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AT&T

T
47
Telecommunications Services · Communication Services
Price
$21.80
-0.18 (-0.84%)
Market Cap
$151.45B
Winston Score
47
Winston is serious
Mixed quality — meaningful strengths and weaknesses.

Share count falling — buybacks

4.3% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 7.50B (2021) → 7.18B (2025)

AT&T is one of the largest telecommunications companies in the United States. It provides wireless phone service, home internet, and fiber-optic broadband to millions of everyday consumers and businesses across the country. The company owns one of the biggest mobile networks in the U.S., competing mainly against Verizon and T-Mobile.

AT&T makes most of its money through monthly subscription fees — customers pay recurring bills for phone plans and internet service. It operates almost entirely in the United States and generates roughly $120 billion in annual revenue. The company carries a large amount of debt, partly from past acquisitions, which limits its financial flexibility and is a key risk investors watch closely. Its main growth driver is expanding its fiber internet network, as more households switch from older cable connections to faster fiber broadband.

Winston Score History

Politician Trades

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22 Congressional buys and 22 sells on T in the last 12 months.

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Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+2.9% YoY

YoY Growth Rate

Slow revenue growth

EPS Growth

-11.5% YoY

YoY Growth Rate

Earnings declining

R&D Spend

$0/ year

Declining (-100% vs prior year)

0.0% of revenue

Below sector average (12%)

R&D spend declining — could signal cost-cutting or efficiency

Insider Activity

0.2%ownership

Flat

Insiders holding steady — not selling despite ability to

Cash Position

Cash flow positive

$12.0B cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

Company generates more cash than it spends — no dilution risk from fundraising

Growth context

AT&T is growing revenue at 3% year-over-year. The Winston Score measures business quality today — these growth metrics show what could matter tomorrow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Gross Margin
44.4%
Healthy — 44.4% gross margin
Operating Margin
21.1%
Excellent — 21.1% operating margin
ROCE
2.6%
Weak — 2.6% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales YoY
+2.9%
Nearly flat sales (2.9% YoY)
EPS YoY
+83.6%
Earnings growing fast (83.6% YoY)

Earnings growing 25%+ a year. The compounder zone.

EPS Consistency
4/8 quarters
Earnings inconsistent quarter-to-quarter

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Cash Flow

Cash Conversion
182%
Turns 182% of profit into real cash
FCF Margin
13.7%
Converts sales into free cash efficiently (13.7%)

FCF margin between 10% and 20%. Every $100 in sales becomes $10 to $20 in real cash.

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Stability

Debt / Equity
1.32
Elevated debt (1.32)
Interest Cover
3.49x
Tight — interest eats into profit (3.5x)

Interest coverage between 3 and 8. Profits cover interest several times over.

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Valuation

P/E Ratio (TTM)
7.3x
Attractive valuation — P/E 7.3

P/E under 10. The price tag is small relative to last year's profit.

P/E vs Forward
-0.6
SLOWING
Earnings expected to fall — forward P/E higher than today

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Dividends

Dividend Yield
4.89%
Healthy income — 4.89% yield

Generous yield. Worth checking whether the payout is sustainable.

Dividend Growth
+0.0%
Dividend flat

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