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AT&T Inc.
🇺🇸 T · NYSE/NASDAQ
Telecom
Price at analysis: USD 23.47 Current price: USD 23.27 * updated every night
Scores
Key Metrics
Powered by EODHDP/E (TTM)
7.8
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: 23.47 ÷ 3.03 = 7.8
TTM period through: 2026-06-30
Forward P/E (estimated): 9.9
Based on analyst estimates
Reference: Provider P/E (Trailing): 7.5
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
5.9x
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: 4.82%
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): 4.82%
Payout Ratio (Fwd)
36.6%
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): 36.6%
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 | — | 09 Oct 2027 | — | USD | 0.2775 |
| Forecast* | Quarterly | — | 10 Jul 2027 | — | USD | 0.2775 |
| Forecast* | Quarterly | — | 10 Apr 2027 | — | USD | 0.2775 |
| Forecast* | Quarterly | — | 12 Jan 2027 | — | USD | 0.2775 |
| Declared | Quarterly | 24 Sep 2026 | 09 Oct 2026 | 02 Nov 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 |
* Extrapolated from past dividend history. Not an official announcement — treat as an estimate, not a confirmed date or amount.
Summary
AT&T is a highly stable, essential-services oligopoly generating massive free cash flow that securely covers its rightsized 4.82% dividend. Recent favorable resolutions of legacy copper regulations, data breach litigation, and lead-cable lawsuits have significantly de-risked the thesis, while a one-time non-cash impairment provides a compelling entry valuation at <8x earnings. Worth considering for new positions.
Sector Context
AT&T operates within the capital-intensive US telecommunications oligopoly. For DGI investors, this sector offers essential-service stability, extremely high barriers to entry, and massive free cash flow, though top-line growth is generally capped by domestic market saturation.
Temporary Opportunity Identified
AT&T reported a net loss in Q3 2024 primarily due to a $4.4 billion non-cash goodwill impairment charge on its legacy Business Wireline unit. The core underlying business (5G and consumer fiber) remains highly profitable with expanding margins and immense free cash flow generation.
📊 Strategy Analysis
- • Valuation is highly compelling at a 7.75x TTM P/E with a secure 4.82% trailing dividend yield, reinforced by excellent 2.20x FCF dividend coverage.
- • Shareholder returns are supercharged by an aggressive buyback program, adding a 4.90% net buyback yield on top of the cash dividend (9.72% Total Shareholder Yield).
- • Regulatory headwinds are turning into tailwinds: new FCC preemption rules have significantly reduced state Carrier of Last Resort (COLR) mandates, accelerating the retirement of unprofitable legacy copper infrastructure.
- • Major legal overhangs have been quantified or eliminated, including the final $177M cap on the 2024 data breach liability and the judicial dismissal of the lead-cable securities class action.
⚠ What to Watch
- • Despite deleveraging progress, the absolute nominal debt burden remains substantial (Net Debt/EBITDA of 2.70x), acting as an ongoing structural drag on capital flexibility.
- • The 2022 dividend cut (-34.9%) limits the track record score, though we explicitly apply the STRATEGIC_RESET_PRUDENT exception as it successfully funded the WarnerMedia spin-off and core 5G/fiber focus.
- • Faster-than-expected secular decline in legacy Business Wireline services continues, recently triggering a massive $4.4B goodwill impairment.
📊 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: 2026-10-17
Disclaimer: This information is for educational purposes only. Not financial advice.