TMUS T-Mobile US, Inc. - Fundamental Analysis
NEUTRAL
TMUS Stock | Fundamental Analysis & Investment Insights
NYSE
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Communication Services
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Telecom Services
Current Price
$216.08
Analyst Target
$275.0
+27.3% Upside
52W High
$276.49
52W Low
$199.41
AI Analysis
Powered by advanced machine learning algorithms
Confidence Score
65%
Analysis Accuracy
T-Mobile US (TMUS) trades at a premium valuation with solid long-term profitability and industry-leading revenue growth relative to peers like AT&T, supported by strong operating margins and ROE. However, near-term earnings contraction, weakening quarterly momentum, and bearish insider selling—over $423M in net sales by major holders—raise caution despite a bullish analyst consensus and a compelling 1.89% dividend yield with a sustainable payout ratio. The stock has underperformed over the past year (-7.8%) and six months (-10.3%), lagging both its 5-year trend and peer Meta's growth trajectory, while trading above sector-average P/E. Data gaps in key financials (EV, cash flow, ROIC) limit conviction, but the core business remains resilient in a competitive telecom landscape.
Key Strengths
Revenue growth of 8.9% YoY outpaces AT&T (1.6%) and exceeds the sector average in telecom services
Strong profitability with operating margin of 22.23% and gross margin of 63.78%, reflecting pricing power and cost discipline
ROE of 19.03% is competitive versus sector average of 25.89% and AT&T's 19.14%, indicating efficient equity use
Attractive dividend yield of 1.89% with a healthy 33.91% payout ratio, suggesting room for future increases
Analyst target price of $275 implies 27% upside, reflecting strong external confidence in recovery
Key Risks
Earnings declining YoY (-7.7%) and Q/Q (-11.3%), indicating near-term profitability pressure
Debt/Equity of 2.01 is significantly above sector average (0.75) and peer AT&T (1.24), increasing financial risk
Current ratio of 0.89 and quick ratio of 0.57 signal tight liquidity, raising concerns about short-term obligations
Bearish insider activity: $423.12M in net selling by 10%+ beneficial owners suggests lack of confidence at the top
Valuation premium: P/E of 20.84 exceeds sector average (17.65) and AT&T (8.34), with no PEG to justify growth discount
AI Fair Value Estimate
Based on comprehensive analysis
$275.0
+27.3% above current price
Performance Snowflake
Multi-dimensional AI analysis across 5 key categories
Stock Price & Analyst Targets
Real-time price movements and analyst price targets
Historical Performance Trends
Long-term financial metrics and growth patterns
Valuation Metrics
Key valuation ratios and pricing indicators
Profitability, Growth & Financial Health
Detailed profit margins, ROE, debt ratios, and liquidity metrics
Sector Comparison & Peer Analysis
Compare TMUS against industry averages and similar companies
Insider Trading & Analyst Ratings
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