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T Investors - Our Quick Report For You.

AT&T returned losses of -19.5% last year, with its stock price reaching a high of $21.53 and a low of $14.46. Over the same period, the stock underperformed the S&P 500 index by -37.0%. As of April 2023, the company's 50-day average price was $17.11. AT&T Inc. provides telecommunications and technology services worldwide. Based in Dallas, TX, the large-cap Telecommunications company has 157,790 full time employees. AT&T has offered a 6.9% dividend yield over the last 12 months.

The Company's Revenues Are Declining:

2019-12-31 2020-12-31 2021-12-31 2022-12-31
Revenue (MM) $181,193 $171,760 $168,864 $120,741
Gross Margins 53.6% 53.5% 52.7% 57.9%
Operating Margins 16.2% 14.7% 16.7% 19.0%
Net Margins 7.67% -3.01% 11.89% -7.06%
Net Income (MM) $13,903 -$5,176 $20,081 -$8,524
Net Interest Expense (MM) -8,422 -7,925 -6,884 -6,108
Net Interest Expense (MM) -$8,422 -$7,925 -$6,884 -$6,108
Depreciation & Amort. (MM) -$28,217 -$28,516 -$22,862 -$18,021
Earnings Per Share $1.89 -$0.75 $2.73 -$1.18
EPS Growth n/a -139.68% 464.0% -143.22%
Diluted Shares (MM) 7,348 7,183 7,503 7,149
Free Cash Flow (MM) $29,233 $27,455 $25,430 $12,397
Capital Expenditures (MM) -$19,435 -$15,675 -$16,527 -$19,626
Net Current Assets (MM) -$295,189 -$294,513 -$307,770 -$263,288
Current Ratio 0.8 0.82 0.7 0.59
Long Term Debt (MM) $151,709 $153,775 $152,820 $128,423
Net Debt / EBITDA 2.79 4.58 2.85 6.83

AT&T suffers from declining revenues and a flat capital expenditure trend, slimmer gross margins than its peers, and declining EPS growth. The firm's financial statements also exhibit a deteriorating pattern of cash flows and a highly leveraged balance sheet. On the other hand, the company has average operating margins with a stable trend working in its favor.

AT&T does not have a meaningful trailing P/E ratio since its earnings per share are currently in the red. Based on its EPS guidance of $2.47, the company has a forward P/E ratio of 6.9. In comparison, the average P/E ratio for the Telecommunications sector is 18.85. On the other hand, the market is undervaluing AT&T in terms of its equity because its P/B ratio is 1.16. In comparison, the sector average is 3.12.

AT&T Has an Average Rating of Buy:

The 21 analysts following AT&T have set target prices ranging from $9.0 to $28.0 per share, for an average of $20.73 with a buy rating. As of April 2023, the company is trading -17.5% away from its average target price, indicating that there is an analyst consensus of strong upside potential.

AT&T has a very low short interest because 1.3% of the company's shares are sold short. Institutions own 55.6% of the company's shares, and the insider ownership rate stands at 0.08%, suggesting a small amount of insider investors. The largest shareholder is the Vanguard Group, Inc., whose 9% stake in the company is worth $9,875,751,461.

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.

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