TELEFONICA SA (1TEF.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1TEF - ES0178430E18 - Common Stock
3.6 EUR
-0.02 (-0.69%)
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. 1TEF has a medium profitability rating, but doesn't score so well on its financial health evaluation. 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
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.
Each year in the past 5 years 1TEF had a positive operating cash flow.
1.2 Ratios
The Return On Assets of 1TEF (-4.30%) is worse than 73.33% of its industry peers.
With a Return On Equity value of -23.50%, 1TEF is not doing good in the industry: 73.33% of the companies in the same industry are doing better.
1TEF's Return On Invested Capital of 7.25% is fine compared to the rest of the industry. 1TEF outperforms 70.00% 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 8.12%.
The 3 year average ROIC (3.26%) for 1TEF is below the current ROIC(7.25%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.3% | ||
| ROE | -23.5% | ||
| ROIC | 7.25% |
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 11.51%. This is comparable to the rest of the industry: 1TEF outperforms 60.00% of its industry peers.
In the last couple of years the Operating Margin of 1TEF has grown nicely.
Looking at the Gross Margin, with a value of 35.08%, 1TEF is doing worse than 66.67% of the companies in the same industry.
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 | 11.51% | ||
| PM (TTM) | N/A | ||
| GM | 35.08% |
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) well above the Cost of Capital (WACC), 1TEF is creating 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.
Compared to 1 year ago, 1TEF has a worse debt to assets ratio.
2.2 Solvency
1TEF has an Altman-Z score of 1.27. This is a bad value and indicates that 1TEF is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.27, 1TEF is in line with its industry, outperforming 60.00% of the companies in the same industry.
1TEF has a debt to FCF ratio of 7.98. This is a slightly negative value and a sign of low solvency as 1TEF would need 7.98 years to pay back of all of its debts.
1TEF has a Debt to FCF ratio (7.98) which is in line with its industry peers.
1TEF has a Debt/Equity ratio of 2.11. This is a high value indicating a heavy dependency on external financing.
1TEF has a worse Debt to Equity ratio (2.11) than 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.11 | ||
| Debt/FCF | 7.98 | ||
| Altman-Z | 1.27 |
ROIC/WACC1.84
WACC3.95%
2.3 Liquidity
A Current Ratio of 0.85 indicates that 1TEF may have some problems paying its short term obligations.
1TEF has a Current ratio (0.85) which is in line with its industry peers.
1TEF has a Quick Ratio of 0.85. This is a bad value and indicates that 1TEF is not financially healthy enough and could expect problems in meeting its short term obligations.
1TEF has a Quick ratio (0.81) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.81 |
3. Growth
3.1 Past
1TEF shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -33.56%.
Looking at the last year, 1TEF shows a small growth in Revenue. The Revenue has grown by 1.63% in the last year.
The Revenue has been decreasing by -3.12% on average over the past years.
EPS 1Y (TTM)-33.56%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-13.08%
Revenue 1Y (TTM)1.63%
Revenue growth 3Y1.7%
Revenue growth 5Y-3.12%
Sales Q2Q%-9.19%
3.2 Future
The Earnings Per Share is expected to grow by 2.78% on average over the next years.
Based on estimates for the next years, 1TEF will show a small growth in Revenue. The Revenue will grow by 0.16% on average per year.
EPS Next Y-35.16%
EPS Next 2Y-8.66%
EPS Next 3Y-1.97%
EPS Next 5Y2.78%
Revenue Next Year-10.08%
Revenue Next 2Y-4.93%
Revenue Next 3Y-2.83%
Revenue Next 5Y0.16%
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 11.61, the valuation of 1TEF can be described as very reasonable.
