(TDS) Telephone Data Systems - Overview
Sector: Communication Services | Industry: Telecom Services | Exchange: NYSE (USA) | Market Cap: 4.789m USD | Total Return: 46% in 12m
Avg Turnover: 38.4M
Qual. Beats: 3
Rev. Trend: -78.3%
Qual. Beats: 0
Warnings
Below Avwap Earnings
Tailwinds
No distinct edge detected
Telephone and Data Systems, Inc. (TDS) is a Chicago-based telecommunications provider serving residential, commercial, and wholesale markets across the United States. The company operates primarily through two segments, TDS Telecom and UScellular (Array), offering a portfolio that includes high-speed fiber internet, cloud-based TV platforms, and wireless voice and data services. Additionally, the company manages a portfolio of wireless towers, leasing space to third-party tenants to generate recurring infrastructure revenue.
The company operates within the capital-intensive wireless telecommunications sector, where business models prioritize high-capacity fiber deployment and spectrum acquisition to drive broadband adoption. As a diversified operator, TDS utilizes a multi-channel distribution strategy involving direct sales, retail locations, and digital platforms to reach underserved and rural markets. Investors may find it useful to evaluate TDS’s asset valuation and dividend history on ValueRay.
- Sale of UScellular wireless operations impacts long-term asset valuation and liquidity
- Fiber-to-the-home expansion drives residential broadband revenue growth and capital expenditure
- High interest rates increase debt servicing costs for capital-intensive infrastructure projects
- Regulatory shifts in Universal Service Fund subsidies affect rural connectivity margins
- Tower lease revenue provides stable cash flow despite volatility in wireless markets
| Net Income: 132.2m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.01 > 0.02 and ΔFCF/TA -1.66 > 1.0 |
| NWC/Revenue: 50.42% < 20% (prev 14.87%; Δ 35.56% < -1%) |
| CFO/TA 0.06 > 3% & CFO 473.4m > Net Income 132.2m |
| Net Debt (458.8m) to EBITDA (685.3m): 0.67 < 3 |
| Current Ratio: 3.43 > 1.5 & < 3 |
| Outstanding Shares: last quarter (117.5m) vs 12m ago 3.08% < -2% |
| Gross Margin: 40.98% > 18% (prev 0.58%; Δ 4.04k% > 0.5%) |
| Asset Turnover: 19.63% > 50% (prev 35.87%; Δ -16.24% > 0%) |
| Interest Coverage Ratio: 1.37 > 6 (EBITDA TTM 685.3m / Interest Expense TTM 134.9m) |
| A: 0.13 (Total Current Assets 1.52b - Total Current Liabilities 443.7m) / Total Assets 8.21b |
| B: 0.22 (Retained Earnings 1.81b / Total Assets 8.21b) |
| C: 0.02 (EBIT TTM 184.2m / Avg Total Assets 10.9b) |
| D: 0.62 (Book Value of Equity 1.84b / Total Liabilities 2.95b) |
| Altman-Z'' = 2.35 = BBB |
| DSRI: 0.23 (Receivables 102.9m/1.01b, Revenue 2.13b/4.86b) |
| GMI: 1.40 (GM 40.98% / 57.56%) |
| AQI: 0.87 (AQ_t 0.38 / AQ_t-1 0.44) |
| SGI: 0.44 (Revenue 2.13b / 4.86b) |
| TATA: -0.04 (NI 132.2m - CFO 473.4m) / TA 8.21b) |
| Beneish M = -3.82 (Cap -4..+1) = AAA |
As of May 25, 2026, the stock is trading at USD 39.30 with a total of 2,098,864 shares traded.
Over the past week, the price has changed by -2.96%,
over one month by -13.07%,
over three months by -11.60% and
over the past year by +45.99%.
Telephone Data Systems has received a consensus analysts rating of 4.00. Therefore, it is recommended to buy TDS.
