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

Add to My Stocks
$34.82 $0.39 (1.11%) T stock closing price Apr 19, 2018 (Closing)
Watch Robo Advisor Video of T Stock Analysis
AT&T
Updated on : Apr 18, 2018
previous close
T 35.2 (0%)
NASDAQ 7295.2 (0%)
Closing Price On: Apr 18, 2018
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Wireless National
Sector :
Computer and Technology
5 Quarter Revenue
Revenue Growth
2017-Q4
$billion
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
4.7%
Operating Profit
Operating Margin:
13.1%
Sector Average:
5.7%
5 Quarter Net Profit
Net Margins
2017-Q4
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
164.35B
Debt/Equity Ratio:
 1.16
Compared to the industry
Cash Flow
Operating cash flow:
$9.88B
Net Income:
$19.04B
Dividend Yield
T dividend yield:
5.57%
PROS      CONS
Operating Margins
Net Margins
ROE
High Dividend Yield
PE Valuation
PS Valuation
Recent Growth
Long Term Growth
High Debt Burden
Cash Flow
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
T PS :
1.4
Industry PS :
2.9
Sector:   Computer and Technology.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
4.6%
Return on Equity:
22.9%
Free Cash Flow Margin:
12%
Double Tap To Exit Full Screen
0:00
/

T Stock Analysis

3703 12 3

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 2017 Q4 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?

  • AT&T had a healthy average operating margin of 13.1% over the last 4 quarters.
  • LTM Net margins were good at 18.3% for AT&T.
  • The AT&T stock currently trades at a price to earnings ratio of 11.5. We rate this as a positive, compared to the industry average of 25.9.
  • T stock is trading at a favorable price to sales multiple of 1.4 as against the Wireless National industry average multiple of 2.9.
  • The company has a healthy dividend yield of 5.57%.
  • Return On Equity (ROE) which is a measure of the company's profitability, looks great for AT&T at 22.9%.

Should you sell T stock?

  • AT&T sales declined by -0.4% year on year in 2017 Q4.
  • Long term revenue growth of 4.7% over the past 5 years has been disappointing.
  • With a debt/equity ratio of  1.16, AT&T is highly leveraged in comparison to Computer and Technology peers.
  • Cash flow from operations is low at 0.5 times the net income.

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.