Morningstar Rating

Stock Research and Analysis

by Michael Hodel, CFA

Bulls Say

As the third-largest carrier in the U.S., Sprint holds assets that will play an important role in the wireless industry. The firm's spectrum position is arguably the strongest in the business.
The Softbank investment should enable Sprint to greatly enhance its competitive position and create value for shareholders over time.
Once Network Vision is complete, Sprint should see customer growth stabilize and margins expand sharply. These improvements should force a reassessment of Sprint's value. Read more 

Bears Say

The Softbank deal will help Sprint, but shareholders have given away a big chunk of upside potential just as the benefits of Network Vision were beginning to show up.
Sprint faces numerous risks. Acquiring Clearwire sharply increased leverage and hurt profitability while adding assets that could hold only marginal potential.
While Sprint has struggled, Verizon Wireless and AT&T have benefited at its expense. Even with Softbank's cash, AT&T and Verizon have far greater resources to invest in spectrum and technology. Read more 

Management

CEO Dan Hesse was formerly the CEO of Embarq, the local phone business Sprint spun off in 2006. He has a wide variety of industry experience, having headed AT&T Wireless in the late 1990s and equipment vendor Terabeam before Embarq. However, Sprint   Read more 

Profile

Sprint is the third-largest carrier in the United States, serving 46 million customers directly and 9 million via resellers and affiliates. About 9% of sales come from the   Read more 

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