The wireless business contributes nearly 70% of AT&T's revenue. The company is the third-largest US wireless carrier, connecting 74 million postpaid and 17 million prepaid phone customers.
It is a $152B communication services company. Revenue grew 2.6% over the last year, it keeps 17¢ of every dollar of sales as profit, and its net debt equals ~6.7 years of free cash flow. It trades at 7.1× earnings — in the cheapest third of its own history.
- Website
- att.com
- Location
- Dallas, TX
- Employees
- 133 030
- Sector
- Communication Services
- Founded
- 1885
Skills
Six independent scores, 0–100, built from reported numbers and valuation history. Click a row to see how it was scored.
Strong valuation; Growth and Health lag behind.
Valuation100
- P/E vs own history12th pct · 25/25
- FCF yield11.6% · 25/25
- P/S1.2x · 25/25
- EV/EBITDA6.1x · 25/25
Growth6
- Revenue CAGR-7.1% · 0/25
- Net income CAGR2.3% · 6/25
- EPS CAGR ~5Yn/a · 0/25
- Fwd implied growth-29.5% · 0/25
Profitability72
- ROIC9.0% · 12/25
- ROE19.5% · 20/25
- Net margin16.9% · 20/25
- Operating margin20.1% · 20/25
Health39
- Altman Z0.63 · 3/25
- Current ratio0.97 · 6/25
- Interest coverage6.6x · 18/25
- Net cash / debtD/A 28% · 12/25
Quality74
- Piotroski F5/9 · 15/25
- Beneish M-2.18 · 12/25
- FCF conversion82% · 22/25
- Margin stabilityσ 3.4% · 25/25
Moat50
- ROIC >12% years0/10 yrs · 0/25
- Median gross margin80.6% · 25/25
- FCF-positive years10/10 yrs · 25/25
- Worst-year net marginworst -7.1% · 0/25
Experience
The company's career so far — founding, the IPO, landmark products and acquisitions, plus revenue milestones and insider buying.
- Apr 8, 2022MilestoneWarnerMedia spin-offexits entertainment, refocuses on connectivity
- FY2017FinancialFirst recorded profitable year$29.4B net income
- FY2017FinancialBest year on record$29.4B net income
- FY2016FinancialRevenue already above $100B$164B in first reported year
- FY2016FinancialPositive free cash flow every year since10-year streak
- 2007MilestoneiPhone exclusivityCingular/AT&T lands the launch that defined mobile data
- Dec 29, 2006AcquisitionAT&T acquired BellSouth Corporation on December 29, 2006, following FCC approval
- Nov 18, 2005MilestoneSBC becomes AT&Ta Baby Bell bought its parent and took the name
- Nov 18, 2005AcquisitionSBC Communications purchased its former parent, AT&T Corporation, for $16 billion
- 1987AcquisitionAT&T soon started a series of acquisitions, including the 1987 acquisition of Metromedia mobile business and the…
- Jan 1, 1984MilestoneThe Breakupantitrust decree splits Ma Bell into seven Baby Bells
- 1885AcquisitionThe original AT&T was created by American Bell Telephone on March 5, 1885
- Mar 3, 1885FoundedAT&T incorporatedAmerican Telephone & Telegraph — the Bell long-distance arm
- 1881AcquisitionBell acquired Western Electric in 1881 and established the American Telephone and Telegraph Company on March 3, 1885
Achievements
Verifiable track record, straight from the reported numbers.
Strengths & watch-outs
What a bull and a bear would each point to. Both lists come from the reported numbers, not opinions.
Strengths
- High gross margin (59.7%)
- Interest covered 6.6× by operating earnings
Watch-outs
- Altman Z-Score 0.63 — elevated financial-distress risk
- Net debt would take ~8.4 years of free cash flow to repay
- Loss-making in 2 of the recent years
- Net debt equals ~6.7 years of free cash flow
Qualifications
The basics a company should meet before you research it further. Each check uses the reported numbers.
- Revenue growing — the company sells more than a year ago+2.6% YoY
- Profitable — makes more than it spends$21.6B TTM
- Profit growing — earnings are higher than last year+100.5% YoY
- Generates cash — cash left after running and investing$17.6B TTM
- Debt under control — could handle its obligations~6.7y of cash flow to repay
- Established company — not a micro-cap — lower blow-up risk$152B market cap
- Not printing shares — share count not ballooning — you keep your slice+6.0% shares over ~5y
- Proven track record — years of profitability behind it7/10 profitable years
- Financially stable — balance sheet not near distressAltman Z 0.6 — distress
- Pays a dividend — returns cash to shareholdersyield 5.28%
- Valuation not extreme — price not wildly above earningsP/E 7.1
Peer comparisonAT&T Inc. vs 6 largest communication services peers — cap, P/E, growth and margin side by sideOpen ▾Close ▴
| Company | Market cap | P/E | Revenue growth | Net margin | Profile |
|---|---|---|---|---|---|
| T this company | $152.3B | 7.1 | +2.6% | 16.9% | Strained |
| VZ Verizon Communications | $173.7B | 10.6 | +1.4% | 11.6% | Strained |
| TMUS T-Mobile US, Inc. | $159.6B | 15.1 | +9.7% | 11.5% | Strained |
| WBD Warner Bros. Discovery, Inc. Series A | $77.6B | 106.6 | -6.1% | -8.8% | Strained |
| CMCSA Comcast Corp | $73.4B | 6.5 | +0.6% | 9.0% | Strained |
| ECHO EchoStar Corporation | $27.7B | — | -5.2% | -38.7% | Mixed |
| FOXA Fox Corporation | $26.3B | 14.8 | +5.1% | 9.8% | Mixed |
References
What covering analysts publish about the company — information only, not a recommendation.
Appendix · Financial records
The full statements behind this CV, FY2016–FY2025. For readers who want to check the numbers.
Live data and quarterly detail: stockcv.com/T
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Deeper analysis of T on PreMarketPriceFigures are derived from company filings (quarterly values normalised from as-filed year-to-date data where applicable) and may be delayed, restated or incomplete. This page is information, not investment advice. Latest price $22.22 · market cap $152B.