T Mobile US (TMUS) AI Stock Analysis

• Market Cap: $268.90B
• Dividend Yield: 1.39%
• Average Volume (3M): 4.13M
• Price to Earnings (P/E): 22.5
• Beta (1Y): 0.50
• Revenue Growth: 6.27%
• EPS Growth: 31.78%
• Country: US
• Employees: 70,000
• Sector: Communication Services
• Sector Strength: 79
• Industry: Telecommunications Services
• EPS (TTM): 2.84
• Shares Outstanding: 1,125,419,100
• 10 Day Avg. Volume: 4,602,119
• 30 Day Avg. Volume: 4,131,777
• 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: 1.40
• Enterprise Value/Revenue: 4.49
• Enterprise Value/Gross Profit: 7.07
• Enterprise Value/Ebitda: 11.77
• 1Y Price Target: $264.15
• Price Target Upside: 10.56% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 15

• Rating: 80 Outperform
• Price Target: $285.00 ▲(19.28% Upside)

T-Mobile US achieves a strong overall score driven by excellent financial performance and an optimistic earnings call with record growth and increased guidance. Technical analysis and valuation indicate some market caution, but the company's strategic positioning and robust growth prospects bolster confidence.

Positive Factors

Customer Growth

T-Mobile's net postpaid customer additions of 1.7 million were the best ever for a second quarter, highlighting strong customer growth.

Financial Performance

T-Mobile's revenue growth was nearly 7%, with postpaid service revenues increasing 9%, signaling strong financial performance.

Market Position

T-Mobile is well-positioned to win in an active switcher environment, thanks to its strong price and network value proposition.

Negative Factors

Guidance

Despite beating 2Q EBITDA expectations, T-Mobile only raised its EBITDA guidance modestly, which is seen as a 'guide down'.

Investment Year

Though the EBITDA guide is up just $50MM at the midpoint despite the ~$140MM beat, cautioning that the company is still an investment year.

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 robust financial health with strong revenue growth, high profitability, and efficient cash flow generation. Despite high leverage typical for the industry, the company's effective use of equity and strong return on equity highlight its financial stability.

Income Statement

T-Mobile US shows strong revenue growth with a Revenue Growth Rate of 3.26% in TTM over the previous year. The Gross Profit Margin is robust at 59.87%, and the Net Profit Margin improved to 14.53% from 13.93% annually. Both EBIT Margin at 23.13% and EBITDA Margin at 38.09% indicate efficient operations. The company's consistent growth and profitability highlight its competitive edge in the telecommunications sector.

Balance Sheet

The Debt-to-Equity Ratio stands at 1.93, reflecting a high level of leverage, typical for the telecommunications industry. However, the Return on Equity (ROE) of 19.99% and an Equity Ratio of 28.75% indicate a solid financial position. While leverage is high, the company effectively utilizes equity to generate returns, showcasing financial stability.

Cash Flow

The Free Cash Flow Growth Rate is significant at 32.77%, indicating strong cash generation capabilities. The Operating Cash Flow to Net Income Ratio is 2.09, suggesting efficient cash conversion from earnings. The Free Cash Flow to Net Income Ratio of 1.09 further supports the company's ability to generate cash beyond its net earnings, ensuring liquidity and financial flexibility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	84.05B	81.40B	78.56B	79.57B	80.12B	68.40B
Gross Profit	53.46B	51.75B	48.37B	43.37B	43.51B	40.13B
EBITDA	32.08B	31.04B	27.15B	20.16B	23.08B	20.38B
Net Income	12.21B	11.34B	8.32B	2.59B	3.02B	3.06B
Balance Sheet
Total Assets	212.64B	208.03B	207.68B	211.34B	206.56B	200.16B
Cash, Cash Equivalents and Short-Term Investments	10.50B	5.41B	5.13B	4.51B	6.63B	10.38B
Total Debt	117.86B	113.94B	113.09B	111.79B	108.82B	107.25B
Total Liabilities	151.54B	146.29B	142.97B	141.68B	137.46B	134.82B
Stockholders Equity	61.11B	61.74B	64.72B	69.66B	69.10B	65.34B
Cash Flow
Free Cash Flow	13.25B	9.98B	7.75B	-520.00M	-7.78B	-3.73B
Operating Cash Flow	25.53B	22.29B	18.56B	16.78B	13.92B	8.64B
Investing Cash Flow	-10.57B	-9.07B	-5.83B	-12.36B	-19.39B	-12.71B
Financing Cash Flow	-11.03B	-12.81B	-12.10B	-6.45B	1.71B	13.01B

T Mobile US Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 238.93
• 50DMA: Positive
• 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 Positive. The current price of 238.93 is above the 20-day moving average (MA) of 234.54, above the 50-day MA of 235.19, and below the 200-day MA of 239.07, indicating a neutral trend. The MACD of 1.65 indicates Negative momentum. The RSI at 53.36 is Neutral, neither overbought nor oversold. The STOCH value of 31.28 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
VZ	81 Outperform	$179.91B	9.98	18.26%	6.35%	2.05%	61.39%
TMUS	80 Outperform	$268.90B	22.53	19.74%	1.39%	6.27%	31.78%
CHTR	76 Outperform	$40.55B	7.13	36.19%	―	1.03%	17.05%
AMX	74 Outperform	$55.84B	19.25	14.41%	2.91%	-0.64%	56.92%
CMCSA	72 Outperform	$120.03B	5.37	25.44%	3.94%	2.54%	60.53%
T	67 Neutral	$198.57B	15.83	12.12%	4.00%	1.46%	0.88%
Sector *	55 Neutral	HK$63.39B	-0.67	-4.21%	5.33%	-2.16%	-18.87%

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.