AT&T INC (1T.MI) Stock Fundamental Analysis
Europe - BIT:1T - US00206R1023 - Common Stock
21.505 EUR
+0.46 (+2.21%)
Overall 1T gets a fundamental rating of 5 out of 10. We evaluated 1T against 30 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
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.
In the past 5 years 1T always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 5.24%, 1T belongs to the best of the industry, outperforming 87.10% of the companies in the same industry.
1T has a better Return On Equity (20.02%) than 77.42% of its industry peers.
With a Return On Invested Capital value of 4.98%, 1T is not doing good in the industry: 61.29% 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 8.12%.
| 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 93.55% of the companies in the same industry.
1T's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 19.44%, 1T is doing good in the industry, outperforming 70.97% of the companies in the same industry.
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.
Compared to 1 year ago, 1T has more shares outstanding
Compared to 5 years ago, 1T has less shares outstanding
The debt/assets ratio for 1T has been reduced compared to a year ago.
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 Altman-Z score of 0.87. This is in the lower half of the industry: 1T underperforms 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.
Looking at the Debt to FCF ratio, with a value of 6.99, 1T is in the better half of the industry, outperforming 64.52% of the companies in the same industry.
A Debt/Equity ratio of 1.16 is on the high side and indicates that 1T has dependencies on debt financing.
The Debt to Equity ratio of 1T (1.16) is better than 64.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.16 | ||
| Debt/FCF | 6.99 | ||
| Altman-Z | 0.87 |
ROIC/WACC0.75
WACC6.66%
2.3 Liquidity
1T has a Current Ratio of 1.01. This is a normal value and indicates that 1T is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.01, 1T is in the better half of the industry, outperforming 74.19% of the companies in the same industry.
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.
Looking at the Quick ratio, with a value of 0.96, 1T is in the better half of the industry, outperforming 74.19% of the companies in the same industry.
| 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%.
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 1.98%.
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
The Earnings Per Share is expected to grow by 5.70% on average over the next years.
1T is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.26% yearly.
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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 11.75 indicates a reasonable valuation of 1T.
80.65% of the companies in the same industry are more expensive than 1T, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of 1T to the average of the S&P500 Index (25.89), we can say 1T is valued rather cheaply.
The Price/Forward Earnings ratio is 10.99, which indicates a very decent valuation of 1T.
1T's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. 1T is cheaper than 70.97% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.59, 1T is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.75 | ||
| Fwd PE | 10.99 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 1T indicates a somewhat cheap valuation: 1T is cheaper than 61.29% of the companies listed in the same industry.
1T's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. 1T is cheaper than 67.74% of the companies 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
1T has a Yearly Dividend Yield of 6.17%, which is a nice return.
1T's Dividend Yield is a higher than the industry average which is at 4.92.
1T's Dividend Yield is rather good when compared to the S&P500 average which is at 2.44.
| 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.