Sign In
Communication Services Sector Report

Telecommunications Industry Report

Market Cap: $2.0T
Stocks: 81
Median P/E: 11.2x
Median ROIC: 4.3%

Data sourced from SEC EDGAR filings. Report refreshed weekly.

Part of the Communication Services sector.

Performance Dashboard

PeriodSector (MCW)Sector (Median)
1 Day-0.4%+0.1%
1 Week+0.6%+0.0%
1 Month
3 Months
6 Months
YTD+0.2%+0.5%
1 Year+26.3%+3.6%
3 Years+82.4%+16.8%
5 Years+39.5%-10.9%

Today's Breadth: 39 advancing · 29 declining · 5 flat

Valuation Summary

MetricMedianP25P75vs 5Y Avg
P/E11.2x1.1x23.1x-4%
P/B1.1x0.4x2.7x-20%
P/S0.9x0.4x2.3x
P/FCF7.8x2.7x12.4x
EV/EBITDA8.5x6.2x15.3x
EV/EBIT13.8x11.1x18.4x
Earnings Yield
5.8%
FCF Yield
6.5%
Below Fair Value
40% of stocks

Profitability Profile

Margins

MetricMedian5Y AvgP25P75
Gross Margin51.2%52.8%42.8%74.9%
Operating Margin2.1%-10.4%16.7%
Net Margin4.2%6.0%-10.9%13.9%
FCF Margin11.7%-2.7%18.0%

Returns on Capital

MetricMedian5Y AvgP25P75
ROE2.2%-11.5%12.0%
ROA0.7%-5.9%5.2%
ROIC4.3%4.4%-6.1%10.2%

Growth Metrics

Metric1Y3Y CAGR5Y CAGR
Revenue+2.7%+0.6%+2.6%
EPS+30.2%+12.3%+3.2%
Free Cash Flow+5.0%+5.7%+2.1%

All values represent sector median growth rates.

Balance Sheet Health

Debt / Equity
0.7x
Net Debt / EBITDA
2.5x
Interest Coverage
0.2x
Current Ratio
1.2x

Altman Z-Score

Safe (>3): 9 (12%)
Gray (1.8–3): 5 (7%)
Distress (<1.8): 62 (82%)

Piotroski F-Score

Strong (7–9): 20 (25%)
Moderate (4–6): 43 (53%)
Weak (0–3): 18 (22%)

Top Companies

Symbol#Mkt CapP/EEV/EBITDAROICNet MgnRev Gr.Div YldYTDQual.
CCZ1$241.2B11.1x8.3x8.8%16.2%-0.0%2.2%-2.7%5/9
TMUS2$217.6B20.6x9.5x10.6%12.4%+8.5%1.9%-0.5%7/9
VZ3$192.1B9.8x6.5x9.0%12.4%+2.5%6.9%-0.2%4/9
T4$184.4B8.0x6.3x8.5%17.4%+2.7%4.6%+1.7%3/9
TBB5$157.3B7.3x5.9x17.4%+2.7%5.2%+0.2%3/9
VEON6$111.7B169.4x71.3%12.2%+8.3%0.1%2/9
CMCSA7$111.0B5.1x5.1x8.8%16.2%-0.0%4.5%-0.3%5/9
AMX8$80.0B22.1%3.2%+1.6%+3.3%4/9
AMXOF9$71.7B22.1%3.2%+1.6%0.0%4/9
WBD10$68.7B99.3x14.9x0.7%1.9%-5.2%+0.1%0/9
OBEL-BR11$59.3B17.0x17.9x4.6%5.8%+1.0%5.8%1/9
FNCTF12$53.8B4.7%6.5%+4.7%-0.7%1/9
SATS13$36.1B-41.3%-96.6%-5.2%+3.6%0/9
CHT14$32.7B16.7%-0.3%+1.7%0/9
CHTR15$31.2B5.7x5.7x9.0%9.1%-0.6%+3.5%5/9
TMUSL16$28.9B10.3%13.9%+3.6%-1.0%2/9
VIV17$26.8B17.1x8.9%10.4%+4.1%2.1%1/9
TMUSI18$25.8B10.3%13.9%+3.6%-0.7%2/9
TMUSZ19$25.5B10.3%13.9%+3.6%+0.6%2/9
ASTS20$25.3B-12.6%+2.3%0/9

Industry Composition

IndustryStocksMarket Cap%
Telephone Communications (No Radiotelephone)27$826.2B41.6%
Cable & Other Pay Television Services19$503.7B25.4%
Radiotelephone Communications12$451.6B22.7%
Telecommunications Services6$117.2B5.9%
Communications Services, Nec17$87.8B4.4%

Quality Distribution

0
1
2
3
4
5
6
7
8
9

Quality Score (0-9)

High Quality (7+)
2%
Median Piotroski F
5/9
Profitable Years
5 of 10

Dividends & Shareholder Returns

Paying Dividends
38%
Median Div Yield
3.4%
Median Buyback Yield
0.8%
Shareholder Yield
2.0%
Payout Ratio
49.8%
Div Growth (3Y)
0.0%
Div Growth (5Y)
1.9%

Strengths & Weaknesses

Strengths

  • +[Profitability]High pricing power with a median gross margin of 51.2%, reflecting differentiated products or strong brand moats.

Weaknesses

  • [Financial Health]81.6% of companies fall in the Altman Z-Score distress zone (<1.8), indicating elevated bankruptcy risk within the sector.
  • [Leverage]Tight interest coverage at 0.2x, leaving limited cushion for debt servicing if earnings decline.
  • [Profitability]Below-average capital returns with a median ROIC of 4.3%, suggesting limited pricing power or capital-intensive operations.
  • [Quality]Only 2.5% of companies score 7+ on the quality checklist, reflecting structural challenges in achieving consistent returns across the sector.

Recent News