TELEFONICA SA (1TEF.MI) Stock Fundamental Analysis
Europe - BIT:1TEF - ES0178430E18 - Common Stock
4.66 EUR
+0.69 (+17.32%)
Taking everything into account, 1TEF scores 3 out of 10 in our fundamental rating. 1TEF was compared to 30 industry peers in the Diversified Telecommunication Services industry. Both the profitability and financial health of 1TEF have multiple concerns. 1TEF has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
1TEF had positive earnings in the past year.
1TEF had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: 1TEF reported negative net income in multiple years.
Each year in the past 5 years 1TEF had a positive operating cash flow.
1.2 Ratios
1TEF's Return On Assets of -2.17% is on the low side compared to the rest of the industry. 1TEF is outperformed by 80.00% of its industry peers.
With a Return On Equity value of -10.91%, 1TEF is not doing good in the industry: 80.00% of the companies in the same industry are doing better.
1TEF's Return On Invested Capital of 2.48% is on the low side compared to the rest of the industry. 1TEF is outperformed by 76.67% of its industry peers.
1TEF had an Average Return On Invested Capital over the past 3 years of 3.26%. This is below the industry average of 7.68%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.17% | ||
| ROE | -10.91% | ||
| ROIC | 2.48% |
ROA(3y)0.08%
ROA(5y)1.74%
ROE(3y)0.1%
ROE(5y)9.53%
ROIC(3y)3.26%
ROIC(5y)3.34%
1.3 Margins
1TEF has a Operating Margin of 6.11%. This is in the lower half of the industry: 1TEF underperforms 66.67% of its industry peers.
In the last couple of years the Operating Margin of 1TEF has grown nicely.
1TEF has a Gross Margin of 50.52%. This is in the lower half of the industry: 1TEF underperforms 60.00% of its industry peers.
In the last couple of years the Gross Margin of 1TEF has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.11% | ||
| PM (TTM) | N/A | ||
| GM | 50.52% |
OM growth 3Y18.75%
OM growth 5Y8.06%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.37%
GM growth 5Y-1.04%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 1TEF is destroying value.
1TEF has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, 1TEF has less shares outstanding
1TEF has a worse debt/assets ratio than last year.
2.2 Solvency
The Debt to FCF ratio of 1TEF is 8.71, which is on the high side as it means it would take 1TEF, 8.71 years of fcf income to pay off all of its debts.
1TEF has a Debt to FCF ratio (8.71) which is comparable to the rest of the industry.
A Debt/Equity ratio of 1.96 is on the high side and indicates that 1TEF has dependencies on debt financing.
1TEF has a Debt to Equity ratio of 1.96. This is in the lower half of the industry: 1TEF underperforms 73.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.96 | ||
| Debt/FCF | 8.71 | ||
| Altman-Z | N/A |
ROIC/WACC0.62
WACC4.02%
2.3 Liquidity
A Current Ratio of 0.97 indicates that 1TEF may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.97, 1TEF belongs to the top of the industry, outperforming 86.67% of the companies in the same industry.
A Quick Ratio of 0.93 indicates that 1TEF may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.93, 1TEF belongs to the top of the industry, outperforming 86.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.97 | ||
| Quick Ratio | 0.93 |
3. Growth
3.1 Past
The earnings per share for 1TEF have decreased strongly by -27.27% in the last year.
The Revenue has been growing slightly by 1.63% in the past year.
1TEF shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -3.12% yearly.
EPS 1Y (TTM)-27.27%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-41.67%
Revenue 1Y (TTM)1.63%
Revenue growth 3Y1.7%
Revenue growth 5Y-3.12%
Sales Q2Q%-12.7%
3.2 Future
1TEF is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 1.42% yearly.
Based on estimates for the next years, 1TEF will show a decrease in Revenue. The Revenue will decrease by -0.53% on average per year.
EPS Next Y-23.76%
EPS Next 2Y-11.43%
EPS Next 3Y-4.55%
EPS Next 5Y1.42%
Revenue Next Year-6.19%
Revenue Next 2Y-3.06%
Revenue Next 3Y-1.67%
Revenue Next 5Y-0.53%
3.3 Evolution
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 14.56, 1TEF is valued correctly.
1TEF's Price/Earnings ratio is a bit cheaper when compared to the industry. 1TEF is cheaper than 76.67% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.41, 1TEF is valued a bit cheaper.
With a Price/Forward Earnings ratio of 14.85, 1TEF is valued correctly.
The rest of the industry has a similar Price/Forward Earnings ratio as 1TEF.
1TEF is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.88, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.56 | ||
| Fwd PE | 14.85 |
4.2 Price Multiples
93.33% of the companies in the same industry are more expensive than 1TEF, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.03 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
A cheap valuation may be justified as 1TEF's earnings are expected to decrease with -4.55% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-11.43%
EPS Next 3Y-4.55%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.09%, 1TEF is a good candidate for dividend investing.
