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Telephone and Data Systems, Inc. logoTelephone and Data Systems, Inc.TDS
$33.90-0.35%
Telephone and Data Systems, Inc. logo

Telephone and Data Systems, Inc.

TDS

$33.90

-$0.12 (-0.35%)

⊜ Compare
ProfitabilityStrong marginsGrowthDecliningCash FlowCash burnValuationAttractively priced
What stands out

The business is unprofitable at the operating level (-7.93% margin). The thesis depends entirely on whether and when it reaches sustainable profitability.

What's changing

Revenue declined 5.3% YoY. The question is whether this is cyclical or a structural shift.

What deserves caution

Free cash flow declined 74% versus the prior year, cash generation momentum has weakened.

Valuation context

11.3x earnings. The multiple is below average. Either the market is pricing in deterioration you should investigate, or there's genuine value here.

Price History

-12.0%

Valuation & Multiples

Based on TTM earnings · Diluted shares

Market Cap$3.94B
EPS$3.00
P/E11.30
P/FCF-8.72
EV/EBITDA3.90
FCF Yield—
Div. Yield2.22%
Net Debt/FCF2.1x
52-Week Range
$32.98$47.59

Profitability & Returns

Revenue (TTM)

$1.26B

▼ -5.3% YoY

Net Income (TTM)

$418M

▲ +77.5% YoY

Op. Margin

37.03%

▲ +6.8pp YoY

ROIC

5.75%

▲ +0.5pp YoY

Cash Flow & Balance Sheet

FCF (TTM)

-$452M

▼ -74.5% YoY

Op. Cash Flow (TTM)

$106M

▼ -48.5% YoY

Net Debt

-$945M

Net Cash Position

Cash & Equiv.

$2.19B

5Y CAGR: -25.1%

5Y CAGR: +0.5%

Continue Research

SourceComputed from the 10-Q filed 7 Aug 2026, covering the period ending 30 Jun 2026, as reported to the SEC. Data last refreshed 28 Sept 2026. How this is calculated.

Price from market data, last close as of 16 Oct 2026. Fiscal year ends Dec. Sector medians are approximate S&P 500 benchmarks and update periodically.

Is Telephone and Data Systems (TDS) overvalued?

At a P/E of 11.3, Telephone and Data Systems (TDS)'s valuation is best read against its own history, its peers, and the growth its price implies. A high multiple is not the same as overvalued: fast-growing, high-quality businesses can deserve a premium. See the general approach in how to tell if a stock is overvalued.

On quality, Telephone and Data Systems scores 37/100 on Intrinsiqq's quality scorecard (a lower-quality business on these measures), weighing growth, margins, returns on capital, share count, and balance-sheet strength. It currently yields about 2.2%; see dividend safety for coverage and history. All figures are computed from SEC filings; read the full methodology, or see how the market compares in our US profitability statistics. This is analysis, not investment advice.

Frequently asked

Is Telephone and Data Systems a high-quality business?+

Telephone and Data Systems scores 37 out of 100 on Intrinsiqq's quality score, a weighted blend of 7 metrics each scored 0 to 100, which makes it a lower-quality business on these measures. Recent fundamentals include a 37.0% operating margin and a 5.8% return on invested capital. The score weighs revenue and free-cash-flow growth, operating margins, return on invested capital, share-count change, and balance-sheet strength, all computed from SEC filings, not opinion. Because valuation only means something relative to quality, the full metric-by-metric breakdown is on the quality scorecard.

Does Telephone and Data Systems (TDS) pay a dividend, and how much?+

Yes, Telephone and Data Systems pays a regular dividend of about $0.75 per share per year (typically in quarterly installments), a yield of roughly 2.2% at the current price. That is a payout ratio of about 21.0% of earnings, so the dividend is amply covered by earnings. A low headline yield is not the same as a weak dividend: what matters is how well earnings and free cash flow cover the payout and whether it is growing, not the percentage alone. For TDS's full payout history, growth streak and dividend-safety score, see the dividends tab.

Is Telephone and Data Systems a good stock to buy right now?+

That depends on valuation and quality together, not either alone. you should weigh TDS's valuation and scores 37/100 on quality (lower-quality). It also yields about 2.2%. A cheap price is only a bargain if the business is durable, and a premium can be justified by genuine quality, so the two questions, "is it cheap?" and "is it good?", only make sense side by side. Read the valuation against the quality scorecard, run the DCF on your own assumptions, and decide for yourself. This is analysis from SEC filings, not investment advice.

Related stocks: Telephone Communications (No Radiotelephone)

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Data sourced from SEC EDGAR filings and third-party price providers. Scores, valuations, and metrics are algorithmic estimates. This is not investment advice. See our Terms and Methodology.

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