T-Mobile US, Inc. (TMUS) stock analysis

P/E below its 5-year median

T-Mobile US's P/E of 16.4 is below its own 5-year median of 25.7.

P/E above the industry

T-Mobile US's P/E of 16.4 is above the Telephone Communications median of 13.1.

EV/EBITDA below its 5-year median

T-Mobile US's EV/EBITDA of 5.3 is below its 5-year median of 8.8.

P/B above the industry

T-Mobile US's price-to-book of 3.20 is above the Telephone Communications median of 1.75.

Trading below fair value

The share price of $169.95 is below our fair value estimate of $208.29.

Margin of safety under 20%

The price is 18.4% below fair value, less than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew 3.5% a year over the last three fiscal years, short of the 10% we look for.

EPS growing 10%+ a year

Diluted EPS grew 67.7% a year over the last three fiscal years.

Earnings growth not accelerating

Net income grew -4.8% over the last twelve months, against a 5-year average of 29.1% a year.

Growing faster than the industry

Revenue grew 9.3% over the last twelve months; the Telephone Communications median is 5.5%.

Guidance raised

T-Mobile US raised its 2026 Net cash provided by operating activities outlook on Jul 23, 2026.

Gross margin trend

This company does not report gross profit.

Return on equity under 15%

Return on equity was 19.4% over the last twelve months and averaged 11.3% over five years; we look for 15% on both.

Return on capital over 10%

Return on invested capital was 24.6%, above the 10% that usually covers the cost of capital.

Return on equity above the industry

T-Mobile US's return on equity of 19.4% is above the Telephone Communications median of 8.4%.

Earnings grew over 5 years

Net income grew 29.1% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 12.0% over the last twelve months, against a 5-year average of 8.8%.

Net margin above the industry

T-Mobile US's net margin of 12.0% is above the Telephone Communications median of 6.5%.

Low debt

Debt is 11.3% of shareholders' equity, under the 40% we consider low.

Debt falling against equity

Debt to equity fell from 109% five years ago to 11.3%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 453% of total debt.

Interest coverage

Interest expense is not reported separately.

Short-term assets don't cover short-term debts

Current assets are 0.91 times current liabilities.

Elevated bankruptcy risk

The Altman Z-score is 1.59; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

T-Mobile US paid dividends worth 2.4% of the share price over the last twelve months.

Yield below Treasuries

The 2.4% yield is below the 4.7% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; T-Mobile US yields 2.4%.

Dividend stability

Fewer than five years of dividend history.

Covered by earnings

Dividends take 39.3% of net income.

Covered by free cash flow

Dividends take 23.8% of free cash flow.