Stocks · Telecommunication

AT&T Inc. (T)

$21.12

+1.29% last session

Market value

$140.5bn

P/E ratio

10.8

Dividend yield

6.85%

52-week range

$20–$29

What AT&T Inc. does

delivers an array of telecommunication, media, and technology offerings. Within its Communications division, the company supplies wireless voice and data communication services. It also markets mobile devices, such as smartphones, wireless data access cards, and portable computing gadgets, alongside accessories like protective cases and hands-free equipment.

Telecommunication · based in the US · listed since 1983Biggest source of revenue: Wireless Service (56%) · breakdownCompany website ↗

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tap a grade for the details

FGrowthShrinking

Sales growth, last 12 months3.5% · 44/100

Sales growth a year, 5 years−2.6% · 24/100

CProfitabilityAveragely profitable

Net profit margin10.2% · 65/100

Return on equity12% · 59/100

Return on capital, 10-year average5.5% · 33/100

FFinancial strengthFragile

Net debt ÷ operating profit4.9× · 12/100

Interest cover4× · 41/100

Current ratio (short-term assets ÷ debts)0.87 · 50/100

BValuationReasonably priced

P/E against its own 10-year history67th percentile · 33/100

Free cash flow yield12.7% · 100/100

Our base-case value vs price146% · 100/100

FMomentumStrong downtrend

Share price, last 12 months−15.0% · 25/100

Share price, last 3 months−13.3% · 17/100

Price

−17.4% over 1Y

27 Oct 2026$21.09

Daily closing prices. Source: Twelve Data.

Bull vs bear

The numbers are finely balanced (10 vs 14)

The bull case

Growth is speeding up●●○

Revenue growth over the last 12 months (4%) is well above its 5-year average (-3%).

Margins widening●●○

Operating margin up from -3.8% to 19.2% in three years.

Our cash-flow model sees value●●○

Base case 146% above today's price.

Low expectations priced in●●○

Today's price implies about 10.2% a year if our base case plays out.

Cash machine●○○

Turns 15% of revenue into free cash flow.

Analysts see upside●○○

Average target 25% above the price.

The bear case

Little growth●●○

Revenue up only -1.5% a year over 10 years: barely ahead of inflation.

Weak returns on capital●●○

Averages 6%, below what investors typically demand: growth may not create much value.

Cyclical revenue●●○

Revenue fell in 5 of the last 10 years: results can swing with the economy.

Heavy debt●●○

Net debt is 4.9× a year's operating profit.

Interest is a burden●●○

Operating profit covers interest only 3.6×.

Questionable capital allocation●●○

Passes only 3 of 7 capital-allocation checks.

Can you answer every bear point? Put your answers in your thesis under risks.

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Ten years of results, revenue by product and region, a management scorecard, bear/base/bull valuations, analyst targets, every SEC filing explained, and a thesis that checks itself after each report. Free.

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AT&T Inc. (T)

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Bull vs bear

Bull vs bear

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