Telephone and Data Systems Stock Price and Value Analysis

Should you buy Telephone and Data Systems stock? (NYSE:TDS). Let's see how it does in our automated value investing analysis system.

TDS Free Cash Flow Trend

Free Cash Flow trendline for TDS
Free Cash Flow trendline for Telephone and Data Systems

Based on historical returns, we believe that Telephone and Data Systems can grow its free cash at a rate of about 3%. That's positive!

  • This company has a large dividend yield!
  • This stock is available at a great discount!
  • This company has stable growth.
  • This company is less known than others.
  • This company is making money at a modest rate.

Inside the TDS Numbers

TDS Price
(Telephone and Data Systems stock price per share)
[?] TDS Fair Price
(based on intrinsic value)
[?] TDS Safety Price (based on a variable margin of safety) $56.59
[?] PE Ratio versus Sector 25% lower than other Technology stocks
[?] PE Ratio versus Industry 31% higher than other Telecom Services stocks
[?] Cash Yield 32.38%
[?] Free Cash Flow Jitter 15%
[?] Dividend Yield 3%
Shares Shorted 2,918,282

This stock has short interest! This means that people have shorted it.

Why does that matter? They've made a bet that price will decrease from where they bought it. Maybe there are financial problems, or maybe there's a value play.

As of the latest analysis, there are 2,918,282 shares shorted. With 98,903,855 shares available for purchase and an average trading volume over the past 10 trading days of 1,040,957, it would take at least 2.803 days for all of the short holders to cover their shorts.

Is Telephone and Data Systems Stock on Sale?

We believe that Telephone and Data Systems may be worth examining further. It's making money, which is a very positive sign. Is it on sale?

Even better, Telephone and Data Systems looks like a stock on sale. Based on our analysis—if the company keeps making money the way it has been—you may be looking at a bargain. Keep this stock in mind as you put together your portfolio! See Before You Buy for your next steps (and read our disclaimer about investing risk).

Should You Buy TDS Stock?

Does Telephone and Data Systems have a coherent story? Does it have a plan to continue to make money? Is it worth your time? Only you can decide where to go from here. Our investment guide helps you ask the right questions, including how to buy stocks. Use these research links for more information.