# Telephone and Data Systems (TDS.US)

Canonical: https://gigainvestors.com/s/TDS

Analysis as of: 2026-10-16T07:32:17.298Z. Financial observations: FY1996–FY2025.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: $34.02 per share; close as of 2026-10-15.

## Checklist

### understandable: fail

- 5 revenue declines in the last 10 years (informational)

- more than 2 net loss years

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 5

- Years with a net loss: 3

- Operating margin variation: 6.07×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.01×

- FY2017: -0.02×

- FY2018: 0.04×

- FY2019: 0.03×

- FY2020: 0.05×

- FY2021: 0.05×

- FY2022: 0.02×

- FY2023: -0.08×

- FY2024: 0.01×

- FY2025: -0.05×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- Recent gross margin fell 59.0pp below the typical margin (limit 4pp)

- ROIC, median of available years: 0.8%

- ROIC, second-lowest year: -1.5%

- Typical minus recent gross margin: 59.0 pp

- Typical gross margin (annual median): 53.9%

- Recent gross margin (lower of latest and 3-year median): -5.0%

- Years with nonpositive capital: 0

- Capital spending / revenue: 20.0%

- ROIC including acquisitions, ten-year median: 0.1%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 0.8%

- FY2017: -1.5%

- FY2018: 2.9%

- FY2019: 1.8%

- FY2020: 3.3%

- FY2021: 2.5%

- FY2022: 0.8%

- FY2023: -3.2%

- FY2024: 0.5%

- FY2025: -1.0%

### economics: fail

- owner earnings cash conversion below threshold

- incremental invested capital return below threshold

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: -$1.5B

- Net income, five-year total: -$316M

- Return on incremental invested capital: -37.5%

- Working capital / revenue, annual change: -0.5 pp

- Working capital / revenue, change between three-year averages: -2.6 pp

- Working capital / revenue, final three-year average: 12.3%

Chart: Owner earnings · five years; fiscal year observations.

- FY2021: $16M

- FY2022: -$601M

- FY2023: -$926M

- FY2024: $11M

- FY2025: -$49M

### management: fail

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 0.8% vs -1.0%

- Per-share earnings: 1.37 to -0.25 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- acquired goodwill and intangibles (proxy) exceeds half of ten-year net income with low and deteriorating ROIC

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 0.8%

- Ordinary dilution, 5-year annual growth: 0.6%

- Market cap gain: $1.5B

- Cumulative retained earnings: -$760M

- Diluted shares, 10-year annual growth: 0.8%

- Diluted shares, 5-year annual growth: 0.6%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value change: -$1.61

- Per-share value, starting three-year median: $1.37

- Per-share value, ending three-year median: -$0.25

- Buybacks concentrated in cheaper years (correlation): 0.33

- Average buyback yield: 1.8%

- Buyback history: 9 years

- Debt-funded buybacks: No

- Acquisition spending: $2.0B

- Cumulative net income, 10 years: $362M

- ROIC, first three-year median: 0.8%

- ROIC, last three-year median: -1.0%

Chart: Earnings per share; fiscal year observations.

- FY2016: $0.39

- FY2017: $1.37

- FY2018: $1.18

- FY2019: $1.04

- FY2020: $1.97

- FY2021: $1.34

- FY2022: $0.54

- FY2023: -$4.43

- FY2024: -$0.25

- FY2025: -$0.05

### accounting: pass

- Sloan accruals: -7.1%

- Receivables to sales index (DSRI): 0.43×

- Restructuring years, last five: 2

- Stock compensation / operating cash flow: 4.6%

- Earnings backed by cash: Yes

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.37×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -7.8%

- FY2017: -6.7%

- FY2018: -9.0%

- FY2019: -8.3%

- FY2020: -10.4%

- FY2021: -7.0%

- FY2022: -7.5%

- FY2023: -11.8%

- FY2024: -8.6%

- FY2025: -7.1%

## Holders

- [Howard Marks](https://gigainvestors.com/oc): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Daniel Loeb](https://gigainvestors.com/tp): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 25% since Jan 2026 · "TDS Stock Down 20.2% in 3 Months as Fiber Growth Meets Fresh Risks" (finance.yahoo.com, Aug 2026) · sales -75.3%

Story as of 2026-10-16T09:59:40.203Z; price observation 2026-10-15.

