AT&T INC (1T.MI) Stock Fundamental Analysis
BIT:1T - Euronext Milan - US00206R1023 - Common Stock - Currency: EUR
Taking everything into account, 1T scores 4 out of 10 in our fundamental rating. 1T was compared to 30 industry peers in the Diversified Telecommunication Services industry. 1T has a medium profitability rating, but doesn't score so well on its financial health evaluation. 1T is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
1T had positive earnings in the past year.
In the past year 1T had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: 1T reported negative net income in multiple years.
1T had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.72%, 1T is in line with its industry, outperforming 46.67% of the companies in the same industry.
1T has a Return On Equity (10.30%) which is in line with its industry peers.
Looking at the Return On Invested Capital, with a value of 5.28%, 1T is doing worse than 70.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for 1T is below the industry average of 8.11%.
The 3 year average ROIC (5.19%) for 1T is below the current ROIC(5.28%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.72% | ||
| ROE | 10.3% | ||
| ROIC | 5.28% |
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
1T has a better Profit Margin (8.78%) than 63.33% of its industry peers.
1T's Profit Margin has improved in the last couple of years.
1T has a Operating Margin of 19.74%. This is in the better half of the industry: 1T outperforms 70.00% of its industry peers.
1T's Operating Margin has improved in the last couple of years.
1T's Gross Margin of 59.77% is in line compared to the rest of the industry. 1T outperforms 46.67% of its industry peers.
In the last couple of years the Gross Margin of 1T has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.74% | ||
| PM (TTM) | 8.78% | ||
| GM | 59.77% |
OM growth 3Y0.52%
OM growth 5Y4.02%
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.
Compared to 5 years ago, 1T has less shares outstanding
The debt/assets ratio for 1T has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.87, we must say that 1T is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.87, 1T is doing worse than 73.33% of the companies in the same industry.
1T has a debt to FCF ratio of 6.67. This is a slightly negative value and a sign of low solvency as 1T would need 6.67 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 6.67, 1T is doing good in the industry, outperforming 73.33% of the companies in the same industry.
1T has a Debt/Equity ratio of 1.13. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of 1T (1.13) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.13 | ||
| Debt/FCF | 6.67 | ||
| Altman-Z | 0.87 |
ROIC/WACC0.75
WACC7%
2.3 Liquidity
1T has a Current Ratio of 0.66. This is a bad value and indicates that 1T is not financially healthy enough and could expect problems in meeting its short term obligations.
1T has a Current ratio of 0.66. This is in the lower half of the industry: 1T underperforms 63.33% of its industry peers.
A Quick Ratio of 0.62 indicates that 1T may have some problems paying its short term obligations.
1T's Quick ratio of 0.62 is on the low side compared to the rest of the industry. 1T is outperformed by 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.66 | ||
| Quick Ratio | 0.62 |
3. Growth
3.1 Past
1T shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -6.22%.
The Earnings Per Share has been decreasing by -8.79% on average over the past years.
Looking at the last year, 1T shows a decrease in Revenue. The Revenue has decreased by -0.08% in the last year.
The Revenue has been decreasing by -7.56% on average over the past years.
EPS 1Y (TTM)-6.22%
EPS 3Y-12.73%
EPS 5Y-8.79%
EPS Q2Q%0%
Revenue 1Y (TTM)-0.08%
Revenue growth 3Y-3%
Revenue growth 5Y-7.56%
Sales Q2Q%0.86%
3.2 Future
The Earnings Per Share is expected to grow by 4.72% on average over the next years.
The Revenue is expected to grow by 2.27% on average over the next years.
EPS Next Y-8.02%
EPS Next 2Y0.97%
EPS Next 3Y4.48%
EPS Next 5Y4.72%
Revenue Next Year1.32%
Revenue Next 2Y1.37%
Revenue Next 3Y1.49%
Revenue Next 5Y2.27%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 11.82, the valuation of 1T can be described as very reasonable.
Based on the Price/Earnings ratio, 1T is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 28.87, 1T is valued rather cheaply.
A Price/Forward Earnings ratio of 12.85 indicates a correct valuation of 1T.
The rest of the industry has a similar Price/Forward Earnings ratio as 1T.
When comparing the Price/Forward Earnings ratio of 1T to the average of the S&P500 Index (21.38), we can say 1T is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.82 | ||
| Fwd PE | 12.85 |
4.2 Price Multiples
1T's Enterprise Value to EBITDA ratio is in line with the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as 1T.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.36 | ||
| EV/EBITDA | 6.97 |
4.3 Compensation for Growth
1T has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y0.97%
EPS Next 3Y4.48%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.21%, 1T is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.82, 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 2.46.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.21% |
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 76.38% of its income as dividend. This is not a sustainable payout ratio.
