This is a step-by-step stock review to answer the question, is AT&T (T) stock a good buy?
This article will teach you how to use the 4Ms of investing. This will be a detailed walkthrough to show you how the 4Ms work and why they are important. If you are interested, you can log into Tykr to use the 4M Confidence Booster (Powered by OpenAI) which will allow you to complete a 4M Analysis in less than 60 seconds.
What are the 4Ms?
- MOS (Margin of Safety) – The MOS is the math part of investing which includes the Summary, Score, and MOS (Margin of Safety).
- Meaning – The meaning is the business model and how scalable the revenue streams are.
- Moat – The moat is how the business compares to other companies in the same Sector and Industry.
- Management – The management is the track record of the CEO.
What 4M score are we going for?
- 80-100 = High confidence – Yay! You should have high confidence buying this stock. It passes all 4M!
- 60-79 = Moderate confidence – Alert! There may be better stocks in the market. Only buy this stock if you truly believe the company will improve!
- 0-59 = Low confidence – Warning! There are better stocks in the market. Due to the low score, you should consider looking at other stocks.
Table of Contents
The following links will direct you to key topics to help answer the question, is AT&T (T) stock a good buy?
1. AT&T Company History
- Founded in 1885: AT&T, originally known as the American Telephone and Telegraph Company, was established by Alexander Graham Bell and partners, marking the beginning of its telecommunications journey.
- Headquarters: Based in Dallas, Texas, AT&T has grown to be one of the largest telecommunications companies in the world.
- Early Innovations: AT&T played a crucial role in developing and expanding telephone technology, becoming a major provider of telephone services.
- Breakup and Reformation: In 1984, AT&T was broken up into smaller companies due to antitrust regulations. It re-emerged as a major player in the industry in the 2000s.
- Diversification: AT&T expanded beyond traditional telephony into broadband, digital TV, and media through acquisitions, including DirecTV and WarnerMedia.
- Recent Developments: The company has focused on 5G technology and fiber-optic networks to enhance connectivity and service offerings.
- Publicly Traded: AT&T is listed on the New York Stock Exchange under the ticker symbol T, reflecting its prominent role and financial standing in the global telecommunications market.
2. MOS (Margin Of Safety)
When investing in a company, the first step is to look at the financials. Fortunately, Tykr does this for us automatically. The higher the score, the stronger the financials and the safer the investment. The higher the MOS, the higher the potential returns you can make.
- Summary: Overpriced
- Score: 45
- MOS: 1%
To see the most up-to-date Summary, Score, and MOS, please log into Tykr.
3. Meaning
When investing in a company, it’s important to know how a company makes money. A mature business model has multiple streams of revenue which allow the company to weather downturns in the economy.
Here is how AT&T makes money:
- Wireless Services: AT&T makes money by providing wireless communication services, including voice, text, and data plans for mobile phones.
- Broadband Internet: They earn revenue from offering high-speed internet services to residential and business customers.
- Television Services: AT&T generates income through its television services, including satellite TV via DirecTV and streaming services like AT&T TV.
- Business Solutions: They provide telecommunications and network solutions to businesses, including managed services, cloud solutions, and cybersecurity.
- Advertising: AT&T earns from advertising on its media properties and platforms, leveraging its customer data for targeted ads.
- Content Creation: Through WarnerMedia (previously owned), they made money from creating and distributing media content, including movies, TV shows, and streaming services.
- Equipment Sales: They also profit from selling mobile devices, such as smartphones and tablets, along with accessories.
Here are a few of the other companies that AT&T has acquired over the years. This is important because a company will use a “Buy before build” philosophy to go to market faster and add additional streams of revenue. A company with more revenue streams has a more stable business model. Keep in mind, that most companies don’t build new software because it takes too long to go to market and generate revenue.
- DirecTV
- WarnerMedia
- Time Warner
- BellSouth
- McCaw Cellular
4. Moat
When investing in a company, it’s important to understand how a company ranks against other companies in the same sector and industry. Based on the Score, here is how AT&T stacks up against other companies.
- Turkcell Iletisim Hizmetleri A.S.(TKC) – 83
- KT Corporation.(KT) – 72
- Telecom Argentina S.A.(TEO) – 67
- United States Cellular Corporation.(USM) – 61
- Grupo Televisa, S.A.B.(TV) – 61
- AT&T Inc.(T) – 45
To see the most up-to-date Summary, Score, and MOS and each stock, please log into Tykr.
5. Management
When investing in a company, it’s important to understand who the CEO is, what they have accomplished in the past, and how they have helped this company grow. Good leaders typically have stronger cultures, less turnover, and better returns in the stock market.
- Restructured the Company: John Stankey led a major restructuring of AT&T, focusing on simplifying its business model and improving operational efficiency.
- Acquisition of Time Warner: He oversaw the acquisition of Time Warner, significantly expanding AT&T’s media and entertainment portfolio.
- Spun Off WarnerMedia: Under his leadership, AT&T spun off WarnerMedia, creating a new standalone company, Warner Bros. Discovery, and focusing on core telecommunications operations.
- 5G Network Expansion: Stankey advanced the rollout of AT&T’s 5G network, positioning the company as a leader in next-generation wireless technology.
- Strengthened Financial Position: He worked on reducing AT&T’s debt and improving the company’s financial stability, enhancing its balance sheet and investor confidence.
- Enhanced Customer Experience: Stankey emphasized improvements in customer service and digital experiences, aiming to increase customer satisfaction and retention.
6. 4M Score
All of our homework on this company leads up to the 4M Score. A lot of investors only look at the numbers. Yes, it’s important to look at the first M (MOS) which is the math part of investing but it’s also important to look past the numbers and also look at the Meaning, Moat, and Management. If all 4Ms pass, we should have high confidence in buying this stock.
What 4M score are we going for?
- 80-100 = High confidence – Yay! You should have high confidence buying this stock. It passes all 4M!
- 60-79 = Moderate confidence – Alert! There may be better stocks in the market. Only buy this stock if you truly believe the company will improve!
- 0-59 = Low confidence – Warning! There are better stocks in the market. Due to the low score, you should consider looking at other stocks.
👉 The 4M Score of AT&T (T) is 51/100.
To see the most up-to-date 4M Score, please log into Tykr.
7. Is AT&T (T)stock a g ood buy?
Some of the top questions investors can have is AT&T (T) stock a good buy or should I buy AT&T (T) stock?
AT&T (T) presents a mixed investment opportunity with both strengths and challenges. As a major player in the telecommunications industry, AT&T benefits from its extensive range of services, including wireless, broadband, and TV. The company has made significant strides in expanding its 5G network, positioning itself as a leader in next-generation wireless technology. Strategic partnerships and acquisitions, such as the integration of WarnerMedia (now spun off), have enhanced its media and content capabilities.
However, there are notable challenges. AT&T carries substantial debt, which can affect its financial stability and flexibility. The telecommunications sector is highly competitive, with intense pressure from other major providers and emerging technologies. Additionally, the company has faced operational complexities, including the integration of acquisitions and the management of its broad service offerings. While AT&T’s strong market position and technological advancements are appealing, investors should carefully consider its debt levels and competitive environment.