AT&T Stock Analysis, Valuation (NYSE:T)

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$31.71 $0.05 (0.16%) T stock closing price Jul 18, 2018 (Closing)

View the AT&T stock analysis video on Amigobulls. This video puts forward our latest analysis highlighting the pros and cons for T stock.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

AT&T Inc. Stock Rating 3.7/5

Amigobulls T stock analysis relies on business fundamentals such as AT&T revenue growth, profits and return on equity measures from the latest quarter 2018 Q1 earnings. We compare AT&T valuation with its sector peers to gauge relative attractiveness of T stock. Based on a company's historical fundamentals we arrive at AT&T stock rating which is indicative of the company's financial performance.

Should you buy T stock?

  • The TTM operating margin was good at 12.74 for AT&T.
  • Net margins stood at a healthy 19.2% (average) for AT&T in the Trailing Twelve Months.
  • The company has an operating cash flow which is 1.9191 times the net income.
  • The AT&T stock currently trades at a price to earnings ratio of 10, compared to the sector average of 26.4. We rate this as a positive.
  • When compared with the Computer and Technology sector average PS ratio of 3, the price-to-sales ratio of 1.2 for T stock is attractive.
  • The company has a healthy dividend yield of 6.21.
  • The LTM ROE of 23 for AT&T is attractive.

Should you sell T stock?

  • AT&T sales declined by -3.4% year on year in 2018-03.
  • Revenue growth of 4.6 has been weak over the last 5 years.
  • With a debt/equity ratio of 1.11, AT&T is highly leveraged in comparison to Computer and Technology peers.

Comments on this video and AT&T stock

Investors can use Amigobulls AT&T stock analysis as a tool to arrive at accurate conclusions regarding financial health of the company and its valuation. The fundamentals of a company are vital to identify long-term investment opportunities.

AT&T revenue growth is an indicator of the demand for a company's products while profit margin is indicative of company's pricing power and pricing strategy. One can also combine technical analysis and fundamental analysis to get a holistic picture about T stock.