TELEFONICA SA (1TEF.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1TEF - ES0178430E18 - Common Stock
3.42 EUR
-0.06 (-1.87%)
We assign a fundamental rating of 3 out of 10 to 1TEF. 1TEF was compared to 31 industry peers in the Diversified Telecommunication Services industry. There are concerns on the financial health of 1TEF while its profitability can be described as average. 1TEF has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year 1TEF was profitable.
In the past year 1TEF had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: 1TEF reported negative net income in multiple years.
In the past 5 years 1TEF always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of -4.10%, 1TEF is not doing good in the industry: 78.79% of the companies in the same industry are doing better.
1TEF has a Return On Equity of -21.56%. This is in the lower half of the industry: 1TEF underperforms 78.79% of its industry peers.
With a decent Return On Invested Capital value of 7.34%, 1TEF is doing good in the industry, outperforming 69.70% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for 1TEF is below the industry average of 7.74%.
The last Return On Invested Capital (7.34%) for 1TEF is above the 3 year average (3.26%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.1% | ||
| ROE | -21.56% | ||
| ROIC | 7.34% |
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 (12.00%) which is in line with its industry peers.
In the last couple of years the Operating Margin of 1TEF has grown nicely.
1TEF's Gross Margin of 35.73% is on the low side compared to the rest of the industry. 1TEF is outperformed by 72.73% 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 | 12% | ||
| PM (TTM) | N/A | ||
| GM | 35.73% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so 1TEF is still creating some value.
The number of shares outstanding for 1TEF remains at a similar level compared to 1 year ago.
1TEF has less shares outstanding than it did 5 years ago.
1TEF has a worse debt/assets ratio than last year.
2.2 Solvency
1TEF has a debt to FCF ratio of 8.80. This is a slightly negative value and a sign of low solvency as 1TEF would need 8.80 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 8.80, 1TEF is in line with its industry, outperforming 51.52% of the companies in the same industry.
A Debt/Equity ratio of 2.07 is on the high side and indicates that 1TEF has dependencies on debt financing.
1TEF has a worse Debt to Equity ratio (2.07) than 81.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.07 | ||
| Debt/FCF | 8.8 | ||
| Altman-Z | N/A |
ROIC/WACC1.79
WACC4.09%
2.3 Liquidity
1TEF has a Current Ratio of 0.84. This is a bad value and indicates that 1TEF is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of 1TEF (0.84) is better than 63.64% of its industry peers.
A Quick Ratio of 0.80 indicates that 1TEF may have some problems paying its short term obligations.
With a decent Quick ratio value of 0.80, 1TEF is doing good in the industry, outperforming 60.61% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.8 |
3. Growth
3.1 Past
The earnings per share for 1TEF have decreased strongly by -34.78% in the last year.
The Revenue has grown by 40.77% in the past year. This is a very strong growth!
Measured over the past years, 1TEF shows a decrease in Revenue. The Revenue has been decreasing by -3.12% on average per year.
EPS 1Y (TTM)-34.78%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-18.18%
Revenue 1Y (TTM)40.77%
Revenue growth 3Y1.7%
Revenue growth 5Y-3.12%
Sales Q2Q%-10.63%
3.2 Future
Based on estimates for the next years, 1TEF will show a small growth in Earnings Per Share. The EPS will grow by 1.32% on average per year.
1TEF is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -1.53% yearly.
EPS Next Y-36.15%
EPS Next 2Y-10.35%
EPS Next 3Y-3.01%
EPS Next 5Y1.32%
Revenue Next Year-10.39%
Revenue Next 2Y-5.29%
Revenue Next 3Y-3.07%
Revenue Next 5Y-1.53%
3.3 Evolution
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
With a Price/Earnings ratio of 11.40, the valuation of 1TEF can be described as very reasonable.
Based on the Price/Earnings ratio, 1TEF is valued cheaper than 81.82% of the companies in the same industry.
1TEF's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.39.
A Price/Forward Earnings ratio of 10.64 indicates a reasonable valuation of 1TEF.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 1TEF indicates a somewhat cheap valuation: 1TEF is cheaper than 72.73% of the companies listed in the same industry.
1TEF is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.84, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.4 | ||
| Fwd PE | 10.64 |
4.2 Price Multiples
Compared to the rest of the industry, the Price/Free Cash Flow ratio of 1TEF indicates a rather cheap valuation: 1TEF is cheaper than 96.97% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.96 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
A cheap valuation may be justified as 1TEF's earnings are expected to decrease with -3.01% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-10.35%
EPS Next 3Y-3.01%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.98%, 1TEF is a good candidate for dividend investing.
1TEF's Dividend Yield is rather good when compared to the industry average which is at 3.36. 1TEF pays more dividend than 93.94% of the companies in the same industry.
