TMUS - Embedded Expectations Analysis - 2020 10 01
T-Mobile US, Inc. (TMUS:USA) currently trades at a historical high relative to UAFRS-based (Uniform) earnings, with a 53.4x Uniform P/E. At these levels, the market has bullish expectations for the firm, but management appears concerned about their Sprint integration, their mobile phone business, and industry positionSpecifically, management may lack confidence in the new T-Mobile's ability to continue leading the industry in post-paid growth, and in their ability to provide a high-capacity connection, as well as an easy-to-manage setup for their customers. They may also lack confidence in their ability to continue capturing synergy opportunities, especially from the Sprint merger. Moreover, they may have concerns about the performance of their mobile phone business, as well as the impact of their wireless' business performance on their mobile business. They may also lack confidence in their ability to improve digital performance, efficiently transition Sprint customers to Voice over LTE (voLTE) with the help of handset compatibility, and set up more locations to serve more customers. Management may also be exaggerating their position as the leading growth company in the industry
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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