AT&T INC (1T.MI) Stock Fundamental Analysis
Europe - BIT:1T - US00206R1023 - Common Stock
24.7 EUR
-0.17 (-0.68%)
We assign a fundamental rating of 4 out of 10 to 1T. 1T was compared to 30 industry peers in the Diversified Telecommunication Services industry. While 1T is still in line with the averages on profitability rating, there are concerns on its financial health. 1T is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year 1T was profitable.
1T had a positive operating cash flow in the past year.
In multiple years 1T reported negative net income over the last 5 years.
Each year in the past 5 years 1T had a positive operating cash flow.
1.2 Ratios
The Return On Assets of 1T (3.12%) is comparable to the rest of the industry.
1T's Return On Equity of 12.03% is fine compared to the rest of the industry. 1T outperforms 72.73% of its industry peers.
1T has a Return On Invested Capital of 5.25%. This is comparable to the rest of the industry: 1T outperforms 51.52% of its industry peers.
The Average Return On Invested Capital over the past 3 years for 1T is below the industry average of 7.31%.
The 3 year average ROIC (5.19%) for 1T is below the current ROIC(5.25%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.12% | ||
| ROE | 12.03% | ||
| ROIC | 5.25% |
ROA(3y)1.35%
ROA(5y)1.32%
ROE(3y)5.03%
ROE(5y)4.74%
ROIC(3y)5.19%
ROIC(5y)4.76%
1.3 Margins
Looking at the Profit Margin, with a value of 10.21%, 1T is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
1T's Profit Margin has improved in the last couple of years.
1T has a better Operating Margin (19.86%) than 75.76% of its industry peers.
In the last couple of years the Operating Margin of 1T has grown nicely.
1T has a Gross Margin (59.67%) which is in line with its industry peers.
1T's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.86% | ||
| PM (TTM) | 10.21% | ||
| GM | 59.67% |
OM growth 3Y0.54%
OM growth 5Y4.03%
PM growth 3Y-16.01%
PM growth 5Y2.75%
GM growth 3Y2.85%
GM growth 5Y2.22%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 1T is destroying value.
The number of shares outstanding for 1T has been increased compared to 1 year ago.
1T has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, 1T has an improved debt to assets ratio.
2.2 Solvency
1T has an Altman-Z score of 0.91. This is a bad value and indicates that 1T is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 0.91, 1T is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
The Debt to FCF ratio of 1T is 6.74, which is on the high side as it means it would take 1T, 6.74 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 6.74, 1T is in the better half of the industry, outperforming 63.64% of the companies in the same industry.
A Debt/Equity ratio of 1.17 is on the high side and indicates that 1T has dependencies on debt financing.
1T has a better Debt to Equity ratio (1.17) than 60.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.17 | ||
| Debt/FCF | 6.74 | ||
| Altman-Z | 0.91 |
ROIC/WACC0.77
WACC6.79%
2.3 Liquidity
A Current Ratio of 0.81 indicates that 1T may have some problems paying its short term obligations.
The Current ratio of 1T (0.81) is better than 60.61% of its industry peers.
1T has a Quick Ratio of 0.81. This is a bad value and indicates that 1T is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.76, 1T is in the better half of the industry, outperforming 60.61% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.76 |
3. Growth
3.1 Past
The earnings per share for 1T have decreased by -4.78% in the last year.
The Earnings Per Share has been decreasing by -8.79% on average over the past years.
Looking at the last year, 1T shows a small growth in Revenue. The Revenue has grown by 1.46% in the last year.
1T shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -7.56% yearly.
EPS 1Y (TTM)-4.78%
EPS 3Y-12.73%
EPS 5Y-8.79%
EPS Q2Q%-5.26%
Revenue 1Y (TTM)1.46%
Revenue growth 3Y-3%
Revenue growth 5Y-7.56%
Sales Q2Q%3.52%
3.2 Future
The Earnings Per Share is expected to grow by 5.24% on average over the next years.
1T is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.29% yearly.
EPS Next Y-7.63%
EPS Next 2Y0.15%
EPS Next 3Y4.04%
EPS Next 5Y5.24%
Revenue Next Year2.35%
Revenue Next 2Y1.86%
Revenue Next 3Y1.83%
Revenue Next 5Y2.29%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 13.21, 1T is valued correctly.
84.85% of the companies in the same industry are more expensive than 1T, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.30, 1T is valued rather cheaply.
With a Price/Forward Earnings ratio of 12.75, 1T is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 1T indicates a somewhat cheap valuation: 1T is cheaper than 72.73% of the companies listed in the same industry.
1T's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.73.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.21 | ||
| Fwd PE | 12.75 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as 1T.
Based on the Price/Free Cash Flow ratio, 1T is valued a bit cheaper than 72.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.53 | ||
| EV/EBITDA | 7.21 |
4.3 Compensation for Growth
The decent profitability rating of 1T may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y0.15%
EPS Next 3Y4.04%
5. Dividend
5.1 Amount
1T has a Yearly Dividend Yield of 3.75%.
Compared to an average industry Dividend Yield of 4.20, 1T has a dividend in line with its industry peers.
1T's Dividend Yield is rather good when compared to the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.75% |
5.2 History
The dividend of 1T decreases each year by -10.97%.
