T-Mobile US Inc
Exchange: NASDAQSector: Communication ServicesIndustry: Telecom Services
As the supercharged Un-carrier, T-Mobile US, Inc. is powered by an award-winning 5G network that connects more people, in more places, than ever before. With T-Mobile's unique value proposition of best network, best value and best experiences, the Un-carrier is redefining connectivity and fueling competition while continuing to drive the next wave of innovation in wireless and beyond. Headquartered in Bellevue, Wash., T-Mobile provides services through its subsidiaries and operates its flagship brands, T-Mobile, Metro by T-Mobile and Mint Mobile.
Did you know?
Price sits at 23% of its 52-week range.
Current Price
$201.40
-1.40%GoodMoat Value
$601.71
198.8% undervaluedProfile
Valuation (TTM)
Market Cap$225.27B
P/E20.49
EV$341.64B
P/B3.80
Shares Out1.12B
P/Sales2.55
Revenue$88.31B
EV/EBITDA10.56
T-Mobile US Inc (TMUS) Stock Analysis
GoodMoat Analysis
T-Mobile US is a major wireless carrier with a strong competitive position, evidenced by a high moat score and robust financial quality. The stock appears deeply undervalued based on the GoodMoat target price, suggesting a significant margin of safety. This combination of a strong business and attractive price makes it a compelling candidate for further due diligence.
Read full analysis
T-Mobile US Inc is a leading national wireless telecommunications carrier, providing mobile voice and data services to consumers and businesses. Applying the GoodMoat framework, the company likely scores highly on Moat Identification. It benefits from significant regulatory barriers (spectrum licenses), scale privilege in its nationwide network infrastructure, and strategic partnerships with device makers. Its successful integration of Sprint and consistent market share gains also point to strong execution and brand momentum. The Quality Indicators are also strong, with an operating margin of 20.4%, ROE of 18.6%, and a substantial 11.3% YoY revenue growth. The 8.5% Free Cash Flow Yield is a standout, indicating strong cash generation. The primary concern is the Debt/Equity ratio of 2.0, which is elevated but common for capital-intensive telecoms. The Decision Framework suggests proceeding, as the business has a durable moat and high quality. The valuation assessment is highly favourable: the GoodMoat target of $601.71 implies the current price of $211.36 represents a margin of safety of roughly 65%, which falls into the 'Deeply Undervalued' band (>40%). This massive discount, coupled with the company's strong operational metrics, makes T-Mobile US a company very much worth investigating further for a value investor seeking a margin of safety. Analysis based on data as of 2024-05-15.
Market Cap$225.27B
Current Price$201.40
P/E Ratio20.49
Forward P/E—
PEG Ratio-0.78
EPS$9.72
Book Value$52.93
P/B Ratio3.80
TMUS Financial Charts
FCF vs CAPEX
FCFCAPEX
Forward estimates use 50.0% FCF growth (CAGR)
Cash vs Debt
Net Debt: 113.1B
Revenue
45.0B
FY19
68.4B
FY20
80.1B
FY21
79.6B
FY22
78.6B
FY23
81.4B
FY24
88.3B
FY25
Net Income
3.5B
FY19
3.1B
FY20
3.0B
FY21
2.6B
FY22
8.3B
FY23
11.3B
FY24
11.0B
FY25
TMUS 52-Week Range
$182.74
$262.29
50-Day MA: $207.86200-Day MA: $218.50
Did you know?
Trading 199% below its estimated fair value of $601.71.
T-Mobile US Inc (TMUS) Financial Summary
T-Mobile US Inc (TMUS) is a Communication Services company in the Telecom Services industry, listed on NASDAQ. The stock currently trades at $201.40 with a market capitalization of $225.27B.
Key valuation metrics include a P/E ratio of 20.49, price-to-book ratio of 3.80, and EPS of $9.72. The company reports a profit margin of 12.4% and return on equity of 18.6%.
TMUS Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $225.27B |
| P/E Ratio | 20.49 |
| EPS | $9.72 |
| P/B Ratio | 3.80 |
| P/S Ratio | 2.55 |
| EV/EBITDA | 10.56 |
| Dividend Yield | 1.83% |
| Profit Margin | 12.4% |
| Return on Equity | 18.6% |
| Debt/Equity | 2.01 |
TMUS Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY19 | $45.00B | $3.47B |
| FY20 | $68.40B | $3.06B |
| FY21 | $80.12B | $3.02B |
| FY22 | $79.57B | $2.59B |
| FY23 | $78.56B | $8.32B |
| FY24 | $81.40B | $11.34B |
| FY25 | $88.31B | $10.99B |
T-Mobile US Inc (TMUS) Valuation
Based on GoodMoat's DCF model, T-Mobile US Inc has a fair value estimate of $601.71. At the current price of $201.40, the stock appears 66.5% undervalued relative to our intrinsic value estimate.
TMUS Quality Indicators
T-Mobile US Inc maintains a profit margin of 12.4% and an operating margin of 20.4%. Return on equity stands at 18.6%. The current ratio is 1.00. Debt-to-equity ratio is 2.01.
About T-Mobile US Inc
As the supercharged Un-carrier, T-Mobile US, Inc. is powered by an award-winning 5G network that connects more people, in more places, than ever before. With T-Mobile's unique value proposition of best network, best value and best experiences, the Un-carrier is redefining connectivity and fueling competition while continuing to drive the next wave of innovation in wireless and beyond. Headquartered in Bellevue, Wash., T-Mobile provides services through its subsidiaries and operates its flagship brands, T-Mobile, Metro by T-Mobile and Mint Mobile.
TMUS Free Cash Flow
T-Mobile US Inc generated $20.16B in trailing twelve-month free cash flow, representing an FCF yield of 8.95%. This strong FCF yield suggests the company generates substantial cash relative to its market value.
TMUS Shares Outstanding
T-Mobile US Inc has 1.12 billion shares outstanding at a share price of $201.40, giving it a market capitalization of $225.27B.
TMUS Recent Insider Trades
Recent insider transactions at T-Mobile US Inc include:
| Insider | Type | Shares | Value |
|---|---|---|---|
| Datar Srikant M. | SELL | 1,000 | $218250.10 |
| Datar Srikant M. | SELL | 3,291 | $727640.10 |
| Nelson Mark Wolfe (Chief Legal Officer & GC) | SELL | 2,329.2 | $517968.16 |