- 2025-08-11: TDS outlines $1.03B–$1.05B revenue target and $23/share special dividend following UScellular sale ([seekingalpha.com](https://seekingalpha.com/news/4483369-tds-outlines-1_03b-1_05b-revenue-target-and-23-share-special-dividend-following-uscellular?utm_source=feed_news_all&utm_medium=referral&feed_item_type=news))

- 2025-11-10: TDS Q3 Earnings Beat Estimates on Solid Fiber Connection Growth ([finance.yahoo.com](https://finance.yahoo.com/news/tds-q3-earnings-beat-estimates-180000686.html))

### Sales · FY2024–2025

sales -75.3%; source https://www.sec.gov/Archives/edgar/data/1051512/000105151226000011/tds-20251231.htm; observed 2026-02-24.

- FY2016: $5.1B 

- FY2017: $5.0B 

- FY2018: $5.1B 

- FY2019: $5.2B 

- FY2020: $5.2B 

- FY2021: $5.3B 

- FY2022: $5.4B 

- FY2023: $5.2B 

- FY2024: $5.0B 

- FY2025: $1.2B 

### Gross margin · FY2024

gross margin 57%; source https://www.sec.gov/Archives/edgar/data/1051512/000105151226000011/tds-20251231.htm; observed 2026-02-24.

- FY2016: 52.4% 

- FY2017: 53.2% 

- FY2018: 54.3% 

- FY2019: 54.8% 

- FY2020: 54.9% 

- FY2021: 53.6% 

- FY2022: 52.6% 

- FY2023: 54.8% 

- FY2024: 57.0% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in telecom services; annual sales are USD 1.2 billion.

- Source: https://www.sec.gov/Archives/edgar/data/1051512/000105151226000011/tds-20251231.htm (filed 2026-02-24); FY2025: revenue 1228207000; grossProfit -61999999; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); TDS.US: Telephone and Data Systems, Inc., a telecommunications company, provides communications services to residential, commercial, and wholesale customers in the United States. It operates through two segments: TDS Telecom and Array. The company offers internet connections and all-home Wi-Fi services, fiber internet, security, and support services; advanced home TV entertainment combined with a digital video recording (DVR) services; TDS TV+, an integrated cloud TV platform that combines linear and on-demand programming, mobile device interfaces, personalized recommendations, and network-based DVR; digital television; local and long-distance telephone service, voice over internet protocol, and enhanced services; wireless services to customers; broadband, IP-based services, and hosted voice and video collaboration services to small- and medium-sized businesses; carrying data and voice traffic services; wholesale services; and communication services in underserved areas. The company is also leases tower spaces to tenants; provides ancillary services. The company sells and distributes its products through third-party direct sales, retail stores, sales agents, and an online platform to sell services and products. Telephone and Data Systems, Inc. was incorporated in 1968 and is headquartered in Chicago, Illinois.

### Why customers stay

It earns 0.8% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2023: grossProfit / revenue = 54.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2024: grossProfit / revenue = 57%.

- Source: https://www.sec.gov/Archives/edgar/data/1051512/000105151226000011/tds-20251231.htm (filed 2026-02-24); FY2025: grossProfit / revenue = -5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); 10-year return on capital observations [[2016,0.007921998781230956],[2017,-0.01508730447435431],[2018,0.02923816944201755],[2019,0.01777960666345035],[2020,0.03303471179085681],[2021,0.024538809606682907],[2022,0.00813667145495588],[2023,-0.03235334850133544],[2024,0.005063462675962195],[2025,-0.010351090629307912]]; median 0.008029335118093419. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back USD 129.5 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2016: growth capex 0; upkeep 636000000; owner earnings 219961538.46153846. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2017: growth capex 0; upkeep 685000000; owner earnings 307949044.58598727. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2018: growth capex 0; upkeep 776000000; owner earnings 217542857.14285713. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2019: growth capex 25000000; upkeep 932000000; owner earnings 121000000. Growth capex / owner earnings = 0.2066115702479339.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2021: growth capex 86687331.79045057; upkeep 1064312668.2095494; owner earnings 15506509.358033448. Growth capex / owner earnings = 5.590383353784294.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2024: growth capex 0; upkeep 904000000; cash acquisitions 0; owner earnings 11000000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); Dividend observations: [[2016,65000000],[2017,69000000],[2018,72000000],[2019,75000000],[2020,78000000],[2021,119000000],[2022,151000000],[2023,153000000],[2024,104000000],[2025,87670000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/1051512/000105151226000011/tds-20251231.htm (filed 2026-02-24); FY2025: cash repurchases 129489000 USD.

