United States Cellular Corp

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USM : NYSE : Technology
$36.87 up 0.06 | 0.16%
Today's Range: 36.78 - 37.07
Avg. Daily Volume: 110600.0
03/29/17 - 11:30 AM ET

Financial Analysis


US CELLULAR CORP's gross profit margin for the fourth quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased, representing a decrease to the bottom line. US CELLULAR CORP has strong liquidity. Currently, the Quick Ratio is 1.83 which shows the ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.

At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 2.06% from the same quarter last year. The key liquidity measurements indicate that the company is unlikely to face financial difficulties in the near future.

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Income Statement Q4 FY16 Q4 FY15
Net Sales ($mil)991.0987.04
EBITDA ($mil)130.0137.14
EBIT ($mil)-26.0-19.28
Net Income ($mil)-5.0-1.66


Balance Sheet Q4 FY16 Q4 FY15
Cash & Equiv. ($mil)586.0715.38
Total Assets ($mil)7110.07059.98
Total Debt ($mil)1629.01639.82
Equity ($mil)3634.03560.51


Profitability Q4 FY16 Q4 FY15
Gross Profit Margin52.5753.12
EBITDA Margin13.1113.89
Operating Margin-2.62-1.95
Sales Turnover0.550.57
Return on Assets0.673.41
Return on Equity1.326.77
Debt Q4 FY16 Q4 FY15
Current Ratio2.172.24
Debt/Capital0.310.32
Interest Expense29.024.96
Interest Coverage-0.9-0.77


Share Data Q4 FY16 Q4 FY15
Shares outstanding (mil)85.084.36
Div / share0.00.0
EPS-0.07-0.02
Book value / share42.7542.21
Institutional Own % n/a n/a
Avg Daily Volume109707.0103818.0

Valuation


HOLD. US CELLULAR CORP's P/E ratio indicates a significant premium compared to an average of 28.94 for the Wireless Telecommunication Services industry and a significant premium compared to the S&P 500 average of 26.31. Conducting a second comparison, its price-to-book ratio of 0.86 indicates a significant discount versus the S&P 500 average of 2.93 and a discount versus the industry average of 2.12. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
USM 66.87 Peers 28.94   USM 6.24 Peers 6.68

Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.

USM is trading at a significant premium to its peers.

 

Average. 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 valuation on par 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 210.17 Peers 20.68   USM NM Peers 1.69

Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.

USM is trading at a significant premium 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 0.86 Peers 2.12   USM -80.71 Peers -4.32

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.

 

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

However, USM is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
USM 0.79 Peers 1.72   USM -1.45 Peers 0.50

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.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

USM significantly trails its peers on the basis of sales growth

 

 

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