Dividend Growth(5Y)-10.97%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
1T pays out 64.83% of its income as dividend. This is not a sustainable payout ratio.
DP64.83%
EPS Next 2Y0.15%
EPS Next 3Y4.04%
BIT:1T (8/25/2025, 7:00:00 PM)
24.7
-0.17 (-0.68%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners66.3%
Inst Owner ChangeN/A
Ins Owners0.06%
Ins Owner ChangeN/A
Market Cap176.61B
Analysts78.89
Price Target25.6 (3.64%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.75% |
Yearly Dividend0.98
Dividend Growth(5Y)-10.97%
DP64.83%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.78%
Min EPS beat(2)2.7%
Max EPS beat(2)2.87%
EPS beat(4)4
Avg EPS beat(4)3.78%
Min EPS beat(4)2.7%
Max EPS beat(4)6.05%
EPS beat(8)6
Avg EPS beat(8)1.22%
EPS beat(12)10
Avg EPS beat(12)2.2%
EPS beat(16)13
Avg EPS beat(16)2.36%
Revenue beat(2)0
Avg Revenue beat(2)-0.96%
Min Revenue beat(2)-1.08%
Max Revenue beat(2)-0.84%
Revenue beat(4)0
Avg Revenue beat(4)-1.45%
Min Revenue beat(4)-2.71%
Max Revenue beat(4)-0.84%
Revenue beat(8)0
Avg Revenue beat(8)-1.68%
Revenue beat(12)0
Avg Revenue beat(12)-1.77%
Revenue beat(16)0
Avg Revenue beat(16)-5.8%
PT rev (1m)0.41%
PT rev (3m)0.74%
EPS NQ rev (1m)0.08%
EPS NQ rev (3m)-1.76%
EPS NY rev (1m)-0.3%
EPS NY rev (3m)0.12%
Revenue NQ rev (1m)-0.06%
Revenue NQ rev (3m)0.42%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)0.64%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.21 | ||
| Fwd PE | 12.75 | ||
| P/S | 1.67 | ||
| P/FCF | 10.53 | ||
| P/OCF | 5.05 | ||
| P/B | 1.96 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.21 |
EPS(TTM)1.87
EY7.57%
EPS(NY)1.94
Fwd EY7.85%
FCF(TTM)2.35
FCFY9.5%
OCF(TTM)4.9
OCFY19.82%
SpS14.82
BVpS12.59
TBVpS-10.88
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.12% | ||
| ROE | 12.03% | ||
| ROCE | 6.9% | ||
| ROIC | 5.25% | ||
| ROICexc | 5.41% | ||
| ROICexgc | 12.47% | ||
| OM | 19.86% | ||
| PM (TTM) | 10.21% | ||
| GM | 59.67% | ||
| FCFM | 15.83% |
ROA(3y)1.35%
ROA(5y)1.32%
ROE(3y)5.03%
ROE(5y)4.74%
ROIC(3y)5.19%
ROIC(5y)4.76%
ROICexc(3y)5.26%
ROICexc(5y)4.86%
ROICexgc(3y)12.3%
ROICexgc(5y)11.29%
ROCE(3y)6.83%
ROCE(5y)6.27%
ROICexcg growth 3Y10.1%
ROICexcg growth 5Y-1.63%
ROICexc growth 3Y4.68%
ROICexc growth 5Y2.35%
OM growth 3Y0.54%
OM growth 5Y4.03%
PM growth 3Y-16.01%
PM growth 5Y2.75%
GM growth 3Y2.85%
GM growth 5Y2.22%
F-Score7
Asset Turnover0.31
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.17 | ||
| Debt/FCF | 6.74 | ||
| Debt/EBITDA | 2.7 | ||
| Cap/Depr | 102% | ||
| Cap/Sales | 17.2% | ||
| Interest Coverage | 3.62 | ||
| Cash Conversion | 89.93% | ||
| Profit Quality | 154.96% | ||
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.76 | ||
| Altman-Z | 0.91 |
F-Score7
WACC6.79%
ROIC/WACC0.77
Cap/Depr(3y)100.82%
Cap/Depr(5y)90.95%
Cap/Sales(3y)15.8%
Cap/Sales(5y)13.85%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-4.78%
EPS 3Y-12.73%
EPS 5Y-8.79%
EPS Q2Q%-5.26%
EPS Next Y-7.63%
EPS Next 2Y0.15%
EPS Next 3Y4.04%
EPS Next 5Y5.24%
Revenue 1Y (TTM)1.46%
Revenue growth 3Y-3%
Revenue growth 5Y-7.56%
Sales Q2Q%3.52%
Revenue Next Year2.35%
Revenue Next 2Y1.86%
Revenue Next 3Y1.83%
Revenue Next 5Y2.29%
EBIT growth 1Y0.41%
EBIT growth 3Y-2.47%
EBIT growth 5Y-3.83%
EBIT Next Year97.55%
EBIT Next 3Y28.51%
EBIT Next 5Y17.43%
FCF growth 1Y7.65%
FCF growth 3Y-11.18%
FCF growth 5Y-8.74%
OCF growth 1Y10.7%
OCF growth 3Y-2.6%
OCF growth 5Y-4.45%