Telephone and Data Systems, Inc. (TDS)
For informational purposes only. Not financial advice. Analysis by Sedat ANAK, Founder & Editor-in-Chief | AI-powered analysis. Data sourced from SEC filings and institutional-grade financial providers. Editorially reviewed. Not financial advice.
Telephone and Data Systems, Inc. (TDS) trades at $35.72 with AI Score 52/100 (Grade B). Telephone and Data Systems, Inc. (TDS) is a telecommunications company providing wireless and wireline services in the United States. Market cap: $3.80B, Sector: Communication services.
Price live · AI analysis from May 9, 2026Analyst Coverage for TDS: TDS does not currently have published analyst price targets in our coverage universe. This is common for smaller-cap names with limited Wall Street coverage. In the absence of analyst consensus, our AI model evaluates TDS against Communication Services peers across nine fundamental dimensions and assigns a mixed fundamental profile based on the underlying data.
TDS: 3/7 perspectives are bullish. Dominant signal: Ray Dalio bullish.
How is this calculated? →Telephone and Data Systems, Inc. (TDS) Media & Communications Profile
Telephone and Data Systems (TDS) delivers wireless and wireline communication solutions across the U.S., operating through UScellular and TDS Telecom. With a focus on IoT and broadband services, TDS caters to both consumer and business segments, holding a significant market share in its operating regions and facing competition from larger national providers.
What Is the Investment Thesis for TDS?
Telephone and Data Systems (TDS) presents a mixed investment thesis. The company's established presence in the telecommunications sector, particularly through its UScellular and TDS Telecom segments, provides a stable revenue base. The dividend yield of 22.40% may attract income-focused investors. Growth catalysts include expansion in IoT solutions and broadband services. However, a P/E ratio of 34.4 suggests a premium valuation. Investors should monitor the company's ability to maintain its market share amid increasing competition and technological advancements. The company's beta of 0.32 indicates lower volatility compared to the market.
Based on FMP financials and quantitative analysis
TDS Key Highlights
- Market Cap of $3.80B, reflecting its established position in the telecommunications sector.
- P/E ratio of 34.4, indicating a premium valuation compared to industry peers.
- Profit Margin of 5.3%, demonstrating profitability in a competitive market.
- Gross Margin of 36.3%, reflecting efficient cost management in service delivery.
- Dividend Yield of 22.40%, offering a substantial return to shareholders.
Who Are TDS's Competitors?
TDS is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.
| Company | Price | Change | Market Cap | AI Score |
|---|---|---|---|---|
| LUMN Lumen Technologies, Inc. | $6.54 | +1.63% | $6.73B | — |
| TEO Telecom Argentina S.A. | $13.04 | +3.90% | $5.62B | 67 |
| TKC Turkcell Iletisim Hizmetleri A.S. | $5.85 | +0.17% | $5.09B | 47 |
| AD Array Digital Infrastructure, Inc. | $35.37 | -2.40% | $3.05B | 41 |
| PHI PLDT Inc. | $18.12 | +0.95% | $3.91B | 53 |
| GOGO Gogo Inc. | $3.83 | +7.28% | $517.96M | 71 |
| ATEX Anterix Inc. | $105.03 | -0.11% | $2.05B | 68 |
| ELWT Elauwit Connection, Inc. | $7.00 | +0.43% | $36.81M | 64 |
AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance
What Are TDS's Key Strengths?
- Established presence in the telecommunications market.
- Diverse service offerings including wireless and wireline solutions.
- Strong focus on customer service and satisfaction.
- Integrated suite of IoT solutions.
What Are TDS's Weaknesses?
- High P/E ratio compared to industry peers.
- Limited geographic reach compared to national providers.
- Exposure to intense competition.
- Dependence on regulatory approvals.
What Could Drive TDS Stock Higher?
- Expansion of 5G network infrastructure to enhance wireless service capabilities.
- Development and deployment of new IoT solutions for business and government customers.
- Potential acquisitions of smaller regional players to expand market reach.
- Government initiatives and private investments driving broadband infrastructure development.
What Are the Key Risks for TDS?
- Financial-distress signal — its Altman Z-Score of 1.68 sits in the distress zone (elevated bankruptcy risk).
- Rich valuation — a P/E of 34.4 runs well above the Communication Services sector’s ~18x, leaving little room for a miss.
- Intense competition from larger national providers.
