AT&T INC (1T.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1T - US00206R1023 - Common Stock
20.165 EUR
-0.28 (-1.35%)
1T gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 35 industry peers in the Diversified Telecommunication Services industry. 1T has only an average score on both its financial health and profitability. 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.
- In multiple years 1T reported negative net income over the last 5 years.
- In the past 5 years 1T always reported a positive cash flow from operatings.
1.2 Ratios
- The Return On Assets of 1T (5.24%) is better than 75.00% of its industry peers.
- The Return On Equity of 1T (20.02%) is better than 75.00% of its industry peers.
- With a Return On Invested Capital value of 4.98%, 1T is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
- 1T had an Average Return On Invested Capital over the past 3 years of 5.19%. This is below the industry average of 8.42%.
| 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 86.11% of its industry peers.
- In the last couple of years the Profit Margin of 1T has grown nicely.
- With a decent Operating Margin value of 19.44%, 1T is doing good in the industry, outperforming 66.67% of the companies in the same industry.
- In the last couple of years the Operating Margin of 1T has grown nicely.
- 1T has a Gross Margin (59.67%) which is comparable to the rest of the industry.
- In the last couple of years the Gross Margin of 1T has grown nicely.
| 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
- Compared to 5 years ago, 1T has less shares outstanding
- 1T has a better debt/assets ratio than last year.
2.2 Solvency
- Based on the Altman-Z score of 0.85, we must say that 1T is in the distress zone and has some risk of bankruptcy.
- The Altman-Z score of 1T (0.85) is worse than 66.67% 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's Debt to FCF ratio of 6.99 is fine compared to the rest of the industry. 1T outperforms 63.89% 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.
- With a Debt to Equity ratio value of 1.16, 1T perfoms like the industry average, outperforming 52.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.16 | ||
| Debt/FCF | 6.99 | ||
| Altman-Z | 0.85 |
ROIC/WACC0.75
WACC6.63%
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 Current ratio of 1.01. This is amongst the best in the industry. 1T outperforms 83.33% of its industry peers.
- A Quick Ratio of 0.96 indicates that 1T may have some problems paying its short term obligations.
- The Quick ratio of 1T (0.96) is better than 80.56% 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.
- 1T shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -8.79% yearly.
- The Revenue has been growing slightly by 1.98% in the past 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)-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
- 1T is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.70% yearly.
- The Revenue is expected to grow by 2.26% on average over the next years.
EPS Next Y-7.49%
EPS Next 2Y-0.05%
EPS Next 3Y3.36%
EPS Next 5Y5.7%
Revenue Next Year2.35%
Revenue Next 2Y1.92%
Revenue Next 3Y1.88%
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.
- 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
- 1T is valuated reasonably with a Price/Earnings ratio of 11.14.
- 1T's Price/Earnings ratio is a bit cheaper when compared to the industry. 1T is cheaper than 75.00% of the companies in the same industry.
- When comparing the Price/Earnings ratio of 1T to the average of the S&P500 Index (27.21), we can say 1T is valued rather cheaply.
- Based on the Price/Forward Earnings ratio of 10.49, the valuation of 1T can be described as reasonable.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of 1T indicates a somewhat cheap valuation: 1T is cheaper than 72.22% of the companies listed in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. 1T is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.14 | ||
| Fwd PE | 10.49 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as 1T.
- Based on the Price/Free Cash Flow ratio, 1T is valued a bit cheaper than 69.44% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.41 | ||
| EV/EBITDA | 6.33 |
4.3 Compensation for Growth
- The decent profitability rating of 1T may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-0.05%
EPS Next 3Y3.36%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 4.71%, 1T is a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 3.26, 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 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.71% |
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 2Y-0.05%
EPS Next 3Y3.36%
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 11.14 and the Price/Book (PB) ratio is 1.52.
How financially healthy is AT&T INC?
The financial health rating of AT&T INC (1T.MI) is 4 / 10.