# AT&T Inc. (T) — Stock CV

AT&T Inc. is a $152B communication services company. Revenue grew 2.6% over the last year, it keeps 17¢ of every dollar of sales as profit, and its net debt equals ~6.7 years of free cash flow. It trades at 7.1× earnings — in the cheapest third of its own history.

> The wireless business contributes nearly 70% of AT&T's revenue. The company is the third-largest US wireless carrier, connecting 74 million postpaid and 17 million prepaid phone customers.

## Identity

- **Ticker**: T
- **Sector**: Communication Services
- **Industry**: Telephone Communications (No Radiotelephone)
- **Headquarters**: DALLAS, TX
- **Employees**: 133 030
- **Website**: https://www.att.com
- **Market cap**: $152B
- **Last price**: $22.22
- **Financial profile**: Strained

## Vitals (TTM)

- **Revenue**: $127B
- **Net income**: $21.6B
- **Free cash flow**: $17.6B
- **Net debt**: $118B
- **P/E**: 7.1
- **Revenue growth (YoY)**: 2.6%

## Skills (profile scores, 0–100)

| Pillar | Score |
|---|---|
| Valuation | 100 |
| Growth | 6 |
| Profitability | 72 |
| Health | 39 |
| Quality | 74 |
| Moat | 50 |

## Qualifications (beginner checklist) — 9 of 11 passed

- [x] Revenue growing — +2.6% YoY
- [x] Profitable — $21.6B TTM
- [x] Profit growing — +100.5% YoY
- [x] Generates cash — $17.6B TTM
- [ ] Debt under control — ~6.7y of cash flow to repay
- [x] Established company — $152B market cap
- [x] Not printing shares — +6.0% shares over ~5y
- [x] Proven track record — 7/10 profitable years
- [ ] Financially stable — Altman Z 0.6 — distress
- [x] Pays a dividend — yield 5.28%
- [x] Valuation not extreme — P/E 7.1

## Experience (career milestones)

- **Apr 8, 2022** — WarnerMedia spin-off: exits entertainment, refocuses on connectivity
- **FY2017** — First recorded profitable year: $29.4B net income
- **FY2017** — Best year on record: $29.4B net income
- **FY2016** — Revenue already above $100B: $164B in first reported year
- **FY2016** — Positive free cash flow every year since: 10-year streak
- **2007** — iPhone exclusivity: Cingular/AT&T lands the launch that defined mobile data
- **Dec 29, 2006** — AT&T acquired BellSouth Corporation on December 29, 2006, following FCC approval
- **Nov 18, 2005** — SBC becomes AT&T: a Baby Bell bought its parent and took the name
- **Nov 18, 2005** — SBC Communications purchased its former parent, AT&T Corporation, for $16 billion
- **1987** — AT&T soon started a series of acquisitions, including the 1987 acquisition of Metromedia mobile business and the…
- **Jan 1, 1984** — The Breakup: antitrust decree splits Ma Bell into seven Baby Bells
- **1885** — The original AT&T was created by American Bell Telephone on March 5, 1885
- **Mar 3, 1885** — AT&T incorporated: American Telephone & Telegraph — the Bell long-distance arm
- **1881** — Bell acquired Western Electric in 1881 and established the American Telephone and Telegraph Company on March 3, 1885

## Strengths

- High gross margin (59.7%)
- Interest covered 6.6× by operating earnings

## Watch-outs

- Altman Z-Score 0.63 — elevated financial-distress risk
- Net debt would take ~8.4 years of free cash flow to repay
- Loss-making in 2 of the recent years
- Net debt equals ~6.7 years of free cash flow

## Track record

| Year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2021 | $169B | $20.1B | $25.4B |
| FY2022 | $121B | -$8.52B | $16.2B |
| FY2023 | $122B | $14.4B | $20.5B |
| FY2024 | $122B | $10.9B | $18.5B |
| FY2025 | $126B | $22.0B | $19.4B |

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Source: https://stockcv.com/T — derived from company filings; may be delayed or incomplete. Information, not investment advice.