TDS

Communication Services

Telephone and Data Systems, Inc. · Telecommunications Services · $4B

UQS Score — Balanced Preset
29.5
Poor

Telephone and Data Systems, Inc. scores 29.5/100 using the Balanced preset.

UQS vs Communication Services Sector
TDS
29.5
Sector avg
35.8
Quality
Weak
Moat
Weak
Growth
Weak
Risk
Strong
Valuation
Good

What is Telephone and Data Systems, Inc.?

Telephone and Data Systems, Inc. is a US-based telecommunications company operating through its UScellular wireless segment and TDS Telecom broadband and wireline division. Headquartered in Chicago, TDS serves consumers, businesses, and government customers across the country.

TDS generates revenue through two primary segments. UScellular provides wireless services, devices, and IoT solutions to retail and business customers. TDS Telecom delivers broadband internet, cloud-based television through its TDS TV+ platform, VoIP, and hosted collaboration services. The company sells through retail stores, independent agents, and digital channels, while also offering device trade-in programs and repair services to retain its subscriber base.

TDS was founded in 1981 and is headquartered in Chicago, Illinois.

  • Wireless plans and connected IoT solutions for consumers and businesses
  • Broadband internet and all-home Wi-Fi services
  • TDS TV+, a cloud-based television platform
  • VoIP, hosted voice, and video collaboration services
  • Smartphones, tablets, wearables, and mobile hotspot devices

Is TDS a Good Stock to Buy?

UQS Score rates TDS as Poor overall, placing it among the lower-ranked names in the Communication Services sector.

The Risk pillar comes in at a Neutral rating, suggesting TDS does not carry extreme balance-sheet or operational risk relative to peers — a modest stabilizing factor within an otherwise challenged profile.

Quality, Moat, and Growth all register as Weak, indicating limited competitive differentiation, constrained earnings power, and little evidence of near-term expansion. The Valuation pillar is rated Elevated, meaning the stock does not appear to offer a discount that compensates for these weaknesses.

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Past performance does not guarantee future results. UQS Score is based on fundamental data and is not a buy/sell recommendation.

Does TDS pay dividends?

Yes — Telephone and Data Systems, Inc. pays a dividend.

TDS pays a regular dividend, which may appeal to income-focused investors. Given the company's Weak Quality and Growth ratings, the sustainability of that dividend warrants scrutiny. Investors should weigh whether the payout is supported by sufficient cash generation before treating it as a reliable income stream.

When does TDS report earnings?

Telephone and Data Systems reports earnings on a quarterly cadence, consistent with standard practice for US-listed equities.

TDS operates in a competitive wireless and broadband market where subscriber growth and margin pressure are ongoing themes. The company's Weak Growth pillar suggests recent results have not demonstrated meaningful top-line momentum. For the latest quarterly figures, check the company's investor relations page directly.

For the most recent quarter's results, visit Telephone and Data Systems' official investor relations page.

TDS Price History

+105.5% over 5Y

Monthly close, adjusted for stock splits and dividend reinvestment.

Return Calculator

What if I invested in Telephone and Data Systems, Inc.?

$
Today it would be worth
$22,555
That's a +126% total return, or +17.7% annualized.

Based on Telephone and Data Systems, Inc.'s historical closing prices, adjusted for stock splits and dividend reinvestment. Past performance does not guarantee future results. This is for informational purposes only and is not financial advice.

TDS Long-term Outlook

The combination of Weak Growth and Elevated Valuation creates a challenging fundamental outlook for TDS. Without a clear catalyst to accelerate subscriber additions or improve operating efficiency, the path to meaningful value creation appears narrow. The Neutral Risk rating provides some floor, but the absence of a strong Moat means competitive pressures from larger national carriers are likely to persist.

Growth drivers

  • Broadband network expansion into underserved rural markets
  • IoT and private cellular network adoption among business customers
  • Potential operational improvements within TDS Telecom's fiber buildout

Key risks

  • Intense competition from larger national wireless carriers eroding UScellular's subscriber base
  • Elevated valuation leaving limited margin of safety if results disappoint
  • Capital-intensive network investment pressuring free cash flow generation

TDS vs Peers

TDS competes broadly in the communications services space alongside a range of regional and international telecom operators.

