AT&T Inc.
Find Ratings ReportsAT&T INC's gross profit margin for the third quarter of its fiscal year 2020 is essentially unchanged when compared to the same period a year ago. Sales and net income have dropped, however the growth has outpaced the average competitor within the subsector. AT&T INC has very weak liquidity. Currently, the Quick Ratio is 0.49 which clearly shows a lack of 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 remained virtually unchanged only decreasing by 4.09% from the same quarter last year. The key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the near future.
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Income Statement | Q3 FY20 | Q3 FY19 |
---|---|---|
Net Sales ($mil) | 42340.0 | 44588.0 |
EBITDA ($mil) | 13503.0 | 15079.0 |
EBIT ($mil) | 6473.0 | 8130.0 |
Net Income ($mil) | 2816.0 | 3700.0 |
Balance Sheet | Q3 FY20 | Q3 FY19 |
---|---|---|
Cash & Equiv. ($mil) | 9760.0 | 6603.0 |
Total Assets ($mil) | 538553.0 | 548796.0 |
Total Debt ($mil) | 184417.0 | 190917.0 |
Equity ($mil) | 175553.0 | 183049.0 |
Profitability | Q3 FY20 | Q3 FY19 |
---|---|---|
Gross Profit Margin | 53.14 | 54.8 |
EBITDA Margin | 31.89 | 33.81 |
Operating Margin | 15.29 | 18.23 |
Sales Turnover | 0.32 | 0.33 |
Return on Assets | 2.06 | 2.98 |
Return on Equity | 6.24 | 8.94 |
Debt | Q3 FY20 | Q3 FY19 |
---|---|---|
Current Ratio | 0.84 | 0.74 |
Debt/Capital | 0.51 | 0.51 |
Interest Expense | 1972.0 | 2083.0 |
Interest Coverage | 3.28 | 3.9 |
Share Data | Q3 FY20 | Q3 FY19 |
---|---|---|
Shares outstanding (mil) | 7125.05 | 7303.37 |
Div / share | 0.52 | 0.51 |
EPS | 0.39 | 0.5 |
Book value / share | 24.64 | 25.06 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 4.3146536E7 | 3.2671506E7 |
BUY. This stock's P/E ratio indicates a discount compared to an average of 23.04 for the Telecommunications subsector and a significant discount compared to the S&P 500 average of 38.33. Conducting a second comparison, its price-to-book ratio of 1.21 indicates a significant discount versus the S&P 500 average of 4.11 and a discount versus the subsector average of 2.37. The price-to-sales ratio is well below both the S&P 500 average and the subsector average, indicating a discount. Upon assessment of these and other key valuation criteria, AT&T INC proves to trade at a discount to investment alternatives.
Price/Earnings |
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Price/Cash Flow |
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T 19.68 | Peers 19.21 | T 4.73 | Peers 6.75 | |||||||||||||||||||||
Average. An average P/E ratio can signify an subsector neutral price for a stock and an average growth expectation. T is trading at a valuation on par with its peers. |
Discount. 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. T is trading at a significant discount to its peers. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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T 9.32 | Peers 14.34 | T 0.29 | Peers 2.24 | |||||||||||||||||||||
Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations. T is trading at a significant discount to its peers. |
Discount. 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. T trades at a significant discount to its peers. |
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Price/Book |
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Earnings Growth |
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T 1.21 | Peers 2.37 | T -31.84 | Peers -38.13 | |||||||||||||||||||||
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. T is trading at a significant discount to its peers. |
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. However, T is expected to significantly trail its peers on the basis of its earnings growth rate. |
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Price/Sales |
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Sales Growth |
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T 1.23 | Peers 2.14 | T -5.26 | Peers -2.98 | |||||||||||||||||||||
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. T is trading at a significant discount to its subsector on this measurement. |
Lower. A sales growth rate that trails the subsector implies that a company is losing market share. T significantly trails its peers on the basis of sales growth. |
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