T-Mobile US, Inc.
TMUS
$0.00
-1.40%
T-Mobile US, Inc. is a major wireless telecommunications carrier in the United States. It is the second-largest wireless carrier, known for its extensive network and aggressive expansion into fixed-wireless broadband services.
TMUS
T-Mobile US, Inc.
$0.00
Related headlines
Investment Opinion: Should I buy TMUS Today?
Based on a synthesis of the available data, T-Mobile warrants a Hold rating. The company's strong market position, revenue growth, and cash generation are positive fundamentals. However, these are counterbalanced by significant margin pressure, high financial leverage, and recent underperformance. The forward P/E of 14.9 suggests the stock is not overly expensive, but the elevated PEG ratio indicates growth expectations are already priced in. Investors may want to wait for clearer signs of margin stabilization or a more attractive entry point before establishing a new position.
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TMUS 12-Month Price Forecast
The outlook is balanced. The base case of range-bound trading is most likely, as the company's solid fundamentals are weighed down by near-term profitability challenges. The path of net margins over the next few quarters will be the critical determinant of stock performance.
Wall Street consensus
Most Wall Street analysts maintain a constructive view on T-Mobile US, Inc.'s 12-month outlook, with a consensus price target around $0.00 and implied upside of — versus the current price.
Average Target
$0.00
15 analysts
Implied Upside
—
vs. current price
Analyst Count
15
covering this stock
Price Range
$0 - $0
Analyst target range
Data not available. The provided analyst data includes revenue and EPS estimates but does not contain consensus target prices or a ratings distribution summary. Therefore, a summary of Wall Street analyst consensus targets cannot be provided.
Bulls vs Bears: TMUS Investment Factors
T-Mobile presents a mixed investment case. Strong revenue growth, cash flow, and market position are offset by margin pressure, high leverage, and recent stock underperformance. The stock appears to be consolidating after a significant correction, with valuation becoming more reasonable.
Bullish
- Strong Revenue Growth: Q4 2025 revenue grew 11.3% YoY, showing robust top-line expansion.
- Robust Cash Flow Generation: TTM free cash flow of $18.0B provides financial flexibility.
- Solid Profitability Metrics: ROE of 18.6% and ROA of 5.7% indicate efficient capital use.
- Attractive Forward Valuation: Forward P/E of 14.9 is below trailing P/E, signaling expected earnings growth.
Bearish
- Profit Margin Compression: Q4 net margin fell to 8.6% from 13.6% YoY, pressuring earnings.
- High Financial Leverage: Debt-to-equity ratio of 2.07 indicates significant balance sheet risk.
- Recent Stock Underperformance: Stock down 21.3% over past year, underperforming S&P 500 by 37.2%.
- Elevated PEG Ratio: PEG ratio of 40.4 suggests high price for expected earnings growth.
TMUS Technical Analysis
The stock has experienced significant volatility over the past six months, declining approximately 8.7% from its price in early October 2025. The price reached a low near $183 in late January 2026, representing a drawdown of over 32% from its 52-week high of $272.6, before partially recovering. In the short term, the stock has gained 3.4% over the past three months but declined 3.3% over the past month, underperforming the broader market which fell 5.3% over the same one-month period. The current price of $210.03 sits near the middle of its 52-week range, positioned approximately 23% above its 52-week low of $181.36 and 23% below its 52-week high of $272.6, indicating a period of consolidation after a sharp correction.
Beta
0.42
0.42x market volatility
Max Drawdown
-32.7%
Largest decline past year
52-Week Range
$181-$270
Price range past year
Annual Return
-23.9%
Cumulative gain past year
| Period | TMUS Return | S&P 500 |
|---|---|---|
| 1m | -7.8% | -4.3% |
| 3m | +0.9% | -4.0% |
| 6m | -12.5% | -2.0% |
| 1y | -23.9% | +22.2% |
| ytd | +0.9% | -3.8% |
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TMUS Fundamental Analysis
Revenue for Q4 2025 was $24.33 billion, showing strong year-over-year growth of 11.3%. However, net income for the quarter was $2.10 billion, a decline from the $2.98 billion reported in Q4 2024, with the net margin compressing to 8.6% from 13.6% a year earlier. The company maintains a high debt-to-equity ratio of 2.07, indicating significant leverage, but it generates robust cash flow, with free cash flow over the trailing twelve months at $17.99 billion. Operational efficiency metrics are solid, with a return on equity (ROE) of 18.6% and a return on assets (ROA) of 5.7%, demonstrating effective use of its capital base.