1TEF's Dividend Yield is a higher than the industry average which is at 4.57.
Compared to an average S&P500 Dividend Yield of 2.38, 1TEF pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.09% |
5.2 History
The dividend of 1TEF decreases each year by -5.71%.
Dividend Growth(5Y)-5.71%
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
1TEF has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-81.03%
EPS Next 2Y-11.43%
EPS Next 3Y-4.55%
BIT:1TEF (8/6/2025, 7:00:00 PM)
4.66
+0.69 (+17.32%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners23.12%
Inst Owner ChangeN/A
Ins Owners0.37%
Ins Owner ChangeN/A
Market Cap26.27B
Analysts53.75
Price Target4.38 (-6.01%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.09% |
Yearly Dividend0.33
Dividend Growth(5Y)-5.71%
DP-81.03%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-26.25%
Min EPS beat(2)-51.51%
Max EPS beat(2)-0.99%
EPS beat(4)2
Avg EPS beat(4)0.77%
Min EPS beat(4)-51.51%
Max EPS beat(4)36.57%
EPS beat(8)5
Avg EPS beat(8)2.39%
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)-0.85%
Min Revenue beat(2)-2.28%
Max Revenue beat(2)0.57%
Revenue beat(4)2
Avg Revenue beat(4)-0.48%
Min Revenue beat(4)-2.28%
Max Revenue beat(4)1.19%
Revenue beat(8)3
Avg Revenue beat(8)0.81%
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)2.25%
PT rev (3m)2.25%
EPS NQ rev (1m)-38.89%
EPS NQ rev (3m)-38.89%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)-5.82%
Revenue NQ rev (3m)-5.82%
Revenue NY rev (1m)-5.82%
Revenue NY rev (3m)-5.82%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.56 | ||
| Fwd PE | 14.85 | ||
| P/S | 0.65 | ||
| P/FCF | 5.03 | ||
| P/OCF | 2.47 | ||
| P/B | 1.33 | ||
| P/tB | N/A | ||
| EV/EBITDA | N/A |
EPS(TTM)0.32
EY6.87%
EPS(NY)0.31
Fwd EY6.73%
FCF(TTM)0.93
FCFY19.88%
OCF(TTM)1.88
OCFY40.43%
SpS7.17
BVpS3.5
TBVpS-1.2
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.17% | ||
| ROE | -10.91% | ||
| ROCE | 3.3% | ||
| ROIC | 2.48% | ||
| ROICexc | 2.87% | ||
| ROICexgc | 4.86% | ||
| OM | 6.11% | ||
| PM (TTM) | N/A | ||
| GM | 50.52% | ||
| FCFM | 12.93% |
ROA(3y)0.08%
ROA(5y)1.74%
ROE(3y)0.1%
ROE(5y)9.53%
ROIC(3y)3.26%
ROIC(5y)3.34%
ROICexc(3y)3.65%
ROICexc(5y)3.75%
ROICexgc(3y)6.07%
ROICexgc(5y)6.25%
ROCE(3y)4.35%
ROCE(5y)4.46%
ROICexcg growth 3Y26.02%
ROICexcg growth 5Y3.81%
ROICexc growth 3Y25.08%
ROICexc growth 5Y8.63%
OM growth 3Y18.75%
OM growth 5Y8.06%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.37%
GM growth 5Y-1.04%
F-Score6
Asset Turnover0.41
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.96 | ||
| Debt/FCF | 8.71 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | 13.37% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.97 | ||
| Quick Ratio | 0.93 | ||
| Altman-Z | N/A |
F-Score6
WACC4.02%
ROIC/WACC0.62
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)13.84%
Cap/Sales(5y)14.7%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-27.27%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-41.67%
EPS Next Y-23.76%
EPS Next 2Y-11.43%
EPS Next 3Y-4.55%
EPS Next 5Y1.42%
Revenue 1Y (TTM)1.63%
Revenue growth 3Y1.7%
Revenue growth 5Y-3.12%
Sales Q2Q%-12.7%
Revenue Next Year-6.19%
Revenue Next 2Y-3.06%
Revenue Next 3Y-1.67%
Revenue Next 5Y-0.53%
EBIT growth 1Y-41.72%
EBIT growth 3Y20.77%
EBIT growth 5Y4.69%
EBIT Next Year177.98%
EBIT Next 3Y41.61%
EBIT Next 5Y16.97%
FCF growth 1Y-16.47%
FCF growth 3Y6.37%
FCF growth 5Y-7.72%
OCF growth 1Y-11.92%
OCF growth 3Y0.61%
OCF growth 5Y-7%