TMUS Financial Analysis

Analysis Date: 1/30/2025

Business Model

T-Mobile generates revenue primarily through wireless service and equipment sales

Revenue Sources

• Postpaid service revenues (80.4% of Q4 2024 revenue)
• Equipment sales and leases (21.5% of Q4 2024 revenue)
• Prepaid service revenues (12.7% of Q4 2024 revenue)

Revenue Distribution by Channel

• Postpaid: $13.5B (80.4% of service revenue)
• Prepaid: $2.7B (12.7% of service revenue)

Income Statement Analysis

• Service revenues increased 5.5% YoY driven by postpaid growth
• Equipment revenues up 12.6% YoY due to higher device sales
• Net income increased 48% YoY to $3.0B

Balance Sheet Analysis

• Total assets remained relatively flat year-over-year
• Total liabilities increased 2.3% primarily due to higher debt
• Stockholders' equity decreased 4.6% due to share repurchases

Cash Flow Analysis

• Operating cash flow increased 14.2% YoY to $5.5B
• Free cash flow decreased 5.1% YoY to $4.1B

Capital Allocation

T-Mobile returned $5.6B to shareholders in Q4 2024 through $4.6B in share repurchases and $1.0B in dividends. The company has authorized up to $14B in additional shareholder returns through 2025.

Management Commentary

More new postpaid customers chose T-Mobile than ever before in 2024

Record low full-year postpaid phone churn of 0.86%

2025 is poised to be even more exciting with strongest start-of-year guidance in company history

Overall Sentiment: Highly positive with strong operational momentum and confidence in 2025 outlook

Recommendation

Rating: Buy

Reason for Rating: Strong execution, industry-leading growth, and robust shareholder returns

Disclaimer: This analysis is based on company filings and public information. It is for informational purposes only and not financial advice. Past performance does not guarantee future results.

Generated on: 1/30/2025, 3:40:18 AM