TEOTDS scores lower
Telecom Argentina S.A.

Telecom Argentina operates in a distinct emerging-market regulatory environment, giving it a different risk and growth profile than a US regional carrier like TDS.

PHITDS scores lower
PLDT Inc.

PLDT is the dominant integrated telecom in the Philippines, benefiting from a home-market leadership position that TDS lacks in its more fragmented US regional footprint.

IRDMTDS scores lower
Iridium Communications Inc.

Iridium focuses on satellite-based global connectivity, serving a specialized niche that differs significantly from TDS's terrestrial wireless and broadband model.

Frequently Asked Questions

What does Telephone and Data Systems do?

TDS provides wireless services through its UScellular segment and broadband, television, and voice services through TDS Telecom. It serves consumers, businesses, and government customers across the United States, offering devices, IoT solutions, and cloud-based TV alongside traditional connectivity products.

Does TDS pay dividends?

Yes, TDS pays a regular dividend. However, given its Weak Quality and Growth pillar ratings, investors should review whether underlying cash flows adequately support the payout. Income-focused investors should examine the full financial picture before relying on the dividend as a stable income source.

When does TDS report earnings?

TDS reports on a quarterly cadence, as is standard for US-listed companies. For confirmed dates and the most recent results, visit the investor relations section of the Telephone and Data Systems website directly.

Is TDS a good stock to buy?

UQS Score rates TDS as Poor, reflecting Weak readings across Quality, Moat, and Growth, paired with an Elevated Valuation. That combination suggests limited reward relative to risk at current levels. The full pillar breakdown is available to Pro members for a deeper view.

Is TDS overvalued?

TDS carries an Elevated Valuation rating within the UQS framework, meaning its current price does not appear to offer a meaningful discount relative to its fundamental quality. When paired with Weak Growth and Moat ratings, the risk-reward balance looks unfavorable based on the UQS composite.

How does TDS compare to its competitors?

TDS operates as a US regional telecom, which puts it in a different competitive position than satellite specialists like Iridium or dominant home-market leaders like PLDT. Larger national US carriers add further pressure. TDS's Weak Moat rating reflects the difficulty of differentiating in this crowded landscape.

What is TDS's market cap bracket?

TDS is classified as a mid-cap company. Mid-cap telecoms often face the challenge of competing with mega-cap national carriers while lacking the cost advantages of scale, a dynamic that is reflected in TDS's Weak Quality and Moat pillar ratings.

Who founded Telephone and Data Systems?

TDS was founded in 1981. Founding history and leadership background are widely documented in the company's public filings and on its official corporate website for those seeking detailed historical context.

Is TDS a long-term quality investment?

As a long-term quality indicator, TDS scores poorly. Weak ratings across Quality, Moat, and Growth suggest the business has not demonstrated the durable competitive advantages or earnings consistency that typically support long-term compounding. Pro members can access the full analysis to assess whether any pillar shows improvement over time.

What is the main competitive advantage of Telephone and Data Systems?

TDS's regional focus allows it to serve markets that larger national carriers may underserve, particularly in rural broadband through TDS Telecom's fiber expansion. However, the UQS Moat pillar rates this advantage as Weak, indicating it has not translated into durable pricing power or superior returns.

What sector does TDS belong to?

TDS belongs to the Communication Services sector. This sector includes wireless carriers, broadband providers, and media companies. Within the sector, TDS competes as a regional player against both national giants and specialized niche operators.

Is TDS a growth stock or value stock?

Based on UQS pillar labels, TDS does not fit neatly into either category. Its Growth pillar is rated Weak, ruling out a growth classification, while its Valuation pillar is Elevated rather than Attractive, which undermines a value case as well.

