T Mobile US (TMUS) AI Stock Analysis

• Market Cap: $234.47B
• Dividend Yield: 1.75%
• Average Volume (3M): 4.94M
• Price to Earnings (P/E): 20.2
• Beta (1Y): 0.42
• Revenue Growth: 7.30%
• EPS Growth: 17.67%
• Country: US
• Employees: 70,000
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): 2.41
• Shares Outstanding: 1,118,506,600
• 10 Day Avg. Volume: 3,820,039
• 30 Day Avg. Volume: 4,936,957
• PEG Ratio: 0.60
• Price to Book (P/B): 4.18
• Price to Sales (P/S): 3.17
• P/FCF Ratio: 25.85
• Enterprise Value/Market Cap: 1.65
• Enterprise Value/Revenue: 4.50
• Enterprise Value/Gross Profit: 7.56
• Enterprise Value/Ebitda: 12.11
• 1Y Price Target: $277.95
• Price Target Upside: 32.59% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 22
• EPS Forecast (FY): 10.05
• Revenue Forecast (FY): $88.11B

• Rating: 78 Outperform
• Price Target: $239.00 ▲(14.01% Upside)

T-Mobile US scores well due to strong financial performance and positive earnings call sentiment, indicating robust growth prospects. Technical analysis presents some caution with bearish signals, but the company's strategic initiatives and fair valuation support a positive outlook.

Positive Factors

Customer Growth

T-Mobile's ability to achieve record-breaking customer growth indicates strong market demand and effective customer acquisition strategies, which are critical for sustaining long-term revenue growth and competitive positioning.

Cash Flow Generation

Strong cash flow generation underscores T-Mobile's operational efficiency and financial health, providing the company with the flexibility to invest in growth opportunities and manage debt effectively over the long term.

5G and Broadband Expansion

The significant expansion in 5G and broadband services positions T-Mobile as a leader in next-generation connectivity, enhancing its competitive edge and potential for future revenue streams in a rapidly evolving telecommunications landscape.

Negative Factors

High Leverage

High leverage can pose financial risks, especially in volatile market conditions, potentially limiting T-Mobile's ability to invest in growth initiatives or respond to competitive pressures without incurring additional financial strain.

Increased Costs Due to Mergers

The increased costs associated with mergers could impact T-Mobile's profitability and cash flow in the short to medium term, requiring effective cost management to ensure these expenses do not detract from overall financial performance.

Network Transformation Expenses

Additional network transformation expenses could pressure margins and require careful management to ensure these investments translate into long-term operational efficiencies and enhanced service capabilities.

T Mobile US Business Overview & Revenue Model

Company Description

T-Mobile US, Inc. (TMUS) is a leading telecommunications company based in the United States, primarily engaged in providing wireless voice, messaging, and data services. As a major player in the wireless sector, T-Mobile operates a nationwide 4G LTE and 5G network, catering to millions of customers with a range of postpaid and prepaid plans. The company also offers additional services such as mobile internet, home broadband, and various devices including smartphones and tablets, positioning itself as a comprehensive provider in the mobile communications market.

How the Company Makes Money

T-Mobile US generates revenue primarily through subscription-based services, including postpaid and prepaid wireless plans. The bulk of its revenue comes from monthly service fees paid by customers for voice, text, and data services. Additionally, the company earns income from device sales, which include smartphones and accessories sold outright or through installment plans. T-Mobile also has partnerships with various content providers and technology companies, which can yield revenue through bundled offers and promotions. The company's strategic acquisitions, such as the merger with Sprint, have further expanded its customer base and market reach, contributing significantly to its overall earnings.

T Mobile US Financial Statement Overview

Summary

T-Mobile US exhibits strong financial health with consistent revenue growth, robust profitability, and effective cash flow management. The company maintains a solid equity base, but high leverage requires careful management to mitigate potential risks.

Income Statement

T-Mobile US shows strong financial performance with consistent revenue growth, evidenced by a 2.14% increase in TTM revenue. The company maintains healthy profitability metrics, with a gross profit margin of 59.59% and a net profit margin of 13.83% in TTM. EBIT and EBITDA margins are robust at 22.16% and 37.19%, respectively, indicating efficient operations. However, the slight decline in gross profit margin from the previous year suggests potential cost pressures.

