United States Cellular Corp

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USM : NYSE : Technology
$39.17 | %
Today's Range: 39.17 - 39.9299
Avg. Daily Volume: 136500.0
05/26/17 - 4:02 PM ET

Financial Analysis


US CELLULAR CORP's gross profit margin for the first quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. Even though sales decreased, the net income has increased. US CELLULAR CORP is extremely liquid. Currently, the Quick Ratio is 2.18 which clearly shows the ability to cover any short-term cash needs. The company's liquidity has increased from the same period last year.

At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 2.68% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is very unlikely to face financial difficulties in the near future.

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Income Statement Q1 FY17 Q1 FY16
Net Sales ($mil)936.0969.0
EBITDA ($mil)194.0168.0
EBIT ($mil)41.015.0
Net Income ($mil)26.09.0


Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)572.0772.0
Total Assets ($mil)7024.07057.0
Total Debt ($mil)1627.01637.0
Equity ($mil)3670.03574.0


Profitability Q1 FY17 Q1 FY16
Gross Profit Margin56.9454.59
EBITDA Margin20.7217.33
Operating Margin4.381.55
Sales Turnover0.560.57
Return on Assets0.921.27
Return on Equity1.772.52
Debt Q1 FY17 Q1 FY16
Current Ratio2.62.36
Debt/Capital0.310.31
Interest Expense28.028.0
Interest Coverage1.460.54


Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)84.8984.4
Div / share0.00.0
EPS0.310.1
Book value / share43.2442.35
Institutional Own % n/a n/a
Avg Daily Volume136765.0107262.0

Valuation


HOLD. US CELLULAR CORP's P/E ratio indicates a significant premium compared to an average of 29.78 for the Wireless Telecommunication Services industry and a significant premium compared to the S&P 500 average of 25.02. Conducting a second comparison, its price-to-book ratio of 0.88 indicates a significant discount versus the S&P 500 average of 3.00 and a discount versus the industry average of 2.09. 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 50.13 Peers 29.78   USM 8.14 Peers 7.05

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.

 

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 112.06 Peers 18.39   USM NM Peers 2.21

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 0.88 Peers 2.09   USM -28.31 Peers 11.94

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 0.83 Peers 1.73   USM -2.09 Peers 0.41

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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