AT&T Inc.
🇺🇸 T · NYSE/NASDAQ · US00206R1023
Telecom
USD 24.03 price at analysis
Scores
Key Metrics
Powered by EODHDP/E (TTM)
8.1
P/E (Price-to-Earnings)Shows how much investors pay for each $1 of profit. We display the TTM P/E (Trailing Twelve Months) which uses actual earnings from the last 4 quarters. This is more reliable than Forward P/E which uses analyst estimates.
Calculation: 24.03 ÷ 2.99 = 8.1
TTM period through: 2026-03-31
Forward P/E (estimated): 10.9
Based on analyst estimates
Reference: Provider P/E (Trailing): 8.1
Yield (Fwd)
4.62%
Dividend YieldThe Forward yield (Fwd) shows the next announced annual dividend / current price — what you'd earn going forward. The Trailing yield (TTM) in the tooltip shows dividends actually paid in the last 12 months. Forward is shown as primary because it reflects the company's current commitment to shareholders.
Trailing Yield (TTM): 4.49%
Div. Growth (5Y CAGR)
-11.4%
Net Debt/EBITDA (TTM)
2.8x
Latest quarter: 13.0x
Net Debt / EBITDAA leverage ratio showing how many years of EBITDA (earnings before interest, taxes, depreciation, and amortization) it would take to repay net debt. EBITDA approximates operating cash generation. Lower ratios (e.g., <3x) are generally safer; higher (e.g., >5x) may indicate more financial risk.
TTM through: 2026-03-31
Latest quarter (2026-03-31): 13.0x
The quarterly value can spike when quarterly EBITDA is very low (e.g., one-time charges).
Quick guide: <2x manageable, >4x can be risky (sector-dependent).
Payout (Fwd)
37.2%
Payout RatioDividends as a percentage of earnings. The Forward payout (Fwd) uses the announced dividend divided by actual past earnings (TTM) — it tells you if the company can afford what it promised. Very high payouts can be risky, especially if profits fall.
Announced dividend / actual earnings (TTM)
Payout (TTM): 37.8%
Cash Flow Payout (TTM): 20.8%
FCF Coverage (TTM): 2.15x
ROE
18.4%
ROE (Return on Equity)A profitability measure: how much profit is generated from shareholders’ equity. Higher isn’t always better if it comes from high debt.
EV/EBITDA
5.7x
EV/EBITDAA valuation ratio that compares total business value (including debt) to EBITDA. Lower can mean cheaper, but context matters.
Summary
AT&T operates a highly stable essential service oligopoly, providing critical mobile and broadband connectivity. Trading at $24.03, significantly below our P/FFO fair value estimate of $55-83, this represents an exceptional entry point for dividend investors. The recent headline net loss was driven entirely by a non-cash accounting charge, creating a textbook temporary opportunity to lock in a highly secure 4.5% yield backed by massive free cash flow generation.
Sector Context
AT&T operates as a dominant player in the US telecommunications oligopoly, providing essential mobile and broadband internet networks to millions of consumers and businesses. For dividend investors, telecom network infrastructure offers highly predictable, recurring cash flows, though the sector demands significant, continuous capital expenditure to maintain and upgrade networks to new standards like 5G and fiber.
Temporary Opportunity Identified
Headline net loss for the recent quarter was driven entirely by a $4.4 billion non-cash goodwill impairment charge related to legacy Business Wireline, which obscures the strong operational performance and massive free cash flow generation in the core 5G and fiber segments.
📊 Strategy Analysis
- • Valuation is highly attractive, trading at $24.03 well below the fair value range of $55.48 - $83.21, with a compelling P/E of 8.05 and P/FFO of just 4.33x.
- • Exceptional dividend safety, with a cash flow payout ratio of just 20.8% and Free Cash Flow coverage of 2.15x, indicating the 4.5% yield is highly secure despite past strategic resets.
- • Strong underlying business momentum in core segments, with continued subscriber growth in 5G and consumer fiber heavily outweighing legacy wireline headwinds.
- • Disciplined balance sheet management following the WarnerMedia spin-off, with Net Debt/EBITDA sitting at a comfortable 2.84x, strictly within sector norms.
⚠ What to Watch
- • The legacy Business Wireline segment remains in structural secular decline, triggering recent multi-billion dollar impairment charges and acting as a persistent top-line drag.
- • Intense, ongoing capital expenditure requirements necessary to maintain and expand 5G and fiber networks continuously weigh on gross cash flows.
📊 Historical Trends (10 Years)
Powered by EODHDThese charts show how key metrics have evolved over the past decade, helping you identify if the company is improving or deteriorating.
Debt Evolution (Net Debt / EBITDA)
Lower values are better. A declining trend indicates the company is reducing its debt (deleveraging).
Revenue & Earnings Growth
Consistent growth in revenueRevenue
The money a company brings in from selling its products or services. It’s the top line before costs. (blue) and earningsEarnings (Profit)
What’s left after expenses. Positive earnings mean the business made a profit; negative means a loss. (green) indicates a healthy business. Look for upward trends and recoveries after temporary dips.
Dividend Sustainability (FCF vs Dividends Paid)
Free cash flowFree Cash Flow
Cash left after the company pays for running the business and maintaining it. Often used to fund dividends, pay debt, or buy back shares. (FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., blue) should cover dividends paidDividends Paid
Cash the company paid out to shareholders. It’s not guaranteed and can change over time. (green). If dividends consistently exceed FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., the dividend may be at risk.
Analysis date: 2026-05-16
Disclaimer: This information is for educational purposes only. Not financial advice.