AT&T INC (1T.MI) Stock Fundamental Analysis
Europe - BIT:1T - US00206R1023 - Common Stock
21.04 EUR
-3.83 (-15.4%)
Taking everything into account, 1T scores 4 out of 10 in our fundamental rating. 1T was compared to 29 industry peers in the Diversified Telecommunication Services industry. There are concerns on the financial health of 1T while its profitability can be described as average. 1T has a valuation in line with the averages, 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.
Each year in the past 5 years 1T had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.12%, 1T is in line with its industry, outperforming 54.55% of the companies in the same industry.
With a decent Return On Equity value of 12.03%, 1T is doing good in the industry, outperforming 72.73% of the companies in the same industry.
With a Return On Invested Capital value of 5.25%, 1T perfoms like the industry average, outperforming 51.52% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for 1T is below the industry average of 7.46%.
The last Return On Invested Capital (5.25%) for 1T is above the 3 year average (5.19%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.12% | ||
| ROE | 12.03% | ||
| ROIC | 5.25% |
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
Looking at the Profit Margin, with a value of 10.21%, 1T is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
1T's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 19.86%, 1T is in the better half of the industry, outperforming 75.76% of the companies in the same industry.
In the last couple of years the Operating Margin of 1T has grown nicely.
Looking at the Gross Margin, with a value of 59.67%, 1T is in line with its industry, outperforming 57.58% of the companies in the same industry.
In the last couple of years the Gross Margin of 1T has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.86% | ||
| PM (TTM) | 10.21% | ||
| 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.
The number of shares outstanding for 1T has been increased compared to 1 year ago.
The number of shares outstanding for 1T has been reduced compared to 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 0.91. This is a bad value and indicates that 1T is not financially healthy and even has some risk of bankruptcy.
1T's Altman-Z score of 0.91 is on the low side compared to the rest of the industry. 1T is outperformed by 66.67% of its industry peers.
1T has a debt to FCF ratio of 6.74. This is a slightly negative value and a sign of low solvency as 1T would need 6.74 years to pay back of all of its debts.
The Debt to FCF ratio of 1T (6.74) is better than 63.64% of its industry peers.
1T has a Debt/Equity ratio of 1.17. This is a high value indicating a heavy dependency on external financing.
1T has a better Debt to Equity ratio (1.17) than 60.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.17 | ||
| Debt/FCF | 6.74 | ||
| Altman-Z | 0.91 |
ROIC/WACC0.77
WACC6.79%
2.3 Liquidity
A Current Ratio of 0.81 indicates that 1T may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.81, 1T is in the better half of the industry, outperforming 60.61% of the companies in the same industry.
A Quick Ratio of 0.76 indicates that 1T may have some problems paying its short term obligations.
The Quick ratio of 1T (0.76) is better than 60.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.76 |
3. Growth
3.1 Past
The earnings per share for 1T have decreased by -4.78% 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.
1T shows a small growth in Revenue. In the last year, the Revenue has grown by 1.46%.
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)-4.78%
EPS 3Y-12.73%
EPS 5Y-8.79%
EPS Q2Q%-5.26%
Revenue 1Y (TTM)1.46%
Revenue growth 3Y-3%
Revenue growth 5Y-7.56%
Sales Q2Q%3.52%
3.2 Future
1T is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.24% yearly.
The Revenue is expected to grow by 2.29% on average over the next years.
EPS Next Y-7.63%
EPS Next 2Y0.15%
EPS Next 3Y4.04%
EPS Next 5Y5.24%
Revenue Next Year2.35%
Revenue Next 2Y1.86%
Revenue Next 3Y1.83%
Revenue Next 5Y2.29%
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 11.25.
Based on the Price/Earnings ratio, 1T is valued cheaper than 84.85% of the companies in the same industry.
When comparing the Price/Earnings ratio of 1T to the average of the S&P500 Index (26.03), we can say 1T is valued rather cheaply.
A Price/Forward Earnings ratio of 10.86 indicates a reasonable valuation of 1T.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 1T indicates a somewhat cheap valuation: 1T is cheaper than 72.73% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.27. 1T is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.25 | ||
| Fwd PE | 10.86 |
4.2 Price Multiples
1T's Enterprise Value to EBITDA ratio is in line with the industry average.
72.73% of the companies in the same industry are more expensive than 1T, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.97 | ||
| EV/EBITDA | 7.21 |
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 2Y0.15%
EPS Next 3Y4.04%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.75%, 1T has a reasonable but not impressive dividend return.
