(T) AT&T - Ratings and Ratios

AT&T Inc. (NYSE:T) is a global telecommunications and technology provider organized into two operating segments: Communications and Latin America. The Communications segment delivers wireless voice and data services, sells handsets and accessories, and offers a suite of wired solutions-including AT&T Dedicated Internet, fiber Ethernet, broadband, fixed-wireless, VPN, and managed services-to residential, business, government, and wholesale customers under brands such as AT&T, AT&T Business, Cricket, AT&T PREPAID, AT&T Fiber, and AT&T Internet Air. The Latin America segment focuses on post-paid and prepaid wireless services in Mexico under the AT&T and Unefon brands and also sells smartphones through various retail channels.

Based on AT&T’s 2023 Form 10-K (the most recent filed data as of Q3 2024), the company generated roughly **$120 billion in revenue** with an **adjusted EBITDA margin of ~30 %** and **free cash flow of about $7 billion**. Net debt remained high at **~$150 billion**, translating to a debt-to-EBITDA ratio near 5.0×, which is a material risk factor given the current **U.S. interest-rate environment**. The wireless subscriber base was approximately **155 million post-paid** and **65 million prepaid** lines, while broadband (including fiber) subscriptions topped **15 million**. These figures are subject to revision pending AT&T’s next quarterly release.

Key drivers shaping AT&T’s outlook include: (1) **5G rollout intensity**-AT&T has invested >$30 billion in 5G infrastructure since 2020, and the speed of enterprise adoption will directly affect ARPU growth; (2) **Fiber-broadband demand**-U.S. residential broadband spend is projected to rise 3-4 % YoY in 2024, benefitting AT&T’s fiber expansion plans in high-density markets; and (3) **Macro-economic pressures**-elevated interest rates increase debt-service costs and may dampen discretionary handset upgrades, while inflation-adjusted consumer spending trends influence churn and prepaid uptake. Monitoring these variables against industry base rates (e.g., average 5G penetration of ~55 % of U.S. wireless customers) is essential for assessing AT&T’s relative positioning.

If you’re looking to deepen the quantitative analysis-such as scenario-based cash-flow modeling or peer-adjusted valuation multiples-ValueRay’s platform offers a structured data set that can streamline that work.