What's Driving Telephone and Data Systems Inc's Surprising 134% Stock Rally?

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Telephone and Data Systems Inc (TDS, Financial) has seen a significant surge in its stock price over the past three months. The company's stock price has risen by a staggering 133.54%, despite a slight dip of 0.37% over the past week. The current price stands at $17.74, with a market capitalization of $2 billion. The stock's GF Value, a measure of intrinsic value defined by GuruFocus.com, is currently at $19.11, slightly lower than the GF Value of $19.76 three months ago. This indicates that the stock is fairly valued at present, compared to its status as a possible value trap three months ago.

Introduction to Telephone and Data Systems Inc (TDS, Financial)

Telephone and Data Systems Inc is a diversified telecommunications operator that provides mobile, telephone, and broadband services. The company operates through two segments: UScellular and TDS Telecom, with the former generating the majority of the revenue. The company operates within the Telecommunication Services industry, a highly competitive and rapidly evolving sector. 1703789951910412288.png

Profitability Analysis of TDS

As of June 30, 2023, TDS's Profitability Rank stands at 6/10, indicating a moderate level of profitability. The company's Operating Margin is 1.13%, better than 24.35% of companies in the same industry. However, the company's ROE and ROA are -0.46% and -0.19% respectively, indicating a slight underperformance. The ROIC of 1.08% is better than 31.3% of companies in the same industry. Over the past decade, TDS has maintained profitability for 9 years, better than 66.31% of companies in the industry. 1703789973267808256.png

Growth Analysis of TDS

TDS's Growth Rank is currently at 5/10, indicating a moderate growth rate. The company's 3-Year Revenue Growth Rate per Share is 2.10%, better than 45.12% of companies in the same industry. The 5-Year Revenue Growth Rate per Share is 1.00%, better than 45.95% of companies in the industry. 1703789989759811584.png

Major Holders of TDS Stock

The top three holders of TDS stock are Mario Gabelli (Trades, Portfolio), Caxton Associates (Trades, Portfolio), and Barrow, Hanley, Mewhinney & Strauss. Mario Gabelli (Trades, Portfolio) holds the largest number of shares, with 2,102,431 shares, representing 1.86% of the total shares. Caxton Associates (Trades, Portfolio) holds 36,525 shares, representing 0.03% of the total shares. Barrow, Hanley, Mewhinney & Strauss holds the least number of shares among the top three, with 711 shares.

Competitors of TDS

TDS faces stiff competition from other companies within the same industry. The top three competitors are Globalstar Inc(GSAT, Financial) with a stock market cap of $2.55 billion, Liberty Latin America Ltd(LILA, Financial) with a stock market cap of $1.73 billion, and InterDigital Inc(IDCC, Financial) with a stock market cap of $2.2 billion.

Conclusion

In conclusion, Telephone and Data Systems Inc has shown a remarkable surge in its stock price over the past three months. Despite a slight dip over the past week, the overall trend remains positive. The company's profitability and growth ranks indicate a moderate level of performance, with room for improvement. The company faces stiff competition within the Telecommunication Services industry, but its strong market position and consistent profitability over the past decade suggest a promising future.

Disclosures

I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.