Home Sectors Communication Services Valuation Now: AT&T (NYSE: T)

Valuation Now: AT&T (NYSE: T)


AT&T trades as part of the communication services sector and communication services industry. The company CEO is Randall L. Stephenson. AT&T Inc is engaged in provision of communications and digital entertainment services in the United States and the world. It provides fixed-line services, including voice, data, and television services to consumers and small businesses.

Previous Intraday Trading Performance:

The T stock showed a previous change of 1.22% with an open at 32.22 and a close of 32.49. It reached an intraday high of 32.70 and a low of 32.14.

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The stock has a market cap of $237.1b with 7.3b shares outstanding, of which the float is 7.3b shares. Trading volume reached 31,768,363 shares compared to its average volume of 28,753,422 shares. Based on the current average volume and close price, the trading liquidity is good.

Historical Trading Performance:

Over the last five trading days, AT&T shares returned 4.50% and in the past 30 trading days it returned 5.90%. Over three months, it changed 7.00%. In one year it has changed 6.12% and within that year its 52-week high was 34.53 and its 52-week low was 26.80. T stock is 21.23% above its 52 Week Low.

Our calculations show a 200 day moving average of 30.51 and a 50 day moving average of 31.44. Currently T stock is trading 6.48% above its 200 day moving average.

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The last annual fiscal EPS for the company was reported at 2.87 that ended on 31st of December 2018, which according to the previous close, that is a PE of 11.32. Based on 16 analyst estimates, the consensus EPS for the next quarter is 0.85. The TTM EPS is 3.52, which comes to a TTM PE of 9.23. Historically, the PE high was 31.20 and the PE low was 5.60. If the stock reached its PE low, that would represent a price of 19.71, which is a decrease of -39.33%.

Below was the last reported quarterly diluted earnings per share:

1stQtr of 2019 (Reported on 04/24/2019): 0.56
4thQtr of 2018 (Reported on 01/30/2019): 0.66
3rdQtr of 2018 (Reported on 10/24/2018): 0.65
2ndQtr of 2018 (Reported on 07/24/2018): 0.81
1stQtr of 2018 (Reported on 04/25/2018): 0.75

The dividend per share is currently 2.04, which is a dividend yield of 6.28%. Also, the payout ratio is 57.95%, therefore the dividend is safe according to our calculations. T stock has a high dividend yield, but because the company has sufficient earnings to cover future dividends, it may be a good investment opportunity for an income portfolio.

Base on our calculations, the intrinsic value per share is 65.33, which means it is possibly undervalued and has a margin of safety of 50.27%.

Indicators to Watch:

Based on the latest filings, there is 84.20% of institutional ownership. Short-interest was 90,935,015, which was 1.25% of shares outstanding. The short-interest ratio or days-to-cover ratio was 3.04. This stock has some short interest, but it may be normal and no cause for concern if long the position.

The current calculated beta is 0.58.

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Fundamental Indicators:

Based on last reported financials, the company’s return on equity is 11.83%, return on assets is 3.94%, profit margin is 11.09%, price-to-sales is 1.32 and price-to-book is 1.28.

Company Scores:

All scores are out of six:
 5  :Valuation Score
 2  :Past Performance Score
 2  :Financial Strength Score
 1  :Future Growth Score
 6  :Dividend Score
 3  :Overall Score

John Jones
Worked for several Wall Street firms: Salomon Smith Barney, UBS, and Charles Schwab. Has developed skills and gained extensive experience over the years that is used today to uncover winning penny stocks.Also was an attorney for small businesses in Scottsdale, Arizona. That experience and understanding of law provides a unique perspective and edge in discovering quality companies in various industries.