1TEF's Dividend Yield is rather good when compared to the S&P500 average which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.98% |
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
The earnings of 1TEF are negative and hence is the payout ratio. 1TEF will probably not be able to sustain this dividend level.
DP-48.26%
EPS Next 2Y-10.35%
EPS Next 3Y-3.01%
BIT:1TEF (12/19/2025, 7:00:00 PM)
3.42
-0.06 (-1.87%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners27.99%
Inst Owner ChangeN/A
Ins Owners0.37%
Ins Owner ChangeN/A
Market Cap19.28B
Revenue(TTM)57.11B
Net Income(TTM)-3.80B
Analysts52.26
Price Target4.14 (21.05%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.98% |
Yearly Dividend0.33
Dividend Growth(5Y)-5.71%
DP-48.26%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)19.89%
Min EPS beat(2)13.76%
Max EPS beat(2)26.01%
EPS beat(4)2
Avg EPS beat(4)-3.18%
Min EPS beat(4)-51.51%
Max EPS beat(4)26.01%
EPS beat(8)6
Avg EPS beat(8)10.19%
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)0
Avg Revenue beat(2)-1.45%
Min Revenue beat(2)-1.77%
Max Revenue beat(2)-1.14%
Revenue beat(4)1
Avg Revenue beat(4)-1.15%
Min Revenue beat(4)-2.28%
Max Revenue beat(4)0.57%
Revenue beat(8)3
Avg Revenue beat(8)0.48%
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)-8.16%
PT rev (3m)-5.48%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-15.71%
EPS NY rev (1m)-1.53%
EPS NY rev (3m)-16.25%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.48%
Revenue NY rev (1m)-0.35%
Revenue NY rev (3m)-4.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.4 | ||
| Fwd PE | 10.64 | ||
| P/S | 0.34 | ||
| P/FCF | 3.96 | ||
| P/OCF | 1.87 | ||
| P/B | 1.09 | ||
| P/tB | N/A | ||
| EV/EBITDA | N/A |
EPS(TTM)0.3
EY8.77%
EPS(NY)0.32
Fwd EY9.4%
FCF(TTM)0.86
FCFY25.28%
OCF(TTM)1.83
OCFY53.6%
SpS10.13
BVpS3.12
TBVpS-1.5
PEG (NY)N/A
PEG (5Y)N/A
Graham Number4.59
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.1% | ||
| ROE | -21.56% | ||
| ROCE | 9.79% | ||
| ROIC | 7.34% | ||
| ROICexc | 8.07% | ||
| ROICexgc | 13.67% | ||
| OM | 12% | ||
| PM (TTM) | N/A | ||
| GM | 35.73% | ||
| FCFM | 8.53% |
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%
ROICexgc growth 3Y26.02%
ROICexgc 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-Score4
Asset Turnover0.62
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.07 | ||
| Debt/FCF | 8.8 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | 9.56% | ||
| Interest Coverage | -7.45 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.8 | ||
| Altman-Z | N/A |
F-Score4
WACC4.09%
ROIC/WACC1.79
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)-34.78%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-18.18%
EPS Next Y-36.15%
EPS Next 2Y-10.35%
EPS Next 3Y-3.01%
EPS Next 5Y1.32%
Revenue 1Y (TTM)40.77%
Revenue growth 3Y1.7%
Revenue growth 5Y-3.12%
Sales Q2Q%-10.63%
Revenue Next Year-10.39%
Revenue Next 2Y-5.29%
Revenue Next 3Y-3.07%
Revenue Next 5Y-1.53%
EBIT growth 1Y59.92%
EBIT growth 3Y20.77%
EBIT growth 5Y4.69%
EBIT Next Year169.05%
EBIT Next 3Y40.87%
EBIT Next 5Y23.75%
FCF growth 1Y-20.22%
FCF growth 3Y6.37%
FCF growth 5Y-7.72%
OCF growth 1Y-14.64%
OCF growth 3Y0.61%
OCF growth 5Y-7%
TELEFONICA SA / 1TEF.MI FAQ
Can you provide the ChartMill fundamental rating for TELEFONICA SA?
ChartMill assigns a fundamental rating of 3 / 10 to 1TEF.MI.
What is the valuation status for 1TEF stock?
ChartMill assigns a valuation rating of 6 / 10 to TELEFONICA SA (1TEF.MI). This can be considered as Fairly Valued.
What is the profitability of 1TEF stock?
TELEFONICA SA (1TEF.MI) has a profitability rating of 4 / 10.
Can you provide the PE and PB ratios for 1TEF stock?
The Price/Earnings (PE) ratio for TELEFONICA SA (1TEF.MI) is 11.4 and the Price/Book (PB) ratio is 1.09.
How financially healthy is TELEFONICA SA?
The financial health rating of TELEFONICA SA (1TEF.MI) is 3 / 10.