TMUS - Embedded Expectations Analysis - 2020 02 12
ï€ T-Mobile US, Inc. (TMUS:USA) currently trades near recent averages relative to UAFRS-based (Uniform) Earnings, with a 22.2x Uniform P/E. At these levels, the market has somewhat optimistic expectations for the firm, but management may be concerned about 5G, the Sprint merger, and their free cash flowï€ Specifically, management may be concerned about the progress of their Sprint merger and about their 5G readiness. Furthermore, they may lack confidence in their ability to sustain recent performance levels, and they may be exaggerating the degree to which Sprint management has aligned with T-Mobile throughout the transaction process. In addition, they may lack confidence in their ability to sustain recent bad debt expense improvements and postpaid net customer additions. Finally, they may lack confidence in their ability to meet their free cash flow guidance and continue improving their customer experience
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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