Company Overview
T-Mobile US Inc is a telecommunications provider offering wireless voice, messaging, and data services across the United States. The company operates under the T-Mobile and Metro by T-Mobile brands, serving both consumer and enterprise customers. Its shares trade on the NASDAQ Global Market with approximately 1.10 billion shares outstanding. The company’s market capitalization is about 237 billion USD.
Analysis of recent data
FundamentalsT-Mobile reported USD figures showing revenue of 88.31 billion, EBIT of 18.28 billion, and net income of 10.99 billion for the year ended December 31, 2025. Revenue grew 8.49% year over year, reflecting continued expansion in its wireless services.
Operating margin stood at 20.7% and net margin at 12.45%, indicating solid profitability. Depreciation and amortization reached 13.51 billion, while capital expenditure was not provided, limiting visibility into reinvestment levels.
Return on equity was 18.18%, supported by a gross margin of 62.93%. Cash totaled 5.60 billion against total debt of 86.28 billion, highlighting a leveraged balance sheet. Interest coverage was not provided, leaving debt service capacity uncertain.
Valuation
DCF / MultiplesAt a current share price of 214.82 USD, the stock trades below the range implied by discounted cash flow analysis. The DCF results suggest higher fair value estimates, indicating that the market may be pricing in only moderate long-term cash generation.
Given the company’s 18.18% return on equity and 12.45% net margin, the valuation gap appears to reflect caution around leverage rather than profitability. The low beta of 0.42 may support steadier returns if balance-sheet strength is maintained.
Conclusion
TakeawayT-Mobile shows strong profitability and efficient operations. Its balance sheet carries significant debt but also demonstrates resilience through steady margins. The market seems cautious about leverage despite solid returns. Investors may find potential if debt management remains disciplined.