- Rapid technological advancements rendering existing infrastructure obsolete.
- Economic downturns affecting consumer spending on telecommunications services.
- Regulatory changes impacting the telecommunications industry.
- Maintaining market share in a dynamic and competitive landscape.
What Are the Growth Opportunities for TDS?
- Growth opportunity 1: Expansion in IoT Solutions: TDS has the opportunity to capitalize on the growing demand for IoT solutions. The IoT market is expected to reach trillions of dollars in the coming years, driven by increased connectivity and automation across industries. TDS can leverage its existing infrastructure and expertise to offer customized IoT solutions to businesses and government customers, focusing on areas such as smart water solutions, fleet management, and private cellular networks. This expansion can drive revenue growth and enhance TDS's competitive position.
- Growth opportunity 2: Broadband Infrastructure Development: With increasing demand for high-speed internet, TDS can focus on expanding its broadband infrastructure. Government initiatives and private investments are driving the deployment of broadband networks in underserved areas. TDS can leverage these opportunities to extend its reach and offer high-speed internet services to more customers. This expansion can attract new subscribers and increase revenue from existing customers.
- Growth opportunity 3: 5G Network Deployment: The deployment of 5G networks presents a significant growth opportunity for TDS. 5G technology offers faster speeds, lower latency, and increased capacity, enabling new applications and services. TDS can invest in upgrading its wireless infrastructure to support 5G and offer enhanced mobile broadband services to its customers. This can attract new subscribers and drive revenue growth in the wireless segment.
- Growth opportunity 4: Strategic Partnerships and Acquisitions: TDS can pursue strategic partnerships and acquisitions to expand its service offerings and geographic reach. Partnering with technology companies can enable TDS to offer innovative solutions and enhance its competitive position. Acquiring smaller regional players can expand TDS's customer base and market share. These strategic initiatives can accelerate growth and create synergies.
- Growth opportunity 5: Focus on Customer Experience: Enhancing customer experience is crucial for retaining existing customers and attracting new ones. TDS can invest in improving its customer service, simplifying its billing processes, and offering personalized services. By focusing on customer satisfaction, TDS can build brand loyalty and reduce churn. This can lead to increased revenue and improved profitability.
What Opportunities Does TDS Have?
- Expansion in IoT solutions and services.
- Growth in broadband infrastructure development.
- Deployment of 5G networks.
- Strategic partnerships and acquisitions.
What Threats Does TDS Face?
- Increasing competition from larger national providers.
- Rapid technological advancements.
- Economic downturns affecting consumer spending.
- Regulatory changes impacting the telecommunications industry.
What Are TDS's Competitive Advantages?
- Established infrastructure in its operating regions.
- Strong brand recognition in its local markets.
- Long-standing relationships with customers.
- Integrated suite of wireless and wireline services.
- Expertise in providing customized IoT solutions.
What Does TDS Do?
Telephone and Data Systems, Inc. (TDS), founded in 1968 and headquartered in Chicago, Illinois, is a telecommunications company providing a comprehensive suite of communication services across the United States. The company operates through two primary segments: UScellular and TDS Telecom. UScellular focuses on delivering wireless solutions to consumers, businesses, and government entities, offering services such as connected Internet of Things (IoT) solutions, software applications for various operational needs, wireless priority services, and a range of devices including smartphones, tablets, and routers. TDS Telecom, on the other hand, provides wireline and cable connections, offering internet, all-home WI-FI services, TDS TV+, local and long-distance telephone service, VoIP, broadband, and hosted voice and video collaboration services. TDS sells its products through multiple channels, including retail sales, direct and indirect sales, third-party retailers, independent agents, ecommerce, and telesales. As of December 31, 2021, TDS served approximately 5 million wireless connections and 1.2 million wireline and cable connections, demonstrating its significant footprint in the telecommunications market.
What Products and Services Does TDS Offer?
- Provides wireless solutions to consumers and businesses.
- Offers connected Internet of Things (IoT) solutions.
- Develops software applications for monitor and control.
- Provides business automation and operations solutions.
- Offers fleet and asset management solutions.
- Provides smart water solutions.
- Offers private cellular networks.
- Provides internet connections and all-home WI-FI services.
How Does TDS Make Money?
- Generates revenue through wireless services subscriptions.
- Revenue from wireline and cable connections.
