T-Mobile US (TMUS)
Communication Services · $175B market cap · SEC CIK 0001283699
fundamentals score out of 100
Next reports on Oct 21, 2026, with analysts expecting $2.96 in earnings per share.
The case for TMUS
- Generated $18.0B of free cash flow in FY2025, 20% of revenue.
- Free cash flow of 10.3% of its market value a year: a lot of cash for the price.
- Revenue growing 9.7% year over year.
- Reasonably priced at 16.6× earnings.
- Return on equity of 18%.
- Gross margin of 63% absorbs cost shocks.
The case against
- Down 30.6% over the past year.
- Earnings per share fell 9.8%.
- Current liabilities exceed current assets (ratio 0.92).
- Near the bottom of its 52-week range, 33% below the high. Falling prices usually have a reason; find it first.
- Long-term debt of $81.1B against $5.6B of cash.
What the score is made of
Each factor is half a curve over reported figures and half a rank among the other Communication Services companies (momentum is judged against fixed thresholds only), and the five are blended by weight. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings, sales, assets and cash | 69 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 46 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 68 |
| Momentumhow the price has behaved lately | 16 |
| Stabilityhow violently it moves, what it owes and what it pays you | 76 |
- Each factor except momentum is half fixed thresholds, half rank among the 19 Communication Services companies.
Key numbers
| Price / earnings | 16.6× |
|---|---|
| Price / book | 3.23× |
| Price / sales | 1.9× |
| Revenue growth (YoY) | +9.7% |
| EPS growth (YoY) | -9.8% |
| Gross margin | 63% |
| Operating margin | 20% |
| Net margin | 11% |
| Return on equity | 18% |
| Debt / equity | 1.61× |
| Current ratio | 0.92 |
| Dividend yield | 1.75% |
| Beta | 0.39 |
| 52-week range | $161.85 – $242.37 |
| Position in that range | 1% of the way up |
| 3-month return | -9.0% |
| 1-year return | -30.6% |
Five years of financials, as filed
Pulled from T-Mobile US's XBRL filings on SEC EDGAR. Italic rows are derived from the rows above.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Revenue | $88.3B | $81.4B | $78.6B | $79.6B | $80.1B |
| Operating income | $18.3B | $18.0B | $14.3B | $6.5B | $6.9B |
| Net income | $11.0B | $11.3B | $8.3B | $2.6B | $3.0B |
| Operating cash flow | $27.9B | $22.3B | $18.6B | $16.8B | $13.9B |
| Capital expenditure | $10.0B | $8.8B | $9.8B | $14.0B | $12.3B |
| Total assets | $219B | $208B | $208B | $211B | $207B |
| Shareholder equity | $59.2B | $61.7B | $64.7B | $69.7B | $69.1B |
| Cash | $5.6B | $5.4B | $5.1B | $4.5B | $6.6B |
| Long-term debt | $81.1B | $74.2B | $71.4B | $66.8B | $67.1B |
| Free cash flow | $18.0B | $13.5B | $8.8B | $2.8B | $1.6B |
| Operating margin | 20.7% | 22.1% | 18.2% | 8.2% | 8.6% |
| Net margin | 12.4% | 13.9% | 10.6% | 3.3% | 3.8% |
| Diluted shares | 1.1B | 1.2B | 1.2B | 1.3B | 1.3B |
Share count is down 9.9% over 4 years. Buybacks have been shrinking the pie.
What T-Mobile US says it does
Business Overview and Strategy Un-carrier Strategy As America’s supercharged Un-carrier, we have disrupted the telecommunications industry by actively engaging with and listening to our customers and focusing on eliminating their pain points. Our customers benefit from what we believe is an unmatched combination of the best value and best network, alongside an unwavering focus on offering them the best possible service experience and an undisputable drive for disruptive innovation in wireless and beyond. This includes providing added value and what we believe is an exceptional experience while implementing signature Un-carrier initiatives that have changed the industry. We ended annual service contracts, overages, unpredictable international roaming fees and data buckets, among other things. We are inspired by a relentless focus on customer experience, consistently delivering award-winning customer experience, which drives our customer…
Risk factors TMUS lists in its 10-K
- We operate in a highly competitive industry. If we are unable to attract and retain customers, our business, financial condition, and operating results could be negatively affected
- "Any acquisition, investment, joint venture, merger, or divestiture may subject us to significant risks, any of which may harm our business"
- We have experienced cyberattacks and may experience disruptions, data loss and other security breaches, whether directly or indirectly through third parties whose products and services we rely on in operating our business
- If we fail to adopt and deploy emerging network technologies in a timely and effective manner, our competitive position could erode, which may adversely affect our business, financial condition, and operating results
- If we fail to effectively execute our digital transformation and drive customer and employee adoption of emerging technologies, our competitive position and financial performance could be materially harmed
- System failures and business disruptions may prevent us from providing reliable service, which could materially and adversely affect our reputation and financial condition
- The scarcity and cost of additional wireless spectrum, and regulations relating to spectrum use, may adversely affect our business, financial condition, and operating results
- Any acquisition, investment, joint venture, merger, or divestiture may subject us to significant risks, any of which may harm our business
- Economic, political, and market conditions may adversely affect our business, financial condition, and operating results
- If we do not successfully deliver new products and services, we may not realize our intended growth targets or generate the expected returns from our business, adversely affecting our financial condition and operating results
- Sociopolitical volatility and polarization may adversely affect our business operations and reputation
- Our substantial level of indebtedness could adversely affect our business flexibility and ability to service our debt and could increase our borrowing costs
- Changes in credit market conditions and other factors could adversely affect our ability to raise debt favorably
- Risks Related to Legal and Regulatory Matters