T-Mobile US (TMUS) Flagging After Hours
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer.
Trade-Ideas LLC identified
(
) as a post-market laggard candidate. In addition to specific proprietary factors, Trade-Ideas identified T-Mobile US as such a stock due to the following factors:
- TMUS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $105.5 million.
- TMUS is down 4.7% today from today's close.
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More details on TMUS:
T-Mobile US, Inc., together with its subsidiaries, provides mobile communications services in the United States, Puerto Rico, and the U.S. Virgin Islands. The company offers voice, messaging, and data services in the postpaid, prepaid, and wholesale markets. TMUS has a PE ratio of 109.5. Currently there are 13 analysts that rate T-Mobile US a buy, 1 analyst rates it a sell, and 2 rate it a hold.
The average volume for T-Mobile US has been 4.4 million shares per day over the past 30 days. T-Mobile US has a market cap of $26.5 billion and is part of the technology sector and telecommunications industry. The stock has a beta of 1.15 and a short float of 5.2% with 4.14 days to cover. Shares are up 23.2% year-to-date as of the close of trading on Thursday.
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Analysis:
rates T-Mobile US as a
. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income and robust revenue growth. However, as a counter to these strengths, we also find weaknesses including relatively poor performance when compared with the S&P 500 during the past year and generally higher debt management risk.
Highlights from the ratings report include:
- T-MOBILE US INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, T-MOBILE US INC turned its bottom line around by earning $0.29 versus -$0.10 in the prior year. This year, the market expects an improvement in earnings ($0.84 versus $0.29).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Wireless Telecommunication Services industry. The net income increased by 605.0% when compared to the same quarter one year prior, rising from -$20.00 million to $101.00 million.
- Compared to other companies in the Wireless Telecommunication Services industry and the overall market on the basis of return on equity, T-MOBILE US INC underperformed against that of the industry average and is significantly less than that of the S&P 500.
- In its most recent trading session, TMUS has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. We feel that the combination of its price rise over the last year and its current price-to-earnings ratio relative to its industry tend to reduce its upside potential.
- Currently the debt-to-equity ratio of 1.58 is quite high overall and when compared to the industry average, suggesting that the current management of debt levels should be re-evaluated. Even though the debt-to-equity ratio is weak, TMUS's quick ratio is somewhat strong at 1.19, demonstrating the ability to handle short-term liquidity needs.
- You can view the full T-Mobile US Ratings Report.
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