-1.53%
3.64%
18.82%
66.75%
84.02%
78.54%
55.86%

Company Description

Telephone and Data Systems, Inc., a telecommunications company, provides communications services in the United States.It operates through two segments: UScellular and TDS Telecom.The company offers wireless solutions to consumers and business and government customers, including a suite of connected Internet of things (IoT) solutions, and software applications for monitor and control, business automation/operations, communication, fleet and asset management, smart water solutions, private cellular networks and custom, and end-to-end IoT solutions; wireless priority services and quality priority and preemption options; smartphones and other handsets, tablets, wearables, mobile hotspots, routers, and IoT devices; and accessories, such as cases, screen protectors, chargers, and memory cards, as well as consumer electronics, including audio, home automation and networking products.


It also provides replace and repair services; Trade-In program through which it buys customers' used equipment; internet connections and all-home WI-FI services; TDS TV+, an integrated cloud television platform that offers video content; local and long-distance telephone service, VoIP, and enhanced services; and broadband, IP-based services, and hosted voice and video collaboration services.The company sells its products through retail sales, direct and indirect sales, third-party retailers, and independent agents, as well as through ecommerce and telesales.As of December 31, 2021, it offers its services to customers 5 million wireless connections, and 1.2 million wireline and cable connections.


The company was incorporated in 1968 and is headquartered in Chicago, Illinois.

Market Data

Last Price 35.35
Change Percentage -1.53%
Open 36.08
Previous Close 35.9
Market Cap ( Millions) 3747
Volume 831446
Year High 36.66
Year Low 13.69
M A 50 34.04
M A 200 24.82

Financial Ratios

FCF Yield 1.84%
Dividend Yield 0.88%
ROE -10.47%
Debt / Equity 101.26%
Net Debt / EBIDTA 744.13%
Price To Book 0.79
Price Earnings Ratio -7.46
Price To FCF 54.31
Price To sales 0.74
EV / EBITDA 13.39

News

Business Breakdown

Expected Mid-Term Growth

Segment nΒ°1 -> United States Cellular

Expected Growth : 1.0 %

What the company do ?

United States Cellular is a regional carrier providing wireless telecommunications services, owned by Telephone and Data Systems, Inc., operating in select areas of the US.

Why we expect these perspectives ?

United States Cellular's 1.0% growth is driven by increasing postpaid subscribers, higher average revenue per user (ARPU), and growing demand for data services. Additionally, the company's focus on 5G network expansion, cost savings initiatives, and strategic partnerships contribute to its steady growth.

Segment nΒ°2 -> Telephone and Data Systems Telecom

Expected Growth : 1.0 %

What the company do ?

Telephone and Data Systems Telecom is a subsidiary of Telephone and Data Systems, Inc., providing telecommunications services, including wireline, wireless, and cable TV services to customers.

Why we expect these perspectives ?

Telephone and Data Systems Telecom's 1.0% growth is driven by increasing demand for high-speed internet and data services, expansion of 5G network infrastructure, and growing adoption of IoT devices. Additionally, the segment benefits from a strong brand presence, strategic partnerships, and cost savings initiatives.

Segment nΒ°3 -> Corporate, Eliminations and Other

Expected Growth : 1.0 %

What the company do ?

Corporate, Eliminations and Other from Telephone and Data Systems, Inc. refers to the consolidation of unallocated corporate expenses, intersegment eliminations, and other non-operating items.

Why we expect these perspectives ?

Corporate: Cost savings initiatives and operational efficiencies drive 1.0% growth. Eliminations: Intersegment eliminations of revenues and expenses between TDS and U.S. Cellular offset, resulting in minimal impact. Other: Growth in TDS' IT and consulting services, as well as its HMS business, contributes to the 1.0% growth rate.

Telephone And Data Systems, Inc. Products

Product Range What is it ?
Wireline Provides wireline services including voice, data, and video services to residential and business customers
Cable Offers cable television, high-speed internet, and voice services to residential and business customers
Hosted and Managed Services Provides cloud-based IT solutions, managed services, and data center services to business customers
Wireless Offers wireless voice and data services to customers through its U.S. Cellular subsidiary

Telephone and Data Systems, Inc.'s Porter Forces

The threat of substitutes for Telephone and Data Systems, Inc. is medium due to the presence of alternative communication services such as VoIP and messaging apps.

The bargaining power of customers for Telephone and Data Systems, Inc. is low due to the lack of switching options and the company's strong brand presence.

The bargaining power of suppliers for Telephone and Data Systems, Inc. is medium due to the presence of multiple suppliers and the company's moderate dependence on them.

The threat of new entrants for Telephone and Data Systems, Inc. is low due to the high barriers to entry and the company's established market presence.

The intensity of rivalry for Telephone and Data Systems, Inc. is high due to the presence of multiple competitors and the company's need to constantly innovate to stay competitive.

Capital Structure

Value
Debt Weight 49.71%
Debt Cost 4.65%
Equity Weight 50.29%
Equity Cost 8.03%
WACC 6.35%
Leverage 98.87%

Historical Valuation

Price/Earnings Ratio

Margin Valuation

Peers Valuation

Competitors

Company Rational
ATNI ATN International, Inc., through its subsidiaries, provides telecommunications services. It operates in three segments: International Telecom, US Telecom, and Renewable Energy. The International Telecom segment provides fixed data and voice; …
CXDO Crexendo, Inc. provides cloud communication, unified communications as a service, call center, collaboration, and other cloud business services for businesses in the United States, Canada, and internationally. It operates through …
CNSL Consolidated Communications Holdings, Inc., together with its subsidiaries, provides broadband and business communication solutions for consumer, commercial, and carrier channels in the United States. It offers high-speed broadband Internet access …
CABO Cable One, Inc., together with its subsidiaries, provides data, video, and voice services in the United States. The company offers residential data services, a service to enhance Wi-Fi signal throughout …
SHEN Shenandoah Telecommunications Company, together with its subsidiaries, provides a range of broadband communication services and cell tower colocation space in the Mid-Atlantic portion of the United States. Its Broadband segment …

Peers Metrics

DCF BETA

Parameters

Short Term Growth
Short term Time
Long-Term Growth
WACC
Target Price
35.35$
Current Price
35.35$
Potential
-0.00%

Expected Cash-Flows

Scoring Insights

Peers Group Analysis

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