T-Mobile US, Inc. (TMUS)

FairStock Score: 59/100 — STEADY

Key Financials

AI Analysis

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

I approach T-Mobile as a steady operator, not a bargain-bin special situation. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $22.8B, net income $3.2B, and diluted EPS $2.99. Revenue rose from $21.1B in fiscal Q2 2025, while net income was flat at $3.2B. For FY2025, revenue was $88.3B versus $81.4B in FY2024, but net income slipped from $11.3B to $11.0B and diluted EPS only edged from $9.66 to $9.72. That tells me growth is real but profit conversion has stalled recently. FairStock's Lynch category is STALWART—steady growth—because profit grew 29.1% a year over five years and revenue 5.2%. The cash engine is attractive: trailing free cash flow is $16.2B, a 10.3% FCF yield at the $146.93 close on 2026-10-26. But the balance sheet gives me pause: D/E is 2.14 and FairStock's Altman Z-score is 0.94. FairStock's ROE is 17.99%, yet ROCE is only 5.97%, so leverage flatters returns. At that close, FairStock's P/E is 15.39, P/B 2.81, PEG 28.94, and EV/EBITDA 8.49. The Graham Number is $106.06, leaving a negative 38.17% margin of safety. FairStock's Piotroski F-Score is a respectable 7/9. Its scale and cash generation suggest a durable franchise, but the modest ROCE limits how wide I can call the moat. On balance, I want more discount before calling it compelling.

In plain English: T-Mobile US sells wireless phone service, home broadband and devices, mainly in the United States. The business looks reasonably strong because it earns solid profits and produces a lot of cash, but it carries heavy debt and recent profit growth has been slow. At the recent $146.93 close, the shares look fair to a little expensive against the company's numbers, not a clear bargain.

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Data as of 2026-10-26 close · note generated 2026-10-28 · 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