Telephone and Data Systems Inc. Common Shares (TDS)

FairStock Score: 35/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

Graham taught me to buy a dollar of assets for fifty cents, but only when the earnings and balance sheet are durable. TDS is a U.S. communications provider with 4,000 employees. The filed figures are mixed. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $255.3 million and net income was $298.4 million, or $2.42 per diluted share. That is a remarkable profit margin and follows fiscal Q1 2026 net income of $144.6 million. But the annual record is weak: FY2025 revenue was $1.1 billion and net income was -$6.2 million; FY2024 net income was -$27.7 million; FY2023 net income was -$500.0 million. Trailing free cash flow is -$452.3 million, a negative 11.2% FCF yield. FairStock's Altman Z-Score of 1.43 and ROCE of -0.19% tell me the operating engine is not yet healthy, even if D/E is only 0.23 and ROE is 11.78%. The market price of $34.74 on 2026-10-13 gives a FairStock P/B of 1.03, P/E of 8.69, EV/EBITDA of 2.57, and Graham Number of $63.58, implying a 45.36% margin of safety. The computed Lynch category is TURNAROUND, with the reason given as a loss in the latest year after earlier profits. I see asset cheapness, low beta, and a possible earnings inflection, but negative cash flow and annual losses mean I would demand evidence that the recent profits are recurring before calling this a true value.

In plain English: Telephone and Data Systems sells phone, internet, and TV services, mostly in the United States. The business has been weak over the past few years, with annual losses and negative cash flow, though recent quarters show large positive net income. At the close on 2026-10-13, the $34.74 price looks cheaper than its accounting value and stated earnings, but the cash burn makes that cheapness uncertain.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer