AT&T INC (1T.MI) Stock Fundamental Analysis
BIT:1T - Euronext Milan - US00206R1023 - Common Stock - Currency: EUR
1T gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 29 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.
In the past year 1T had a positive cash flow from operations.
In multiple years 1T reported negative net income over the last 5 years.
1T had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
1T has a Return On Assets of 2.72%. This is comparable to the rest of the industry: 1T outperforms 50.00% of its industry peers.
1T has a Return On Equity (10.30%) which is comparable to the rest of the industry.
With a Return On Invested Capital value of 5.28%, 1T is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
The Average Return On Invested Capital over the past 3 years for 1T is below the industry average of 7.55%.
The last Return On Invested Capital (5.28%) for 1T is above the 3 year average (5.19%), which is a sign of increasing profitability.
| 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
The Profit Margin of 1T (8.78%) is better than 63.33% of its industry peers.
In the last couple of years the Profit Margin of 1T has grown nicely.
Looking at the Operating Margin, with a value of 19.74%, 1T is in the better half of the industry, outperforming 70.00% of the companies in the same industry.
In the last couple of years the Operating Margin of 1T has grown nicely.
1T's Gross Margin of 59.77% is in line compared to the rest of the industry. 1T outperforms 50.00% of its industry peers.
1T's Gross Margin has improved in the last couple of years.
| 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
1T has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, 1T has more shares outstanding
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 0.90. This is a bad value and indicates that 1T is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.90, 1T is doing worse than 70.00% 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.
A Debt/Equity ratio of 1.13 is on the high side and indicates that 1T has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.13, 1T is in line with its industry, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.13 | ||
| Debt/FCF | 6.67 | ||
| Altman-Z | 0.9 |
ROIC/WACC0.74
WACC7.1%
2.3 Liquidity
A Current Ratio of 0.66 indicates that 1T may have some problems paying its short term obligations.
The Current ratio of 1T (0.66) is worse than 60.00% of its industry peers.
A Quick Ratio of 0.62 indicates that 1T may have some problems paying its short term obligations.
With a Quick ratio value of 0.62, 1T is not doing good in the industry: 63.33% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.66 | ||
| Quick Ratio | 0.62 |
3. Growth
3.1 Past
The earnings per share for 1T have decreased by -6.22% 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 decrease in Revenue. The Revenue has decreased by -0.08% in the last year.
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)-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
Based on estimates for the next years, 1T will show a small growth in Earnings Per Share. The EPS will grow by 5.51% on average per year.
Based on estimates for the next years, 1T will show a small growth in Revenue. The Revenue will grow by 1.94% on average per year.
EPS Next Y-8.06%
EPS Next 2Y0.65%
EPS Next 3Y4.2%
EPS Next 5Y5.51%
Revenue Next Year1.41%
Revenue Next 2Y1.39%
Revenue Next 3Y1.46%
Revenue Next 5Y1.94%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
1T is valuated correctly with a Price/Earnings ratio of 12.71.
Compared to the rest of the industry, the Price/Earnings ratio of 1T is on the same level as its industry peers.
When comparing the Price/Earnings ratio of 1T to the average of the S&P500 Index (29.35), we can say 1T is valued rather cheaply.
A Price/Forward Earnings ratio of 13.81 indicates a correct valuation of 1T.
1T's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.10, 1T is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.71 | ||
| Fwd PE | 13.81 |
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.
1T's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.13 | ||
| EV/EBITDA | 7.29 |
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 2Y0.65%
EPS Next 3Y4.2%
5. Dividend
5.1 Amount
1T has a Yearly Dividend Yield of 4.15%, which is a nice return.
1T's Dividend Yield is comparable with the industry average which is at 5.01.
1T's Dividend Yield is rather good when compared to the S&P500 average which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.15% |
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
76.38% of the earnings are spent on dividend by 1T. This is not a sustainable payout ratio.
DP76.38%
EPS Next 2Y0.65%
EPS Next 3Y4.2%
BIT:1T (3/3/2025, 7:00:00 PM)
26.435
+0.56 (+2.18%)
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 Cap189.76B
Analysts80
Price Target25.88 (-2.1%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.15% |
Yearly Dividend1.06
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)4.32%
PT rev (3m)17.17%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-13.12%
EPS NY rev (1m)-4.65%
EPS NY rev (3m)-9%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.14%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.71 | ||
| Fwd PE | 13.81 | ||
| P/S | 1.68 | ||
| P/FCF | 11.13 | ||
| P/OCF | 5.31 | ||
| P/B | 1.97 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.29 |
EPS(TTM)2.08
EY7.87%
EPS(NY)1.91
Fwd EY7.24%
FCF(TTM)2.37
FCFY8.98%
OCF(TTM)4.97
OCFY18.82%
SpS15.7
BVpS13.39
TBVpS-11.72
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 | 0.9 |
F-Score7
WACC7.1%
ROIC/WACC0.74
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-8.06%
EPS Next 2Y0.65%
EPS Next 3Y4.2%
EPS Next 5Y5.51%
Revenue 1Y (TTM)-0.08%
Revenue growth 3Y-3%
Revenue growth 5Y-7.56%
Sales Q2Q%0.86%
Revenue Next Year1.41%
Revenue Next 2Y1.39%
Revenue Next 3Y1.46%
Revenue Next 5Y1.94%
EBIT growth 1Y-2.1%
EBIT growth 3Y-2.49%
EBIT growth 5Y-3.84%
EBIT Next Year97.94%
EBIT Next 3Y28.38%
EBIT Next 5Y17.5%
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%