Reading the tape
NYSE: TDS
Telephone and Data Systems, Inc.
Communication Services · Telecommunications Services
Market Cap
$4.79B
52w High
$47.80
52w Low
$31.07
P/E
-823.73
Volume
544.42K
Outstanding Shares
106.30M
Price vs Fundamentals
Why The Stock Is Moving
Momentum disconnected from fundamentalsModerate confidence
Note: The most recent financial data is over 3 months old. Metrics shown may not reflect the latest reporting period.
1Y Price: 20.19%Revenue (TTM): -39.98%FCF (TTM): -19.84%P/FCF: 85th pct
What changed
The stock rose 20.19% over the last year. Revenue declined 39.98% over the trailing twelve months. Operating margin moved from 1.25% to 0.51%. Free cash flow declined 19.84% over the trailing twelve months.
What the market seems to be pricing
The stock is rising despite deteriorating fundamentals and now sits at the 85th percentile of its historical P/FCF range. This is a momentum-driven move — the market may be front-running a recovery that has not yet appeared in reported numbers.
What would invalidate this read
Operating margin (currently 0.51%) would need to stabilize or improve to justify the move. Revenue is declining 39.98% — a trend reversal in the next report would be the key signal to watch. This read is wrong if the next period shows operating metrics turning the corner. At that point the price would be anticipating real improvement rather than running ahead of it.
Company profile
Telephone and Data Systems, Inc., a telecommunications company, provides communications services in the United States.
CEOWalter Carlson
SectorCommunication Services
IndustryTelecommunications Services
Employees7,900
IPO dateDec 15, 1981
Valuation
Forward P/E—
EV/EBITDA10.68
Enterprise value$5.91B
Stock splits
Jan 25, 2012↑ Forward
Every 1000 shares became 1087
May 16, 2005↑ Forward
Every 41 shares became 80
Dec 19, 1988↑ Forward
Every 2 shares became 3
Mar 18, 1988↑ Forward
Every 2 shares became 3
Profitability & growth
Revenue growth-73.33%
Gross margin49.4%▼108.86%vs FY2024
Operating margin0.51%▼497.75%vs FY2024
ROE-0.12%▲78.47%vs FY2024
Analyst consensus
RatingBuy
Target price$27.67▼38.59%
6
Buy
1
Hold
0
Sell
Analyst ratings tend to be lagging indicators. Use as one signal among many.
Earnings
Full quarter-by-quarter history of actuals vs estimates. Switch into compare mode to inspect one metric year-over-year.
Next report
May 1, 2026
Q2 FY26 · EPS est -$0.39 · Revenue est $313.28M
View
Dividends
$10.37/shareQuarterlySafeTDS pays a dividend with a 23.01% dividend yield, growing at 71.94% annually, covered 2.2× by free cash flow.
Dividend Yield
23.01%
Annual Div / Share
$10.37
5yr CAGR
+71.94%
Doubles every ~1.3yr
Payout Ratio
—
Safe
Dividend Growth Rate
3yr CAGR
+142.19%
5yr CAGR
+71.94%
10yr CAGR
+33.47%
Dividend Safety
10/10Safe
Dividend History
Annualized dividend cycles per share
YearAnnual DivYoY
2026$10.37+6381.2%
2025$0.16-73.3%
2024$0.60-17.8%
2023$0.73+2.8%
2022$0.71+2.9%
2021$0.69+3.0%
2020$0.67+3.1%
Income Projection
Invest
$
Growth rate:
Reinvest dividends
Today
$230/yr
$19/mo
In 5 yrs
$406/yr+76%
$34/mo
In 10 yrs
$715/yr+211%
$60/mo
| Today | In 5 yrs | In 10 yrs |
|---|---|---|
$230/yr $19/mo | $406/yr+76% $34/mo | $715/yr+211% $60/mo |
Long-range projections use a capped 12% annual growth assumption.
Yield-on-cost grows from 23.01% → 71.48% over 10yr
Analysis
Dividend Strengths
Well-covered by free cash flow
The dividend is covered 2.2× by free cash flow, indicating the company generates sufficient cash to sustain and potentially grow the payout without straining its finances.
Strong dividend growth rate
The 5-year CAGR of 71.94% meaningfully outpaces inflation, compounding real income growth for long-term holders.
Risks to Watch
No strong risk signal stands out from the latest period pair.