Telephone and Data Systems, Inc. [NYSE:TDS]: Analyst Rating and Earnings
Equities traders frequently stay up to date regarding what leading market analysts think about a possible stock buy. As it relates to Telephone and Data Systems, Inc. [TDS], the latest mean analyst recommendation that’s publicly available is from the fiscal three-month period ending in December. On average, stock market experts give TDS an Outperform rating. Its stock price has been found in the range of 73.83 to 96.84. This is compared to its latest closing price of $34.91.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for Telephone and Data Systems, Inc. [TDS] is sitting at 2.40. This is compared to 1 month ago, when its average rating was 2.40.
For the quarter ending in Sep-18 Telephone and Data Systems, Inc. [TDS] generated $1.3 billion in sales. That’s 0.94% higher than the average estimate of $1.28 billion as provided by Wall Street analysts. The three indicators above suggest that overall, this stock is demonstrating a mixed bag of positive appeal and some drawbacks, making it a somewhat risky investment that also has the potential to generate high ROI in the long run.
Stay on the lookout for the next quarterly financial report – the company is expected to release the following results on Fri 22 Feb (In 12 Days).
Fundamental Analysis of Telephone and Data Systems, Inc. [TDS]
Now let’s turn to look at profitability: with a current Operating Margin for Telephone and Data Systems, Inc. [TDS] sitting at +3.07 and its Gross Margin at +36.50, this company’s Net Margin is now 8.00%. These metrics indicate that this company is not generating as much profit, after accounting for expenses, compared to its market peers.
This company’s Return on Total Capital is 2.13, and its Return on Invested Capital has reached -2.30%. Its Return on Equity is 3.64, and its Return on Assets is 1.63. These metrics suggest that this Telephone and Data Systems, Inc. does a poor job of managing its assets, and likely won’t be able to provide successful business outcomes for its investors in the near term.
Turning to investigate this organization’s capital structure, Telephone and Data Systems, Inc. [TDS] has generated a Total Debt to Total Equity ratio of 57.55. Similarly, its Total Debt to Total Capital is 36.53, while its Total Debt to Total Assets stands at 26.43. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 57.09, and its Long-Term Debt to Total Capital is 36.23. This company has a healthy balance between its debt and its current holdings, suggesting it is a reliable investment due to its ability to leverage debt in an efficient way.
What about valuation? This company’s Enterprise Value to EBITDA is 5.69 and its Total Debt to EBITDA Value is 2.46. The Enterprise Value to Sales for this firm is now 1.12, and its Total Debt to Enterprise Value stands at 0.45. Telephone and Data Systems, Inc. [TDS] has a Price to Book Ratio of 0.72, a Price to Cash Flow Ratio of 4.01 and P/E Ratio of 9.75. These metrics all suggest that Telephone and Data Systems, Inc. is more likely to generate a positive ROI.
Shifting the focus to workforce efficiency, Telephone and Data Systems, Inc. [TDS] earns $509,495 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 5.53 and its Total Asset Turnover is 0.54. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 1.98 and its Current Ratio is 2.14. This company, considering these metrics, has a healthy ratio between its short-term liquid assets and its short-term liabilities, making it a less risky investment.
Let’s now turn our attention to trading performance: Telephone and Data Systems, Inc. [TDS] has 112.00M shares outstanding, amounting to a total market cap of $3.92B. Its stock price has been found in the range of 23.54 to 37.29. At its current price, it has moved by -6.06% from its 52-week high, and it has moved 48.81% from its 52-week low.
This stock’s Beta value is currently 1.08, which indicates that it is more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 44.85. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is Telephone and Data Systems, Inc. [TDS] a Reliable Buy?
Shares of Telephone and Data Systems, Inc. [TDS], on the whole, present investors with both positive and negative signals. Wall Street analysts have mixed reviews when it comes to the 12-month price outlook, and this company’s financials show a combination of strengths and weaknesses. Based on the price performance, this investment is somewhat risky while presenting reasonable potential for ROI.