Is the business good?
A genuinely good business: earnings fully cash-backed (1.8×) and margins widening.
Operating profit is fully backed by cash. Conversion is worsening vs a year ago.
Positive operating leverage, operating profit is growing faster than sales, so margins widen as the business scales.
Margin-driven, fat margins on slower asset turns. ROE 17% = margin × turnover × leverage.
Unless marked, from derived.
Against the whole market›
Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is T?
AT&T earns 8.0% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
Return on invested capital · cost of capital 9.0% · 1.0 points below what the capital costs: growth destroys value
- Operating margin
- 20%
Operating margin · Communication Services median 7.6% · 12 months to Q2 2026
- Cash conversion
- 1.76×
Cash conversion · 2.77× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- −3.8%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2020 | 5.9% |
| FY2021 | 19% |
| FY2022 | −3.8% |
| FY2023 | 19% |
| FY2024 | 16% |
| FY2025 | 19% |
Details›
- Gross margin12 months to Q2 2026
- 80%
- Operating margin12 months to Q2 2026
- 20%
- Net margin12 months to Q2 2026
- 17%
- Free cash flow margin
- 14%
- Revenue, trailing twelve months
- $127.2B
- Free cash flow, trailing twelve months
- $17.6B
- Net income, trailing twelve months
- $21.6B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 8.0%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Communication Services
Ranks #53 of 124 by RyuScore