- Sales of smartphones, tablets, and other devices.
- Revenue from internet and broadband services.
- Offers value-added services like TDS TV+ and VoIP.
What Industry Does TDS Operate In?
Telephone and Data Systems operates within the telecommunications services industry, a sector characterized by rapid technological advancements and intense competition. The industry is experiencing growth in areas such as 5G, IoT, and cloud-based services. TDS competes with larger national providers and regional players, including LUMN: Lumen Technologies, Inc., TEO: Telecom Argentina S.A., TKC: Turkcell Iletisim Hizmetleri A.S., AD: Array Digital Infrastructure, Inc., and PHI: PLDT Inc.. The company's success depends on its ability to innovate, expand its service offerings, and maintain customer loyalty in a dynamic market.
Who Are TDS's Key Customers?
- Individual consumers seeking wireless and internet services.
- Businesses requiring communication and IoT solutions.
- Government entities needing wireless priority services.
- Residential customers for wireline and cable services.
- Small and medium-sized businesses for hosted voice and video collaboration services.
ROE 3%Key Financial Metrics
Return on equity for Telephone and Data Systems, Inc. stands at 2.8%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 1.6%, showing how much profit it generates from its asset base. TDS trades at a trailing price-to-earnings ratio of 34.37, above the Communication Services sector average of ~18x. Its free cash flow yield is 1.5%, a gauge of the cash the business throws off relative to its market value. A current ratio of 3.43 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is 3.2%, the inverse of the P/E and a quick read on earnings relative to price.
Telephone and Data Systems, Inc. (TDS) Valuation Context
Valued at $3.80B, TDS is classified as a mid-cap stock. Relative to its peer group, TDS's quantitative score of 52/100 is roughly in line with the peer average of 52/100.
Company Profile
Telephone and Data Systems, Inc. operates in the Telecommunications Services industry within the Communication Services sector. It is headquartered in Chicago, US. The company is led by CEO Walter Carlson. TDS has traded publicly since 1981.
F-Score 6/9Financial Health
Telephone and Data Systems, Inc.'s Piotroski F-Score is 6/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of 1.68 places it in the distress zone, a signal of elevated financial risk.
FY2026 estForward Outlook
Wall Street analysts project Telephone and Data Systems, Inc. revenue of about $1.25B for fiscal 2026, with EPS near $1.31.
Net buyingInsider Activity
Over the past six months, Telephone and Data Systems, Inc. insiders filed 30 SEC Form 4 transactions — 15 sales and 15 purchases. On net that is roughly 50K shares acquired (about $2.9M) — insiders putting money in tends to read as conviction.
TDS Financials
Fundamental Snapshot
Based on FMP financials and quantitative analysis · FY 2025
Bull Case vs Bear Case
Bull Case
- TDS has been quietly expanding its fiber footprint, positioning them well for long-term growth in high-speed internet. Think of it like a smaller-scale version of what Google Fiber initially aimed to do – building infrastructure for the future.
- Recent insider buying activity suggests that those closest to the company believe it's undervalued. It's a signal that management sees potential upside, similar to when Elon Musk buys more Tesla stock.
- Community sentiment indicates a growing belief that TDS is a stable, reliable player in a volatile market. People are looking for safe harbors, and TDS's established business model provides that.
- The overall market perception is shifting towards valuing companies with tangible assets and predictable revenue streams, which benefits TDS. It's a move away from high-growth, speculative stocks.
Bear Case
- TDS faces intense competition from larger players like AT&T and Verizon who have deeper pockets and wider service offerings. It's a David vs. Goliath situation, similar to smaller streaming services competing against Netflix.
- Community sentiment reveals concerns about TDS's ability to keep up with technological advancements in the telecom sector. There's a fear they might be left behind, like Blockbuster in the age of streaming.
- Recent market developments show investors favoring companies with more aggressive growth strategies, while TDS's approach is more conservative. This could limit their appeal to some investors.
- There's a perception that TDS's growth potential is limited by its geographic focus. It's like a regional bank trying to compete with national giants – scale matters.
AI-generated arguments based on insider flow, news sentiment and technicals — not financial advice · March 2026
TDS Latest News
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A Look At Telephone And Data Systems (TDS) Valuation After Recent Share Price Weakness
Yahoo! Finance: TDS News · Jun 8, 2026
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Telephone and Data Systems Preferreds: High Qualified Yield And Improving Credit Profile
seekingalpha.com · May 28, 2026
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Is Telephone and Data Systems (TDS) One of the Best June Dividend Stocks to Buy?
