AT&T INC (1T.MI) Stock Fundamental Analysis
BIT:1T - Euronext Milan - US00206R1023 - Common Stock - Currency: EUR
We assign a fundamental rating of 4 out of 10 to 1T. 1T was compared to 27 industry peers in the Diversified Telecommunication Services industry. There are concerns on the financial health of 1T while its profitability can be described as average. 1T has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
1T had positive earnings in the past year.
1T had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: 1T reported negative net income in multiple years.
In the past 5 years 1T always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of 2.96%, 1T perfoms like the industry average, outperforming 51.61% of the companies in the same industry.
1T has a Return On Equity of 11.32%. This is in the better half of the industry: 1T outperforms 61.29% of its industry peers.
1T has a Return On Invested Capital (5.31%) which is comparable to the rest of the industry.
1T had an Average Return On Invested Capital over the past 3 years of 5.19%. This is below the industry average of 7.62%.
The 3 year average ROIC (5.19%) for 1T is below the current ROIC(5.31%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.96% | ||
| ROE | 11.32% | ||
| ROIC | 5.31% |
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 Profit Margin of 9.55%. This is in the better half of the industry: 1T outperforms 64.52% of its industry peers.
1T's Profit Margin has improved in the last couple of years.
The Operating Margin of 1T (19.84%) is better than 74.19% of its industry peers.
In the last couple of years the Operating Margin of 1T has grown nicely.
The Gross Margin of 1T (59.90%) is comparable to the rest of the industry.
1T's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.84% | ||
| PM (TTM) | 9.55% | ||
| GM | 59.9% |
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.
Compared to 1 year ago, 1T has more shares outstanding
1T has less shares outstanding than it did 5 years ago.
1T has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.90, 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 0.90, 1T is doing worse than 64.52% of the companies in the same industry.
The Debt to FCF ratio of 1T is 6.47, which is on the high side as it means it would take 1T, 6.47 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of 1T (6.47) is better than 67.74% of its industry peers.
A Debt/Equity ratio of 1.13 is on the high side and indicates that 1T has dependencies on debt financing.
1T has a Debt to Equity ratio (1.13) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.13 | ||
| Debt/FCF | 6.47 | ||
| Altman-Z | 0.9 |
ROIC/WACC0.6
WACC8.85%
2.3 Liquidity
A Current Ratio of 0.70 indicates that 1T may have some problems paying its short term obligations.
1T has a worse Current ratio (0.70) than 61.29% of its industry peers.
1T has a Quick Ratio of 0.70. 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's Quick ratio of 0.65 is on the low side compared to the rest of the industry. 1T is outperformed by 67.74% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.7 | ||
| Quick Ratio | 0.65 |
3. Growth
3.1 Past
1T shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -5.93%.
Measured over the past years, 1T shows a decrease in Earnings Per Share. The EPS has been decreasing by -8.79% on average per year.
1T shows a small growth in Revenue. In the last year, the Revenue has grown by 0.50%.
Measured over the past years, 1T shows a decrease in Revenue. The Revenue has been decreasing by -7.56% on average per year.
EPS 1Y (TTM)-5.93%
EPS 3Y-12.73%
EPS 5Y-8.79%
EPS Q2Q%-7.27%
Revenue 1Y (TTM)0.5%
Revenue growth 3Y-3%
Revenue growth 5Y-7.56%
Sales Q2Q%1.99%
3.2 Future
Based on estimates for the next years, 1T will show a small growth in Earnings Per Share. The EPS will grow by 6.07% on average per year.
The Revenue is expected to grow by 2.18% on average over the next years.
EPS Next Y-7.34%
EPS Next 2Y0.39%
EPS Next 3Y4.02%
EPS Next 5Y6.07%
Revenue Next Year1.7%
Revenue Next 2Y1.52%
Revenue Next 3Y1.53%
Revenue Next 5Y2.18%
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
Based on the Price/Earnings ratio of 12.64, the valuation of 1T can be described as correct.
Based on the Price/Earnings ratio, 1T is valued a bit cheaper than the industry average as 77.42% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.19, 1T is valued rather cheaply.
With a Price/Forward Earnings ratio of 12.33, 1T is valued correctly.
Based on the Price/Forward Earnings ratio, 1T is valued a bit cheaper than 70.97% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of 1T to the average of the S&P500 Index (35.33), we can say 1T is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.64 | ||
| Fwd PE | 12.33 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 1T is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, 1T is valued a bit cheaper than 64.52% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.37 | ||
| EV/EBITDA | 7.13 |
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 2Y0.39%
EPS Next 3Y4.02%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.01%, 1T is a good candidate for dividend investing.
