TMUS – Market expectations are for Uniform ROA stability, but management has concerns about their results, debt, and 5G opportunities

• • • T-Mobile US, Inc. (TMUS:USA)currently trades near recent averages relative to UAFRS-based (Uniform) Earnings, with a 21.6x Uniform P/E. At these levels, the market has somewhat bullish expectations for the firm, but management has concerns about their results, debt, and 5G opportunities
    • Specifically, management may be exaggerating their satisfaction with their customer results, and may lack confidence in the sustainability of 1 million+ net adds each quarter. Furthermore, they may have concerns about the sustainability of lower switcher volumes, and may also be concerned about the impact of the new revenue allocation standard on postpaid phone ARPU. Moreover, they may be downplaying concerns about their $5bn debt raise, and may lack confidence in their ability to take advantage of low-band capability opportunities in 5G