Telephone and Data Systems Stock Analysis, Valuation (NYSE:TDS)

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$25.84 $0.14 (0.54%) TDS stock closing price May 18, 2018 (Closing)
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Telephone and Data Systems
Updated on : May 18, 2018
previous close
TDS 25.8 (0%)
S&P 500 2713 (0%)
Closing Price On: May 18, 2018
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Wireline-National
Sector :
Utilities
5 Quarter Revenue
Revenue Growth
2018-Q1
$billion
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
-1.2%
Operating Profit
Operating Margin:
-2.1%
Sector Average:
14.4%
5 Quarter Net Profit
Net Margins
2018-Q1
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
2.45B
Debt/Equity Ratio:
 0.48
Compared to the industry
Cash Flow
Operating cash flow:
$214M
Net Income:
$39M
Dividend Yield
TDS dividend yield:
2.48%
PROS      CONS
Low Debt Burden
Cash Flow
FCF Margin
PS Valuation
Recent Growth
Long Term Growth
Operating Margins
Net Margins
PE Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
TDS PS :
0.6
Industry PS :
1.9
Sector:   Utilities.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
2.4%
Return on Equity:
3.2%
Free Cash Flow Margin:
6.8%
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TDS Stock Analysis

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Watch the robo advisor video of Telephone and Data Systems stock analysis on Amigobulls. This video puts forward our latest analysis highlighting the pros and cons for TDS 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.

Telephone & Data Systems, Inc. Stock Rating 2.6/5

Amigobulls TDS stock analysis relies on business fundamentals such as Telephone and Data Systems revenue growth, profits and return on equity measures from the latest quarter 2018 Q1 earnings. Telephone and Data Systems valuation forms a crucial part of our stock analysis. Telephone and Data Systems stock rating is our opinion about the business fundamentals of the company.

Should you buy TDS stock?

  • With a debt/equity ratio of  0.48, Telephone and Data Systems is comparatively less leveraged than its peers in the Utilities sector.
  • The operating cash flow looks good at 5.5 times the net income.
  • The lower PS ratio 0.6 for TDS stock versus Wireline-National industry average of 1.9 is a positive for the company.
  • The company has a healthy free cash flow margin of 6.8%.

Should you sell TDS stock?

  • Telephone and Data Systems sales declined by -1.1% year on year in 2018 Q1.
  • Sales declined by -1.2% annually over the last 5 years.
  • Telephone and Data Systems reported an average operating margin of -2.1% over the Last Twelve Months (LTM).
  • Telephone and Data Systems posted a TTM Net margin of 3.1%.
  • Trading at a PE ratio of 46.1, TDS stock is overvalued in comparison to industry average multiple of 18.4.

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Comments on this video and Telephone and Data Systems stock

Amigobulls Telephone and Data Systems stock analysis helps investors in understanding how the company's fundamentals have performed in the last few quarters. The fundamentals of a company are vital to identify long-term investment opportunities.

Telephone and Data Systems 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. Investors could make use of TDS technical analysis to check whether the fundamental story is reflected in the market sentiment.