United States Cellular (USM) AI Stock Analysis

• Market Cap: $6.25B
• Dividend Yield: N/A
• Average Volume (3M): 291.54K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.23
• Revenue Growth: -4.11%
• EPS Growth: -163.81%
• Country: US
• Employees: 4,100
• Sector: Communication Services
• Sector Strength: 85
• Industry: Telecommunications Services
• EPS (TTM): 0.21
• Shares Outstanding: 52,023,384
• 10 Day Avg. Volume: 426,813
• 30 Day Avg. Volume: 291,544
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.56
• Enterprise Value/Revenue: 2.62
• Enterprise Value/Gross Profit: 4.24
• Enterprise Value/Ebitda: 11.42
• 1Y Price Target: $84.50
• Price Target Upside: 16.18% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 69 Neutral
• Price Target: $80.00 ▲(10.00%Upside)

United States Cellular's stock score reflects a balanced view of its current position. The most significant positive factors are the corporate events, particularly the sale to T-Mobile, which enhances financial flexibility and strategic positioning. Technical analysis also indicates bullish momentum. However, financial performance and valuation concerns, including negative profitability and lack of dividends, weigh down the score.

Positive Factors

Asset Divestitures

SOTP implies more headroom to equity value unlock from asset divestitures.

Capital Returns

USM remains a top Mid-Cap pick due to additional opportunities for value unlock and substantial capital returns to shareholders.

Negative Factors

Towers Strategy

Lingering questions regarding Towers strategy long-term.

United States Cellular Business Overview & Revenue Model

Company Description

United States Cellular Corporation provides wireless telecommunications services in the United States. The company offers wireless services, including voice, messaging, and data services. It also provides devices, such as smartphones and other handsets, tablets, wearables, mobile hotspots, routers, and internet of things devices. In addition, the company offers various accessories, such as cases, screen protectors, chargers, and memory cards; and consumer electronics, including audio, home automation, and networking products; as well as offers option to purchase devices and accessories under installment contracts. Further, the company offers roaming, wireless eligible telecommunications carrier, and wireless tower rental services. It serves consumer, business, and government customers with 5.0 million connections, including 4.4 million postpaid, 0.5 million prepaid, and 0.1 million reseller and other connections in 21 states. The company provides its products and services through retail sales, direct sales, third-party national retailers, and independent agents, as well as e-commerce and telesales. The company was incorporated in 1983 and is headquartered in Chicago, Illinois. United States Cellular Corporation is a subsidiary of Telephone and Data Systems, Inc.

How the Company Makes Money

U.S. Cellular primarily generates revenue through the sale of wireless services and equipment. The company's key revenue streams include monthly service fees from postpaid and prepaid customers, sales of smartphones and other wireless devices, and roaming charges. U.S. Cellular also earns money through additional services such as device protection plans, data overage fees, and international calling plans. Strategic partnerships with other telecommunications companies, infrastructure sharing, and wholesale arrangements further contribute to the company's earnings. Additionally, U.S. Cellular invests in expanding its network capabilities and infrastructure to enhance service quality and attract more customers, which in turn boosts revenue.

United States Cellular Financial Statement Overview

Summary

United States Cellular is facing challenges with declining revenue and profitability, evidenced by negative EBIT and net income. Despite these challenges, the company maintains a solid operating cash flow, which provides some stability. The company's balance sheet reflects a leveraged position typical of the industry, but the consistent equity level offers reassurance. Improvements in revenue growth and efficient debt management are needed to enhance financial standing.

Income Statement

United States Cellular's revenue has been on a declining trend, dropping from $4.17 billion in 2022 to $3.71 billion in the TTM period. The company reported negative EBIT and net income for the current period, indicating profitability challenges. The gross profit margin remains relatively stable, but the net profit margin is negative, reflecting losses.

Balance Sheet

The company's balance sheet shows a high debt-to-equity ratio, indicative of a leveraged position, but this is common in the telecommunications industry. The equity ratio is moderate, suggesting a balanced approach between debt and equity financing. The company's stockholders' equity has remained stable over the periods observed.

Cash Flow

United States Cellular has maintained a strong operating cash flow relative to net income, showcasing good cash generation capability despite net losses. However, free cash flow has fluctuated due to varying capital expenditures, which impacts the company's investment capacity.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.77B	3.91B	4.17B	4.12B	4.04B
Gross Profit	2.86B	2.18B	2.20B	2.21B	2.24B
EBITDA	512.00M	1.06B	1.03B	1.13B	1.15B
Net Income	-39.00M	54.00M	30.00M	155.00M	229.00M
Balance Sheet
Total Assets	10.45B	10.75B	11.12B	10.34B	9.68B
Cash, Cash Equivalents and Short-Term Investments	144.00M	150.00M	273.00M	156.00M	1.27B
Total Debt	3.82B	4.03B	4.18B	3.75B	3.48B
Total Liabilities	5.84B	6.10B	6.54B	5.77B	5.25B
Stockholders Equity	4.58B	4.63B	4.55B	4.55B	4.41B
Cash Flow
Free Cash Flow	346.00M	128.00M	-355.00M	-1.24B	47.00M
Operating Cash Flow	883.00M	866.00M	832.00M	802.00M	1.24B
Investing Cash Flow	-556.00M	-721.00M	-1.18B	-2.04B	-1.16B
Financing Cash Flow	-347.00M	-274.00M	456.00M	142.00M	926.00M

