T AT&T Inc. - Fundamental Analysis
NEUTRAL
T Stock | Fundamental Analysis & Investment Insights
NYSE
•
Communication Services
•
Telecom Services
Current Price
$25.59
Analyst Target
$30.61
+19.6% Upside
52W High
$29.79
52W Low
$21.38
At a glance
Key valuation, profitability, growth, and risk metrics.
Updated Nov 15, 2025
Market cap
$182.55B
P/E
8.34
ROE
19.1%
Profit margin
17.9%
Debt/Equity
1.24
Dividend yield
4.34%
AI Analysis
Powered by advanced machine learning algorithms
Confidence Score
65%
Analysis Accuracy
AT&T trades at a significant valuation discount to the Communication Services sector, supported by stable profitability and a compelling 4.34% dividend yield with a sustainable 36% payout ratio. However, near-term revenue growth of just 1.6% YoY and a lack of earnings momentum—evidenced by four consecutive earnings misses and missing analyst estimates in all tracked quarters—raise concerns about execution. Price performance shows long-term strength (63.7% over 5Y) but recent underperformance (down 5.8% over 6M), while the stock remains well below its 52-week high of $29.79. Analysts are constructive with a $30.61 target implying ~20% upside, but absent insider activity and weak growth relative to high-growth peers like META constrain bullish conviction.
Key Strengths
Attractive valuation with P/E of 8.34 vs sector average of 26.96, offering significant discount
Strong profitability: 21.58% operating margin and 17.87% net margin exceed sector averages
High ROE of 19.14% indicates efficient use of equity capital despite sector headwinds
Dividend yield of 4.34% is well-covered by a 36.16% payout ratio, enhancing income appeal
Long-term price appreciation: +63.7% over 5 years demonstrates resilience and capital preservation
Key Risks
Revenue growth of only 1.6% YoY is anemic compared to sector average of 26.20%
All four recent earnings quarters missed estimates with 0% average surprise, signaling weak earnings execution
High debt/equity ratio of 1.24 vs sector average of 0.26 increases refinancing and interest rate risk
Liquidity concerns: current ratio of 1.01 and quick ratio of 0.71 indicate tight short-term financial flexibility
Lack of insider buying in last 6 months suggests no confidence signal from management
AI Fair Value Estimate
Based on comprehensive analysis
$30.61
+19.6% above current price
Performance Snowflake
Multi-dimensional analysis across 5 key categories
Overall
66
Strong
90
45
60
50
85
AI Verdict
AT&T presents a value-oriented investment with strong income and profitability metrics, but constrained by weak growth and elevated leverage relative to a high-growth peer like META. The stock trades at a steep discount to both intrinsic value (per analyst target) and sector multiples, yet lacks the innovation or revenue momentum to justify re-rating without operational improvements.
Key drivers: Valuation discount to sector (P/E 8.34 vs 26.96), Sustainable dividend yield of 4.34%, Persistent earnings misses and stagnant growth
Confidence
70%
Value
90/100
AT&T is dramatically cheaper than the Communication Services sector, which is dominated by high-growth digital platforms like META (P/E 26.96), making it a potential value play if growth stabilizes
Positives
- P/E of 8.34 is less than one-third of sector average (26.96)
- Price/Sales of 1.47 well below sector average implied by high-growth peers
Watchpoints
- Forward P/E of 11.42 suggests multiple expansion already priced in
- Lack of EV/EBITDA and EV/Revenue data limits full capital structure analysis
Future
45/100
The company’s future growth trajectory appears stagnant, with price momentum weakening over 6M (-5.8%) and 1Y (+20.2%) despite long-term gains, suggesting limited near-term catalysts
Positives
- Analyst target price of $30.61 implies 20% upside, suggesting growth expectations are priced in
- Dividend reinvestment and cash flow stability may support long-term compounding
Watchpoints
- Revenue growth of 1.6% YoY is negligible versus sector average of 26.20%
- No earnings growth data and consistent earnings misses indicate deteriorating momentum
Past
60/100
