KELVIN WESTBROOK, Board Member at T-Mobile US (NASDAQ:TMUS), reported an insider sell on May 15, according to a new SEC filing.
What Happened: WESTBROOK opted to sell 10,879 shares of T-Mobile US, according to a Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday. The transaction’s total worth stands at $1,778,607.
Monitoring the market, T-Mobile US’s shares down by 0.0% at $162.68 during Thursday’s morning.
Delving into T-Mobile US’s Background
Deutsche Telekom merged its T-Mobile USA unit with prepaid specialist MetroPCS in 2013, and that firm merged with Sprint in 2020, creating the second-largest wireless carrier in the U.S. T-Mobile now serves 76 million postpaid and 22 million prepaid phone customers, equal to around 30% of the U.S. retail wireless market. The firm entered the fixed-wireless broadband market aggressively in 2021 and now serves nearly 5 million residential and business customers. In addition, T-Mobile provides wholesale services to resellers.
Key Indicators: T-Mobile US’s Financial Health
Revenue Challenges: T-Mobile US’s revenue growth over 3 months faced difficulties. As of 31 March, 2024, the company experienced a decline of approximately -0.19%. This indicates a decrease in top-line earnings. When compared to others in the Communication Services sector, the company excelled with a growth rate higher than the average among peers.
Profitability Metrics: Unlocking Value
Gross Margin: The company excels with a remarkable gross margin of 63.83%, indicating superior cost efficiency and profitability compared to its industry peers.
Earnings per Share (EPS): With an EPS below industry norms, T-Mobile US exhibits below-average bottom-line performance with a current EPS of 2.0.
Debt Management: T-Mobile US’s debt-to-equity ratio is below the industry average at 1.86, reflecting a lower dependency on debt financing and a more conservative financial approach.
Evaluating Valuation:
Price to Earnings (P/E) Ratio: With a lower-than-average P/E ratio of 22.13, the stock indicates an attractive valuation, potentially presenting a buying opportunity.
Price to Sales (P/S) Ratio: With a relatively high Price to Sales ratio of 2.47 as compared to the industry average, the stock might be considered overvalued based on sales performance.
EV/EBITDA Analysis…
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