United States Cellular Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 72.73
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For USM, the sentiment is Positive. The current price of 72.73 is above the 20-day moving average (MA) of 70.24, above the 50-day MA of 65.37, and above the 200-day MA of 64.22, indicating a bullish trend. The MACD of 2.25 indicates Negative momentum. The RSI at 64.78 is Neutral, neither overbought nor oversold. The STOCH value of 54.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for USM.

United States Cellular Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TKC	77 Outperform	$5.00B	11.52	6.74%	5.79%	14.09%	-11.43%
PHI	74 Outperform	$4.95B	9.11	28.10%	7.46%	-0.91%	11.25%
USM	69 Neutral	$6.25B	―	-0.84%	―	-4.11%	-163.81%
SKM	69 Neutral	$8.51B	9.48	11.08%	4.49%	-4.13%	4.96%
TEO	65 Neutral	$3.95B	19.34	3.99%	2.24%	-12.77%	40.80%
CABO	61 Neutral	$769.71M	59.21	-30.85%	8.63%	-5.43%	-363.95%
Sector *	61 Neutral	$41.44B	-3.01	-10.30%	3.97%	2.71%	-44.19%

United States Cellular Corporate Events

Array Digital Infrastructure Sells Wireless Assets to T-Mobile

On August 1, 2025, Array Digital Infrastructure, formerly known as United States Cellular Corporation, completed the sale of its wireless operations and select spectrum assets to T-Mobile USA for approximately $4.3 billion. This transaction led to significant changes in Array’s financial structure, including the termination of its securitization and bank facilities, and resulted in a special cash dividend of $23.00 per share for its stockholders. Additionally, Array underwent a corporate restructuring, including changes in its board of directors and executive officers, and a name change to reflect its new focus.

The most recent analyst rating on (USM) stock is a Buy with a $73.00 price target. To see the full list of analyst forecasts on United States Cellular stock, see the USM Stock Forecast page.

United States Cellular Announces New Interim CEO

On July 24, 2025, United States Cellular Corporation announced the appointment of Douglas W. Chambers as interim President and CEO, effective upon the closing of a transaction with T-Mobile US, Inc. This transition follows the anticipated sale of its wireless operations and spectrum assets to T-Mobile, expected to result in a special cash dividend of $1.950 billion to $2.075 billion for shareholders. Additionally, UScellular plans to rebrand as Array Digital Infrastructure, Inc. post-closing, marking a significant shift in its business operations and market positioning.

The most recent analyst rating on (USM) stock is a Buy with a $73.00 price target. To see the full list of analyst forecasts on United States Cellular stock, see the USM Stock Forecast page.

UScellular Amends Credit Agreement with New Term Loan

UScellular has amended and restated its credit agreement, originally established on July 30, 2021, to a new agreement on June 25, 2025. This Fourth Amended and Restated Credit Agreement maintains the existing $500 million loan facilities and introduces a new $800 million Term Loan A-3 Facility, contingent upon the completion of a Securities Purchase Agreement. The loans are intended for general corporate purposes and a special dividend related to the agreement. Additionally, James W. Butman resigned from UScellular’s board on July 1, 2025, with Kenneth Dixon being elected as a new director.

The most recent analyst rating on (USM) stock is a Buy with a $73.00 price target. To see the full list of analyst forecasts on United States Cellular stock, see the USM Stock Forecast page.

US Cellular Modifies Indentures Ahead of T-Mobile Sale

On June 16, 2025, T-Mobile USA announced the preliminary results of its exchange offers and consent solicitations for United States Cellular Corporation’s senior notes. The exchange offers aimed to replace USCC’s notes with new notes issued by T-Mobile USA, and the consent solicitations sought to amend certain provisions in the existing indentures. By the withdrawal deadline on June 13, 2025, T-Mobile had received the necessary consents to proceed with the proposed amendments. On June 17, 2025, USCC entered into several supplemental indentures to modify or eliminate specific provisions in anticipation of the sale of its wireless operations to T-Mobile US, Inc. These amendments will only become operative upon the closing of the acquisition, and if the settlement of the new notes does not occur within five business days post-acquisition, the amendments will be voided.

The most recent analyst rating on (USM) stock is a Buy with a $73.00 price target. To see the full list of analyst forecasts on United States Cellular stock, see the USM Stock Forecast page.