Telephone & Data Systems (TDS) AI Stock Analysis

• Market Cap: $4.07B
• Dividend Yield: 0.42%
• Average Volume (3M): 802.75K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.97
• Revenue Growth: -5.62%
• EPS Growth: 80.09%
• Country: US
• Employees: 7,900
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): -0.84
• Shares Outstanding: 108,000,000
• 10 Day Avg. Volume: 750,507
• 30 Day Avg. Volume: 802,746
• PEG Ratio: 1.67
• Price to Book (P/B): 0.76
• Price to Sales (P/S): 0.78
• P/FCF Ratio: 16.14
• Enterprise Value/Market Cap: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: $52.00
• Price Target Upside: 34.06% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): -0.37
• Revenue Forecast (FY): $2.97B

• Rating: 49 Neutral
• Price Target: $38.00 ▼(-2.04% Downside)

TDS's overall stock score is primarily impacted by its financial performance, which shows significant challenges with declining revenues and profitability issues. The earnings call provided some positive strategic initiatives, but operational challenges remain. Technical analysis and valuation indicate a lack of strong momentum and profitability concerns, respectively.

Telephone & Data Systems Business Overview & Revenue Model

Company Description

Telephone and Data Systems, Inc., a telecommunications company, provides communications services in the United States. It operates through two segments: UScellular and TDS Telecom. The company offers wireless solutions to consumers and business and government customers, including a suite of connected Internet of things (IoT) solutions, and software applications for monitor and control, business automation/operations, communication, fleet and asset management, smart water solutions, private cellular networks and custom, and end-to-end IoT solutions; wireless priority services and quality priority and preemption options; smartphones and other handsets, tablets, wearables, mobile hotspots, routers, and IoT devices; and accessories, such as cases, screen protectors, chargers, and memory cards, as well as consumer electronics, including audio, home automation and networking products. It also provides replace and repair services; Trade-In program through which it buys customers' used equipment; internet connections and all-home WI-FI services; TDS TV+, an integrated cloud television platform that offers video content; local and long-distance telephone service, VoIP, and enhanced services; and broadband, IP-based services, and hosted voice and video collaboration services. The company sells its products through retail sales, direct and indirect sales, third-party retailers, and independent agents, as well as through ecommerce and telesales. As of December 31, 2021, it offers its services to customers 5 million wireless connections, and 1.2 million wireline and cable connections. The company was incorporated in 1968 and is headquartered in Chicago, Illinois.

How the Company Makes Money

TDS generates revenue through multiple streams, primarily from its telecommunications services. The main revenue sources include residential and business broadband services, voice services, and video services offered by TDS Telecom. In the wireless segment, U.S. Cellular earns revenue through mobile voice and data plans, device sales, and accessory sales. The company also benefits from partnerships with various technology providers and infrastructure investments that enhance service offerings and customer reach. Additionally, TDS may earn revenue through ancillary services, such as installation fees and equipment leasing, contributing to its overall earnings.

Telephone & Data Systems Financial Statement Overview

Summary

TDS faces significant financial challenges with declining revenues and profitability issues. The income statement shows negative revenue growth and net profit margin. The balance sheet is stable in leverage but suffers from negative returns. Cash flow management is weak, with negative operating cash flow and free cash flow growth.

Income Statement

The income statement shows declining revenue with a negative revenue growth rate of -1.07% TTM. Gross profit margin remains relatively stable at 52.83% TTM, but the net profit margin is negative at -0.85% TTM, indicating losses. EBIT and EBITDA margins are low, suggesting operational challenges. Overall, the company faces profitability issues with declining revenues.

Balance Sheet

The balance sheet reflects a moderate debt-to-equity ratio of 1.02 TTM, indicating balanced leverage. However, the return on equity is negative at -0.81% TTM, highlighting profitability challenges. The equity ratio is stable, suggesting a reasonable capital structure. Despite manageable leverage, profitability remains a concern.

Cash Flow

Cash flow analysis reveals significant challenges, with a negative free cash flow growth rate of -8884.28% TTM. Operating cash flow is negative, and the operating cash flow to net income ratio is highly negative, indicating cash flow issues. The free cash flow to net income ratio is slightly positive, but overall cash flow management is weak.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.89B	4.96B	5.16B	5.41B	5.33B	5.22B
Gross Profit	1.83B	2.83B	2.83B	2.85B	2.86B	2.87B
EBITDA	837.64M	1.20B	682.00M	1.08B	1.35B	1.36B
Net Income	-74.06M	-28.00M	-500.00M	62.00M	156.00M	226.00M
Balance Sheet
Total Assets	0.00	13.68B	13.92B	14.55B	13.49B	12.53B
Cash, Cash Equivalents and Short-Term Investments	0.00	364.00M	236.00M	360.00M	367.00M	1.43B
Total Debt	584.77M	5.10B	5.14B	4.80B	4.04B	4.50B
Total Liabilities	3.25B	7.80B	7.91B	7.93B	6.75B	6.92B
Stockholders Equity	4.47B	5.09B	5.20B	5.85B	5.93B	4.80B
Cash Flow
Free Cash Flow	28.27B	241.00M	-199.00M	-620.00M	-48.00M	164.00M
Operating Cash Flow	29.07B	1.15B	1.14B	1.16B	1.10B	1.53B
Investing Cash Flow	263.19B	-754.00M	-1.33B	-1.78B	-2.46B	-1.51B
Financing Cash Flow	-1.37T	-277.00M	56.00M	613.00M	321.00M	957.00M

