Is the business good?
How good a business is TDS?
Telephone and Data Systems, Inc. earns 10% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
10%
Return on invested capital · cost of capital 9.0% · 1.1 points above what the capital costs: growth creates value
- Operating margin
- 37%
Operating margin · Telecom Services median 11% · 12 months to Q2 2026
- Cash conversion
- −1.08×
Cash conversion · some of the reported profit has not turned into cash yet
- Share count, year on year
- +0.92%
Share count, year on year · flat: no meaningful dilution
| Year | Operating margin |
|---|---|
| FY2020 | 5.0% |
| FY2021 | 4.9% |
| FY2022 | 2.3% |
| FY2023 | −50% |
| FY2024 | −15% |
| FY2025 | −7.9% |
Details›
- Operating margin12 months to Q2 2026
- 37%
- Net margin12 months to Q2 2026
- 33%
- Free cash flow margin
- −36%
- Revenue, trailing twelve months
- $1.26B
- Free cash flow, trailing twelve months
- −$452M
- Net income, trailing twelve months
- $418M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 10%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.