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United States Cellular Corp
USM : NYSE : Technology
$36.19 | %
Today's Range: 0.00 - 0.00
Avg. Daily Volume: 72,900
02/09/16 - 4:02 PM ET

Financial Analysis


US CELLULAR CORP's gross profit margin for the third quarter of its fiscal year 2015 has increased when compared to the same period a year ago. The company has grown sales and net income during the past quarter when compared with the same quarter a year ago, however, it was unable to keep up with the growth of the average competitor within its industry. US CELLULAR CORP has average liquidity. Currently, the Quick Ratio is 1.38 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.

During the same period, stockholders' equity ("net worth") has increased by 6.94% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.

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Income Statement Q3 FY15 Q3 FY14
Net Sales ($mil)1068.911000.42
EBITDA ($mil)208.0895.26
EBIT ($mil)55.71-53.69
Net Income ($mil)63.59-22.17


Balance Sheet Q3 FY15 Q3 FY14
Cash & Equiv. ($mil)596.77313.81
Total Assets ($mil)6938.386257.08
Total Debt ($mil)1377.16876.8
Equity ($mil)3554.173323.44


Profitability Q3 FY15 Q3 FY14
Gross Profit Margin54.5149.26
EBITDA Margin19.469.52
Operating Margin5.21-5.37
Sales Turnover0.580.61
Return on Assets3.19-0.31
Return on Equity6.23-0.59
Debt Q3 FY15 Q3 FY14
Current Ratio1.791.27
Debt/Capital0.280.21
Interest Expense22.5215.25
Interest Coverage2.47-3.52


Share Data Q3 FY15 Q3 FY14
Shares outstanding (mil)84.2984.15
Div / share0.00.0
EPS0.75-0.26
Book value / share42.1739.49
Institutional Own % n/a n/a
Avg Daily Volume70830.074398.0

Valuation


HOLD. This stock's P/E ratio indicates a discount compared to an average of 23.06 for the Wireless Telecommunication Services industry and a discount compared to the S&P 500 average of 21.13. Conducting a second comparison, its price-to-book ratio of 0.90 indicates a significant discount versus the S&P 500 average of 2.51 and a discount versus the industry average of 2.03. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. Upon assessment of these and other key valuation criteria, US CELLULAR CORP proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
USM 14.42 Peers 23.06   USM 8.02 Peers 7.16

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

USM is trading at a significant discount to its peers.

 

Premium. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

USM is trading at a premium to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
USM 125.93 Peers 22.06   USM NM Peers 0.66

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

USM is trading at a significant discount to its peers.

 

Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

USM's negative PEG ratio makes this valuation measure meaningless.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
USM 0.90 Peers 2.03   USM 1239.13 Peers -23.55

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

USM is trading at a significant discount to its peers.

 

Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

USM is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
USM 0.79 Peers 1.75   USM 6.12 Peers -6.65

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

USM is trading at a significant discount to its industry on this measurement.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

USM has a sales growth rate that significantly exceeds its peers.

 

 

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