### Are managers owners

Insiders own 8.4% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); TDS.US SharesStats.PercentInsiders = 8.354000000000001 percentage points; cache date 2026-10-16.

### What the price says

The price is 3.3 times annual sales; cash earnings are negative.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); Closing price 34.02 USD; reporting-to-trading FX 1; FY2025 annual sales per share 10.35910865953122; price multiple 3.2840663340951486. FY2025 cash earnings/share -0.4137462783499068. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $25.84 per share

- 2016-11: $26.93 per share

- 2016-12: $28.87 per share

- 2017-01: $30.65 per share

- 2017-02: $27.03 per share

- 2017-03: $26.51 per share

- 2017-04: $27.46 per share

- 2017-05: $28.53 per share

- 2017-06: $27.75 per share

- 2017-07: $28.43 per share

- 2017-08: $29.31 per share

- 2017-09: $27.89 per share

- 2017-10: $29.15 per share

- 2017-11: $27.69 per share

- 2017-12: $27.80 per share

- 2018-01: $27.43 per share

- 2018-02: $28.04 per share

- 2018-03: $28.03 per share

- 2018-04: $27.33 per share

- 2018-05: $25.55 per share

- 2018-06: $27.42 per share

- 2018-07: $25.25 per share

- 2018-08: $30.04 per share

- 2018-09: $30.43 per share

- 2018-10: $30.83 per share

- 2018-11: $35.73 per share

- 2018-12: $32.54 per share

- 2019-01: $36.22 per share

- 2019-02: $32.05 per share

- 2019-03: $30.73 per share

- 2019-04: $31.88 per share

- 2019-05: $28.81 per share

- 2019-06: $30.40 per share

- 2019-07: $32.34 per share

- 2019-08: $25.20 per share

- 2019-09: $25.80 per share

- 2019-10: $26.09 per share

- 2019-11: $23.71 per share

- 2019-12: $25.43 per share

- 2020-01: $22.68 per share

- 2020-02: $20.14 per share

- 2020-03: $16.76 per share

- 2020-04: $19.62 per share

- 2020-05: $20.49 per share

- 2020-06: $19.88 per share

- 2020-07: $19.42 per share

- 2020-08: $23.13 per share

- 2020-09: $18.44 per share

- 2020-10: $17.00 per share

- 2020-11: $18.98 per share

- 2020-12: $18.57 per share

- 2021-01: $18.75 per share

- 2021-02: $17.89 per share

- 2021-03: $22.96 per share

- 2021-04: $22.98 per share

- 2021-05: $25.72 per share

- 2021-06: $22.66 per share

- 2021-07: $22.35 per share

- 2021-08: $20.32 per share

- 2021-09: $19.50 per share

- 2021-10: $18.74 per share

- 2021-11: $17.68 per share

- 2021-12: $20.15 per share

- 2022-01: $19.80 per share

- 2022-02: $17.35 per share

- 2022-03: $18.88 per share

- 2022-04: $18.32 per share

- 2022-05: $17.73 per share

- 2022-06: $15.79 per share

- 2022-07: $15.81 per share

- 2022-08: $16.27 per share

- 2022-09: $13.90 per share

- 2022-10: $17.00 per share

- 2022-11: $10.54 per share

- 2022-12: $10.49 per share

- 2023-01: $13.37 per share

- 2023-02: $12.69 per share

- 2023-03: $10.51 per share

- 2023-04: $10.00 per share

- 2023-05: $6.68 per share

- 2023-06: $8.23 per share

- 2023-07: $8.02 per share

- 2023-08: $21.49 per share

- 2023-09: $18.31 per share

- 2023-10: $18.19 per share

- 2023-11: $19.70 per share

- 2023-12: $18.35 per share

- 2024-01: $19.21 per share

- 2024-02: $15.30 per share