1T's Dividend Yield is comparable with the industry average which is at 4.91.
Compared to an average S&P500 Dividend Yield of 2.38, 1T pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.75% |
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
64.83% of the earnings are spent on dividend by 1T. This is not a sustainable payout ratio.
DP64.83%
EPS Next 2Y0.15%
EPS Next 3Y4.04%
BIT:1T (11/3/2025, 7:00:00 PM)
21.04
-3.83 (-15.4%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners66.3%
Inst Owner ChangeN/A
Ins Owners0.06%
Ins Owner ChangeN/A
Market Cap150.44B
Revenue(TTM)123.98B
Net Income(TTM)12.66B
Analysts78.89
Price Target25.6 (21.67%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.75% |
Yearly Dividend0.98
Dividend Growth(5Y)-10.97%
DP64.83%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.78%
Min EPS beat(2)2.7%
Max EPS beat(2)2.87%
EPS beat(4)4
Avg EPS beat(4)3.78%
Min EPS beat(4)2.7%
Max EPS beat(4)6.05%
EPS beat(8)6
Avg EPS beat(8)1.22%
EPS beat(12)10
Avg EPS beat(12)2.2%
EPS beat(16)13
Avg EPS beat(16)2.36%
Revenue beat(2)0
Avg Revenue beat(2)-0.96%
Min Revenue beat(2)-1.08%
Max Revenue beat(2)-0.84%
Revenue beat(4)0
Avg Revenue beat(4)-1.45%
Min Revenue beat(4)-2.71%
Max Revenue beat(4)-0.84%
Revenue beat(8)0
Avg Revenue beat(8)-1.68%
Revenue beat(12)0
Avg Revenue beat(12)-1.77%
Revenue beat(16)0
Avg Revenue beat(16)-5.8%
PT rev (1m)0.41%
PT rev (3m)0.74%
EPS NQ rev (1m)0.08%
EPS NQ rev (3m)-1.76%
EPS NY rev (1m)-0.3%
EPS NY rev (3m)0.12%
Revenue NQ rev (1m)-0.06%
Revenue NQ rev (3m)0.42%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)0.64%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.25 | ||
| Fwd PE | 10.86 | ||
| P/S | 1.42 | ||
| P/FCF | 8.97 | ||
| P/OCF | 4.3 | ||
| P/B | 1.67 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.21 |
EPS(TTM)1.87
EY8.89%
EPS(NY)1.94
Fwd EY9.21%
FCF(TTM)2.35
FCFY11.15%
OCF(TTM)4.9
OCFY23.27%
SpS14.82
BVpS12.59
TBVpS-10.88
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.12% | ||
| ROE | 12.03% | ||
| ROCE | 6.9% | ||
| ROIC | 5.25% | ||
| ROICexc | 5.41% | ||
| ROICexgc | 12.47% | ||
| OM | 19.86% | ||
| PM (TTM) | 10.21% | ||
| GM | 59.67% | ||
| FCFM | 15.83% |
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 Turnover0.31
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.17 | ||
| Debt/FCF | 6.74 | ||
| Debt/EBITDA | 2.7 | ||
| Cap/Depr | 102% | ||
| Cap/Sales | 17.2% | ||
| Interest Coverage | 3.62 | ||
| Cash Conversion | 89.93% | ||
| Profit Quality | 154.96% | ||
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.76 | ||
| Altman-Z | 0.91 |
F-Score7
WACC6.79%
ROIC/WACC0.77
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)-4.78%
EPS 3Y-12.73%
EPS 5Y-8.79%
EPS Q2Q%-5.26%
EPS Next Y-7.63%
EPS Next 2Y0.15%
EPS Next 3Y4.04%
EPS Next 5Y5.24%
Revenue 1Y (TTM)1.46%
Revenue growth 3Y-3%
Revenue growth 5Y-7.56%
Sales Q2Q%3.52%
Revenue Next Year2.35%
Revenue Next 2Y1.86%
Revenue Next 3Y1.83%
Revenue Next 5Y2.29%
EBIT growth 1Y0.41%
EBIT growth 3Y-2.47%
EBIT growth 5Y-3.83%
EBIT Next Year97.55%
EBIT Next 3Y28.51%
EBIT Next 5Y17.43%
FCF growth 1Y7.65%
FCF growth 3Y-11.18%
FCF growth 5Y-8.74%
OCF growth 1Y10.7%
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 5 / 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 11.25 and the Price/Book (PB) ratio is 1.67.
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 -7.63% in the next year.