TELEFONICA SA (1TEF.MI) Fundamental Analysis & Valuation

BIT:1TEF • ES0178430E18

3.615 EUR
+0.13 (+3.76%)
Last: Mar 10, 2026, 07:00 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Forecast Earnings Financials Ownership

This 1TEF.MI fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

Fundamental Rating

4

Overall 1TEF gets a fundamental rating of 4 out of 10. We evaluated 1TEF against 33 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 on the other hand it scores bad on growth.


Dividend Valuation Growth Profitability Health

4

1. 1TEF.MI Profitability Analysis

1.1 Basic Checks

  • In the past year 1TEF was profitable.
  • 1TEF had a positive operating cash flow in the past year.
  • In multiple years 1TEF reported negative net income over the last 5 years.
  • 1TEF had a positive operating cash flow in each of the past 5 years.
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 2025 0 5B 10B 15B

1.2 Ratios

  • 1TEF's Return On Assets of -4.10% is on the low side compared to the rest of the industry. 1TEF is outperformed by 80.00% of its industry peers.
  • Looking at the Return On Equity, with a value of -21.56%, 1TEF is doing worse than 80.00% of the companies in the same industry.
  • The Return On Invested Capital of 1TEF (7.34%) is better than 73.33% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for 1TEF is below the industry average of 7.98%.
  • 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 2025 0 20 -20

1.3 Margins

  • 1TEF's Operating Margin of 12.00% is in line compared to the rest of the industry. 1TEF outperforms 53.33% of its industry peers.
  • 1TEF's Operating Margin has improved in the last couple of years.
  • 1TEF has a worse Gross Margin (35.73%) than 70.00% of its industry peers.
  • 1TEF's Gross Margin has been stable in the last couple of years.
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 2025 0 20 40

More info and screens

ROAROEROICOperating and Profit MarginShow most profitable peers

3

2. 1TEF.MI Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), 1TEF is creating some value.
  • The number of shares outstanding for 1TEF has been reduced compared to 1 year ago.
  • The number of shares outstanding for 1TEF has been reduced compared to 5 years ago.
  • Compared to 1 year ago, 1TEF has an improved debt to assets ratio.
1TEF.MI Yearly Shares Outstanding1TEF.MI Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 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 2025 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.
  • 1TEF has a Debt to FCF ratio of 8.80. This is comparable to the rest of the industry: 1TEF outperforms 53.33% of its industry peers.
  • 1TEF has a Debt/Equity ratio of 2.07. This is a high value indicating a heavy dependency on external financing.
  • 1TEF has a Debt to Equity ratio of 2.07. This is amonst the worse of the industry: 1TEF underperforms 83.33% of its industry peers.
Industry RankSector Rank
Debt/Equity 2.07
Debt/FCF 8.8
Altman-Z N/A
ROIC/WACC1.77
WACC4.14%
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 2025 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.
  • 1TEF has a Current ratio (0.84) which is in line with 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 53.33% 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 2025 10B 20B 30B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

2

3. 1TEF.MI Growth Analysis

3.1 Past

  • 1TEF shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -34.78%.
  • The Revenue has grown by 40.77% in the past year. This is a very strong growth!
  • 1TEF shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -3.12% yearly.
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

  • 1TEF is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 1.32% yearly.
  • 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

  • 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.
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. 1TEF.MI Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 12.05 indicates a correct valuation of 1TEF.
  • 73.33% of the companies in the same industry are more expensive than 1TEF, based on the Price/Earnings ratio.
  • Compared to an average S&P500 Price/Earnings ratio of 25.70, 1TEF is valued rather cheaply.
  • 1TEF is valuated reasonably with a Price/Forward Earnings ratio of 10.99.
  • 1TEF's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. 1TEF is cheaper than 76.67% of the companies 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 RankSector Rank
PE 12.05
Fwd PE 10.99
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

  • Based on the Price/Free Cash Flow ratio, 1TEF is valued cheaper than 96.67% of the companies in the same industry.
Industry RankSector Rank
P/FCF 4.18
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

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

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

6

5. 1TEF.MI Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 6.81%, 1TEF is a good candidate for dividend investing.
  • Compared to an average industry Dividend Yield of 2.91, 1TEF pays a better dividend. On top of this 1TEF pays more dividend than 96.67% of the companies listed in the same industry.
  • 1TEF's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
Industry RankSector Rank
Dividend Yield 6.81%

5.2 History

  • On average, the dividend of 1TEF grows each year by 8.88%, which is quite nice.
Dividend Growth(5Y)8.88%
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.
  • 1TEF's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
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 2025 0 2B -2B 4B -4B 6B

More info and screens

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1TEF.MI Fundamentals: All Metrics, Ratios and Statistics

TELEFONICA SA

BIT:1TEF (3/10/2026, 7:00:00 PM)

3.615

+0.13 (+3.76%)

Chartmill FA Rating
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)02-24
Earnings (Next)05-14
Inst Owners28.06%
Inst Owner ChangeN/A
Ins Owners0.37%
Ins Owner ChangeN/A
Market Cap20.38B
Revenue(TTM)57.11B
Net Income(TTM)-3.80B
Analysts54.38
Price Target4.06 (12.31%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 6.81%
Yearly Dividend0.33
Dividend Growth(5Y)8.88%
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 12.05
Fwd PE 10.99
P/S 0.36
P/FCF 4.18
P/OCF 1.97
P/B 1.16
P/tB N/A
EV/EBITDA N/A
EPS(TTM)0.3
EY8.3%
EPS(NY)0.33
Fwd EY9.1%
FCF(TTM)0.86
FCFY23.91%
OCF(TTM)1.83
OCFY50.71%
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
WACC4.14%
ROIC/WACC1.77
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 12.05 and the Price/Book (PB) ratio is 1.16.


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.