- 2024-03: $16.02 per share

- 2024-04: $15.65 per share

- 2024-05: $19.89 per share

- 2024-06: $20.73 per share

- 2024-07: $21.20 per share

- 2024-08: $23.62 per share

- 2024-09: $23.25 per share

- 2024-10: $29.75 per share

- 2024-11: $34.18 per share

- 2024-12: $34.11 per share

- 2025-01: $35.35 per share

- 2025-02: $36.10 per share

- 2025-03: $38.74 per share

- 2025-04: $37.49 per share

- 2025-05: $34.36 per share

- 2025-06: $35.58 per share

- 2025-07: $39.04 per share

- 2025-08: $40.09 per share

- 2025-09: $39.24 per share

- 2025-10: $38.82 per share

- 2025-11: $40.27 per share

- 2025-12: $41.00 per share

- 2026-01: $45.13 per share

- 2026-02: $44.75 per share

- 2026-03: $42.10 per share

- 2026-04: $45.06 per share

- 2026-05: $39.11 per share

- 2026-06: $37.01 per share

- 2026-07: $33.58 per share

- 2026-08: $33.68 per share

- 2026-09: $33.92 per share

- 2026-10: $34.02 per share

## Annual estimated value (USD per share)

- FY2016: low $27.60 per share, central $30.59 per share, high $34.57 per share

- FY2017: low $29.68 per share, central $33.03 per share, high $37.49 per share

- FY2018: low $26.77 per share, central $29.68 per share, high $33.55 per share

- FY2019: low $23.58 per share, central $26.48 per share, high $30.34 per share

- FY2020: low $30.87 per share, central $33.83 per share, high $37.72 per share

- FY2021: low $13.60 per share, central $15.22 per share, high $17.37 per share

- FY2022: low $3.41 per share, central $3.62 per share, high $3.90 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/1051512/000105151226000011/tds-20251231.htm); period 2025-12-31, filed 2026-02-24.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.

## Reported holder observations

- [Howard Marks](https://gigainvestors.com/oc): 5,282,905 TDS shares; USD 195,520,000 reported position value; 5.17% of portfolio; add; quarter 2026 Q2.
- [Daniel Loeb](https://gigainvestors.com/tp): 6,275,000 TDS shares; USD 232,238,000 reported position value; 5.09% of portfolio; reduce; quarter 2026 Q2.

# TDS — Telephone & Data Systems

Held by 2 investors · USD 427,758,000 total · 2026 Q2 · reported price USD 37.01 (split-adjusted).
Page: https://gigainvestors.com/s/TDS

## Holders (2026 Q2)

| Investor | Value | % of their portfolio | This quarter |
|---|---:|---:|---|
| Daniel Loeb (https://gigainvestors.com/tp) | USD 232,238,000 | 5.1% | reduce -4.92% |
| Howard Marks (https://gigainvestors.com/oc) | USD 195,520,000 | 5.2% | add +23.08% |

## Total held by quarter

- 2023 Q3: USD 39,125,394 · 1 holder · USD 18.31
- 2023 Q4: USD 39,210,867 · 1 holder · USD 18.35
- 2024 Q1: USD 34,232,049 · 1 holder · USD 16.02
- 2024 Q2: USD 46,975,424 · 1 holder · USD 20.73
- 2024 Q3: USD 66,843,750 · 1 holder · USD 23.25
- 2024 Q4: USD 204,660,000 · 1 holder · USD 34.11
- 2025 Q1: USD 261,882,400 · 1 holder · USD 38.74
- 2025 Q2: USD 239,275,500 · 1 holder · USD 35.58
- 2025 Q3: USD 407,925,699 · 2 holders · USD 39.24
- 2025 Q4: USD 424,898,826 · 2 holders · USD 41.00
- 2026 Q1: USD 458,563,430 · 2 holders · USD 42.10
- 2026 Q2: USD 427,758,000 · 2 holders · USD 37.01