Telephone and Data SystemsTDS -1.64%65 Return-on-Tangible-Asset is 8.85% as of Mar. 2026, which is 638% above its 10-year median of 1.20. GuruFocus rates TDS with a GF Scoreâ„¢ of 65/100 and a GF Valueâ„¢ of $31.89 (Fairly Valued). The stock has 5 warning signs investors should review. Among 364 Telecommunication Services companies, Telephone and Data Systems ranks worse than 60.99% on this metric.
Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. Telephone and Data Systems's annualizedNet Income for the quarter that ended in Mar. 2026 was $578 Mil. Telephone and Data Systems's average total tangible assets for the quarter that ended in Mar. 2026 was $6,534 Mil. Therefore, Telephone and Data Systems's annualized Return-on-Tangible-Asset for the quarter that ended in Mar. 2026 was 8.85%.
The historical rank and industry rank for Telephone and Data Systems's Return-on-Tangible-Asset or its related term are showing as below:
TDS'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: -5.51 Med: 1.2 Max: 2.72
Current: 1.76
During the past 13 years, Telephone and Data Systems's highest Return-on-Tangible-Asset was 2.72%. The lowest was -5.51%. And the median was 1.20%.
TDS's Return-on-Tangible-Asset is ranked worse than 60.99% of 364
companies
in the Telecommunication Services industry
Industry Median: 3.47
vs TDS: 1.76
Telephone and Data Systems (NYSE:TDS) Return-on-Tangible-Asset Explanation
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companyÂ’s earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companyÂ’s tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
Telephone and Data Systems Return-on-Tangible-Asset Related Terms
Telephone and Data Systems Return-on-Tangible-Asset Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Telephone and Data Systems Return-on-Tangible-Asset Chart
TDS vs LBRDA, IRDM, LBTYA: Return-on-Tangible-Asset Comparison
For the Telecom Services subindustry, Telephone and Data Systems's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Telephone and Data Systems Return-on-Tangible-Asset vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Telephone and Data Systems's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Telephone and Data Systems's Return-on-Tangible-Asset falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Mar. 2026) net income data.
What does a Return-on-Tangible-Asset of 8.85% mean?
Telephone and Data Systems (TDS) has a Return-on-Tangible-Asset of 8.85% as of Mar. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Telephone and Data Systems and its competitors. This is 638% above median its historical median of 1.20. According to the industry distribution chart, Telephone and Data Systems ranks #222 out of 364 companies in the Telecommunication Services industry, placing it in the top 61%.
Is Telephone and Data Systems' Return-on-Tangible-Asset too high?
Telephone and Data Systems' current Return-on-Tangible-Asset of 8.85% is 638% above median its 10-year median of 1.20. The Telecommunication Services industry median Return-on-Tangible-Asset is 3.47. Telephone and Data Systems' value of 8.85% is 155% above this industry median. Based on the distribution chart, Telephone and Data Systems ranks #222 out of 364 companies in the Telecommunication Services industry, which is below the industry midpoint. Overall, Telephone and Data Systems has a GF Scoreâ„¢ of 65/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Telephone and Data Systems' Return-on-Tangible-Asset compare to LBRDA and IRDM?
According to the Telecommunication Services industry distribution chart, Telephone and Data Systems ranks #222 out of 364 companies for Return-on-Tangible-Asset. This places Telephone and Data Systems in the lower half of its industry. The industry median Return-on-Tangible-Asset is 3.47. Telephone and Data Systems' value of 8.85% is 155% above this benchmark. While the company's 10-year median is 1.20 vs. the industry median of 3.47, Telephone and Data Systems has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Asset for a Telecommunication Services company?
The median Return-on-Tangible-Asset among Telecommunication Services companies is 3.47, based on 364 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Telephone and Data Systems's current Return-on-Tangible-Asset of 8.85% is 155% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Telephone and Data Systems and its competitors. For the Telecommunication Services industry, the median Return-on-Tangible-Asset is 3.47 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Telephone and Data Systems's current Return-on-Tangible-Asset is 8.85%, which is 638% above median its own 10-year median of 1.20. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Telephone and Data Systems stock overvalued right now?
Based on GuruFocus' analysis, Telephone and Data Systems (TDS) is currently considered Fairly Valued. The stock's GF Value™ is $31.89, compared to a current price of $34.14 — trading 7.1% above its estimated fair value. The current Return-on-Tangible-Asset is 8.85%, which is 638% above median its 10-year median of 1.20 and 155% above the Telecommunication Services industry median of 3.47. Telephone and Data Systems' overall GF Score™ is 65/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For Telephone and Data Systems (TDS), the current Return-on-Tangible-Asset is 8.85% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Telephone and Data Systems (TDS) Overvalued in 2026?
Based on GuruFocus' analysis, Telephone and Data Systems stock appears to be overvalued.
The current stock price of $34.14 is trading 7.1% above its estimated GF Value™ of $31.89.
GuruFocus considers Telephone and Data Systems to be Fairly Valued.
Key valuation signals for TDS:
Return-on-Tangible-Asset: 8.85% (638% above median its 10-year median of 1.20)
GF Value™: $31.89 vs. price of $34.14 (7.1% above fair value)
Industry Position: 155% above the Telecommunication Services median (#222 of 364)
No single metric tells the full story. See the TDS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Telephone and Data Systems Inc is a diversified telecommunications operator that provides communications services to customers through broadband, video, voice, and wireless connections. The company has two reportable segments: TDS Telecom and Array. The majority of its revenue is generated from the TDS Telecom segment, which generates revenue by providing broadband, video, voice, and wireless services. The Array segment generates its revenue mainly by leasing tower space on Array-owned towers to customers.
65GF Score
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