While AT&T has delivered solid long-term returns and margin stability, its inability to meet earnings expectations in any of the last four quarters undermines confidence in execution quality
Positives
- Consistent profitability with gross margin of 59.67% and operating margin of 21.58%
- 5-year total return of +63.7% shows capital appreciation and resilience
Watchpoints
- Zero earnings beats in last 4 quarters with no positive surprises
- Recent underperformance: down 5.8% over 6 months despite strong 5Y trend
Health
50/100
AT&T’s financial health is strained relative to peers, with high leverage and limited liquidity, raising concerns about flexibility in a rising rate environment
Positives
- Operating cash flow and free cash flow data missing, but dividend coverage at 36% suggests cash generation is sufficient
- ROA of 4.02% indicates modest asset efficiency
Watchpoints
- Debt/Equity of 1.24 is nearly five times the sector average of 0.26, increasing financial risk
- Current ratio of 1.01 and quick ratio of 0.71 signal tight liquidity and potential working capital pressure
Dividend
85/100
The dividend appears sustainable given current earnings and payout ratio, but lacks visibility on growth and faces headwinds from elevated leverage
Positives
- Dividend yield of 4.34% is attractive in a low-yield environment
- Payout ratio of 36.16% indicates strong earnings coverage and room for sustainability
Watchpoints
- No data on dividend growth history or consistency of increases
- High debt load could pressure future capital allocation, including dividends
Stock Price & Analyst Targets
Real-time price movements and analyst price targets
Current Price
$25.59
Analyst Target
$30.61
Upside/Downside
+19.6%
Multi-Horizon Performance vs Peers
Price momentum across 5Y → 1W horizons for T and closest competitors.
Updated 2025-11-14
| Company | 5Y | 3Y | 1Y | 6M | 1M | 1W |
|---|---|---|---|---|---|---|
|
T
AT&T Inc.
Primary
|
+63.7% | +59.3% | +20.2% | -5.8% | -1.8% | +3.1% |
|
APP
AppLovin Corporation
Peer
|
+755.4% | +3493.4% | +96.0% | +53.9% | -7.4% | -10.0% |
|
VZ
Verizon Communications Inc.
Peer
|
-9.0% | +33.3% | +7.4% | -3.5% | +1.7% | +2.6% |
|
TMUS
T-Mobile US, Inc.
Peer
|
+73.0% | +53.5% | -7.8% | -10.3% | -4.7% | +4.4% |
|
CMCSA
Comcast Corporation
Peer
|
-36.1% | -11.7% | -34.3% | -20.9% | -7.4% | +0.6% |
Positive values indicate cumulative gains over the specified period. Comparables pulled from the same sector to highlight whether momentum is stock-specific or industry-wide.
Historical Performance Trends
Long-term financial metrics and growth patterns
Revenue & Net Income
Profit & Operating Margins
Return on Equity (ROE)
Quarterly Revenue Growth
Historical data shows last 12 quarters (3 years)
Valuation Metrics
Key valuation ratios and pricing indicators
P/E Ratio
8.34
Forward P/E
11.42
PEG Ratio
N/A
P/B Ratio
1.64
P/S Ratio
1.47
EV/Revenue
2.73
EV/EBITDA
7.65
Market Cap
$182.55B
Profitability
Profit margins and return metrics
Profit Margin
17.87%
Operating Margin
21.58%
Gross Margin
59.67%
ROE
19.14%
ROA
4.02%
Growth
Revenue and earnings growth rates
Revenue Growth
+1.6%
Earnings Growth
N/A
Q/Q Revenue Growth
N/A
Q/Q Earnings Growth
N/A
Financial Health
Balance sheet strength and liquidity metrics
Debt/Equity
1.24
Moderate
Current Ratio
1.01
Good
Quick Ratio
0.71
Poor
Cash/Share
$2.87
Quarterly Earnings History
EPS performance vs analyst estimates
2026-01-28
$N/A
2025-10-22
$0.54
+0.5% surprise
2025-07-23
$0.54
+1.9% surprise
2025-04-23
$0.61
+23.4% surprise
Communication Services Sector Comparison
Comparing T against 7 companies in the Communication Services sector
(2 bullish, 4 neutral, 1 bearish)
P/E Ratio
8.34
This Stock
vs
20.12
Sector Avg
-58.6%
(Discount)
Return on Equity (ROE)
19.14%
This Stock
vs
55.44%
Sector Avg
-65.5%
(Below Avg)
Profit Margin
17.87%
This Stock
vs
21.36%
Sector Avg
-16.3%
(Weaker)
Debt to Equity
1.24
This Stock
vs
1.93
Sector Avg
-35.7%
(Less Debt)
Revenue Growth
1.6%
This Stock
vs
14.69%
Sector Avg
-89.1%
(Slower)
Current Ratio
1.01
This Stock
vs
1.3
Sector Avg
-22.3%
(Weaker)
Similar Companies
Peer comparison within the same industry
| Company | AI Rating | Market Cap | P/E | ROE | Profit Margin | Price | |
|---|---|---|---|---|---|---|---|
|
T
AT&T Inc.
