AT&T INC (1T.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1T - US00206R1023 - Common Stock
20.795 EUR
+0.07 (+0.34%)
Overall 1T gets a fundamental rating of 5 out of 10. We evaluated 1T against 33 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.
1T had a positive operating cash flow in the past year.
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 81.82% of its industry peers.
Looking at the Return On Equity, with a value of 20.02%, 1T belongs to the top of the industry, outperforming 84.85% of the companies in the same industry.
1T has a Return On Invested Capital of 4.98%. This is in the lower half of the industry: 1T underperforms 60.61% 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 7.68%.
| 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
With an excellent Profit Margin value of 17.81%, 1T belongs to the best of the industry, outperforming 93.94% of the companies in the same industry.
1T's Profit Margin has improved in the last couple of years.
1T's Operating Margin of 19.44% is fine compared to the rest of the industry. 1T outperforms 66.67% of its industry peers.
In the last couple of years the Operating Margin of 1T has grown nicely.
The Gross Margin of 1T (59.67%) 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 | 19.44% | ||
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 1T is destroying value.
1T has more shares outstanding than it did 1 year ago.
The number of shares outstanding for 1T has been reduced compared to 5 years ago.
1T has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.86, we must say that 1T is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 0.86, 1T is not doing good in the industry: 60.61% of the companies in the same industry are doing better.
1T has a debt to FCF ratio of 6.99. This is a slightly negative value and a sign of low solvency as 1T would need 6.99 years to pay back of all of its debts.
1T's Debt to FCF ratio of 6.99 is fine compared to the rest of the industry. 1T outperforms 66.67% 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.
1T has a better Debt to Equity ratio (1.16) than 63.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.16 | ||
| Debt/FCF | 6.99 | ||
| Altman-Z | 0.86 |
ROIC/WACC0.76
WACC6.6%
2.3 Liquidity
A Current Ratio of 1.01 indicates that 1T should not have too much problems paying its short term obligations.
With an excellent Current ratio value of 1.01, 1T belongs to the best of the industry, outperforming 93.94% of the companies in the same industry.
A Quick Ratio of 0.96 indicates that 1T may have some problems paying its short term obligations.
1T has a Quick ratio of 0.96. This is amongst the best in the industry. 1T outperforms 90.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.01 | ||
| Quick Ratio | 0.96 |
3. Growth
3.1 Past
1T shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -5.75%.
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%.
The Revenue has been decreasing by -7.56% on average over the past years.
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.
Based on estimates for the next years, 1T will show a small growth in Revenue. The Revenue will grow by 2.26% on average per year.
EPS Next Y-7.37%
EPS Next 2Y0.43%
EPS Next 3Y4.01%
EPS Next 5Y5.7%
Revenue Next Year2.29%
Revenue Next 2Y1.87%
Revenue Next 3Y1.93%
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
A Price/Earnings ratio of 11.49 indicates a reasonable valuation of 1T.
1T's Price/Earnings ratio is rather cheap when compared to the industry. 1T is cheaper than 81.82% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.84. 1T is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 10.73 indicates a reasonable valuation of 1T.
1T's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. 1T is cheaper than 69.70% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.40, 1T is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.49 | ||
| Fwd PE | 10.73 |
4.2 Price Multiples
1T's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, 1T is valued a bit cheaper than the industry average as 78.79% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.69 | ||
| EV/EBITDA | 6.46 |
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 2Y0.43%
EPS Next 3Y4.01%
5. Dividend
5.1 Amount
1T has a Yearly Dividend Yield of 4.58%, which is a nice return.
1T's Dividend Yield is a higher than the industry average which is at 3.32.
1T's Dividend Yield is rather good when compared to the S&P500 average which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.58% |
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
37.01% of the earnings are spent on dividend by 1T. This is a low number and sustainable payout ratio.
DP37.01%
EPS Next 2Y0.43%
EPS Next 3Y4.01%
BIT:1T (12/23/2025, 7:00:00 PM)
20.795
+0.07 (+0.34%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners67.17%
Inst Owner ChangeN/A
Ins Owners0.06%
Ins Owner ChangeN/A
Market Cap147.43B
Revenue(TTM)124.48B
Net Income(TTM)22.17B
Analysts78.82
Price Target25.73 (23.73%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.58% |
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)-2.01%
PT rev (3m)0.53%
EPS NQ rev (1m)0.38%
EPS NQ rev (3m)2.34%
EPS NY rev (1m)0.07%
EPS NY rev (3m)0.29%
Revenue NQ rev (1m)0.11%
Revenue NQ rev (3m)0.24%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)-0.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.49 | ||
| Fwd PE | 10.73 | ||
| P/S | 1.39 | ||
| P/FCF | 8.69 | ||
| P/OCF | 4.25 | ||
| P/B | 1.57 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.46 |
EPS(TTM)1.81
EY8.7%
EPS(NY)1.94
Fwd EY9.32%
FCF(TTM)2.39
FCFY11.5%
OCF(TTM)4.9
OCFY23.56%
SpS14.92
BVpS13.27
TBVpS-10.28
PEG (NY)N/A
PEG (5Y)N/A
Graham Number23.25
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 | 0.86 |
F-Score7
WACC6.6%
ROIC/WACC0.76
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-7.37%
EPS Next 2Y0.43%
EPS Next 3Y4.01%
EPS Next 5Y5.7%
Revenue 1Y (TTM)1.98%
Revenue growth 3Y-3%
Revenue growth 5Y-7.56%
Sales Q2Q%1.64%
Revenue Next Year2.29%
Revenue Next 2Y1.87%
Revenue Next 3Y1.93%
Revenue Next 5Y2.26%
EBIT growth 1Y-1.92%
EBIT growth 3Y-2.47%
EBIT growth 5Y-3.83%
EBIT Next Year98.4%
EBIT Next 3Y28.59%
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 5 / 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 11.49 and the Price/Book (PB) ratio is 1.57.
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 -7.37% in the next year.