Telephone and Data SystemsTDS -0.30%65 3-Year ROIIC % is 2.54 as of Dec. 2025, which is 9% above its 10-year median of 2.32. GuruFocus rates TDS with a GF Score™ of 65/100 and a GF Value™ of $32.23 (Modestly Overvalued). The stock has 5 warning signs investors should review. Among 352 Telecommunication Services companies, Telephone and Data Systems ranks better than 52.56% on this metric.
3-Year Return on Invested Incremental Capital (3-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 3-year.
Telephone and Data Systems's 3-Year ROIIC % for the quarter that ended in Dec. 2025 was 2.54%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Telephone and Data Systems's 3-Year ROIIC % or its related term are showing as below:
TDS's 3-Year ROIIC % is ranked better than 52.56% of 352
companies
in the Telecommunication Services industry
Industry Median: 1.71
vs TDS: 2.54
Telephone and Data Systems (NYSE:TDS) 3-Year ROIIC % Explanation
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
Telephone and Data Systems 3-Year ROIIC % Related Terms
Telephone and Data Systems 3-Year ROIIC % 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.
TDS vs LBRDA, IRDM, LBTYA: 3-Year ROIIC % Comparison
For the Telecom Services subindustry, Telephone and Data Systems's 3-Year ROIIC %, along with its competitors' market caps and 3-Year ROIIC % 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 3-Year ROIIC % vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Telephone and Data Systems's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Telephone and Data Systems's 3-Year ROIIC % falls into.
3-Year Incremental Net Operating Profit After Taxes (NOPAT)**
/
3-Year Incremental Invested Capital**
=
( -62 (Dec. 2025) - 86.976 (Dec. 2022) )
/
( 7749.766 (Dec. 2025) - 13626 (Dec. 2022) )
=
-148.976
/
-5876.234
=
2.54%***
* 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.
** Annual data of NOPAT and Invested Capital was used to calculate 3-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
Telephone and Data Systems (TDS) has a 3-Year ROIIC % of 2.54 as of Dec. 2025. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Telephone and Data Systems and its competitors. This is near median its historical median of 2.32. According to the industry distribution chart, Telephone and Data Systems ranks #167 out of 352 companies in the Telecommunication Services industry, placing it in the top 47.4%.
Is Telephone and Data Systems' 3-Year ROIIC % too high?
Telephone and Data Systems' current 3-Year ROIIC % of 2.54 is near median its 10-year median of 2.32. The Telecommunication Services industry median 3-Year ROIIC % is 1.71. Telephone and Data Systems' value of 2.54 is 48.5% above this industry median. Based on the distribution chart, Telephone and Data Systems ranks #167 out of 352 companies in the Telecommunication Services industry, which is above the industry midpoint. Overall, Telephone and Data Systems has a GF Score™ of 65/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Telephone and Data Systems' 3-Year ROIIC % compare to LBRDA and IRDM?
According to the Telecommunication Services industry distribution chart, Telephone and Data Systems ranks #167 out of 352 companies for 3-Year ROIIC %. This puts Telephone and Data Systems in the upper half of its industry. The industry median 3-Year ROIIC % is 1.71. Telephone and Data Systems' value of 2.54 is 48.5% above this benchmark. While the company's 10-year median is 2.32 vs. the industry median of 1.71, 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 3-Year ROIIC % for a Telecommunication Services company?
The median 3-Year ROIIC % among Telecommunication Services companies is 1.71, based on 352 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Telephone and Data Systems's current 3-Year ROIIC % of 2.54 is 48.5% 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 3-Year ROIIC % mean?
A high 3-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Telephone and Data Systems and its competitors. For the Telecommunication Services industry, the median 3-Year ROIIC % is 1.71 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Telephone and Data Systems's current 3-Year ROIIC % is 2.54, which is near median its own 10-year median of 2.32. 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 Modestly Overvalued. The stock's GF Value™ is $32.23, compared to a current price of $36.08 — trading 11.9% above its estimated fair value. The current 3-Year ROIIC % is 2.54, which is near median its 10-year median of 2.32 and 48.5% above the Telecommunication Services industry median of 1.71. 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 3-Year ROIIC % calculated?
3-Year ROIIC % is calculated from a company's financial statements. For Telephone and Data Systems (TDS), the current 3-Year ROIIC % is 2.54 as of Dec. 2025. 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 $36.08 is trading 11.9% above its estimated GF Value™ of $32.23.
GuruFocus considers Telephone and Data Systems to be Modestly Overvalued.
Key valuation signals for TDS:
3-Year ROIIC %: 2.54 (near median its 10-year median of 2.32)
GF Value™: $32.23 vs. price of $36.08 (11.9% above fair value)
Industry Position: 48.5% above the Telecommunication Services median (#167 of 352)
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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