NEW YORK (TheStreet) — Shares of T-Mobile U.S. Inc.
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
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.
and Iliad SA
, Deutsche Telecom said, according to Bloomberg.
Deutsche Telekom CEO Timotheus Hoettges said companies that could potentially have an appeal in controlling T-Mobile include Comcast Corp.
, America Movil SAB
, and Dish Network Corp.
. Hoettges also noted Deutsche Telekom is not currently in discussion with these companies, Bloomberg added. Must Read: Warren Buffett’s 25 Favorite Stocks 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 quick sale or something like that? Not at all. It’s a growth have a supply of 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 in this area their recommendation:
"We rate T-MOBILE US INC (TMUS) a HOLD. The primary factors that have impacted our rating are diverse some indicating might, some showing weaknesses, with small evidence to give explanation for the expectation of either a positive or unenthusiastic performance for this have a supply of relative to most other stocks. The company’s strengths can be seen in multiple areas, such as its revenue growth, excellent cash flow from operations and expanding profit margins. But, as a counter to these strengths, we also find weaknesses including unimpressive growth in net returns and generally higher debt management risk."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
The revenue growth much 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, showed 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 by and large market on the basis of return on equity, T-MOBILE US INC underperformed against that of the industry average and is much less than that of the S&P 500.
Currently the debt-to-equity ratio of 1.78 is quite high by and large 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 passionate at 1.21, demonstrating the skill to handle small-term liquidity needs.
The company, on the basis of change in net returns from the same quarter one year ago, has much underperformed when compared to that of the S&P 500 and the Wireless Telecommunication Services industry. The net returns has much 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
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