What is the financial health of AT&T?
AT&T has a total shareholder equity of $119.4B and total debt of $138.3B, which brings its debt-to-equity ratio to 115.8%. Its total assets and total liabilities are $407.1B and $287.6B respectively. AT&T's EBIT is $26.2B making its interest coverage ratio 3.9. It has cash and short-term investments of $6.8B.
Fourth quarter revenues of $32.0 billion, up 2.2% year over year. Fourth quarter operating income of $5.3 billion, with adjusted operating income* of $5.8 billion; Full-year operating income of $23.5 billion, with adjusted operating income* of $24.7 billion, up 5.0% year over year.
AT&T Financial Overview
AT&T's market cap is currently ―. The company's EPS TTM is $1.963; its P/E ratio is 8.65; and it has a dividend yield of 6.53%. AT&T is scheduled to report earnings on April 23, 2024, and the estimated EPS forecast is $0.54.
T Stock 12 Months Forecast
Based on 15 Wall Street analysts offering 12 month price targets for AT&T in the last 3 months. The average price target is $27.25 with a high forecast of $109.00 and a low forecast of $17.00. The average price target represents a 59.82% change from the last price of $17.05.
AT&T faces its fair share of challenges, including a tough competitive environment, high debt levels, and an uncertain economy.
AT&T is executing well on its sustainable, long-term growth strategy. The company remains on track to meet all of its financial guidance. The company continues to see healthy demand for world-class connectivity through 5G and fiber.
Deciding on AT&T stock
AT&T had a solid 2023, which could prove to be the turning point in its transition back to a purely telecommunications business. Its debt levels are dropping, free cash flow is rising, and its consistent customer growth has enabled the company to increase revenue.
Supino expects AT&T to pay down $7 billion in debt over the next year. He views the company's $10 billion in yearly dividend commitments, including preferred shares, as exceedingly safe in light of $17 billion in likely free cash flow this year, rising to $18 billion next year.
As of 2023, AT&T was ranked 13th on the Fortune 500 rankings of the largest United States corporations, with revenues of $120.7 billion. AT&T Inc. U.S. During most of the 20th century, AT&T had a monopoly on phone service in the United States.
Once AT&T abandoned its media ambitions, culminating with the spin-off of WarnerMedia in 2022, uncertainty over its wireless business, concerns about its massive debt load, and general distrust from investors continued to put pressure on the stock. Beginning in mid-2023, investor sentiment began to shift.
Is AT&T a safe investment?
AT&T is facing challenges and may not grow briskly, but investors seeking income might want to consider it: The stock recently sported a hefty dividend yield of 6.6%. Burdened with long-term debt, AT&T cut its dividend nearly in half in 2022 and has kept it steady since then.
- 2007: Cellular One acquisition. ...
- 2008: Centennial and Wayport acquisitions. ...
- 2011: Qualcomm spectrum purchase. ...
- 2011: Attempted acquisition of T-Mobile USA. ...
- 2013–2014: Leap Wireless acquisition.
Cash on Hand as of December 2023 : $6.72 B
According to AT&T's latest financial reports the company has $6.72 B in cash and cash equivalents. A company's cash on hand also refered as cash/cash equivalents (CCE) and Short-term investments, is the amount of accessible money a business has.
The recent cost-cutting measures, including a new wave of layoffs and the reduction in the total number of offices, could be a part of the broader effort to bring AT&T employee revenue on par with other telecom giants.
Weaknesses. Decline in Traditional Services: Despite its strengths, AT&T Inc (NYSE:T) faces challenges with its traditional wireline services. The company acknowledges a secular decline in these services as customers transition to wireless, VoIP, or internet-based offerings from competitors.
We think AT&T stock has room for upside. AT&T trades at just about 7x consensus 2023 earnings, well below historical levels. The company's dividend yield also stands at a solid 7%. While subscriber growth has slowed compared to the pandemic period, things are looking a bit better sequentially.
WASHINGTON, February 26, 2024 – AT&T is looking to abandon its obligation to provide landline telephone service across large swaths of California, which would leave more than 580,000 rural subscribers with more limited options for phone services.
- BT.
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- Verizon.
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- Microsoft.
(Bloomberg) -- AT&T Inc.'s human resources chief, Angela Santone, will leave the company at the end of September, just as the telecommunications giant is eliminating thousands of jobs as part of a newly expanded $8 billion cost-reduction program.
Discovery. AT&T 's April decision to parcel out its big interest in Warner Bros. Discovery to all shareholders, rather than giving them the option of receiving an equivalent amount of the phone company's stock, has turned out to be a bad move for investors.
Is AT&T good for long term?
Consider AT&T stock
Due to improving business conditions, the low valuation makes AT&T a compelling buy. Thanks to a rising market share and the AI-driven need for AT&T's networks, the company and its stock should move higher in the long term.
The Dallas-based telecom giant just announced an expanded $8 billion cost-cutting program. Dallas-based AT&T's workforce has shrunk considerably in the last decade, peaking in 2016 at 281,000 and starting out this year at 160,000.
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Verizon's superior FCF puts it in a stronger position than AT&T to continue reducing debt and maintain its dividend. Verizon's FCF increase is thanks in part to growth in its wireless-service sales, which hit $76.7 billion in 2023, a year-over-year increase of 3.2%.
AT&T has one of the highest dividends in the S&P 500, with a trailing-12-month yield of around 6.7%. Unfortunately, part of the reason the dividend yield is so high is because AT&T's stock price has been falling. Regardless, AT&T's lucrative dividend is appealing to investors seeking consistent income.