Telephone & Data Systems Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 38.79
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 38.79 is above the 20-day moving average (MA) of 38.74, above the 50-day MA of 38.76, and above the 200-day MA of 36.97, indicating a neutral trend. The MACD of -0.04 indicates Positive momentum. The RSI at 39.79 is Neutral, neither overbought nor oversold. The STOCH value of 37.49 is Neutral, 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
TKC	78 Outperform	$5.00B	11.43	7.38%	5.57%	19.02%	9.26%
VEON	70 Outperform	$3.10B	3.06	89.94%	―	8.66%	―
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
LUMN	58 Neutral	$10.79B	―	―	―	-4.56%	23.46%
AD	57 Neutral	$4.22B	-160.26	-0.54%	49.61%	-3.65%	-134.04%
TEO	54 Neutral	$5.61B	―	-0.27%	1.71%	3.89%	-107.44%
TDS	49 Neutral	$4.07B	―	-0.81%	0.42%	-5.62%	80.09%

Telephone & Data Systems Corporate Events

TDS Reports Q3 2025 Earnings and New Share Buyback

Telephone and Data Systems, Inc. (TDS) is a telecommunications company that offers broadband, video, voice, and wireless services through its TDS Telecom business, while its Array division leases tower space and holds wireless spectrum licenses. In its latest earnings report for the third quarter of 2025, TDS announced a new $500 million share repurchase authorization, highlighting its strategic focus on enhancing shareholder value. The company reported total operating revenues of $308.5 million, a decrease from $327.5 million in the same period last year, but showed a significant improvement in net income attributable to common shareholders, which rose to $40.2 million from a loss of $100.4 million in the previous year. Key highlights from the report include the execution of a fiber broadband strategy by TDS Telecom, with 42,000 new marketable fiber service addresses and 11,200 residential fiber net additions. Additionally, the company completed the sale of its wireless operations to T-Mobile, resulting in a 68% increase in site rental revenues. Looking ahead, TDS management remains optimistic about the company’s future, emphasizing its robust fiber strategy and the potential for growth in its Array tower business under new leadership. The company’s financial flexibility and strategic initiatives are expected to position it well for future opportunities.

Telephone & Data Systems Settles Outstanding Debts

On August 19, 2025, Telephone and Data Systems, Inc. (TDS) settled all its outstanding debts and obligations under several credit agreements, including those with CoBank, Wells Fargo National Association, and Oaktree Fund Administration, LLC. The termination of the credit agreement with Oaktree resulted in a $9 million penalty, impacting the company’s financial obligations and potentially influencing its future financial strategies.

The most recent analyst rating on (TDS) stock is a Hold with a $40.00 price target. To see the full list of analyst forecasts on Telephone & Data Systems stock, see the TDS Stock Forecast page.

TDS Earnings Call: Strategic Gains Amid Challenges

The recent earnings call for Telephone & Data Systems Inc. (TDS) painted a picture of optimism and strategic progress, despite some challenges. The company celebrated significant achievements, such as the successful completion of the T-Mobile transaction, which has improved its financial position and advanced its fiber expansion plans. However, the call also acknowledged hurdles, including revenue declines in TDS Telecom and increased expenses. Overall, the positive developments and strong strategic direction provide an optimistic outlook for the future.

TDS Faces Financial Turbulence Amid Operational Risks and Legal Challenges

Telephone & Data Systems Inc. faces significant business risks due to its complex financial and operational activities, as highlighted in its recent financial disclosures. The company’s reconciliation of revenue and expenses, including intersegment eliminations and strategic review costs, indicates potential challenges in maintaining profitability. Additionally, the recent sale of wireless operations to T-Mobile and the associated financial adjustments, such as debt exchanges and tax liabilities, could impact TDS’s financial stability. Legal proceedings and stockholder lawsuits further compound the risk landscape, potentially affecting the company’s financial condition and operational outcomes.

TDS Reports Q2 2025 Earnings and Strategic Moves

Telephone and Data Systems, Inc. (TDS) is a telecommunications company that provides broadband, video, and voice services through its TDS Telecom business, and leases tower space through its Array business. Founded in 1969 and headquartered in Chicago, TDS operates primarily in the telecommunications sector.