T-Mobile US Stock To $153?
T-Mobile US (TMUS) stock has jumped 11% during the past week, and is currently trading at $219.50. Our multi-factor assessment suggests that it may be time to sell TMUS stock. We have, overall, a pessimistic view of the stock, and a price of $153 may not be out of reach. We believe there is a near-equal mix of good and bad in TMUS stock given its overall Moderate operating performance and financial condition. Hence, despite its Moderate valuation, this makes the stock look Risky.
Below is our assessment:
| CONCLUSION | |
|---|---|
| What you pay: | |
| Valuation | Moderate |
| What you get: | |
| Growth | Moderate |
| Profitability | Strong |
| Financial Stability | Weak |
| Downturn Resilience | Moderate |
| Operating Performance | Moderate |
| Stock Opinion | Risky |
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Let’s get into details of each of the assessed factors but before that, for quick background: With $244 Bil in market cap, T-Mobile US provides mobile voice, messaging, and data services across the US, Puerto Rico, and the Virgin Islands to over 108 million customers through extensive macro and small cell network infrastructure.
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[1] Valuation Looks Moderate
| TMUS | S&P 500 | |
|---|---|---|
| Price-to-Sales Ratio | 2.8 | 3.3 |
| Price-to-Earnings Ratio | 22.2 | 24.9 |
| Price-to-Free Cash Flow Ratio | 15.8 | 21.1 |
This table highlights how TMUS is valued vs broader market. For more details see: TMUS Valuation Ratios
[2] Growth Is Moderate
- T-Mobile US has seen its top line grow at an average rate of 3.6% over the last 3 years
- Its revenues have grown 8.5% from $81 Bil to $88 Bil in the last 12 months
- Also, its quarterly revenues grew 11.3% to $24 Bil in the most recent quarter from $22 Bil a year ago.
| TMUS | S&P 500 | |
|---|---|---|
| 3-Year Average | 3.6% | 5.6% |
| Latest Twelve Months* | 8.5% | 6.4% |
| Most Recent Quarter (YoY)* | 11.3% | 7.5% |
This table highlights how TMUS is growing vs broader market. For more details see: TMUS Revenue Comparison
[3] Profitability Appears Strong
- TMUS last 12 month operating income was $19 Bil representing operating margin of 21.0%
- With cash flow margin of 31.7%, it generated nearly $28 Bil in operating cash flow over this period
- For the same period, TMUS generated nearly $11 Bil in net income, suggesting net margin of about 12.4%
| TMUS | S&P 500 | |
|---|---|---|
| Current Operating Margin | 21.0% | 18.7% |
| Current OCF Margin | 31.7% | 20.6% |
| Current Net Income Margin | 12.4% | 12.8% |
This table highlights how TMUS profitability vs broader market. For more details see: TMUS Operating Income Comparison
[4] Financial Stability Looks Weak
- TMUS Debt was $122 Bil at the end of the most recent quarter, while its current Market Cap is $244 Bil. This implies Debt-to-Equity Ratio of 50.2%
- TMUS Cash (including cash equivalents) makes up $5.6 Bil of $219 Bil in total Assets. This yields a Cash-to-Assets Ratio of 2.6%
| TMUS | S&P 500 | |
|---|---|---|
| Current Debt-to-Equity Ratio | 50.2% | 20.4% |
| Current Cash-to-Assets Ratio | 2.6% | 7.3% |
[5] Downturn Resilience Is Moderate
TMUS saw an impact slightly better than the S&P 500 index during various economic downturns. We assess this based on both (a) how much the stock fell and, (b) how quickly it recovered.
2022 Inflation Shock
- TMUS stock fell 32.0% from a high of $149.41 on 16 July 2021 to $101.62 on 21 January 2022 vs. a peak-to-trough decline of 25.4% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 28 October 2022
- Since then, the stock increased to a high of $272.83 on 3 March 2025 , and currently trades at $219.50
| TMUS | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -32.0% | -25.4% |
| Time to Full Recovery | 280 days | 464 days |
2020 Covid Pandemic
- TMUS stock fell 26.0% from a high of $100.49 on 19 February 2020 to $74.32 on 18 March 2020 vs. a peak-to-trough decline of 33.9% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 18 May 2020
| TMUS | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -26.0% | -33.9% |
| Time to Full Recovery | 61 days | 148 days |
2008 Global Financial Crisis
- TMUS stock fell 85.5% from a high of $80.66 on 17 July 2007 to $11.70 on 10 November 2009 vs. a peak-to-trough decline of 56.8% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 26 July 2019
| TMUS | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -85.5% | -56.8% |
| Time to Full Recovery | 3,545 days | 1,480 days |
But the risk is not limited to major market crashes. Stocks fall even when markets are good – think events like earnings, business updates, outlook changes. Read TMUS Dip Buyer Analyses to see how the stock has recovered from sharp dips in the past.
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