T-Mobile US, Inc. (NASDAQ: TMUS)

Sector: Communication Services Industry: Telecom Services CIK: 0001283699
Market Cap 247.58 Bn
P/B 4.18
P/E 22.52
P/S 2.80
ROIC (Qtr) 8.11
Div Yield % 1.67
Rev 1y % (Qtr) 11.26
Total Debt (Qtr) 118.74 Bn
Debt/Equity (Qtr) 2.01
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About

T-Mobile US, Inc., commonly known as T-Mobile, is a prominent player in the wireless communications services industry within the United States. The company operates under the brand names T-Mobile and Metro by T-Mobile, providing a spectrum of wireless services such as voice, messaging, and data, along with device financing and sales. T-Mobile's business model is centered on the provision of wireless services to its customers and the sale of devices and accessories. The company offers a variety of service plans, encompassing postpaid and prepaid...

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Investment thesis

Bull case

  • Operating cash flow of 27.95B provides strong 33.72x coverage of stock compensation 829M, indicating sustainable incentive practices.
  • Tangible assets of 103.68B provide exceptional 67.63x coverage of deferred revenue 1.53B, showing strong service capability backing.
  • Robust free cash flow of 20.16B exceeds capital expenditure of 7.79B by 2.59x, indicating strong organic growth funding capability.
  • Operating cash flow of 27.95B provides strong 18.23x coverage of deferred revenue 1.53B, indicating service delivery capability.
  • Tangible assets of 103.68B provide robust 25.24x coverage of other current liabilities 4.11B, indicating strong asset backing.

Bear case

  • Operating cash flow of 27.95B barely covers its investment activities of (17.61B), with a coverage ratio of -1.59, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 27.95B provides thin coverage of dividend payments of (4.12B) with a -6.78 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Cash reserves of 5.60B provide limited coverage of acquisition spending of (7.58B), which is -0.74x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • High receivables of 4.87B relative to inventory of 2.40B (2.03 ratio) suggests aggressive credit terms or collection difficulties, potentially masking revenue quality issues.
  • Operating earnings of 18.05B show weak coverage of depreciation charges of 13.51B, with a 1.34 ratio indicating high capital intensity and potential reinvestment needs.

Product and Service 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 1.65 0.87
EV to Cash from Ops. EV/CFO 12.92 7.73
EV to Debt EV to Debt 3.04 40.31
EV to EBIT EV/EBIT 20.00 2.24
EV to EBITDA EV/EBITDA 11.44 2.53
EV to Free Cash Flow [EV/FCF] EV/FCF 17.91 33.34
EV to Market Cap EV to Market Cap 1.46 1.71
EV to Revenue EV/Rev 4.09 5.12
Price to Book Value [P/B] P/B 4.18 2.16
Price to Earnings [P/E] P/E 22.52 76.35
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 2.67 -0.17
Dividend Payout Ratio % Div Payout % (Qtr) 37.50 2.05
Dividend per Basic Share Div per Share (Qtr) 3.66 0.79
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 20.48 8.04
Interest Coverage Int. cover (Qtr) 4.78 -2.53
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 10.91 19.27
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 3.49 61.85
Dividend Growth (1y) % Div 1y % (Qtr) 29.33 -2.07
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -0.51 373.65
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 1.68 192.47
EBIT Growth (1y) % EBIT 1y % (Qtr) -0.38 814.56
EBT Growth (1y) % EBT 1y % (Qtr) -2.93 -29.03
EPS Growth (1y) % EPS 1y % (Qtr) 0.52 141.81
FCF Growth (1y) % FCF 1y % (Qtr) 48.78 78.17
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 7.32 -10.71
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.40 0.60
Cash Payout Ratio Cash Payout (Qtr) 0.12 0.06
Cash Ratio Cash Ratio (Qtr) 0.23 0.68
Current Ratio Curr Ratio (Qtr) 1.00 1.56
Debt to Equity Ratio Debt/Equity (Qtr) 2.01 -0.46
Interest Cover Ratio Int Coverage (Qtr) 4.78 -2.53
Times Interest Earned Times Interest Earned (Qtr) 4.78 -2.53
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 35.70 46.49
EBIT Margin % EBIT Margin % (Qtr) 20.45 -51.60
EBT Margin % EBT Margin % (Qtr) 16.17 27.73
Gross Margin % Gross Margin % (Qtr) 62.90 55.49
Net Profit Margin % Net Margin % (Qtr) 12.40 26.33