What AT&T (T) Investors Need to Know

AT&T logged a 0.6% change during today's morning session, and is now trading at a price of $19.77 per share. The S&P 500 index moved -0.0% and the Nasdaq posted a -1.0% change.

AT&T shares moved 8.2% over the last 52 weeks, with a high of $21.53 and a low of $14.46. During this time, the stock outperformed the S&P 500 index by 17.0%. As of January 2022, the company's 50-day average price is $19.0. AT&T Inc. provides telecommunications and technology services worldwide. The large-cap Consumer Discretionary company has 160,700 full time employees and is based in Dallas, TX. AT&T has returned a 5.7% dividend yield over the last 12 months.

Snapshot of the Company's Consistent Operating Margins:

2019-12-31 2020-12-31 2021-12-31 2022-12-31
Revenue (MM) $181,193 $171,760 $168,864 $120,741
Revenue Growth n/a -5.21% -1.69% -28.5%
Gross Margins 53.6% 53.5% 52.7% 57.9%
Gross Margins Growth n/a -0.19% -1.5% 9.87%
Operating Margins 16.2% 14.7% 16.7% 19.0%
Operating Margins Growth n/a -9.26% 13.61% 13.77%
Net Margins 7.67% -3.01% 11.89% -7.06%
Net Margins Growth n/a -139.24% 495.02% -159.38%
Earnings Per Share $1.89 -$0.75 $2.76 -$1.11
EPS Growth n/a -139.68% 468.0% -140.22%
Diluted Shares (MM) 7,348 7,183 7,199 7,154
Free Cash Flow (MM) $29,233 $27,455 $25,430 $12,397
FCF Growth n/a -6.08% -7.38% -51.25%
Capital Expenditures (MM) -$19,435 -$15,675 -$16,527 -$19,626
Net Debt / EBITDA 2.63 2.77 2.56 2.73

AT&T has negative earnings for the current period, so its trailing twelve month P/E ratio is not meaningful. But based on its EPS guidance of 2.51, the company has a forward P/E ratio of 7.9. In contrast, the Consumer Discretionary sector's average P/E ratio is 22.33.

On the other hand, AT&T is possibly undervalued in terms of its net assets because its P/B ratio is 1.4 compared to its sector average of 3.12.

AT&T Is the Subject of Mixed Market Indicators:

22 analysts are following AT&T and have set target prices ranging from $9.0 to $28.0 per share. On average, they have given the company a rating of hold. At the current price of $19.77, T is trading -6.46% away from its average analyst target price of $21.13 per share, implying an analyst consensus of some upside potential for the stock.

The company has a very low short interest since 1.2% of the company's shares are tied to short positions. Institutions own 55.8% of AT&T's shares, while the insider ownership rate stands at 0.08%. The biggest shareholder is the Vanguard Group, Inc. with a 9% stake in the company worth approximately $11,995,881,801.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.