Based on the Price/Earnings ratio, 1TEF is valued cheaper than 83.33% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 25.45. 1TEF is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 10.79, which indicates a very decent 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 70.00% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.46, 1TEF is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.61 | ||
| Fwd PE | 10.79 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, 1TEF is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.62 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-8.66%
EPS Next 3Y-1.97%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.54%, 1TEF is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.69, 1TEF pays a better dividend. On top of this 1TEF pays more dividend than 83.33% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.42, 1TEF pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.54% |
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-45.46%
EPS Next 2Y-8.66%
EPS Next 3Y-1.97%
BIT:1TEF (11/10/2025, 7:00:00 PM)
3.6
-0.02 (-0.69%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners28.04%
Inst Owner ChangeN/A
Ins Owners0.37%
Ins Owner ChangeN/A
Market Cap20.30B
Revenue(TTM)41.31B
Net Income(TTM)-4.06B
Analysts54.19
Price Target4.51 (25.28%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.54% |
Yearly Dividend0.33
Dividend Growth(5Y)-5.71%
DP-45.46%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)12.51%
Min EPS beat(2)-0.99%
Max EPS beat(2)26.01%
EPS beat(4)2
Avg EPS beat(4)-1.86%
Min EPS beat(4)-51.51%
Max EPS beat(4)26.01%
EPS beat(8)6
Avg EPS beat(8)9.89%
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)-1.71%
Min Revenue beat(2)-2.28%
Max Revenue beat(2)-1.14%
Revenue beat(4)1
Avg Revenue beat(4)-1.07%
Min Revenue beat(4)-2.28%
Max Revenue beat(4)0.57%
Revenue beat(8)3
Avg Revenue beat(8)0.69%
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)0.91%
PT rev (3m)5.23%
EPS NQ rev (1m)-4.88%
EPS NQ rev (3m)N/A
EPS NY rev (1m)-6.67%
EPS NY rev (3m)-14.95%
Revenue NQ rev (1m)0.44%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.5%
Revenue NY rev (3m)-9.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.61 | ||
| Fwd PE | 10.79 | ||
| P/S | 0.35 | ||
| P/FCF | 3.62 | ||
| P/OCF | 1.88 | ||
| P/B | 1.17 | ||
| P/tB | N/A | ||
| EV/EBITDA | N/A |
EPS(TTM)0.31
EY8.61%
EPS(NY)0.33
Fwd EY9.27%
FCF(TTM)0.99
FCFY27.61%
OCF(TTM)1.92
OCFY53.31%
SpS10.32
BVpS3.07
TBVpS-1.56
PEG (NY)N/A
PEG (5Y)N/A
Graham Number4.62
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.3% | ||
| ROE | -23.5% | ||
| ROCE | 9.67% | ||
| ROIC | 7.25% | ||
| ROICexc | 8.03% | ||
| ROICexgc | 13.77% | ||
| OM | 11.51% | ||
| PM (TTM) | N/A | ||
| GM | 35.08% | ||
| FCFM | 9.63% |
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-Score5
Asset Turnover0.62
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.11 | ||
| Debt/FCF | 7.98 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | 8.97% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.81 | ||
| Altman-Z | 1.27 |
F-Score5
WACC3.95%
ROIC/WACC1.84
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)-33.56%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-13.08%
EPS Next Y-35.16%
EPS Next 2Y-8.66%
EPS Next 3Y-1.97%
EPS Next 5Y2.78%
Revenue 1Y (TTM)1.63%
Revenue growth 3Y1.7%
Revenue growth 5Y-3.12%
Sales Q2Q%-9.19%
Revenue Next Year-10.08%
Revenue Next 2Y-4.93%
Revenue Next 3Y-2.83%
Revenue Next 5Y0.16%
EBIT growth 1Y55.8%
EBIT growth 3Y20.77%
EBIT growth 5Y4.69%
EBIT Next Year170.96%
EBIT Next 3Y40.95%
EBIT Next 5Y21.15%
FCF growth 1Y-12.25%
FCF growth 3Y6.37%
FCF growth 5Y-7.72%
OCF growth 1Y-12.05%
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 11.61 and the Price/Book (PB) ratio is 1.17.
How financially healthy is TELEFONICA SA?
The financial health rating of TELEFONICA SA (1TEF.MI) is 2 / 10.