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AT&T Inc.
🇺🇸 T · NYSE/NASDAQ · US00206R1023
Telecom
USD 24.79 price at analysis
Scores
Key Metrics
Powered by EODHDP/E (TTM)
8.2
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: 24.79 ÷ 3.03 = 8.2
TTM period through: 2026-06-30
Forward P/E (estimated): 10.3
Based on analyst estimates
Reference: Provider P/E (Trailing): 8.2
Net Debt/EBITDA (TTM)
2.7x
Latest quarter: 11.5x
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: 2026-06-30
Latest quarter (2026-06-30): 11.5x
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).
ROE
18.3%
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
5.8x
EV/EBITDAA valuation ratio that compares total business value (including debt) to EBITDA. Lower can mean cheaper, but context matters.
Dividend Summary
Powered by EODHDDividend Yield (Fwd)
5.04%
TTM: 4.52%
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.
Forward Yield (estimated): 5.04%
Trailing Yield (TTM, last 12 months): 4.52%
Payout Ratio (Fwd)
36.7%
TTM: 37.3%
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 (Fwd): 36.7%
Payout (TTM): 37.3%
Cash Flow Payout (TTM): 20.1%
FCF Coverage (TTM): 2.20x
Div. Growth (5Y)
-11.8%
Dividend History
EODHD Dividends API| Status | Type | Decl. Date | Ex-Div Date | Pay Date | Currency | Amount |
|---|---|---|---|---|---|---|
| Forecast* | Quarterly | — | 10 Jul 2027 | — | USD | 0.278 |
| Forecast* | Quarterly | — | 10 Apr 2027 | — | USD | 0.278 |
| Forecast* | Quarterly | — | 12 Jan 2027 | — | USD | 0.278 |
| Forecast* | Quarterly | — | 10 Oct 2026 | — | USD | 0.278 |
| Paid | Quarterly | 24 Jun 2026 | 10 Jul 2026 | 03 Aug 2026 | USD | 0.278 |
| Paid | Quarterly | 27 Mar 2026 | 10 Apr 2026 | 01 May 2026 | USD | 0.278 |
| Paid | Quarterly | 15 Dec 2025 | 12 Jan 2026 | 02 Feb 2026 | USD | 0.278 |
| Paid | Quarterly | 25 Sep 2025 | 10 Oct 2025 | 03 Nov 2025 | USD | 0.278 |
* Extrapolated from past dividend history. Not an official announcement — treat as an estimate, not a confirmed date or amount.
Summary
AT&T operates a highly stable, essential services oligopoly in mobile and broadband connectivity. Despite headline noise from a non-cash legacy wireline impairment, its core businesses generate massive free cash flow that securely covers its dividend while funding aggressive buybacks and debt reduction. Worth considering for new positions given its compelling 8.17x P/E and multiple recently cleared regulatory overhangs.
Sector Context
AT&T operates in the telecommunications sector, which functions as a highly capital-intensive essential services oligopoly. While heavy regulatory burdens and large infrastructure debt are the norm, these also create massive barriers to entry, making core wireless and broadband cash flows incredibly resilient for DGI investors.
Temporary Opportunity Identified
AT&T reported a recent quarterly net loss entirely driven by a $4.4 billion non-cash goodwill impairment on its legacy Business Wireline unit. Underlying Mobility and Consumer Wireline segments (5G and fiber) continue to show strong operational stability and subscriber growth.
📊 Strategy Analysis
- • Exceptionally strong dividend safety with FCF dividend coverage of 2.20x and a cash flow payout ratio of just 20.10%, securing the 4.52% yield.
- • Compelling valuation at a TTM P/E of 8.17, paired with robust total capital returns (9.17% total shareholder yield including 4.65% from net buybacks).
- • Major structural risks have recently been resolved favorably, including the dismissal of the multi-billion-dollar lead-cable investor lawsuit and the overturning of Title II Net Neutrality rules.
- • Highly profitable essential service oligopoly with an impressive 18.34% ROE and expanding profit margins.
⚠ What to Watch
- • Massive nominal debt burden ($136.1B total debt; Net Debt/EBITDA of 2.7x) acts as a structural drag on capital flexibility.
- • The legacy Business Wireline segment continues its secular decline, which previously triggered a $4.4 billion non-cash goodwill impairment charge.
- • Ongoing litigation regarding California's Carrier of Last Resort (COLR) mandate continues to force costly maintenance of obsolete copper networks in that state.
📊 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: 2026-08-15
Disclaimer: This information is for educational purposes only. Not financial advice.