T Mobile US (TMUS) AI Stock Analysis

• Market Cap: $258.61B
• Dividend Yield: 1.54%
• Average Volume (3M): 4.69M
• Price to Earnings (P/E): 22.2
• Beta (1Y): 0.47
• Revenue Growth: 5.31%
• EPS Growth: 38.46%
• Country: US
• Employees: 70,000
• Sector: Communication Services
• Sector Strength: 83
• Industry: Telecommunications Services
• EPS (TTM): 2.58
• Shares Outstanding: 1,135,445,100
• 10 Day Avg. Volume: 3,360,924
• 30 Day Avg. Volume: 4,692,780
• PEG Ratio: 1.01
• Price to Book (P/B): 2.33
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -125.67
• Enterprise Value/Market Cap: 0.35
• Enterprise Value/Revenue: 0.28
• Enterprise Value/Gross Profit: 1.74
• Enterprise Value/Ebitda: 0.74
• 1Y Price Target: $262.03
• Price Target Upside: 15.05% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 16

• Rating: 76 Outperform
• Price Target: $263.00 ▲(15.47%Upside)

T-Mobile US earns a strong overall score, primarily driven by its excellent financial performance and positive earnings call. The company's strategic growth initiatives and robust financial health bolster its position. Technical indicators present a mixed outlook, but valuation remains fair. The absence of significant corporate events means the focus remains on financial and operational strength.

Positive Factors

Business Performance

TMUS's wireless and wireline subscriber growth, expanding broadband services, and strategic acquisitions combined with increasing investments in AI-driven technologies to enhance network performance and customer experience will continue to drive accelerating business performance trends.

Customer Acquisition

TMUS continues to drive strong customer acquisition growth through a combination of its powerful marketing initiatives, its ultra-high-speed network, and the compelling value of its customer offerings.

Shareholder Returns

TMUS continues to drive value creation by deploying its cash and cash flow to fund ongoing capital investment, strategic acquisitions, and debt reduction and enhance shareholder returns through share repurchases.

Negative Factors

Competitive Position

TMUS is considered fiber deficient in a converged and bundled market, which could affect its competitive position.

Tax Changes

TMUS is expected to benefit the least from tax changes, putting it at a disadvantage compared to competitors.

Valuation

TMUS's premium valuation is seen as too high, especially given its slower growth in EBITDA and free cash flow compared to peers.

T Mobile US Business Overview & Revenue Model

Company Description

T-Mobile US, Inc., together with its subsidiaries, provides mobile communications services in the United States, Puerto Rico, and the United States Virgin Islands. The company offers voice, messaging, and data services to 108.7 million customers in the postpaid, prepaid, and wholesale markets. It also provides wireless devices, including smartphones, wearables, and tablets and other mobile communication devices, as well as wireless devices and accessories. In addition, the company offers services, devices, and accessories under the T-Mobile and Metro by T-Mobile brands through its owned and operated retail stores, T-Mobile app and customer care channels, and its websites. It also sells its devices to dealers and other third-party distributors for resale through independent third-party retail outlets and various third-party websites. As of December 31, 2021, it operated approximately 102,000 macro cell and 41,000 small cell/distributed antenna system sites. The company was founded in 1994 and is headquartered in Bellevue, Washington.

How the Company Makes Money

T-Mobile US makes money primarily through the provision of wireless communication services, including mobile voice, messaging, and data services. The company's revenue model is based on offering service plans to customers on both postpaid and prepaid bases. Postpaid customers typically enter into long-term contracts, while prepaid customers pay in advance for their services. T-Mobile also generates revenue from the sale of mobile devices and accessories, including smartphones and tablets. Additionally, the company benefits from roaming agreements with other carriers and wholesale services offered to mobile virtual network operators (MVNOs). Strategic partnerships, such as the merger with Sprint, have expanded T-Mobile's network capacity and customer base, further enhancing its revenue potential.

T Mobile US Financial Statement Overview

Summary

T-Mobile US demonstrates strong financial performance with excellent profitability, as indicated by robust margins and revenue growth. The income statement shows a healthy growth trajectory, while the balance sheet reflects a leveraged but stable capital structure. Cash flow analysis indicates strong cash generation, though the high debt level requires careful management.

Income Statement

The income statement reflects strong profitability with a gross profit margin of 72.7%, net profit margin of 14.4%, and an impressive EBIT margin of 22.7% for TTM. Revenue growth is healthy at 5.1% from the previous year, indicating positive momentum. The EBITDA margin is robust at 33.9%, highlighting efficient operations. Overall, the company demonstrates excellent revenue growth and profitability, although potential risks could include maintaining this level of growth in a competitive industry.

Balance Sheet

The balance sheet shows a debt-to-equity ratio of 1.90, indicating a significant reliance on debt. However, the return on equity stands strong at 19.5%, suggesting efficient use of equity capital. The equity ratio is moderate at 28.5%, reflecting a stable but leveraged capital structure. While the company maintains a solid return on equity, the high debt level poses a risk that needs monitoring.