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Pro Analysis

TDS — Score History

1520253035Apr 2Apr 12Apr 22May 2May 12May 22May 24v5
Score changes· 13 most recent
DateUQSQualityMoatGrowthRiskValueChange
May 19, 202629.28.517.08.882.457.9-0.1
May 15, 202629.38.517.08.882.458.7-0.5
May 13, 202629.88.417.028.082.436.7+5.7
May 7, 202624.18.717.028.047.633.00.0
May 1, 202624.18.717.028.047.633.1-0.3
Apr 26, 202624.48.717.029.447.633.1+0.1
Apr 25, 202624.38.717.029.447.632.2+0.3
Apr 19, 202624.08.717.027.747.632.2-0.1
Apr 18, 202624.18.717.027.747.633.2+1.5
Apr 14, 202622.68.717.027.747.623.10.0

TDS — Pillar Breakdown

Quality

8.6/100 (25%)

Telephone and Data Systems, Inc. currently shows below-average quality metrics, suggesting challenges with profitability.

Capital Efficiency (ROIC)Weak

How effectively capital is deployed to generate returns.

Return on EquityWeak

Profitability relative to shareholders' equity.

Operating ProfitabilityWeak

Ability to convert revenue into operating profit.

Net ProfitabilityWeak

Bottom-line profit as a share of revenue.

Cash GenerationWeak

Free cash flow relative to market value.

Growth

8.2/100 (20%)

Telephone and Data Systems, Inc. faces growth headwinds with declining or stagnant revenue trends.

Recent Revenue TrendWeak

Revenue trajectory over the last twelve months.

3Y Revenue CAGRWeak

Compound annual revenue growth rate over 3 years.

EPS GrowthWeak

Year-over-year earnings per share growth.

Forward Revenue OutlookWeak

Analyst consensus for future revenue growth.

Risk

82.4/100 (15%)

Telephone and Data Systems, Inc. carries minimal financial risk with conservative leverage and strong solvency.

Financial LeverageStrong

Debt levels relative to earnings capacity.

Debt/EquityStrong

Total debt relative to shareholder equity.

Current RatioStrong

Short-term liquidity — ability to pay near-term obligations.

Interest CoverageWeak

Earnings capacity relative to interest payments.

Valuation

60.6/100 (15%)

Telephone and Data Systems, Inc. trades at a reasonable valuation with decent earnings yield and FCF multiples.

Earnings YieldWeak

Inverse of forward P/E — higher yield means cheaper stock.

Price to Free Cash FlowStrong

How many years of FCF the market cap represents.

EV/EBITDA vs SectorStrong

Enterprise value multiple relative to sector median.

Moat

17/100 (25%)

Telephone and Data Systems, Inc. operates in a highly competitive environment with limited sustainable advantages. The Moat pillar evaluates competitive advantages across five dimensions: Switching Costs, Network Effects, Cost Advantage, Intangible Assets, and Scale & Ecosystem. Sign in to customize moat ratings for TDS.

Score Composition

Quality
8.6×25%2.1
Growth
8.2×20%1.6
Risk
82.4×15%12.4
Valuation
60.6×15%9.1
Moat
17.0×25%4.3
Total
29.5Poor

Financial Data

More Stock Analysis

How is the TDS UQS Score Calculated?

The UQS (Unified Quality Score) for Telephone and Data Systems, Inc. is calculated using a proprietary 6-pillar framework with 29 financial metrics. Each pillar evaluates a different dimension on a 0–100 scale, then combines into a single weighted score. Scoring thresholds are calibrated per sector. Momentum is an optional Pro toggle — without it, you get the 5-pillar / 25-metric core shown below.

Quality (25%) measures profitability and capital efficiency — ROIC, ROE, margins, GP/Assets, and FCF Yield.

Moat (25%) assesses Telephone and Data Systems, Inc.'s competitive advantages across switching costs, network effects, cost advantages, intangible assets, and ecosystem scale.

Growth (20%) tracks revenue trajectory and earnings momentum, combining historical results with analyst forward estimates.

Risk (15%) is inversely scored — lower leverage and strong balance sheet health result in higher scores.

Valuation (15%) measures whether Telephone and Data Systems, Inc. is fairly priced using earnings yield, price-to-FCF, PEG ratio, and EV/EBITDA relative to sector peers.

Six investor-inspired presets are available, each with different pillar weights: Balanced, Buffett, Munger, Lynch, Cathie Wood, and Graham. The public score shown here uses the Balanced preset. Learn more in our FAQ.