TMUS - Embedded Expectations Analysis - 2019 04 22
T-Mobile US, Inc. (TMUS:USA) currently trades near recent averages relative toUAFRS-based (Uniform) Earnings, with a 25.3x Uniform P/E. At these levels, the market has somewhat optimistic expectations for the firm, while management is confident in the potential of 5G networks, their EBITDA and service revenue growth, and their home broadband offerings.
Specifically, management is confident in the capabilities of 5G, and about the potential network experience, employment, and price improvements from the adoption of 5G and their proposed merger with Sprint. In addition, they are confident in the benefits of tax reform, new revenue standards, and the effect of interest from securitization transactions on EBITDA growth. Moreover, they are confident in their ability to sustain share-of-gross-ads growth, and outpace competitor service revenue growth. Finally, they are confident in their home broadband offerings potential, the capacity of the combined T-Mobile and Sprint, and their suburban prime consumer growth.
T-Mobile US provides mobile communications services, including voice, messaging and data, under its brands, T-Mobile and Metro? by T-Mobile, in the United States, Puerto Rico and the United States Virgin Islands. The company provides mobile communications services using its 4G Long-Term Evolution network and its 5G technology network. The company also provides various wireless devices, including handsets, tablets and other mobile communication devices, and accessories for sale, as well as financing through Equipment Installment Plans and leasing through JUMP! On Demand?. The company provides reinsurance for handset insurance policies and extended warranty contracts offered to its mobile communications customers.
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