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TELEFONICA SA (1TEF.MI) Stock Fundamental Analysis

Europe - Euronext Milan - BIT:1TEF - ES0178430E18 - Common Stock

3.484 EUR
+0.06 (+1.87%)
Last: 12/29/2025, 7:00:00 PM
Fundamental Rating

3

Taking everything into account, 1TEF scores 3 out of 10 in our fundamental rating. 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.


Dividend Valuation Growth Profitability Health

4

1. Profitability

1.1 Basic Checks

  • In the past year 1TEF was profitable.
  • 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.
1TEF.MI Yearly Net Income VS EBIT VS OCF VS FCF1TEF.MI Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5B 10B 15B

1.2 Ratios

  • With a Return On Assets value of -4.10%, 1TEF is not doing good in the industry: 83.78% of the companies in the same industry are doing better.
  • 1TEF has a worse Return On Equity (-21.56%) than 83.78% of its industry peers.
  • The Return On Invested Capital of 1TEF (7.34%) is better than 64.86% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for 1TEF is below the industry average of 8.25%.
  • 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 RankSector 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%
1TEF.MI Yearly ROA, ROE, ROIC1TEF.MI Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 20 30

1.3 Margins

  • The Operating Margin of 1TEF (12.00%) is comparable to the rest of the industry.
  • 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 70.27% 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 RankSector 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%
1TEF.MI Yearly Profit, Operating, Gross Margins1TEF.MI Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 20 30 40 50

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2

2. Health

2.1 Basic Checks

  • 1TEF has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
  • Compared to 1 year ago, 1TEF has about the same amount of shares outstanding.
  • 1TEF has less shares outstanding than it did 5 years ago.
  • Compared to 1 year ago, 1TEF has a worse debt to assets ratio.
1TEF.MI Yearly Shares Outstanding1TEF.MI Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B
1TEF.MI Yearly Total Debt VS Total Assets1TEF.MI Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 20B 40B 60B 80B 100B

2.2 Solvency

  • The Debt to FCF ratio of 1TEF is 8.80, which is on the high side as it means it would take 1TEF, 8.80 years of fcf income to pay off 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 54.05% 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.
  • The Debt to Equity ratio of 1TEF (2.07) is worse than 86.49% of its industry peers.
Industry RankSector Rank
Debt/Equity 2.07
Debt/FCF 8.8
Altman-Z N/A
ROIC/WACC1.87
WACC3.92%
1TEF.MI Yearly LT Debt VS Equity VS FCF1TEF.MI Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 10B 20B 30B 40B

2.3 Liquidity

  • A Current Ratio of 0.84 indicates that 1TEF may have some problems paying its short term obligations.
  • The Current ratio of 1TEF (0.84) is better than 62.16% of its industry peers.
  • A Quick Ratio of 0.80 indicates that 1TEF may have some problems paying its short term obligations.
  • With a Quick ratio value of 0.80, 1TEF perfoms like the industry average, outperforming 59.46% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 0.84
Quick Ratio 0.8
1TEF.MI Yearly Current Assets VS Current Liabilites1TEF.MI Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 10B 20B 30B

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2

3. Growth

3.1 Past

  • 1TEF shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -34.78%.
  • 1TEF shows a strong growth in Revenue. In the last year, the Revenue has grown by 40.77%.
  • The Revenue has been decreasing by -3.12% on average over the past years.
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.
  • The Revenue is expected to decrease by -1.34% on average over the next years.
EPS Next Y-37.95%
EPS Next 2Y-9.33%
EPS Next 3Y-2.22%
EPS Next 5Y1.32%
Revenue Next Year-11.05%
Revenue Next 2Y-5.32%
Revenue Next 3Y-3.08%
Revenue Next 5Y-1.34%

3.3 Evolution

  • The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
1TEF.MI Yearly Revenue VS Estimates1TEF.MI Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 10B 20B 30B 40B 50B
1TEF.MI Yearly EPS VS Estimates1TEF.MI Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 0.2 0.4 0.6