1T's Dividend Yield is a higher than the industry average which is at 4.58.
1T's Dividend Yield is rather good when compared to the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.01% |
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 70.36% of its income as dividend. This is not a sustainable payout ratio.
DP70.36%
EPS Next 2Y0.39%
EPS Next 3Y4.02%
BIT:1T (6/13/2025, 7:00:00 PM)
24.4
-0.43 (-1.71%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners65.83%
Inst Owner ChangeN/A
Ins Owners0.06%
Ins Owner ChangeN/A
Market Cap175.57B
Analysts78.92
Price Target25.3 (3.69%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.01% |
Yearly Dividend1
Dividend Growth(5Y)-10.97%
DP70.36%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.37%
Min EPS beat(2)2.7%
Max EPS beat(2)6.05%
EPS beat(4)3
Avg EPS beat(4)2.5%
Min EPS beat(4)-2.25%
Max EPS beat(4)6.05%
EPS beat(8)6
Avg EPS beat(8)1.15%
EPS beat(12)10
Avg EPS beat(12)2.39%
EPS beat(16)13
Avg EPS beat(16)2.81%
Revenue beat(2)0
Avg Revenue beat(2)-1.12%
Min Revenue beat(2)-1.17%
Max Revenue beat(2)-1.08%
Revenue beat(4)0
Avg Revenue beat(4)-1.83%
Min Revenue beat(4)-2.71%
Max Revenue beat(4)-1.08%
Revenue beat(8)0
Avg Revenue beat(8)-1.83%
Revenue beat(12)0
Avg Revenue beat(12)-1.84%
Revenue beat(16)0
Avg Revenue beat(16)-6.87%
PT rev (1m)4.35%
PT rev (3m)-2.26%
EPS NQ rev (1m)0.26%
EPS NQ rev (3m)-0.96%
EPS NY rev (1m)0.66%
EPS NY rev (3m)0.79%
Revenue NQ rev (1m)0.01%
Revenue NQ rev (3m)0.77%
Revenue NY rev (1m)0.39%
Revenue NY rev (3m)0.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.64 | ||
| Fwd PE | 12.33 | ||
| P/S | 1.64 | ||
| P/FCF | 10.37 | ||
| P/OCF | 5.02 | ||
| P/B | 1.95 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.13 |
EPS(TTM)1.93
EY7.91%
EPS(NY)1.98
Fwd EY8.11%
FCF(TTM)2.35
FCFY9.64%
OCF(TTM)4.86
OCFY19.92%
SpS14.84
BVpS12.52
TBVpS-11.14
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.96% | ||
| ROE | 11.32% | ||
| ROCE | 6.98% | ||
| ROIC | 5.31% | ||
| ROICexc | 5.41% | ||
| ROICexgc | 12.65% | ||
| OM | 19.84% | ||
| PM (TTM) | 9.55% | ||
| GM | 59.9% | ||
| FCFM | 15.85% |
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-Score8
Asset Turnover0.31
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.13 | ||
| Debt/FCF | 6.47 | ||
| Debt/EBITDA | 2.6 | ||
| Cap/Depr | 100.29% | ||
| Cap/Sales | 16.91% | ||
| Interest Coverage | 3.56 | ||
| Cash Conversion | 89.28% | ||
| Profit Quality | 165.94% | ||
| Current Ratio | 0.7 | ||
| Quick Ratio | 0.65 | ||
| Altman-Z | 0.9 |
F-Score8
WACC8.85%
ROIC/WACC0.6
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)-5.93%
EPS 3Y-12.73%
EPS 5Y-8.79%
EPS Q2Q%-7.27%
EPS Next Y-7.34%
EPS Next 2Y0.39%
EPS Next 3Y4.02%
EPS Next 5Y6.07%
Revenue 1Y (TTM)0.5%
Revenue growth 3Y-3%
Revenue growth 5Y-7.56%
Sales Q2Q%1.99%
Revenue Next Year1.7%
Revenue Next 2Y1.52%
Revenue Next 3Y1.53%
Revenue Next 5Y2.18%
EBIT growth 1Y-1.17%
EBIT growth 3Y-2.47%
EBIT growth 5Y-3.83%
EBIT Next Year97.53%
EBIT Next 3Y28.45%
EBIT Next 5Y17.76%
FCF growth 1Y43.57%
FCF growth 3Y-11.18%
FCF growth 5Y-8.74%
OCF growth 1Y22.15%
OCF growth 3Y-2.6%
OCF growth 5Y-4.45%