Cash Flow

The cash flow statement displays a solid free cash flow growth rate of 20.0% and an operating cash flow to net income ratio of 2.02, indicating strong cash generation relative to net income. The free cash flow to net income ratio is 1.00, showing efficient conversion of income to cash. Cash flow metrics are healthy, but the company should continue to manage capital expenditures carefully to sustain free cash flow growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	82.69B	81.40B	78.56B	79.57B	80.12B	68.40B
Gross Profit	52.73B	51.75B	45.89B	43.37B	43.51B	40.13B
EBITDA	31.54B	31.04B	26.93B	27.13B	26.38B	23.58B
Net Income	11.92B	11.34B	8.32B	2.59B	3.02B	3.06B
Balance Sheet
Total Assets	214.63B	208.03B	207.68B	211.34B	206.56B	200.16B
Cash, Cash Equivalents and Short-Term Investments	12.00B	5.41B	5.13B	4.51B	6.63B	10.38B
Total Debt	120.91B	113.94B	113.09B	107.86B	106.01B	104.22B
Total Liabilities	153.53B	146.29B	142.97B	141.68B	137.46B	134.82B
Stockholders Equity	61.10B	61.74B	64.72B	69.66B	69.10B	65.34B
Cash Flow
Free Cash Flow	11.98B	9.98B	7.75B	-520.00M	-7.78B	-3.73B
Operating Cash Flow	24.06B	22.29B	18.56B	16.78B	13.92B	8.64B
Investing Cash Flow	-10.69B	-9.07B	-5.83B	-12.36B	-19.39B	-12.71B
Financing Cash Flow	-7.96B	-12.81B	-12.10B	-6.45B	1.71B	13.01B

T Mobile US Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 227.76
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TMUS, the sentiment is Negative. The current price of 227.76 is below the 20-day moving average (MA) of 231.29, below the 50-day MA of 237.84, and below the 200-day MA of 236.58, indicating a bearish trend. The MACD of -1.44 indicates Positive momentum. The RSI at 40.75 is Neutral, neither overbought nor oversold. The STOCH value of 13.26 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TMUS.

T Mobile US Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CMCSA	82 Outperform	$130.64B	8.59	18.57%	3.77%	1.33%	7.69%
VZ	78 Outperform	$175.48B	9.89	18.23%	6.51%	0.93%	56.97%
TMUS	76 Outperform	$258.61B	22.20	19.35%	1.54%	5.31%	38.46%
CHTR	71 Outperform	$60.04B	10.88	36.94%	―	0.93%	16.06%
AMX	71 Outperform	$53.66B	32.10	8.54%	3.12%	0.19%	-49.68%
T	70 Outperform	$194.07B	16.56	11.38%	4.12%	0.50%	-12.66%
Sector *	62 Neutral	$40.75B	-1.21	-12.05%	3.97%	2.04%	-69.68%

T Mobile US Corporate Events

T-Mobile US Extends Exchange Offers for USCC

On July 2, 2025, T-Mobile US, Inc. announced the extension of its Exchange Offers and Consent Solicitations for United States Cellular Corporation’s outstanding senior notes, initially set to expire on July 1, 2025, now extended to August 1, 2025. This extension is part of T-Mobile’s strategic move to acquire USCC’s wireless operations and spectrum assets, reflecting its ongoing efforts to strengthen its market position and expand its network capabilities.

The most recent analyst rating on (TMUS) stock is a Buy with a $220.00 price target. To see the full list of analyst forecasts on T Mobile US stock, see the TMUS Stock Forecast page.

T-Mobile Announces Preliminary Results of Exchange Offers

On June 16, 2025, T-Mobile US, Inc. announced the preliminary results of its offers to exchange certain outstanding senior notes of United States Cellular Corporation (USCC) for new notes issued by T-Mobile USA. The exchange offers, part of a Securities Purchase Agreement, aim to acquire certain assets from USCC. As of June 13, 2025, a significant percentage of the old USCC notes were tendered, and consents were received to amend the indentures governing these notes. The amendments will become operative upon the closing of the acquisition, expected by mid-2025, pending regulatory approvals.

The most recent analyst rating on (TMUS) stock is a Buy with a $220.00 price target. To see the full list of analyst forecasts on T Mobile US stock, see the TMUS Stock Forecast page.

T-Mobile US Holds Annual Stockholders Meeting

On June 6, 2025, T-Mobile US held its Annual Meeting of Stockholders where two key proposals were addressed. The first proposal involved the election of 13 directors to the board, each to serve until the 2026 Annual Meeting, while the second proposal ratified Deloitte & Touche LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025. These decisions are pivotal for the company’s governance and financial oversight, impacting its strategic direction and operational transparency.

The most recent analyst rating on (TMUS) stock is a Buy with a $220.00 price target. To see the full list of analyst forecasts on T Mobile US stock, see the TMUS Stock Forecast page.