Yahoo! Finance: TDS News · May 26, 2026
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Diameter Capital Sells All Telephone and Data System Shares
fool.com · May 25, 2026
TDS Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for TDS.
Price Targets
Wall Street price target analysis for TDS.
TDS MoonshotScore
What does this score mean?
The MoonshotScore rates TDS's growth potential on a scale of 0-100 across multiple factors including innovation, market disruption, financial health, and momentum.
Latest News
A Look At Telephone And Data Systems (TDS) Valuation After Recent Share Price Weakness
Telephone and Data Systems Preferreds: High Qualified Yield And Improving Credit Profile
Is Telephone and Data Systems (TDS) One of the Best June Dividend Stocks to Buy?
Diameter Capital Sells All Telephone and Data System Shares
Latest Telephone and Data Systems, Inc. Analysis
Leadership: Walter Carlson
Unknown
Information about Walter Carlson's specific background, career history, education, and previous roles is not available within the provided context. Therefore, a detailed professional profile cannot be accurately constructed. Further research beyond the provided data is needed to provide a comprehensive overview of his experience and qualifications.
Track Record: Due to the limited information available, Walter Carlson's specific achievements, strategic decisions, and company milestones under his leadership cannot be accurately assessed. Further research is required to evaluate his track record and contributions to Telephone and Data Systems, Inc.
What Investors Ask About Telephone and Data Systems, Inc. (TDS) — Communication Services
What does Telephone and Data Systems, Inc. do?
Telephone and Data Systems, Inc. (TDS) is a telecommunications company that provides a range of communication services in the United States. It operates through two segments: UScellular, which offers wireless solutions, and TDS Telecom, which provides wireline and cable connections. TDS offers services such as internet, all-home WI-FI, TDS TV+, local and long-distance telephone service, VoIP, broadband, and hosted voice and video collaboration services. TDS caters to both residential and business customers.
What do analysts say about TDS stock?
Analyst consensus on TDS stock is mixed, reflecting the company's unique position in the telecommunications market. Key valuation metrics such as the P/E ratio of 34.4 indicate a premium valuation. Growth considerations include the company's expansion in IoT solutions and broadband services. Analysts are monitoring TDS's ability to maintain its market share amid increasing competition and technological advancements. The dividend yield of 22.40% may be a significant factor for some investors.
What are the main risks for TDS?
The main risks for TDS include intense competition from larger national providers, rapid technological advancements that could render existing infrastructure obsolete, and economic downturns affecting consumer spending on telecommunications services. Regulatory changes impacting the telecommunications industry also pose a risk. Maintaining market share in a dynamic and competitive landscape is a significant challenge for TDS. The company's ability to adapt to these risks will be crucial for its long-term success.
What are the key factors to evaluate for TDS?
Telephone and Data Systems, Inc. (TDS) holds an AI score of 52/100 (moderate). P/E: 34.4x vs the S&P 500's ~20-25x. Not financial advice.
How frequently does TDS data refresh on this page?
TDS prices update in real time during U.S. market hours. Fundamentals refresh after quarterly filings; analyst ratings and AI insights update daily; news is aggregated continuously.
What has driven TDS's recent stock price performance?
Telephone and Data Systems, Inc. (TDS) moves on earnings results, analyst revisions, sector rotation, and market sentiment. Notable catalyst: Established presence in the telecommunications market. See the News tab for the latest drivers. Past performance does not predict future results.
Should investors consider TDS overvalued or undervalued right now?
Telephone and Data Systems, Inc. (TDS) trades at 34.4x earnings. Compare P/E, P/S, and EV/EBITDA against sector peers for a full view.
What research should beginners do before buying TDS?
Before investing in Telephone and Data Systems, Inc. (TDS), research these four areas: (1) the company's revenue model and competitive position (see Company Overview), (2) financial health through revenue growth, margins, and cash flow (see MoonshotScore), (3) what Wall Street analysts recommend and their price targets (see Analyst tab), and (4) specific risk factors that could impact the stock (see Risk Factors section).
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.
Official Resources
Data provided for informational purposes only.
- Information is based on available data as of 2026-05-09.
- CEO background information is limited.
- Financial data is based on the most recent available information.