NEW YORK (TheStreet) -- Shares of T-Mobile U.S. Inc. (TMUS) are gaining by 1.75% to $27.93 in mid-afternoon trading on Thursday, following positive comments by the mobile phone company's owner, Deutsche Telekom AG (DTEGY) .
The fourth largest mobile phone company in the U.S. is still an attractive asset for potential buyers, despite the unsuccessful bids by Sprint Corp. (S) and Iliad SA (ILIAF) , Deutsche Telecom said, according to Bloomberg.
Deutsche Telekom CEO Timotheus Hoettges said companies that could potentially have an interest in controlling T-Mobile include Comcast Corp. (CMCSA) , America Movil SAB (AMX) , and Dish Network Corp. (DISH) . Hoettges also noted Deutsche Telekom is not currently in talks with these companies, Bloomberg added.STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.
The CEO said that software and other Internet services providers could look to T-Mobile as a way to gain network infrastructure in the U.S.
"Does that mean that we have to do a fast sale or something like that? Not at all. It's a growth stock at this point in time and there are [options] in the market," Hoettges said, Bloomberg noted.
Separately, TheStreet Ratings team rates T-MOBILE US INC as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate T-MOBILE US INC (TMUS) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income and generally higher debt management risk."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth significantly trails the industry average of 61.3%. Since the same quarter one year prior, revenues slightly increased by 9.9%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- Net operating cash flow has increased to $1,062.00 million or 28.57% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -11.76%.
- 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.
- Currently the debt-to-equity ratio of 1.78 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 1.21, demonstrating the ability to handle short-term liquidity needs.
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Wireless Telecommunication Services industry. The net income has significantly decreased by 161.1% when compared to the same quarter one year ago, falling from -$36.00 million to -$94.00 million.
- You can view the full analysis from the report here: TMUS Ratings Report