T Mobile US (TMUS) AI Stock Analysis

• Market Cap: $276.91B
• Dividend Yield: 1.36%
• Average Volume (3M): 4.23M
• Price to Earnings (P/E): 23.8
• Beta (1Y): 0.41
• 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: 3,462,644
• 30 Day Avg. Volume: 4,229,054
• PEG Ratio: 3.82
• Price to Book (P/B): 4.55
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 23.10
• Enterprise Value/Market Cap: 1.39
• Enterprise Value/Revenue: 1.19
• Enterprise Value/Gross Profit: 7.32
• Enterprise Value/Ebitda: 3.13
• 1Y Price Target: $274.46
• Price Target Upside: 12.07% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 16

• Rating: 76 Outperform
• Price Target: $272.00 ▲(11.07%Upside)

T-Mobile US scores a strong 76, driven primarily by its solid financial performance and optimistic earnings call guidance. The company's strategic initiatives and robust growth metrics in its earnings call stand out as significant strengths. The technical analysis shows a neutral short-term outlook, while the valuation reflects a fair market position, balancing growth prospects with current market conditions.

Positive Factors

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.

Growth Potential

The long-term benefits from the T-Mobile-Sprint merger continue to accrue, contributing to growth potential.

Strategic Investments

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 Intensity

T-Mobile also saw elevated churn - along with AT&T and Verizon - confirming the elevated level of competitive intensity in the market.

Market Challenges

A potentially more competitive wireless market may create risk to the level of premium at which it is trading to its competitors.

Postpaid KPI Concerns

Shares could trade lower near-term on the absence of better postpaid KPIs.

T Mobile US Business Overview & Revenue Model

Company Description

T-Mobile US, Inc. (TMUS) is a leading American wireless network operator, providing a wide range of telecommunications services. Headquartered in Bellevue, Washington, T-Mobile offers voice, messaging, and data services to millions of customers across the United States. The company is known for its customer-centric 'Un-carrier' approach, aiming to disrupt the traditional telecommunications industry with innovative offerings and competitive pricing. T-Mobile's services are available to both individuals and businesses, with a focus on delivering high-speed mobile connectivity and nationwide 5G network coverage.

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 noteworthy profitability and cash flow generation. The income statement highlights robust margins and revenue growth, while the balance sheet reflects a leveraged capital structure with effective equity utilization. Cash flow analysis indicates efficient cash generation and conversion, supporting overall financial health. Continued focus on managing debt levels and capital expenditures will be crucial for sustaining future growth.

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
	EBIT
18.81B	18.01B	14.27B	6.54B	6.89B	6.64B
	EBITDA
31.54B	31.04B	26.93B	27.13B	26.38B	23.58B
	Net Income Common Stockholders
11.92B	11.34B	8.32B	2.59B	3.02B	3.06B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
12.00B	5.41B	5.13B	4.51B	6.63B	10.38B
	Total Assets
214.63B	208.03B	207.68B	211.34B	206.56B	200.16B
	Total Debt
120.91B	113.94B	113.09B	107.86B	106.01B	104.22B
	Net Debt
108.91B	108.53B	107.95B	103.35B	99.38B	93.83B
	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: Positive
• Last Price: 244.90
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• 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 Positive. The current price of 244.9 is above the 20-day moving average (MA) of 241.19, below the 50-day MA of 249.23, and above the 200-day MA of 232.30, indicating a neutral trend. The MACD of -1.40 indicates Negative momentum. The RSI at 51.41 is Neutral, neither overbought nor oversold. The STOCH value of 73.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TMUS.

T Mobile US Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TMUS	76 Outperform	$276.91B	23.77	19.35%	1.36%	5.31%	38.46%
CHTR	76 Outperform	$107.40B	10.85	36.94%	―	0.93%	16.06%
CMCSA	76 Outperform	$128.59B	8.40	18.57%	3.66%	1.33%	7.69%
VZ	76 Outperform	$184.80B	10.41	18.23%	6.24%	0.93%	56.97%
AMX	71 Outperform	$52.10B	31.17	8.54%	3.01%	0.19%	-49.68%
T	69 Neutral	$196.87B	17.05	11.38%	4.06%	0.50%	-12.66%
Sector *	61 Neutral	$14.35B	5.84	-4.31%	3.69%	2.75%	-35.67%

T Mobile US Corporate Events

T-Mobile US Appoints New Chief Accounting Officer

On April 8, 2025, T-Mobile US announced the appointment of Daniel J. Drobac as Vice President and Chief Accounting Officer, effective May 1, 2025, following the retirement of current CAO Dara Bazzano. Mr. Drobac, who has been with the company since 2017, will receive a new compensation package including a base salary of $400,000, short-term incentives, and long-term incentive awards, reflecting his expanded role and responsibilities within the company.

T-Mobile US Approves Executive Performance-Based Stock Units

On February 11, 2025, T-Mobile US, Inc.’s Compensation Committee approved performance-based restricted stock units (PRSUs) for several executives, effective April 1, 2025. These PRSUs are tied to the company’s core adjusted EBITDA performance from January 1, 2027, to December 31, 2027, with vesting contingent on continued employment through April 1, 2028. This move aims to align executive incentives with company performance, potentially impacting stakeholder interests and company operations.

T-Mobile US Amends Executive Compensation Plans

On March 17, 2025, T-Mobile US, Inc. amended its stock unit awards for executives, allowing for vesting under certain termination conditions, potentially impacting executive retention and alignment with company performance. Additionally, on March 18, 2025, T-Mobile entered into a compensation agreement with Michael J. Katz, ensuring his continued employment with a competitive salary and incentives, which may influence the company’s strategic marketing and product development initiatives.