DP76.38%
EPS Next 2Y0.97%
EPS Next 3Y4.48%
BIT:1T (4/22/2025, 7:00:00 PM)
23.515
-2.83 (-10.74%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners63.96%
Inst Owner ChangeN/A
Ins Owners0.06%
Ins Owner ChangeN/A
Market Cap168.79B
Analysts80
Price Target25.53 (8.57%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.21% |
Yearly Dividend1.01
Dividend Growth(5Y)-10.97%
DP76.38%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.77%
Min EPS beat(2)3.5%
Max EPS beat(2)6.05%
EPS beat(4)3
Avg EPS beat(4)1.92%
Min EPS beat(4)-2.25%
Max EPS beat(4)6.05%
EPS beat(8)6
Avg EPS beat(8)0.88%
EPS beat(12)9
Avg EPS beat(12)1.85%
EPS beat(16)13
Avg EPS beat(16)3.18%
Revenue beat(2)0
Avg Revenue beat(2)-1.94%
Min Revenue beat(2)-2.71%
Max Revenue beat(2)-1.17%
Revenue beat(4)0
Avg Revenue beat(4)-2.45%
Min Revenue beat(4)-3.57%
Max Revenue beat(4)-1.17%
Revenue beat(8)0
Avg Revenue beat(8)-1.99%
Revenue beat(12)0
Avg Revenue beat(12)-3.73%
Revenue beat(16)0
Avg Revenue beat(16)-7.9%
PT rev (1m)-1.34%
PT rev (3m)15.6%
EPS NQ rev (1m)-0.74%
EPS NQ rev (3m)-13.54%
EPS NY rev (1m)0.05%
EPS NY rev (3m)-8.96%
Revenue NQ rev (1m)-0.12%
Revenue NQ rev (3m)-0.27%
Revenue NY rev (1m)-0.09%
Revenue NY rev (3m)-0.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.82 | ||
| Fwd PE | 12.85 | ||
| P/S | 1.57 | ||
| P/FCF | 10.36 | ||
| P/OCF | 4.94 | ||
| P/B | 1.84 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.97 |
EPS(TTM)1.99
EY8.46%
EPS(NY)1.83
Fwd EY7.78%
FCF(TTM)2.27
FCFY9.65%
OCF(TTM)4.76
OCFY20.22%
SpS15.01
BVpS12.8
TBVpS-11.2
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.72% | ||
| ROE | 10.3% | ||
| ROCE | 6.94% | ||
| ROIC | 5.28% | ||
| ROICexc | 5.33% | ||
| ROICexgc | 12.33% | ||
| OM | 19.74% | ||
| PM (TTM) | 8.78% | ||
| GM | 59.77% | ||
| FCFM | 15.13% |
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)11.28%
ROCE(3y)6.83%
ROCE(5y)6.26%
ROICexcg growth 3Y10.08%
ROICexcg growth 5Y-1.64%
ROICexc growth 3Y4.66%
ROICexc growth 5Y2.34%
OM growth 3Y0.52%
OM growth 5Y4.02%
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 | 1.13 | ||
| Debt/FCF | 6.67 | ||
| Debt/EBITDA | 2.65 | ||
| Cap/Depr | 98.46% | ||
| Cap/Sales | 16.56% | ||
| Interest Coverage | 3.39 | ||
| Cash Conversion | 86.68% | ||
| Profit Quality | 172.23% | ||
| Current Ratio | 0.66 | ||
| Quick Ratio | 0.62 | ||
| Altman-Z | 0.87 |
F-Score7
WACC7%
ROIC/WACC0.75
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)-6.22%
EPS 3Y-12.73%
EPS 5Y-8.79%
EPS Q2Q%0%
EPS Next Y-8.02%
EPS Next 2Y0.97%
EPS Next 3Y4.48%
EPS Next 5Y4.72%
Revenue 1Y (TTM)-0.08%
Revenue growth 3Y-3%
Revenue growth 5Y-7.56%
Sales Q2Q%0.86%
Revenue Next Year1.32%
Revenue Next 2Y1.37%
Revenue Next 3Y1.49%
Revenue Next 5Y2.27%
EBIT growth 1Y-2.1%
EBIT growth 3Y-2.49%
EBIT growth 5Y-3.84%
EBIT Next Year97.88%
EBIT Next 3Y28.35%
EBIT Next 5Y17.72%
FCF growth 1Y-9.54%
FCF growth 3Y-11.18%
FCF growth 5Y-8.74%
OCF growth 1Y1.19%
OCF growth 3Y-2.6%
OCF growth 5Y-4.45%