AT&T INC (1T.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1T - US00206R1023 - Common Stock
21.505 EUR
+0.46 (+2.21%)
We assign a fundamental rating of 5 out of 10 to 1T. 1T was compared to 28 industry peers in the Diversified Telecommunication Services industry. Both the profitability and the financial health of 1T get a neutral evaluation. Nothing too spectacular is happening here. 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.
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
1T's Return On Assets of 5.24% is amongst the best of the industry. 1T outperforms 87.10% of its industry peers.
1T has a better Return On Equity (20.02%) than 77.42% of its industry peers.
1T's Return On Invested Capital of 4.98% is on the low side compared to the rest of the industry. 1T is outperformed by 61.29% of its industry peers.
1T had an Average Return On Invested Capital over the past 3 years of 5.19%. This is below the industry average of 7.65%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.24% | ||
| ROE | 20.02% | ||
| ROIC | 4.98% |
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 (17.81%) is better than 93.55% of its industry peers.
1T's Profit Margin has improved in the last couple of years.
1T has a Operating Margin of 19.44%. This is in the better half of the industry: 1T outperforms 70.97% of its industry peers.
1T's Operating Margin has improved in the last couple of years.
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 | 19.44% | ||
| PM (TTM) | 17.81% | ||
| 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
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
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.
1T has a worse Altman-Z score (0.87) than 70.97% of its industry peers.
The Debt to FCF ratio of 1T is 6.99, which is on the high side as it means it would take 1T, 6.99 years of fcf income to pay off all of its debts.
1T has a better Debt to FCF ratio (6.99) than 64.52% of its industry peers.
A Debt/Equity ratio of 1.16 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 1.16, 1T is in the better half of the industry, outperforming 64.52% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.16 | ||
| Debt/FCF | 6.99 | ||
| Altman-Z | 0.87 |
ROIC/WACC0.75
WACC6.66%
2.3 Liquidity
A Current Ratio of 1.01 indicates that 1T should not have too much problems paying its short term obligations.
1T has a better Current ratio (1.01) than 74.19% of its industry peers.
1T has a Quick Ratio of 1.01. 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 better Quick ratio (0.96) than 74.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.01 | ||
| Quick Ratio | 0.96 |
3. Growth
3.1 Past
The earnings per share for 1T have decreased by -5.75% in the last year.
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 1.98%.
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)-5.75%
EPS 3Y-12.73%
EPS 5Y-8.79%
EPS Q2Q%-10%
Revenue 1Y (TTM)1.98%
Revenue growth 3Y-3%
Revenue growth 5Y-7.56%
Sales Q2Q%1.64%
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 5.70% on average per year.
The Revenue is expected to grow by 2.26% on average over the next years.
EPS Next Y-7.43%
EPS Next 2Y0.43%
EPS Next 3Y4.06%
EPS Next 5Y5.7%
Revenue Next Year2.27%
Revenue Next 2Y1.86%
Revenue Next 3Y1.95%
Revenue Next 5Y2.26%
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
With a Price/Earnings ratio of 11.75, the valuation of 1T can be described as very reasonable.
Based on the Price/Earnings ratio, 1T is valued cheaply inside the industry as 80.65% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 25.47. 1T is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 10.99, the valuation of 1T can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 1T indicates a somewhat cheap valuation: 1T is cheaper than 70.97% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 34.42. 1T is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.75 | ||
| Fwd PE | 10.99 |
4.2 Price Multiples
61.29% of the companies in the same industry are more expensive than 1T, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of 1T indicates a somewhat cheap valuation: 1T is cheaper than 67.74% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.98 | ||
| EV/EBITDA | 6.58 |
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 2Y0.43%
EPS Next 3Y4.06%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.17%, 1T is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.96, 1T pays a bit more dividend than 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 | 6.17% |
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 37.01% of its income as dividend. This is a sustainable payout ratio.