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5

4. Valuation

4.1 Price/Earnings Ratio

  • 1TEF is valuated reasonably with a Price/Earnings ratio of 11.61.
  • Based on the Price/Earnings ratio, 1TEF is valued a bit cheaper than the industry average as 75.68% of the companies are valued more expensively.
  • The average S&P500 Price/Earnings ratio is at 27.30. 1TEF is valued rather cheaply when compared to this.
  • Based on the Price/Forward Earnings ratio of 10.59, the valuation of 1TEF can be described as reasonable.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of 1TEF indicates a somewhat cheap valuation: 1TEF is cheaper than 72.97% of the companies listed in the same industry.
  • The average S&P500 Price/Forward Earnings ratio is at 24.04. 1TEF is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 11.61
Fwd PE 10.59
1TEF.MI Price Earnings VS Forward Price Earnings1TEF.MI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • 97.30% of the companies in the same industry are more expensive than 1TEF, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 4.03
EV/EBITDA N/A
1TEF.MI Per share data1TEF.MI EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 4 6 8 10

4.3 Compensation for Growth

  • 1TEF's earnings are expected to decrease with -2.22% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-9.33%
EPS Next 3Y-2.22%

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5

5. Dividend

5.1 Amount

  • 1TEF has a Yearly Dividend Yield of 7.04%, which is a nice return.
  • 1TEF's Dividend Yield is rather good when compared to the industry average which is at 3.15. 1TEF pays more dividend than 97.30% of the companies in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.92, 1TEF pays a better dividend.
Industry RankSector Rank
Dividend Yield 7.04%

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-9.33%
EPS Next 3Y-2.22%
1TEF.MI Yearly Income VS Free CF VS Dividend1TEF.MI Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 2B 4B 6B

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TELEFONICA SA

BIT:1TEF (12/29/2025, 7:00:00 PM)

3.484

+0.06 (+1.87%)

Chartmill FA Rating
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)11-04
Earnings (Next)02-26
Inst Owners27.78%
Inst Owner ChangeN/A
Ins Owners0.37%
Ins Owner ChangeN/A
Market Cap19.64B
Revenue(TTM)57.11B
Net Income(TTM)-3.80B
Analysts53.75
Price Target4.14 (18.83%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 7.04%
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)-1.02%
PT rev (3m)-5.48%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-15.71%
EPS NY rev (1m)-4.31%
EPS NY rev (3m)-18.62%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.48%
Revenue NY rev (1m)-1.09%
Revenue NY rev (3m)-5.18%
Valuation
Industry RankSector Rank
PE 11.61
Fwd PE 10.59
P/S 0.34
P/FCF 4.03
P/OCF 1.9
P/B 1.12
P/tB N/A
EV/EBITDA N/A
EPS(TTM)0.3
EY8.61%
EPS(NY)0.33
Fwd EY9.44%
FCF(TTM)0.86
FCFY24.81%
OCF(TTM)1.83
OCFY52.62%
SpS10.13
BVpS3.12
TBVpS-1.5
PEG (NY)N/A
PEG (5Y)N/A
Graham Number4.59
Profitability
Industry RankSector 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 RankSector 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
WACC3.92%
ROIC/WACC1.87
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-37.95%
EPS Next 2Y-9.33%
EPS Next 3Y-2.22%
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-11.05%
Revenue Next 2Y-5.32%
Revenue Next 3Y-3.08%
Revenue Next 5Y-1.34%
EBIT growth 1Y59.92%
EBIT growth 3Y20.77%
EBIT growth 5Y4.69%
EBIT Next Year166.12%
EBIT Next 3Y40.69%
EBIT Next 5Y23.72%
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 4 / 10 to 1TEF.MI.


What is the valuation status of TELEFONICA SA (1TEF.MI) stock?

ChartMill assigns a valuation rating of 5 / 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 11.61 and the Price/Book (PB) ratio is 1.12.


What is the expected EPS growth for TELEFONICA SA (1TEF.MI) stock?

The Earnings per Share (EPS) of TELEFONICA SA (1TEF.MI) is expected to decline by -37.95% in the next year.