Telephone & Data Systems (TDS) AI Stock Analysis

• Market Cap: $4.35B
• Dividend Yield: 0.42%
• Average Volume (3M): 794.25K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.98
• Revenue Growth: -22.79%
• EPS Growth: 79.90%
• 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: 968,218
• 30 Day Avg. Volume: 794,245
• 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: 1.59
• Enterprise Value/Revenue: 1.78
• Enterprise Value/Gross Profit: 3.23
• Enterprise Value/Ebitda: 6.57
• 1Y Price Target: $48.00
• Price Target Upside: 19.20% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): -1.32
• Revenue Forecast (FY): $2.09B

• Rating: 56 Neutral
• Price Target: $41.00 ▲(1.81% Upside)

The overall score reflects significant financial challenges, including declining revenue and high leverage. Positive technical trends and strategic initiatives from the earnings call provide some optimism, but valuation concerns and operational issues weigh heavily.

Positive Factors

Fiber Expansion

The expansion of fiber infrastructure enhances TDS's service offerings, potentially increasing customer acquisition and retention, and positioning the company for future growth in high-speed internet services.

Capital Allocation Strategy

A strong capital allocation strategy with a focus on fiber investment and shareholder returns can enhance long-term financial health and shareholder value, supporting sustainable growth.

Spectrum Monetization

Monetizing spectrum assets provides significant cash inflow, reducing leverage and funding strategic initiatives, thereby strengthening TDS's financial position and operational flexibility.

Negative Factors

High Leverage

High leverage can limit financial flexibility, increase risk during economic downturns, and strain cash flow, potentially impacting long-term stability and growth opportunities.

Declining Revenue

A persistent decline in revenue indicates challenges in maintaining market share and competitiveness, which could hinder future growth and profitability if not addressed.

Cash Flow Challenges

Declining free cash flow limits the company's ability to invest in growth initiatives, pay down debt, and return capital to shareholders, potentially affecting long-term financial health.

Telephone & Data Systems Business Overview & Revenue Model

Company Description

Telephone & Data Systems, Inc. (TDS) is a telecommunications conglomerate based in the United States, primarily engaged in providing wireless, broadband, and voice services through its subsidiaries, including U.S. Cellular and TDS Telecom. The company operates in two main segments: Wireless and Wireline, offering a range of products and services that include mobile phone service, broadband internet, and managed network solutions to both residential and business customers.

How the Company Makes Money

TDS generates revenue through multiple channels, with its primary earnings coming from its wireless and wireline segments. The wireless segment, primarily through U.S. Cellular, earns money by providing mobile voice and data services to customers via subscription plans, as well as selling mobile devices and accessories. The wireline segment, operated by TDS Telecom, derives revenue from broadband internet services, voice services, and other telecommunications services provided to residential and business clients. Additionally, TDS benefits from partnerships with various technology and service providers, enabling it to offer bundled services and leverage economies of scale. The company also invests in network infrastructure to enhance service delivery, which in turn can drive customer acquisition and retention, further contributing to its revenue growth.

Telephone & Data Systems Financial Statement Overview

Summary

TDS faces financial challenges with declining revenue and profitability. The company is highly leveraged, which poses risks, but maintains a stable asset base. Cash flow issues further complicate the financial outlook.

Income Statement

The income statement shows a declining trend in revenue with a significant drop of 19.06% in the TTM period. Gross profit margin remains relatively stable, but net profit margin is negative, indicating losses. The EBIT and EBITDA margins are low, reflecting operational challenges.

Balance Sheet

The balance sheet indicates a high debt-to-equity ratio of 1.02, suggesting significant leverage. Return on equity is negative, highlighting profitability issues. However, the equity ratio is reasonable, indicating a stable asset base.

Cash Flow

Cash flow analysis reveals a decline in free cash flow growth by 28.08% in the TTM period. The operating cash flow to net income ratio is positive, but the free cash flow to net income ratio is low, indicating cash flow challenges.

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	2.14B	2.83B	2.83B	2.85B	2.86B	2.87B
EBITDA	1.05B	1.20B	682.00M	1.08B	1.18B	1.19B
Net Income	-56.75M	-28.00M	-500.00M	62.00M	156.00M	226.00M
Balance Sheet
Total Assets	8.53B	13.68B	13.92B	14.55B	13.49B	12.53B
Cash, Cash Equivalents and Short-Term Investments	932.99M	364.00M	236.00M	360.00M	367.00M	1.43B
Total Debt	1.41B	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	286.25M	241.00M	-199.00M	-620.00M	-48.00M	164.00M
Operating Cash Flow	784.31M	1.15B	1.14B	1.16B	1.10B	1.53B
Investing Cash Flow	2.05B	-754.00M	-1.33B	-1.78B	-2.46B	-1.51B
Financing Cash Flow	-2.37B	-277.00M	56.00M	613.00M	321.00M	957.00M

Telephone & Data Systems Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 40.27
• 50DMA: Positive
• 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 Positive. The current price of 40.27 is above the 20-day moving average (MA) of 38.70, above the 50-day MA of 38.66, and above the 200-day MA of 37.14, indicating a bullish trend. The MACD of 0.12 indicates Negative momentum. The RSI at 61.80 is Neutral, neither overbought nor oversold. The STOCH value of 87.55 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TDS.

Telephone & Data Systems Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VEON	75 Outperform	$3.69B	5.73	48.17%	―	6.42%	―
TKC	74 Outperform	$5.00B	11.43	7.60%	5.79%	19.02%	9.26%
TEO	61 Neutral	$5.54B	―	-2.95%	―	15.38%	-292.52%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
AD	60 Neutral	$4.22B	-160.26	4.11%	46.77%	-25.64%	―
TDS	56 Neutral	$4.35B	―	1.73%	0.42%	-22.79%	79.90%
LUMN	51 Neutral	$8.32B	―	―	―	-4.56%	23.46%

Telephone & Data Systems Corporate Events

TDS Earnings Call: Progress Amidst Challenges

The latest earnings call from Telephone & Data Systems Inc. (TDS) painted a picture of both progress and challenges. The sentiment was largely positive, driven by successful transitions and strategic capital allocations. However, the company faces hurdles with underperformance in fiber build, a dispute with DISH Wireless, and high SG&A expenses at Array.

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.