AT&T INC (1T.MI) Stock Fundamental Analysis
Europe • Euronext Milan • BIT:1T • US00206R1023
20.165 EUR
-0.28 (-1.35%)
Last: Jan 19, 2026, 07:00 PM
We assign a fundamental rating of 5 out of 10 to 1T. 1T was compared to 31 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
- 1T had positive earnings in the past year.
- 1T had a positive operating cash flow in the past year.
- 1T had positive earnings in 4 of the past 5 years.
- In the past 5 years 1T always reported a positive cash flow from operatings.
1.2 Ratios
- 1T has a Return On Assets of 5.21%. This is in the better half of the industry: 1T outperforms 77.14% of its industry peers.
- 1T has a better Return On Equity (19.80%) than 80.00% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 5.45%, 1T is doing worse than 60.00% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for 1T is below the industry average of 8.68%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.21% | ||
| ROE | 19.8% | ||
| ROIC | 5.45% |
ROA(3y)3.81%
ROA(5y)2.57%
ROE(3y)14.61%
ROE(5y)9.37%
ROIC(3y)5.52%
ROIC(5y)5.3%
1.3 Margins
- With an excellent Profit Margin value of 17.42%, 1T belongs to the best of the industry, outperforming 91.43% of the companies in the same industry.
- 1T's Operating Margin of 19.89% is fine compared to the rest of the industry. 1T outperforms 68.57% of its industry peers.
- In the last couple of years the Operating Margin of 1T has grown nicely.
- 1T has a Gross Margin of 59.55%. This is comparable to the rest of the industry: 1T outperforms 54.29% of its industry peers.
- In the last couple of years the Gross Margin of 1T has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.89% | ||
| PM (TTM) | 17.42% | ||
| GM | 59.55% |
OM growth 3Y1.56%
OM growth 5Y4.24%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.95%
GM growth 5Y1.94%
2. Health
2.1 Basic Checks
- 1T has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- The number of shares outstanding for 1T has been reduced compared to 1 year ago.
- The number of shares outstanding for 1T has been reduced compared to 5 years ago.
- 1T has a worse debt/assets ratio than last year.
2.2 Solvency
- 1T has an Altman-Z score of 0.86. 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 0.86, 1T is not doing good in the industry: 71.43% of the companies in the same industry are doing better.
- The Debt to FCF ratio of 1T is 7.00, which is on the high side as it means it would take 1T, 7.00 years of fcf income to pay off all of its debts.
- 1T has a better Debt to FCF ratio (7.00) than 65.71% of its industry peers.
- A Debt/Equity ratio of 1.15 is on the high side and indicates that 1T has dependencies on debt financing.
- 1T has a Debt to Equity ratio (1.15) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.15 | ||
| Debt/FCF | 7 | ||
| Altman-Z | 0.86 |
ROIC/WACC0.82
WACC6.64%
2.3 Liquidity
- A Current Ratio of 0.91 indicates that 1T may have some problems paying its short term obligations.
- 1T has a Current ratio of 0.91. This is in the better half of the industry: 1T outperforms 74.29% of its industry peers.
- A Quick Ratio of 0.86 indicates that 1T may have some problems paying its short term obligations.
- 1T has a better Quick ratio (0.86) than 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.86 |
3. Growth
3.1 Past
- 1T shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -6.64%.
- The Earnings Per Share has been decreasing by -7.88% on average over the past years.
- Looking at the last year, 1T shows a small growth in Revenue. The Revenue has grown by 2.71% in the last year.
- The Revenue has been decreasing by -2.56% on average over the past years.
EPS 1Y (TTM)-6.64%
EPS 3Y-8%
EPS 5Y-7.88%
EPS Q2Q%-3.7%
Revenue 1Y (TTM)2.71%
Revenue growth 3Y1.34%
Revenue growth 5Y-2.56%
Sales Q2Q%3.62%
3.2 Future
- The Earnings Per Share is expected to grow by 8.87% on average over the next years. This is quite good.
- 1T is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.41% yearly.
EPS Next Y7%
EPS Next 2Y8.76%
EPS Next 3Y8.81%
EPS Next 5Y8.87%
Revenue Next Year1.49%
Revenue Next 2Y1.65%
Revenue Next 3Y1.9%
Revenue Next 5Y2.41%
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.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 11.39, which indicates a very decent valuation of 1T.
- Based on the Price/Earnings ratio, 1T is valued a bit cheaper than 80.00% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 28.32. 1T is valued rather cheaply when compared to this.
- 1T is valuated reasonably with a Price/Forward Earnings ratio of 10.65.
- 1T's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. 1T is cheaper than 74.29% of the companies in the same industry.
- 1T's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.57.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.39 | ||
| Fwd PE | 10.65 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 1T indicates a somewhat cheap valuation: 1T is cheaper than 62.86% of the companies listed in the same industry.
- 1T's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. 1T is cheaper than 80.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.76 | ||
| EV/EBITDA | 6.28 |
4.3 Compensation for Growth
- 1T's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- The decent profitability rating of 1T may justify a higher PE ratio.
PEG (NY)1.63
PEG (5Y)N/A
EPS Next 2Y8.76%
EPS Next 3Y8.81%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 4.42%, 1T is a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 3.09, 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 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.42% |
5.2 History
- The dividend of 1T decreases each year by -11.16%.
Dividend Growth(5Y)-11.16%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 1T pays out 37.37% of its income as dividend. This is a sustainable payout ratio.
DP37.37%
EPS Next 2Y8.76%
EPS Next 3Y8.81%
AT&T INC / 1T.MI FAQ
What is the ChartMill fundamental rating of AT&T INC (1T.MI) stock?
ChartMill assigns a fundamental rating of 5 / 10 to 1T.MI.
What is the valuation status for 1T stock?
ChartMill assigns a valuation rating of 6 / 10 to AT&T INC (1T.MI). This can be considered as Fairly Valued.
How profitable is AT&T INC (1T.MI) stock?
AT&T INC (1T.MI) has a profitability rating of 6 / 10.
What is the valuation of AT&T INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for AT&T INC (1T.MI) is 11.39 and the Price/Book (PB) ratio is 1.54.
How financially healthy is AT&T INC?
The financial health rating of AT&T INC (1T.MI) is 4 / 10.