Balance Sheet

The balance sheet reflects a solid equity base with a debt-to-equity ratio of 1.91, which is manageable but indicates significant leverage. Return on equity is strong at 19.42%, showcasing effective use of equity to generate profits. The equity ratio stands at 27.84%, suggesting a balanced capital structure, though the high debt level poses a risk in volatile market conditions.

Cash Flow

T-Mobile US demonstrates strong cash flow generation with a 23.08% growth in free cash flow, highlighting improved operational efficiency. The operating cash flow to net income ratio of 1.10 indicates healthy cash conversion. The free cash flow to net income ratio of 0.61 suggests a solid ability to generate cash relative to earnings, though the company should continue to monitor cash flow sustainability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	85.85B	81.40B	78.56B	79.57B	80.12B	68.40B
Gross Profit	51.15B	51.75B	48.37B	43.37B	43.51B	40.13B
EBITDA	31.93B	31.04B	27.15B	20.16B	23.08B	20.38B
Net Income	11.87B	11.34B	8.32B	2.59B	3.02B	3.06B
Balance Sheet
Total Assets	217.18B	208.03B	207.68B	211.34B	206.56B	200.16B
Cash, Cash Equivalents and Short-Term Investments	3.58B	5.41B	5.13B	4.51B	6.63B	10.38B
Total Debt	120.44B	114.40B	113.83B	111.79B	108.82B	107.25B
Total Liabilities	156.70B	146.29B	142.97B	141.68B	137.46B	134.82B
Stockholders Equity	60.48B	61.74B	64.72B	69.66B	69.10B	65.34B
Cash Flow
Free Cash Flow	16.31B	9.98B	7.75B	-520.00M	-7.78B	-3.73B
Operating Cash Flow	26.84B	22.29B	18.56B	16.78B	13.92B	8.64B
Investing Cash Flow	-17.41B	-9.07B	-5.83B	-12.36B	-19.39B	-12.71B
Financing Cash Flow	-15.77B	-12.81B	-12.10B	-6.45B	1.71B	13.01B

T Mobile US Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 209.63
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TMUS, the sentiment is Neutral. The current price of 209.63 is above the 20-day moving average (MA) of 209.39, below the 50-day MA of 217.01, and below the 200-day MA of 237.49, indicating a neutral trend. The MACD of -2.24 indicates Negative momentum. The RSI at 46.80 is Neutral, neither overbought nor oversold. The STOCH value of 51.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TMUS.

T Mobile US Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VZ	81 Outperform	$175.78B	8.89	19.70%	6.60%	2.42%	102.17%
TMUS	78 Outperform	$234.47B	20.16	19.03%	1.75%	7.30%	17.67%
T	73 Outperform	$179.22B	8.21	20.88%	4.39%	1.98%	150.68%
CMCSA	72 Outperform	$99.51B	4.53	24.73%	4.76%	0.20%	61.54%
CHTR	67 Neutral	$29.72B	5.66	34.79%	―	0.42%	13.46%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
AMX	60 Neutral	$66.01B	17.38	17.70%	2.60%	1.14%	83.48%

T Mobile US Corporate Events

T-Mobile US Completes $2.8 Billion Senior Notes Offering

On October 9, 2025, T-Mobile USA, a subsidiary of T-Mobile US, Inc., completed a public offering of senior notes totaling $2.8 billion, with varying maturity dates in 2033, 2035, and 2056. The proceeds from this offering are intended for refinancing existing debt and general corporate purposes, potentially strengthening T-Mobile’s financial position and operational flexibility.

T-Mobile US Appoints Abdurazak Mudesir to Board

On September 19, 2025, Abdurazak Mudesir was appointed to the Board of Directors of T-Mobile US, Inc. as a representative of Deutsche Telekom AG. This appointment is part of an agreement involving Deutsche Telekom and SoftBank Group Corp., reflecting the strategic partnerships influencing T-Mobile’s governance and potentially impacting its future operations.

T-Mobile US Appoints New CEO Amid Leadership Transition

On September 19, 2025, T-Mobile US announced the appointment of Srinivasan Gopalan as the new President and CEO, effective November 1, 2025. This leadership transition, part of a comprehensive succession plan, aims to continue T-Mobile’s growth strategy and digital transformation. Gopalan, who has served as COO since March 2025, brings extensive experience in technology and telecommunications, and will succeed Mike Sievert, who will transition to the role of Vice Chairman. Under Sievert’s leadership, T-Mobile achieved significant growth and market capitalization, becoming a leader in U.S. wireless and broadband sectors.