AT&T Inc: Is It A Buy?


person using macbook pro on black tableImage Source: UnsplashAs part of an ongoing series, we will take a look at one of the stocks from our stock screeners, and review why it’s a ‘buy’ based on key fundamentals. One of the cheapest stocks in our screeners is: AT&T Inc.

AT&T Inc (T)
The wireless business contributes nearly 70% of AT&T’s revenue. The firm is the third-largest US wireless carrier, connecting 72 million postpaid and 17 million prepaid phone customers. Fixed-line enterprise services, which account for about 16% of revenue, include internet access, private networking, security, voice, and wholesale network capacity.Residential fixed-line services, about 11% of revenue, primarily consist of broadband internet access, serving 14 million customers. AT&T also has a sizable presence in Mexico, with 23 million customers, but this business only accounts for 4% of revenue. The firm still holds a 70% equity stake in satellite television provider DirecTV, but it does not consolidate this business in its financial statements.A quick look at the share price history (provided below) over the past twelve months shows that the price is up 37.40%. Here’s a brief look at why the company is undervalued.Source: Google Finance

Key Stats

  • Market cap: $138.03 billion
  • Enterprise value: $298.66 billion
  • Operating Earnings

  • Operating earnings: $24.69 billion
  • Acquirer’s Multiple

  • Acquirer’s multiple: 12.10
  • Free Cash Flow (TTM)

  • Free cash flow: $20.99 billion
  • FCF/MC Yield Percentage

  • FCF/MC yield: 15.21
  • Shareholder Yield Percentage

  • Shareholder yield: 6.00
  • Other Indicators

  • Piotroski F score: 8.00
  • Div yield percentage: 5.90
  • ROA (five-year average percentage): 6
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