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AT&T

T
53
Telecommunications Services · Communication Services
Price
$25.31
+0.16 (+0.64%)
Market Cap
$173.43B
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 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.

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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

+2.3% YoY

YoY Growth Rate

Slow revenue growth

EPS Growth

+6.5% YoY

YoY Growth Rate

Slow EPS growth

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

0.1%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

Every number that matters to educated investors.

Each metric is explained in plain language so you know exactly what you're looking at. Start your free trial now.

Quality

Profit per sale
Gross Margin
61.8%
Premium pricing power — 61.8% gross margin
Profit after running costs
Operating Margin
22.3%
Excellent — 22.3% operating margin
Return on the money invested
ROCE
10.2%
Below par — 10.2% 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
+2.6%
Nearly flat sales (+2.6% 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
186%
Turns 186% 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
3.59x
Tight — interest eats into profit (3.6x)

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

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Valuation

Price vs profit
P/E Ratio (TTM)
8.4x
Attractive valuation — P/E 8.4

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

Cheaper or dearer next year
P/E vs Forward
-0.1
SLOWING
Earnings expected to fall — forward P/E higher than today

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Dividends

Dividend
Dividend Yield
4.50%
Healthy income — 4.50% yield

Generous yield. Worth checking whether the payout is sustainable.

Dividend record
Dividend Growth
+0.0%
Dividend flat

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