DP37.01%
EPS Next 2Y0.43%
EPS Next 3Y4.06%
BIT:1T (11/7/2025, 7:00:00 PM)
21.505
+0.46 (+2.21%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners66.66%
Inst Owner ChangeN/A
Ins Owners0.06%
Ins Owner ChangeN/A
Market Cap153.77B
Revenue(TTM)124.48B
Net Income(TTM)22.17B
Analysts78.24
Price Target26.26 (22.11%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.17% |
Yearly Dividend0.98
Dividend Growth(5Y)-10.97%
DP37.01%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.95%
Min EPS beat(2)-0.97%
Max EPS beat(2)2.87%
EPS beat(4)3
Avg EPS beat(4)2.66%
Min EPS beat(4)-0.97%
Max EPS beat(4)6.05%
EPS beat(8)5
Avg EPS beat(8)0.93%
EPS beat(12)9
Avg EPS beat(12)1.37%
EPS beat(16)12
Avg EPS beat(16)1.73%
Revenue beat(2)0
Avg Revenue beat(2)-1.65%
Min Revenue beat(2)-2.47%
Max Revenue beat(2)-0.84%
Revenue beat(4)0
Avg Revenue beat(4)-1.39%
Min Revenue beat(4)-2.47%
Max Revenue beat(4)-0.84%
Revenue beat(8)0
Avg Revenue beat(8)-1.81%
Revenue beat(12)0
Avg Revenue beat(12)-1.87%
Revenue beat(16)0
Avg Revenue beat(16)-4.61%
PT rev (1m)2.6%
PT rev (3m)3.02%
EPS NQ rev (1m)1.95%
EPS NQ rev (3m)2%
EPS NY rev (1m)0.22%
EPS NY rev (3m)-0.08%
Revenue NQ rev (1m)0.13%
Revenue NQ rev (3m)0.01%
Revenue NY rev (1m)-0.08%
Revenue NY rev (3m)-0.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.75 | ||
| Fwd PE | 10.99 | ||
| P/S | 1.44 | ||
| P/FCF | 8.98 | ||
| P/OCF | 4.38 | ||
| P/B | 1.62 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.58 |
EPS(TTM)1.83
EY8.51%
EPS(NY)1.96
Fwd EY9.1%
FCF(TTM)2.4
FCFY11.14%
OCF(TTM)4.91
OCFY22.81%
SpS14.95
BVpS13.29
TBVpS-10.29
PEG (NY)N/A
PEG (5Y)N/A
Graham Number23.39
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.24% | ||
| ROE | 20.02% | ||
| ROCE | 6.55% | ||
| ROIC | 4.98% | ||
| ROICexc | 5.27% | ||
| ROICexgc | 12.06% | ||
| OM | 19.44% | ||
| PM (TTM) | 17.81% | ||
| GM | 59.67% | ||
| FCFM | 16.03% |
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%
ROICexgc growth 3Y10.1%
ROICexgc 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 Turnover0.29
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.16 | ||
| Debt/FCF | 6.99 | ||
| Debt/EBITDA | 2.83 | ||
| Cap/Depr | 98.92% | ||
| Cap/Sales | 16.79% | ||
| Interest Coverage | 3.62 | ||
| Cash Conversion | 90.13% | ||
| Profit Quality | 90.02% | ||
| Current Ratio | 1.01 | ||
| Quick Ratio | 0.96 | ||
| Altman-Z | 0.87 |
F-Score7
WACC6.66%
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)-5.75%
EPS 3Y-12.73%
EPS 5Y-8.79%
EPS Q2Q%-10%
EPS Next Y-7.43%
EPS Next 2Y0.43%
EPS Next 3Y4.06%
EPS Next 5Y5.7%
Revenue 1Y (TTM)1.98%
Revenue growth 3Y-3%
Revenue growth 5Y-7.56%
Sales Q2Q%1.64%
Revenue Next Year2.27%
Revenue Next 2Y1.86%
Revenue Next 3Y1.95%
Revenue Next 5Y2.26%
EBIT growth 1Y-1.92%
EBIT growth 3Y-2.47%
EBIT growth 5Y-3.83%
EBIT Next Year97.59%
EBIT Next 3Y28.47%
EBIT Next 5Y17.67%
FCF growth 1Y0.95%
FCF growth 3Y-11.18%
FCF growth 5Y-8.74%
OCF growth 1Y9.69%
OCF growth 3Y-2.6%
OCF growth 5Y-4.45%
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 4 / 10 to 1T.MI.
What is the valuation status of AT&T INC (1T.MI) 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.
Can you provide the PE and PB ratios for 1T stock?
The Price/Earnings (PE) ratio for AT&T INC (1T.MI) is 11.75 and the Price/Book (PB) ratio is 1.62.
What is the expected EPS growth for AT&T INC (1T.MI) stock?
The Earnings per Share (EPS) of AT&T INC (1T.MI) is expected to decline by -7.43% in the next year.