Quarterly Revenue
$24.3B
2025-12
Revenue YoY Growth
+0.11%
YoY Comparison
Gross Margin
+0.42%
Latest Quarter
Free Cash Flow
$18.0B
Last 12 Months
Revenue & Net Income Trends (2 Years)
Revenue Breakdown
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Valuation Analysis: Is TMUS Overvalued?
Given the company's positive net income, the trailing P/E ratio of 20.8 is the primary valuation metric. This is slightly above the forward P/E of 14.9, suggesting expectations of earnings growth. The price-to-sales (P/S) ratio is 2.6, and the enterprise value-to-sales (EV/Sales) is 4.0. Peer comparison data is not available in the provided inputs, so a relative assessment against industry averages cannot be made.
PE
20.8x
Latest Quarter
vs. Historical
High-End
5-Year PE Range -391x~86x
vs. Industry Avg
N/A
Industry PE ~N/A*
EV/EBITDA
10.7x
Enterprise Value Multiple
Investment Risk Disclosure
T-Mobile's primary financial risk is its elevated leverage, with a debt-to-equity ratio of 2.07. While strong cash flow helps service this debt, rising interest rates or an economic downturn could pressure its financial flexibility. Operational risks include intensifying competition in the mature US wireless market, which contributed to the recent net income decline and margin compression in Q4 2025. The company's aggressive expansion into fixed-wireless broadband represents a growth opportunity but also requires significant capital investment, potentially straining cash flow if subscriber growth slows. Market-related risks are evident in the stock's high volatility, having fallen over 32% from its 52-week high, reflecting sensitivity to interest rates and broader market sentiment. The high short ratio of 2.24 indicates significant bearish sentiment among some investors.
FAQ
The key risks are financial and operational. Financially, the high debt-to-equity ratio of 2.07 makes the company sensitive to interest rates. Operationally, profit margins are under pressure, with the Q4 2025 net margin compressing to 8.6% from 13.6% a year ago. Additionally, the stock has been volatile, experiencing a drawdown of over 32% from its 52-week high, reflecting market concerns about these issues.
The 12-month outlook is for range-bound trading with a neutral bias. The base case (60% probability) sees the stock between $210 and $240, reflecting stable execution. A bull case to $272 requires margin recovery, while a bear case could retest the 52-week low of $181 if profitability worsens. The primary factor will be the trajectory of net income margins in upcoming quarters.
TMUS appears fairly valued. Its trailing P/E of 20.8 is above the forward P/E of 14.9, indicating the market expects earnings to grow. The price-to-sales ratio of 2.6 and EV/Sales of 4.0 are not extreme. However, the very high PEG ratio of 40.4 suggests the stock is expensive relative to its expected growth rate, signaling that future growth is already priced in.
Based on current data, TMUS is a Hold. The company has strong attributes like 11.3% revenue growth and $18B in annual free cash flow. However, its Q4 net income fell 30% year-over-year, and its debt-to-equity ratio of 2.07 adds risk. The forward P/E of 14.9 is reasonable, but the stock may lack a near-term catalyst for significant appreciation.
TMUS is more suitable for a long-term, income-oriented investor who can tolerate volatility. The company pays a modest dividend (1.8% yield) and generates massive cash flow, which supports its business over time. Short-term traders face significant volatility, as evidenced by the 32.7% maximum drawdown. Long-term investors can benefit from the company's market position if management successfully navigates current margin challenges.