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

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$30.67 $0.05 (0.16%) TDS stock closing price Aug 20, 2018 (Closing)

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 2.8/5

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 Q2 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?

  • Telephone and Data Systems has a lower debt burden than its peers in the Utilities sector, with a debt/equity ratio of 0.48.
  • The company has an operating cash flow which is 5.4872 times the net income. We see this as a positive signal.
  • TDS stock is trading at a favorable price to sales multiple of 0.7 as against the Utilities sector average multiple of 2.1.
  • Telephone and Data Systems has a healthy FCF (Free Cash Flow) margin of 6.8.

Should you sell TDS stock?

  • Telephone and Data Systems revenue saw a decline of -1.1% YoY in 2018-03.
  • Sales declined by -1.2 annually over the last 5 years.
  • Telephone and Data Systems reported an average operating margin of -2.13 over the Last Twelve Months (LTM).
  • Telephone and Data Systems's LTM Net margins were poor at 3.1%.
  • Telephone and Data Systems has a low Return On Equity (ROE) of 3.2.

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.