AT&T INC (1T.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1T - US00206R1023 - Common Stock
20.35 EUR
-0.37 (-1.81%)
1T gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 31 industry peers in the Diversified Telecommunication Services industry. Both the profitability and the financial health of 1T get a neutral evaluation. Nothing too spectacular is happening here. 1T has a valuation in line with the averages, but on the other hand it scores bad on growth.
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.
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
With an excellent Return On Assets value of 5.24%, 1T belongs to the best of the industry, outperforming 81.82% of the companies in the same industry.
1T's Return On Equity of 20.02% is amongst the best of the industry. 1T outperforms 84.85% of its industry peers.
The Return On Invested Capital of 1T (4.98%) is worse than 60.61% of its industry peers.
The Average Return On Invested Capital over the past 3 years for 1T is below the industry average of 8.25%.
| 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
Looking at the Profit Margin, with a value of 17.81%, 1T belongs to the top 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 has a Operating Margin of 19.44%. This is in the better half 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.
1T has a Gross Margin of 59.67%. This is comparable to the rest of the industry: 1T outperforms 57.58% of its industry peers.
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
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
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
1T has an Altman-Z score of 0.86. This is a bad value and indicates that 1T is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of 1T (0.86) is worse than 63.64% 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.
With a decent Debt to FCF ratio value of 6.99, 1T is doing good in the industry, outperforming 66.67% 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.
1T's Debt to Equity ratio of 1.16 is fine compared to the rest of the industry. 1T outperforms 63.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.16 | ||
| Debt/FCF | 6.99 | ||
| Altman-Z | 0.86 |
ROIC/WACC0.75
WACC6.64%
2.3 Liquidity
A Current Ratio of 1.01 indicates that 1T should not have too much problems paying its short term obligations.
1T's Current ratio of 1.01 is amongst the best of the industry. 1T outperforms 93.94% of its industry peers.
A Quick Ratio of 0.96 indicates that 1T may have some problems paying its short term obligations.
With an excellent Quick ratio value of 0.96, 1T belongs to the best of the industry, outperforming 90.91% 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%.
The Earnings Per Share has been decreasing by -8.79% on average over the past years.
The Revenue has been growing slightly by 1.98% in the past year.
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.
The Revenue is expected to grow by 2.26% on average over the next years.
EPS Next Y-7.41%
EPS Next 2Y0.35%
EPS Next 3Y3.73%
EPS Next 5Y5.7%
Revenue Next Year2.29%
Revenue Next 2Y1.87%
Revenue Next 3Y1.92%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 11.24, the valuation of 1T can be described as very reasonable.
81.82% of the companies in the same industry are more expensive than 1T, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.25, 1T is valued rather cheaply.
With a Price/Forward Earnings ratio of 10.51, the valuation of 1T can be described as very reasonable.
Based on the Price/Forward Earnings ratio, 1T is valued a bit cheaper than the industry average as 69.70% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.98, 1T is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.24 | ||
| Fwd PE | 10.51 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as 1T.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of 1T indicates a somewhat cheap valuation: 1T is cheaper than 78.79% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.49 | ||
| EV/EBITDA | 6.45 |
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 2Y0.35%
EPS Next 3Y3.73%
5. Dividend
5.1 Amount
1T has a Yearly Dividend Yield of 4.47%, which is a nice return.
1T's Dividend Yield is a higher than the industry average which is at 3.15.
Compared to an average S&P500 Dividend Yield of 1.92, 1T pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.47% |
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 2Y0.35%
EPS Next 3Y3.73%
BIT:1T (1/12/2026, 7:00:00 PM)
20.35
-0.37 (-1.81%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners67.23%
Inst Owner ChangeN/A
Ins Owners0.06%
Ins Owner ChangeN/A
Market Cap144.27B
Revenue(TTM)124.48B
Net Income(TTM)22.17B
Analysts78.82
Price Target25.44 (25.01%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.47% |
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)-3.12%
PT rev (3m)-0.6%
EPS NQ rev (1m)0.25%
EPS NQ rev (3m)2.21%
EPS NY rev (1m)0.02%
EPS NY rev (3m)0.25%
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 | 11.24 | ||
| Fwd PE | 10.51 | ||
| P/S | 1.36 | ||
| P/FCF | 8.49 | ||
| P/OCF | 4.15 | ||
| P/B | 1.53 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.45 |
EPS(TTM)1.81
EY8.89%
EPS(NY)1.94
Fwd EY9.52%
FCF(TTM)2.4
FCFY11.77%
OCF(TTM)4.91
OCFY24.1%
SpS14.94
BVpS13.29
TBVpS-10.29
PEG (NY)N/A
PEG (5Y)N/A
Graham Number23.26
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
WACC6.64%
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-7.41%
EPS Next 2Y0.35%
EPS Next 3Y3.73%
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 3Y1.92%
Revenue Next 5Y2.26%
EBIT growth 1Y-1.92%
EBIT growth 3Y-2.47%
EBIT growth 5Y-3.83%
EBIT Next Year98.37%
EBIT Next 3Y28.57%
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 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 11.24 and the Price/Book (PB) ratio is 1.53.
How financially healthy is AT&T INC?
The financial health rating of AT&T INC (1T.MI) is 4 / 10.