AT&T Inc.: Is It A Buy?

By Johnny Hopkins of Acquirer's Multiple

Sunday, October 13, 2024 9:06 AM EDT

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One of the cheapest stocks in our Stock Screeners is:

AT&T Inc (T)

The wireless business contributes nearly 70% of AT&T’s revenue. The firm is the third-largest US wireless carrier, connecting 72 million postpaid and 17 million prepaid phone customers. Fixed-line enterprise services, which account for about 16% of revenue, include internet access, private networking, security, voice, and wholesale network capacity. Residential fixed-line services, about 11% of revenue, primarily consist of broadband internet access, serving 14 million customers. AT&T also has a sizable presence in Mexico, with 23 million customers, but this business only accounts for 4% of revenue. The firm still holds a 70% equity stake in satellite television provider DirecTV but does not consolidate this business in its financial statements.

A quick look at the share price history (below) over the past twelve months shows that the price is up 50.85%. Here’s why the company is undervalued.