At&T Inc. (NYSE: T)

Sector: Communication Services Industry: Telecom Services CIK: 0000732717
Market Cap 210.50 Bn
P/B 1.15
P/E 12.86
P/S 1.15
ROIC (Qtr) 8.78
Div Yield % 8.08
Rev 1y % (Qtr) 3.62
Total Debt (Qtr) 155.04 Bn
Debt/Equity (Qtr) 1.40
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About

AT&T Inc., commonly referred to as AT&T, operates in the telecommunications industry, offering a range of services including wireless and wireline telecommunications, broadband, and satellite television. Established in 1983, the company's headquarters are located in Dallas, Texas. This essay provides an overview of AT&T's main business activities, its revenue generation methods, industry position, and some of its key brand names. AT&T's operations span across various business segments, with its Communications segment being the largest and most...

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Investment thesis

Bull case

  • Healthy cash reserves of 18.23B provide 2.02x coverage of short-term debt 9.01B, demonstrating strong liquidity position and minimal refinancing risk.
  • Operating cash flow of 40.28B provides exceptional 28.11x coverage of minority interest expenses 1.43B, showing strong core operations.
  • Tangible assets of 223.37B provide exceptional 52.36x coverage of deferred revenue 4.27B, showing strong service capability backing.
  • Operating cash flow of 40.28B provides strong 9.44x coverage of deferred revenue 4.27B, indicating service delivery capability.
  • Cash position of 18.23B provides exceptional 12.72x coverage of minority interest expenses 1.43B, indicating strong liquidity.

Bear case

  • Operating cash flow of 40.28B barely covers its investment activities of (18.78B), with a coverage ratio of -2.15, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 40.28B provides thin coverage of dividend payments of (8.18B) with a -4.92 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • High receivables of 8.84B relative to inventory of 2.42B (3.65 ratio) suggests aggressive credit terms or collection difficulties, potentially masking revenue quality issues.
  • Operating earnings of 32.38B show weak coverage of depreciation charges of 20.89B, with a 1.55 ratio indicating high capital intensity and potential reinvestment needs.
  • High depreciation of 20.89B relative to operating cash flow of 40.28B, which is 0.52x suggests significant maintenance capital requirements affecting free cash flow.

Geographical Breakdown of Revenue (2025)

Segments Breakdown of Revenue (2025)

Peer comparison

Companies in the Telecom Services
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 TMUS T-Mobile US, Inc. 247.58 Bn 22.52 2.80 118.74 Bn
2 T At&T Inc. 210.50 Bn 12.86 1.15 155.04 Bn
3 VZ Verizon Communications Inc 202.20 Bn 11.00 1.54 181.64 Bn
4 CMCSA Comcast Corp 180.83 Bn 58.43 5.08 98.94 Bn
5 VOD Vodafone Group Public Ltd Co 44.88 Bn 3.20 0.62 60.54 Bn
6 CHT Chunghwa Telecom Co Ltd 33.41 Bn 26.87 4.32 1.20 Bn
7 SATS EchoStar CORP 32.60 Bn -2.52 2.15 30.58 Bn
8 CHTR Charter Communications, Inc. /Mo/ 32.03 Bn 6.42 0.58 96.20 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.94 0.87
EV to Cash from Ops. EV/CFO 8.06 7.73
EV to Debt EV to Debt 2.54 40.31
EV to EBIT EV/EBIT 13.78 2.24
EV to EBITDA EV/EBITDA 6.79 2.53
EV to Free Cash Flow [EV/FCF] EV/FCF 13.84 33.34
EV to Market Cap EV to Market Cap 1.87 1.71
EV to Revenue EV/Rev 2.16 5.12
Price to Book Value [P/B] P/B 1.15 2.16
Price to Earnings [P/E] P/E 12.86 76.35
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 2.66 -0.17
Dividend Payout Ratio % Div Payout % (Qtr) 36.60 2.05
Dividend per Basic Share Div per Share (Qtr) 1.11 0.79
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 40.55 8.04
Interest Coverage Int. cover (Qtr) 4.76 -2.53
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -2.86 19.27
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 452.88 61.85
Dividend Growth (1y) % Div 1y % (Qtr) -0.09 -2.07
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 76.41 373.65
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 13.67 192.47
EBIT Growth (1y) % EBIT 1y % (Qtr) 46.16 814.56
EBT Growth (1y) % EBT 1y % (Qtr) 66.14 -29.03
EPS Growth (1y) % EPS 1y % (Qtr) 104.03 141.81
FCF Growth (1y) % FCF 1y % (Qtr) 5.05 78.17
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 2.34 -10.71
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.30 0.60
Cash Payout Ratio Cash Payout (Qtr) 0.13 0.06
Cash Ratio Cash Ratio (Qtr) 0.34 0.68
Current Ratio Curr Ratio (Qtr) 0.91 1.56
Debt to Equity Ratio Debt/Equity (Qtr) 1.40 -0.46
Interest Cover Ratio Int Coverage (Qtr) 4.76 -2.53
Times Interest Earned Times Interest Earned (Qtr) 4.76 -2.53
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 42.40 46.49
EBIT Margin % EBIT Margin % (Qtr) 25.77 -51.60
EBT Margin % EBT Margin % (Qtr) 20.35 27.73
Gross Margin % Gross Margin % (Qtr) 59.60 55.49
Net Profit Margin % Net Margin % (Qtr) 17.40 26.33