- StrongBuy: 0
- Buy: 2
- Hold: 0
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 53.5 | 36.1% |
P/E Trailing = 24.7412
P/E Forward = 39.0625
P/S = 3.8394
P/B = 1.2247
P/EG = 7.7889
Revenue TTM = 2.13b USD
EBIT TTM = 184.2m USD
EBITDA TTM = 685.3m USD
Long Term Debt = 672.7m USD (from longTermDebt, last quarter)
Short Term Debt = 33.8m USD (from shortTermDebt, last quarter)
Debt = 1.83b USD (from shortLongTermDebtTotal, last quarter) + Leases 574.7m
Net Debt = 458.8m USD (calculated: Debt 1.83b - CCE 1.37b)
Enterprise Value = 5.25b USD (4.79b + Debt 1.83b - CCE 1.37b)
Interest Coverage Ratio = 1.37 (Ebit TTM 184.2m / Interest Expense TTM 134.9m)
EV/FCF = 92.70x (Enterprise Value 5.25b / FCF TTM 56.6m)
FCF Yield = 1.08% (FCF TTM 56.6m / Enterprise Value 5.25b)
FCF Margin = 2.65% (FCF TTM 56.6m / Revenue TTM 2.13b)
Net Margin = 6.19% (Net Income TTM 132.2m / Revenue TTM 2.13b)
Gross Margin = 40.98% ((Revenue TTM 2.13b - Cost of Revenue TTM 1.26b) / Revenue TTM)
Gross Margin QoQ = 32.00% (prev 2.47%)
Tobins Q-Ratio = 0.64 (Enterprise Value 5.25b / Total Assets 8.21b)
Interest Expense / Debt = 7.37% (Interest Expense 134.9m / Debt 1.83b)
Taxrate = 23.27% (54.4m / 233.8m)
NOPAT = 141.4m (EBIT 184.2m * (1 - 23.27%))
Current Ratio = 3.43 (Total Current Assets 1.52b / Total Current Liabilities 443.7m)
Debt / Equity = 0.37 (Debt 1.83b / totalStockholderEquity, last quarter 4.92b)
Debt / EBITDA = 0.67 (Net Debt 458.8m / EBITDA 685.3m)
Debt / FCF = 8.11 (Net Debt 458.8m / FCF TTM 56.6m)
Total Stockholder Equity = 4.92b (last 4 quarters mean from totalStockholderEquity)
RoA = 1.22% (Net Income 132.2m / Total Assets 8.21b)
RoE = 2.69% (Net Income TTM 132.2m / Total Stockholder Equity 4.92b)
RoCE = 3.30% (EBIT 184.2m / Capital Employed (Equity 4.92b + L.T.Debt 672.7m))
RoIC = 1.84% (NOPAT 141.4m / Invested Capital 7.68b)
WACC = 7.98% (E(4.79b)/V(6.62b) * Re(8.87%) + D(1.83b)/V(6.62b) * Rd(7.37%) * (1-Tc(0.23)))
Discount Rate = 8.87% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 61.27 | Cagr: 1.76%
[DCF] Terminal Value 73.10% ; FCFF base≈161.2m ; Y1≈141.3m ; Y5≈114.2m
[DCF] Fair Price = 12.92 (EV 1.83b - Net Debt 458.8m = Equity 1.37b / Shares 106.3m; r=8.35% [WACC [floored]]; 5y FCF grow -15.0% → 2.50% )
EPS Correlation: N/A | EPS CAGR: N/A | SUE: 3.73 | # QB: 3
Revenue Correlation: -78.33 | Revenue CAGR: -21.73% | SUE: -0.01 | # QB: 0
EPS current Quarter (2026-06-30): EPS=0.09 | Chg30d=-40.00% | Revisions=N/A | Analysts=1
EPS next Quarter (2026-09-30): EPS=-0.04 | Chg30d=+20.00% | Revisions=N/A | Analysts=1
EPS current Year (2026-12-31): EPS=1.13 | Chg30d=N/A | Revisions=N/A | GrowthEPS=+271.2% | GrowthRev=+0.3%
EPS next Year (2027-12-31): EPS=0.05 | Chg30d=N/A | Revisions=N/A | GrowthEPS=-95.6% | GrowthRev=+3.9%