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 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

Improving customer perception of the Sprint brand after a decade of poor performance will be difficult.
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.
Sprint faces numerous risks. Acquiring Clearwire sharply increased leverage and hurt profitability while adding assets that may hold only marginal potential. Building out Clearwire spectrum will require heavy capital spending, which Sprint can't afford today. Read more 

Management

Softbank acquired an 81% interest in Sprint in July 2013, providing Softbank with control. Former Sprint board members hold only three of nine board spots. Softbank founder Masayoshi Son now serves as Sprint's chairman, and Softbank president Ronald   Read more 

Profile

Sprint is the third-largest carrier in the United States, serving 45 million customers directly and 10 million via resellers and affiliates. About 9% of sales come from   Read more 

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