United States Cellular Corp

Find Ratings Reports
USM : NYSE : Technology
$36.49 | %
Today's Range: 36.27 - 36.85
Avg. Daily Volume: 75,800
09/23/16 - 4:02 PM ET

Financial Analysis

US CELLULAR CORP's gross profit margin for the second quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago. US CELLULAR CORP has strong liquidity. Currently, the Quick Ratio is 1.81 which shows the ability to cover 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 3.55% from the same quarter last year. The key liquidity measurements indicate that the company is unlikely to face financial difficulties in the near future.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. To learn more visit www.TheStreetRatings.com.

Income Statement Q2 FY16 Q2 FY15
Net Sales ($mil)980.0975.67
EBITDA ($mil)168.0162.75
EBIT ($mil)14.012.17
Net Income ($mil)27.019.35

Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)621.0362.28
Total Assets ($mil)7091.06596.62
Total Debt ($mil)1634.01152.06
Equity ($mil)3611.03487.03

Profitability Q2 FY16 Q2 FY15
Gross Profit Margin53.6753.88
EBITDA Margin17.1416.68
Operating Margin1.431.25
Sales Turnover0.560.6
Return on Assets1.382.06
Return on Equity2.713.89
Debt Q2 FY16 Q2 FY15
Current Ratio2.21.48
Interest Expense28.020.15
Interest Coverage0.50.6

Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)84.8184.35
Div / share0.00.0
Book value / share42.5841.34
Institutional Own % n/a n/a
Avg Daily Volume74239.090259.0


HOLD. The current P/E ratio indicates a significant premium compared to an average of 18.90 for the Wireless Telecommunication Services industry and a premium compared to the S&P 500 average of 24.84. Conducting a second comparison, its price-to-book ratio of 0.87 indicates a significant discount versus the S&P 500 average of 2.78 and a discount versus the industry average of 1.87. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount.

1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
USM 32.16 Peers 18.90   USM 7.98 Peers 6.52

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.

1 2 3 4 5
premium   discount
  Price to
1 2 3 4 5
premium   discount
USM 53.21 Peers 19.24   USM NM Peers 1.92

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.

1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
USM 0.87 Peers 1.87   USM -28.58 Peers 1.29

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.

1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
USM 0.79 Peers 1.83   USM 1.11 Peers 0.34

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.



Latest Stock Upgrades/Downgrades