T Mobile US (TMUS) AI Stock Analysis

• Market Cap: $269.81B
• Dividend Yield: 1.47%
• Average Volume (3M): 3.95M
• Price to Earnings (P/E): 22.6
• Beta (1Y): 0.48
• Revenue Growth: 6.27%
• EPS Growth: 31.78%
• Country: US
• Employees: 70,000
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): 2.84
• Shares Outstanding: 1,125,419,100
• 10 Day Avg. Volume: 3,989,989
• 30 Day Avg. Volume: 3,950,721
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: $265.71
• Price Target Upside: 10.97% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 16

• Rating: 73 Outperform
• Price Target: $268.00 ▲(11.92% Upside)

T-Mobile US's strong financial performance and positive earnings call are the primary drivers of its stock score. The company's robust growth and strategic expansions are offset by bearish technical indicators and a relatively high valuation. Despite these challenges, T-Mobile's raised guidance and market leadership in 5G broadband position it well for future growth.

Positive Factors

5G Broadband Leadership

T-Mobile's leadership in 5G broadband net additions underscores its competitive edge and market dominance in a rapidly growing sector.

Strategic Partnerships

Being the official provider for the LA Olympics enhances T-Mobile's brand visibility and showcases its network capabilities on a global stage.

Revenue Growth

Strong growth in postpaid service revenues indicates successful customer acquisition and retention strategies, supporting long-term financial health.

Negative Factors

High Leverage

High leverage could limit financial flexibility and increase risk, especially if interest rates rise or cash flow generation slows.

Churn Increase

Increased churn can impact customer base stability and revenue predictability, challenging long-term growth if not addressed.

Integration Costs

Significant integration costs from acquisitions could strain resources and delay profitability improvements, impacting short-term financials.

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 generates revenue primarily through its subscription-based services, which include postpaid and prepaid wireless plans. The majority of its earnings come from postpaid customers who pay a monthly fee for voice and data services. Additionally, T-Mobile earns revenue from selling mobile devices and accessories, as well as from mobile broadband services. The company also benefits from partnerships with manufacturers and technology firms, which enable it to offer bundled services and devices. Key revenue streams include customer fees, device sales, and service contracts, with a focus on expanding its customer base and enhancing service offerings to drive growth.

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	10.26B	5.41B	5.13B	4.51B	6.63B	10.38B
Total Debt	117.86B	114.40B	113.83B	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: Negative
• Last Price: 239.45
• 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 239.45 is below the 20-day moving average (MA) of 247.95, below the 50-day MA of 242.44, and below the 200-day MA of 241.36, indicating a bearish trend. The MACD of -1.72 indicates Positive momentum. The RSI at 40.02 is Neutral, neither overbought nor oversold. The STOCH value of 12.05 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
VZ	83 Outperform	186.40B	10.16	17.65%	6.13%	2.05%	61.39%
CMCSA	78 Outperform	119.74B	5.33	23.65%	3.95%	2.54%	60.53%
T	77 Outperform	211.22B	16.72	12.12%	3.76%	1.46%	0.88%
TMUS	73 Outperform	$269.81B	22.61	19.74%	1.47%	6.27%	31.78%
AMX	68 Neutral	62.63B	21.60	11.57%	2.55%	-0.64%	56.92%
CHTR	68 Neutral	40.86B	7.29	32.48%	―	1.03%	17.05%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%