

Balance Sheet

The company maintains a stable equity base with a reasonable debt-to-equity ratio. However, the increase in total debt over the years poses a risk. Stockholders' equity has been relatively stable, supporting the company's financial health, but the decline in total assets could be concerning. Return on equity is currently negative due to net losses.

Cash Flow

The operating cash flow remains strong, indicating solid cash generation abilities. Free cash flow has improved significantly from prior negative values, reflecting better capital management. However, the free cash flow to net income ratio is skewed due to negative net income, and the company's ability to sustain this trend is crucial for future stability.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
4.96B	5.16B	5.41B	5.33B	5.22B
	Gross Profit
4.96B	2.83B	2.85B	2.86B	2.87B
	EBIT
63.00M	-414.00M	328.00M	477.00M	476.00M
	EBITDA
1.20B	682.00M	1.08B	1.18B	1.19B
	Net Income Common Stockholders
-28.00M	-500.00M	62.00M	156.00M	226.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
0.00	236.00M	360.00M	367.00M	1.43B
	Total Assets
13.68B	13.92B	14.55B	13.49B	12.53B
	Total Debt
1.05B	5.14B	4.80B	4.04B	4.50B
	Net Debt
1.05B	4.91B	4.44B	3.67B	3.07B
	Total Liabilities
7.80B	7.91B	7.93B	6.75B	6.92B
	Stockholders Equity
5.09B	5.20B	5.85B	5.93B	4.80B
Cash Flow		Free Cash Flow
261.00M	-199.00M	-620.00M	-48.00M	164.00M
	Operating Cash Flow
1.15B	1.14B	1.16B	1.10B	1.53B
	Investing Cash Flow
-754.00M	-1.33B	-1.78B	-2.46B	-1.51B
	Financing Cash Flow
-277.00M	56.00M	613.00M	321.00M	957.00M

Telephone & Data Systems Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 35.67
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TDS, the sentiment is Negative. The current price of 35.67 is below the 20-day moving average (MA) of 36.93, below the 50-day MA of 36.55, and above the 200-day MA of 29.41, indicating a neutral trend. The MACD of 0.81 indicates Negative momentum. The RSI at 65.24 is Neutral, neither overbought nor oversold. The STOCH value of 91.50 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TDS.

Telephone & Data Systems Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TIGO	77 Outperform	$4.75B	18.68	7.13%	3.64%	2.53%	―
TKC	75 Outperform	$5.15B	11.72	6.76%	2.56%	8.78%	-21.85%
USM	65 Neutral	$5.60B	―	-0.85%	―	-3.48%	-169.60%
TDS	64 Neutral	$3.80B	―	-0.54%	0.45%	-3.80%	83.27%
TEO	63 Neutral	$5.48B	5.16	23.27%	―	-26.74%	―
Sector *	58 Neutral	$25.97B	3.12	-10.67%	4.37%	2.16%	-43.01%
LUMN	47 Neutral	$3.85B	―	-12.49%	―	-9.95%	99.47%

Telephone & Data Systems Corporate Events

TDS Updates Bylaws Following Leadership Changes

On March 13, 2025, Telephone & Data Systems (TDS) implemented amendments to its Bylaws, following the recent appointments of Walter C. D. Carlson as President and CEO, LeRoy T. Carlson, Jr. as Vice Chair, and Christopher D. O’Leary as Lead Independent Director. These amendments outline the roles and responsibilities of the Vice Chair, including the ability to act in the absence or inability of the Chair or President, and specify that the Vice Chair is an officer position under the Chair’s supervision. The amendments also allow the Lead Independent Director to chair Board meetings if the Chair, President, or Vice Chair are unavailable.

TDS Announces Leadership Transition for Strategic Growth

On January 27, 2025, TDS announced that effective February 1, 2025, Walter C. D. Carlson will assume the roles of President and CEO, succeeding LeRoy T. Carlson Jr., who will become Vice Chair focusing on enterprise strategy. This leadership transition highlights the company’s commitment to strategic growth and continuity, with Christopher D. O’Leary appointed as Lead Independent Director, ensuring a seamless executive succession that leverages the strengths of its founding family members and positions TDS for long-term success.