Telephone and Data Systems Inc (TDS) Stock Analysis
Verdict: AVOID
Massive revenue decay and mixed Q2 results outweigh spectrum value; the model views TDS as a value trap until the T-Mobile deal closes.
Investment score: 38/100
Analysis as of
Is Telephone and Data Systems Inc stock worth reviewing? The TradeMates thesis
The TradeMates model recommends avoiding TDS due to a deteriorating core business model and high execution risk regarding its asset divestiture strategy.
7-factor investment score
- Valuation: 45/100 (weight 20%)
- Financial Health: 25/100 (weight 15%)
- Technical Momentum: 20/100 (weight 15%)
- Earnings Quality: 60/100 (weight 15%)
- Insider Sentiment: 40/100 (weight 10%)
- Analyst Consensus: 30/100 (weight 10%)
- Risk-Adjusted Return: 50/100 (weight 15%)
Telephone and Data Systems Inc opportunities and risks
What speaks for TDS
- Deep Asset Discount
What speaks against TDS
- Accelerating Revenue Decay
Peers and competitors
| Ticker | P/E | P/S | EV/EBITDA | Gross margin | Net margin | FCF yield |
|---|---|---|---|---|---|---|
| TDS | 18.0x | 2.7x | 4.3x | 14.4% | 31.9% | -8.5% |
| TMUS | 18.7x | 2.1x | 10.8x | 54.5% | 11.5% | 8.2% |
| AD | 12.6x | 14.2x | 4.0x | 12.5% | 364.4% | -6.5% |
| GOGO | n/a | 0.5x | 8.5x | 55.0% | -0.1% | -10.5% |
| SPOK | 19.1x | 1.7x | 9.9x | 88.1% | 9.0% | 10.7% |
| OMCC | n/a | 3.0x | n/a | 78.9% | -26.8% | -37.7% |
| Peer median | 12.6x | 2.1x | 8.5x | 55.0% | 9.0% | -6.5% |
Frequently asked questions about Telephone and Data Systems Inc (TDS)
Is TDS stock a good investment?
The TradeMates model rates Telephone and Data Systems Inc as AVOID with an investment score of 38/100. The TradeMates model recommends avoiding TDS due to a deteriorating core business model and high execution risk regarding its asset divestiture strategy. This is algorithmic model output, not personal investment advice.
Is TDS stock a buy?
The TradeMates model verdict for TDS is AVOID with an investment score of 38/100. Treat this as a model signal to review, not a personal buy recommendation.