AT&T Inc
🇺🇸 T · NYSE/NASDAQ · US00206R1023
Telecom
USD 28.33 price at analysis
Scores
Key Metrics
Powered by EODHDP/E (TTM)
9.3
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: 28.33 ÷ 3.05 = 9.3
TTM period through: 2025-12-31
Forward P/E (estimated): 12.3
Based on analyst estimates
Reference: Provider P/E (Trailing): 9.3
Yield (Fwd)
3.92%
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): 3.92%
Net Debt/EBITDA (TTM)
2.9x
Latest quarter: 13.9x
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: 2025-12-31
Latest quarter (2025-12-31): 13.9x
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)
36.4%
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): 37.4%
Cash Flow Payout (TTM): 20.3%
FCF Coverage (TTM): 2.38x
ROE
18.8%
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
6.1x
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 with robust free cash flow generation following its strategic restructuring. The recent headline net loss was entirely driven by a non-cash accounting charge, creating a classic temporary problem that masks strong underlying core growth in fiber and 5G. Worth considering for new positions at current levels given the attractive P/E of 9.3 and a secure 3.9% yield that is exceptionally well-covered by cash flows.
Sector Context
AT&T is a dominant US telecommunications provider, offering essential wireless, broadband, and fiber network services to millions of consumers and businesses. In the telecom sector, significant capital expenditure is required to maintain and upgrade network infrastructure, which typically results in higher but manageable debt levels backed by highly predictable, recurring subscription revenues.
Temporary Opportunity Identified
A $4.4 billion non-cash goodwill impairment charge related to the declining legacy Business Wireline unit caused a headline quarterly net loss, masking strong operational performance in core mobility and fiber segments.
📊 Strategy Analysis
- • Trading at an attractive TTM P/E of 9.29, which sits comfortably in the optimal 8-15x range and presents a compelling valuation relative to its cash generation.
- • The 3.92% dividend yield is exceptionally well-covered by free cash flow, with a cash flow payout ratio of just 20.3% and robust FCF coverage of 2.38x.
- • Recent headline net loss was entirely driven by a one-time $4.4 billion non-cash goodwill impairment charge, masking strong underlying operational momentum in core 5G and fiber segments.
- • Historical dividend cuts (2022, 2023) were prudent strategic resets tied to the WarnerMedia spin-off, resulting in a refocused telecommunications business with expanding net margins.
⚠ What to Watch
- • The legacy Business Wireline segment remains in structural secular decline, triggering recent impairment charges and acting as a persistent headwind to overall top-line revenue growth.
- • Net Debt to EBITDA of 2.85x sits near the upper threshold of our 3.0x limit, necessitating continued disciplined debt management despite being typical for the sector.
📊 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: 2026-04-05
Disclaimer: This information is for educational purposes only. Not financial advice.