|
NEUTRAL | $182.55B | 8.34 | 19.1% | 17.9% | $25.59 | |
|
APP
AppLovin Corporation
|
BULLISH | $187.95B | 65.77 | 241.9% | 44.9% | $557.7 | |
|
VZ
Verizon Communications Inc.
|
NEUTRAL | $173.34B | 8.75 | 19.9% | 14.4% | $41.06 | |
|
TMUS
T-Mobile US, Inc.
|
NEUTRAL | $241.69B | 20.84 | 19.0% | 13.8% | $216.08 | |
|
CMCSA
Comcast Corporation
|
NEUTRAL | $101.92B | 4.57 | 24.2% | 18.3% | $27.51 |
Recent Insider Trading
Insider buy and sell transactions from the last 6 months
| Date | Insider | Position | Transaction | Shares | Value |
|---|---|---|---|---|---|
| 2025-10-31 | STANKEY JOHN T | Chief Executive Officer | Stock Award | 844 | $20,889 |
| 2025-10-31 | LEE LORI M | Officer | Stock Award | 474 | $11,746 |
| 2025-10-31 | SABRINA SANDERS S | Officer | Stock Award | 224 | $5,557 |
| 2025-10-31 | MCELFRESH JEFFERY S. | Chief Operating Officer | Stock Award | 2,577 | $63,786 |
| 2025-10-31 | ARROYO F. THADDEUS | Officer | Stock Award | 945 | $23,405 |
| 2025-10-24 | STANKEY JOHN T | Chief Executive Officer | Gift | 121,875 | - |
| 2025-10-23 | MCATEE DAVID R. II | General Counsel | Gift | 143,169 | - |
| 2025-09-30 | DESROCHES PASCAL | Chief Financial Officer | Stock Award | 1,586 | $44,792 |
| 2025-09-30 | LEE LORI M | Officer | Stock Award | 318 | $9,000 |
| 2025-09-30 | SABRINA SANDERS S | Officer | Stock Award | 110 | $3,120 |
| 2025-09-30 | MCELFRESH JEFFERY S. | Chief Operating Officer | Stock Award | 619 | $17,500 |
| 2025-09-30 | ARROYO F. THADDEUS | Officer | Stock Award | 764 | $21,600 |
| 2025-08-29 | DESROCHES PASCAL | Chief Financial Officer | Stock Award | 1,529 | $44,792 |
| 2025-08-29 | LEE LORI M | Officer | Stock Award | 307 | $9,000 |
| 2025-08-29 | SABRINA SANDERS S | Officer | Stock Award | 106 | $3,120 |
Insider transactions can signal confidence or concerns about company prospects
Wall Street Analysts
Professional analyst ratings and price targets
Consensus
BUY
24 analysts
Keybanc
2025-11-12
Sector Weight
Overweight
TD Cowen
2025-10-23
Hold
Hold
RBC Capital
2025-10-23
Outperform
Outperform
Barclays
2025-10-23
Equal-Weight
Equal-Weight
Wells Fargo
2025-10-16
Overweight
Overweight
Scotiabank
2025-10-06
Sector Outperform
Sector Perform
Barclays
2025-10-01
Overweight
Equal-Weight
Raymond James
2025-09-18
Strong Buy
Strong Buy
Bernstein
2025-09-04
Outperform
Outperform
Raymond James
2025-07-24
Strong Buy
Strong Buy