Skip to Content
Morningstar
Get 14 Days Free

AT&T Inc T

Morningstar Rating
Rating as of

Morningstar’s Analysis

Valuation
Currency in USD
Is it the right time to buy or sell?
Find out with Morningstar Premium
Is it the right time to buy or sell?
Find out with Morningstar Premium

1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

AT&T Unwinds Its Media Strategy; Discovery Deal Highlights Media Value

Analyst Note

| Michael Hodel, CFA |

CEO John Stankey has wasted no time putting his mark on AT&T and we like the direction he’s headed. AT&T announced plans to spin off WarnerMedia and immediately merge the firm with Discovery to create a new media company. AT&T shareholders will own 71% of the new entity, which will assume $43 billion of AT&T’s debt load. The deal essentially completes the unwinding of former CEO Randall Stephenson’s strategic vision, which we’ve long considered ill-conceived, as reflected in our Poor capital allocation rating.

Read Full Analysis

Company Profile

Business Description

Wireless is AT&T's largest business, contributing about 40% of revenue. The firm is the third- largest U.S. wireless carrier, connecting 64 million postpaid and 17 million prepaid phone customers. WarnerMedia contributes a bit less than 20% of revenue with media assets that include HBO, the Turner cable networks, and the Warner Brothers studios. Fixed-line business communications services, provided to a wide range of entities, provide about 15% of revenue. The consumer broadband segment (about 7% of revenue) primarily provides broadband service to 15 million households. The firm recently sold a stake in its traditional television business, which serves 17 million customers and generates about 17% of sales. This business will be removed from AT&T's financials going forward.

Contact
208 S. Akard Street
Dallas, TX, 75202
T +1 210 821-4105
Sector Communication Services
Industry Telecom Services
Most Recent Earnings Mar 31, 2021
Fiscal Year End Dec 31, 2021
Stock Type High Yield
Employees 230,000

Related

Investing Specialists
Our Ultimate Stock-Pickers' Top 10 Buys and Sells
Funds see value in a diverse range of sectors.
Malik Ahmed Khan
Market Update
5 Dividend Stocks That Are Sustainable Twice Over
These stocks offer solid dividends and low ESG risk.
Jakir Hossain
Fund Spy
A Superb Value Manager Rebounds From a Multiyear Slump
Silver-rated Oakmark Select is bouncing back as expected.
Katie Rushkewicz Reichart
Market Update
3 Undervalued Media Stocks
There are other ways to play streaming media than Netflix and Disney
Jakir Hossain
Stock Analyst Update
AT&T Unwinds Its Media Strategy
We don’t expect to change the firm's $36 fair value estimate.
Michael Hodel
Stock Analyst Update
AT&T Continues to Post Solid Customer Growth During Q1
Our fair value estimate remains $36 per share.
Michael Hodel
Sustainability Matters
Let’s Not Leave Behind the S & G in ESG
Investors--and policymakers--should consider sustainability issues holistically.
Jon Hale
Stock Analyst Update
Verizon Starts 2021 With a Yawn
We're not changing our $57 fair value estimate.
Michael Hodel
Commentary
The Week Ahead: Johnson & Johnson, Procter & Gamble, and AT&T to Report Earnings
Big names across several sectors are on our earnings list in the week ahead.
Carole Hodorowicz
Our Picks
33 Undervalued Stocks for the Second Quarter
Here are our analysts' top ideas in each sector for the coming quarter.
Susan Dziubinski
Quarter-End Insights
Communication Services Investors Warm Up to Smaller Media Stocks
The giants still have an edge in this rapidly changing market, though.
Michael Hodel
Investing Specialists
Our Ultimate Stock-Pickers' Top 10 Buys and Sells
Funds see value in a diverse range of sectors.
Malik Ahmed Khan
US Videos
A New Favorite Stock From Top Managers
Several of our Ultimate Stock-Pickers put new money toward this name last quarter.
Morningstar
Investing Specialists
Our Ultimate Stock-Pickers' Top 10 High-Conviction Purchases
Several managers see value in technology and financial services.
Malik Ahmed Khan
Stock Analyst Update
Investments Pressure AT&T but Lift Customer Growth
Our fair value estimate remains $36, and we believe the stock is attractive.
Michael Hodel
Commentary
The Week Ahead: Apple, Facebook, and Tesla to Report Earnings
The week ahead is stacked with big names across every sector.
Carole Hodorowicz
US Videos
The Outlook for Dividends
Dividend investors had a hard time in 2020, but Morningstar Indexes strategist Dan Lefkovitz think the outlook is brighter for the year ahead.
Dan Lefkovitz
Quarter-End Insights
Even Regulators Can't Slow the Momentum of Online Media Giants
Market seems focused on the rebound in online advertising demand.
Michael Hodel
Market Update
The Value Rebound Is Good News for Dividend Investors
Equity income is well-positioned, both short- and long-term.
Dan Lefkovitz
US Videos
3 Must-Own Stocks
These wide-moat names dominate the portfolios of our Ultimate Stock-Pickers.
Morningstar

Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.

We’d like to share more about how we work and what drives our day-to-day business.

We sell different types of products and services to both investment professionals and individual investors. These products and services are usually sold through license agreements or subscriptions. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters.

How we use your information depends on the product and service that you use and your relationship with us. We may use it to:

  • Verify your identity, personalize the content you receive, or create and administer your account.
  • Provide specific products and services to you, such as portfolio management or data aggregation.
  • Develop and improve features of our offerings.
  • Gear advertisements and other marketing efforts towards your interests.

To learn more about how we handle and protect your data, visit our privacy center.

Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investor’s point of view. We also respect individual opinions––they represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive.

To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research.

Read our editorial policy to learn more about our process.