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AT&T

SOBA.DE
53
Telecommunications Services · Communication Services
Price
€21.79
+0.29 (+1.35%)
Market Cap
€149.31B
Exchange
Frankfurt Stock Exchange
Winston Score
53
Winston is curious
Mixed quality — meaningful strengths and weaknesses.
Data as of Aug 23, 2026 · filings through Jun 30, 2026
How the score breaks down
Quality
Good
Growth
Good
Cash Flow
Exceptional
Stability
Mixed
Valuation
Good
Dividends
Good

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)

Winston Score History

The full picture

AT&T is one of the largest telecommunications companies in the United States. It provides mobile phone service, home internet, and fiber-optic broadband to tens of millions of consumers and businesses across the country. The company also sells wireless plans and devices directly to customers through its retail stores and online.

AT&T earns most of its revenue through monthly subscription fees for wireless and internet service, which creates a steady, recurring income stream. It operates primarily in the United States and reported roughly $122 billion in annual revenue in recent years, making it one of the biggest companies in its industry. Its large existing network infrastructure is a significant barrier for competitors, but AT&T carries a heavy debt load — largely from past acquisitions — which limits its financial flexibility and remains a key risk. The main growth driver going forward is continued expansion of its fiber internet network and 5G wireless coverage.

Growth Profile

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

Revenue Growth

+2.4% YoY

YoY Growth Rate

Slow revenue growth

EPS Growth

+6.5% YoY

YoY Growth Rate

Slow EPS growth

R&D Spend

$843M/ year

0.7% of revenue

Below sector average (12%)

Research and development spending

Insider Activity

0.2%ownership

Flat

Insider ownership roughly steady over the past year

Cash Position

Cash flow positive

$18.7B 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 2% 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

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Quality

Profit per sale
Gross Margin
61.8%
Premium pricing power — 61.8% gross margin
Profit after running costs
Operating Margin
23.7%
Excellent — 23.7% operating margin
Return on the money invested
ROCE
10.4%
Below par — 10.4% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales growth
Sales YoY
+2.5%
Nearly flat sales (+2.5% YoY)
Profit growth
EPS YoY
+72.3%
Earnings growing fast (+72.3% YoY)

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

How steady the profit is
EPS Consistency
5/8 quarters
Mixed — about half the quarters showed growth

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Cash Flow

Profit that turns into cash
Cash Conversion
185%
Turns 185% of profit into real cash
Spare cash per sale
FCF Margin
13.9%
Converts sales into free cash efficiently (13.9%)

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

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Stability

What it owes vs what it owns
Debt / Equity
1.30
Elevated debt (1.30)
Covers its interest
Interest Cover
3.67x
Tight — interest eats into profit (3.7x)

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

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Valuation

Price vs profit
P/E Ratio (TTM)
7.2x
no trend
Attractive valuation — P/E 7.2

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

Cheaper or dearer next year
P/E vs Forward
-1.9
SLOWING
Earnings expected to fall — forward P/E higher than today

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Dividends

Dividend
Dividend Yield
4.36%
no trend
Healthy income — 4.36% yield

Generous yield. Worth checking whether the payout is sustainable.

Dividend record
Dividend Growth
-4.2%
no trend
Dividend cut (-4.2% YoY) — warning sign

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