Telephone and Data Systems, Inc.
$39.19
+0.72%Telephone and Data Systems, Inc., a telecommunications company, provides communications services in the United States. It operates through two segments: UScellular and TDS Telecom. The company offers wireless solutions to consumers and business and government customers, including a suite of connected Internet of things (IoT) solutions, and software applications for monitor and control, business automation/operations, communication, fleet and asset management, smart water solutions, private cellular networks and custom, and end-to-end IoT solutions; wireless priority services and quality priority and preemption options; smartphones and other handsets, tablets, wearables, mobile hotspots, routers, and IoT devices; and accessories, such as cases, screen protectors, chargers, and memory cards, as well as consumer electronics, including audio, home automation and networking products. It also provides replace and repair services; Trade-In program through which it buys customers' used equipment; internet connections and all-home WI-FI services; TDS TV+, an integrated cloud television platform that offers video content; local and long-distance telephone service, VoIP, and enhanced services; and broadband, IP-based services, and hosted voice and video collaboration services. The company sells its products through retail sales, direct and indirect sales, third-party retailers, and independent agents, as well as through ecommerce and telesales. As of December 31, 2021, it offers its services to customers 5 million wireless connections, and 1.2 million wireline and cable connections. The company was incorporated in 1968 and is headquartered in Chicago, Illinois.
At a Glance
Live SnapshotIntrinsic Alpha Methodology
Thesis Lenses
Signal
Medium confidenceValuation multiple is compressed (P/E -59.4).
Valuation inputs: P/E -59.4, earnings yield N/A, momentum +0.7%.
If multiples stay elevated while momentum fades, downside repricing risk rises.
Driver
High confidenceReturn profile is soft (ROE -0.1%, ROIC -0.8%).
Profitability stack: net margin -0.5%, ROE -0.1%, ROIC -0.8%.
Quality deterioration often appears in margins before it shows up in headline EPS.
Risk
High confidenceRisk profile is balanced but has notable pressure points to monitor.
Risk factors: liabilities/assets +37.3%, momentum +0.7%, net margin -0.5%.
Higher leverage with weak momentum and thin margins can amplify drawdown severity.
Telephone and Data Systems, Inc. Market vs Earnings Trajectory
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Telephone and Data Systems, Inc. Fair Value Envelope
Telephone and Data Systems, Inc. Profit Bridge
Profitability Analysis
Gross Margin
Negative gross margin indicates the company is losing money on each sale—unsustainable long-term.
Operating Margin
Operating losses indicate the core business is unprofitable. Requires restructuring or revenue growth.
Net Profit Margin
Net losses indicate the company is burning cash. Sustainability depends on path to profitability.
Effective Tax Rate
Below-average tax rate suggests effective tax planning, favorable jurisdictions, or tax credits.
Profitability Insight
Critical situation: Negative gross margins indicate fundamental business model issues. The company loses money on every sale—immediate strategic changes required.
Telephone and Data Systems, Inc. Cash Conversion Engine
Cash Flow Quality Analysis
FCF Conversion Rate
Excellent cash generation. The company converts earnings to cash at or above 100%, indicating high-quality earnings.
CapEx Intensity
Very high capital intensity consumes most operating cash flow. Limited flexibility for dividends or debt reduction.
FCF Growth Trend
Significant FCF decline raises concerns. Urgent review needed of operational performance and capital allocation.
Working Capital Impact
Significant working capital drain. Growth may be consuming cash through inventory buildup or receivables extension—monitor closely.
Cash Flow Quality Insight
Capital-intensive growth: Heavy reinvestment limits current cash available but may drive future returns. Assess whether CapEx supports compelling growth opportunities with adequate ROI.
Telephone and Data Systems, Inc. Funding & Solvency Profile
Financial Health Analysis
Working Capital
Negative working capital indicates short-term liabilities exceed short-term assets—potential liquidity stress.
Asset Composition
Telephone and Data Systems, Inc. Street Expectations Map
Wall Street analysts project that TDS stock may decline over the coming 12 months. The consensus 1-year price target stands at 27.67, with estimates ranging from a low of 16.00 to a high of 51.00.
The consensus 1-year price target stands at 27.67, with estimates ranging from a low of 16.00 to a high of 51.00.
Analyst Consensus Analysis
Upside Potential
Significant downside risk. Stock trading well above analyst consensus suggests elevated valuation concerns and potential correction.
Analyst Agreement
High uncertainty. Very wide target spread indicates significant disagreement among analysts—major valuation uncertainty or transformation underway.
Risk-Reward Profile
Unfavorable risk-reward. Downside risk exceeds upside potential. Consider defensive positioning or alternative opportunities.
Analyst Conviction
High uncertainty: Wide dispersion indicates analysts struggle to agree on valuation—proceed with caution and independent analysis.
Market Sentiment Insight
Extreme uncertainty: Massive dispersion in price targets reflects fundamental disagreement on business trajectory. This could signal transformation, disruption, or complex valuation—requires deep sector expertise and contrarian mindset.
Telephone and Data Systems, Inc. Insider Positioning
During the last 12 months, insiders have sold $18.48M worth of TDS shares, with no buying activity reported.
3 Months
0
0.00
5.8K
244.06K
-244K
-$244K
3-6 Months
0
0.00
0
0.00
+0
+$0
6-9 Months
0
0.00
17.1K
666.83K
-667K
-$667K
9-12 Months
0
0.00
456.5K
17.57M
-17.6M
-$17.57M
Top Buyers
No buying activity
Top Sellers
Villacrez Vicki L
Director, Officer: Executive Vice President & Cfo
$6.15M
Carlson Leroy T Jr
Director, Officer: Vice Chair
$4.27M
Hanley Joseph R
Officer: Svp-Strategy & Corp Dev
$2.62M
Kroll Anita J
Officer: Vp, Controller & Cao
$2.17M
Chambers Douglas W
Officer: President Of A Subsidiary
$1.62M
Insider Activity Analysis
Net Insider Sentiment
Strong bearish signal with $18.48M net selling. Heavy insider selling may indicate concerns about valuation or near-term prospects.
Buy/Sell Ratio
Very poor ratio. Heavy selling with minimal buying suggests insiders may be concerned about valuation or outlook.
Recent Trend (3 Months)
Heavy recent selling activity. Recent insider sales notably exceed purchases—may warrant investigation into company developments.
Insider Participation
5 insider sellers vs. 0 buyers. Widespread selling across multiple insiders may signal concerns.
Insider Activity Insight
Multiple red flags: Heavy selling, numerous sellers, and continued recent selling create a concerning pattern. Investigate fundamental drivers and consider whether company guidance or industry conditions have deteriorated.
tds Dividend History
Learning Layer
Related Guides
Build conviction on TDS by pairing this stock hub with focused valuation guides.
Research Paths
Snapshot
Start with context, operating signals, and key market metrics.
Value Model
Stress test fair value across bear, base, and bull assumptions.
Statements
Validate revenue quality, margins, and balance sheet durability.
Earnings Call
Read management commentary and compare it with reported outcomes.
Dividends
Check payout sustainability and long-term distribution behavior.
Analyst Expectations
Review consensus spread and where estimate risk is concentrated.