AT&T INC (1T.MI) Stock Fundamental Analysis
Europe - BIT:1T - US00206R1023 - Common Stock
21.505 EUR
+0.46 (+2.21%)
Taking everything into account, 1T scores 4 out of 10 in our fundamental rating. 1T was compared to 31 industry peers in the Diversified Telecommunication Services industry. 1T has a medium profitability rating, but doesn't score so well on its financial health evaluation. 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.
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 has a Return On Assets (3.12%) which is in line with its industry peers.
Looking at the Return On Equity, with a value of 12.03%, 1T is in the better half of the industry, outperforming 61.29% of the companies in the same industry.
1T has a Return On Invested Capital (5.25%) which is in line with 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 7.62%.
The 3 year average ROIC (5.19%) for 1T is below the current ROIC(5.25%), indicating increased profibility in the last year.
| 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
1T has a better Profit Margin (10.21%) than 61.29% of its industry peers.
In the last couple of years the Profit Margin of 1T has grown nicely.
1T has a Operating Margin of 19.86%. This is in the better half of the industry: 1T outperforms 70.97% of its industry peers.
In the last couple of years the Operating Margin of 1T has grown nicely.
With a Gross Margin value of 59.67%, 1T perfoms like the industry average, outperforming 51.61% 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
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.
1T has less shares outstanding than it did 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.
1T has a worse Altman-Z score (0.86) than 70.97% of its industry peers.
The Debt to FCF ratio of 1T is 6.74, which is on the high side as it means it would take 1T, 6.74 years of fcf income to pay off all of its debts.
1T has a better Debt to FCF ratio (6.74) than 64.52% of its industry peers.
A Debt/Equity ratio of 1.17 is on the high side and indicates that 1T has dependencies on debt financing.
1T has a better Debt to Equity ratio (1.17) than 61.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.17 | ||
| Debt/FCF | 6.74 | ||
| Altman-Z | 0.86 |
ROIC/WACC0.79
WACC6.66%
2.3 Liquidity
1T has a Current Ratio of 0.81. 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 Current ratio of 0.81. This is comparable to the rest of the industry: 1T outperforms 48.39% of its industry peers.
A Quick Ratio of 0.76 indicates that 1T may have some problems paying its short term obligations.
1T has a Quick ratio (0.76) which is comparable to the rest of the industry.
| 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.
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.
Looking at the last year, 1T shows a small growth in Revenue. The Revenue has grown by 1.46% in the last year.
The Revenue has been decreasing by -7.56% on average over the past years.
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
The Price/Earnings ratio is 11.44, which indicates a very decent valuation of 1T.
Based on the Price/Earnings ratio, 1T is valued cheaply inside the industry as 80.65% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 25.89, 1T is valued rather cheaply.
The Price/Forward Earnings ratio is 11.02, which indicates a very decent valuation of 1T.
Based on the Price/Forward Earnings ratio, 1T is valued a bit cheaper than the industry average as 74.19% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of 1T to the average of the S&P500 Index (34.59), we can say 1T is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.44 | ||
| Fwd PE | 11.02 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 1T is valued a bit cheaper than the industry average as 61.29% of the companies are valued more expensively.
67.74% 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 | 9.1 | ||
| EV/EBITDA | 6.6 |
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 2Y0.15%
EPS Next 3Y4.04%
5. Dividend
5.1 Amount
1T has a Yearly Dividend Yield of 6.17%, which is a nice return.
1T's Dividend Yield is comparable with the industry average which is at 5.19.
Compared to an average S&P500 Dividend Yield of 2.42, 1T pays a better dividend.
| 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
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 (11/7/2025, 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)123.98B
Net Income(TTM)12.66B
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%
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 | 11.44 | ||
| Fwd PE | 11.02 | ||
| P/S | 1.44 | ||
| P/FCF | 9.1 | ||
| P/OCF | 4.36 | ||
| P/B | 1.7 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.6 |
EPS(TTM)1.88
EY8.74%
EPS(NY)1.95
Fwd EY9.07%
FCF(TTM)2.36
FCFY10.98%
OCF(TTM)4.93
OCFY22.92%
SpS14.92
BVpS12.67
TBVpS-10.95
PEG (NY)N/A
PEG (5Y)N/A
Graham Number23.15
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 | 0.86 |
F-Score7
WACC6.66%
ROIC/WACC0.79
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 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 11.44 and the Price/Book (PB) ratio is 1.7.
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.