Last Updated: 14 Nov 2024
Executive Summary
United States Cellular Corporation (USM) is a leading wireless telecommunications provider in the United States. The company has a strong financial position with a market capitalization of $5.45 billion and EBITDA of $839 million. However, the company is facing some challenges, including declining revenue and earnings. The latest stock price is $61.72, which is below the analyst target price of $74.
Company Overview
United States Cellular Corporation is headquartered in Chicago, Illinois. The company provides wireless telecommunications services to customers in the United States. The company has a network of over 6,000 cell sites and serves over 5 million customers.
Fundamental Analysis
United States Cellular Corporation's financial performance has been mixed in recent years. The company's revenue has declined in each of the past three years. In 2023, the company's revenue was $3.799 billion, down from $3.801 billion in 2022. The company's earnings have also declined in recent years. In 2023, the company's net loss was $115 million, compared to a net income of $10 million in 2022.
The company's financial ratios are also mixed. The company's profit margin is -0.0079, which is below the industry average of 0.05. The company's return on assets is 0.0102, which is also below the industry average of 0.05. The company's return on equity is -0.0048, which is below the industry average of 0.05.
Technical Analysis
United States Cellular Corporation's stock price has been in a downtrend since early 2023. The stock price has fallen from a high of $68.31 in January 2023 to a low of $32.01 in June 2023. The stock price is currently trading at $61.72, which is below the 50-day moving average of $58.23 and the 200-day moving average of $48.54.
The technical indicators are bearish for United States Cellular Corporation. The relative strength index (RSI) is below 50, which indicates that the stock is oversold. The moving average convergence divergence (MACD) is below the signal line, which indicates that the stock is in a downtrend.
Short Term Outlook
The short-term outlook for United States Cellular Corporation is negative. The stock price is in a downtrend and the technical indicators are bearish. The company is also facing some challenges, including declining revenue and earnings.
Long Term Outlook
The long-term outlook for United States Cellular Corporation is uncertain. The company is facing some challenges, but it also has a strong financial position. The company's long-term success will depend on its ability to address its challenges and execute its growth strategy.
Analyst Recommendations
The majority of analysts have a hold rating on United States Cellular Corporation. The average analyst target price is $74.
