TELEFONICA SA (1TEF.MI) Stock Fundamental Analysis
Europe - BIT:1TEF - ES0178430E18 - Common Stock
3.6 EUR
-0.02 (-0.69%)
Overall 1TEF gets a fundamental rating of 3 out of 10. We evaluated 1TEF against 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 is valued correctly, but it does not seem to be growing.
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.
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.
1.2 Ratios
1TEF has a Return On Assets of -4.30%. This is in the lower half of the industry: 1TEF underperforms 74.19% of its industry peers.
1TEF has a Return On Equity of -23.50%. This is in the lower half of the industry: 1TEF underperforms 74.19% of its industry peers.
With a decent Return On Invested Capital value of 7.25%, 1TEF is doing good in the industry, outperforming 67.74% 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 7.62%.
The last Return On Invested Capital (7.25%) for 1TEF is above the 3 year average (3.26%), which is a sign of increasing profitability.
| 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's Operating Margin of 11.51% is in line compared to the rest of the industry. 1TEF outperforms 51.61% of its industry peers.
In the last couple of years the Operating Margin of 1TEF has grown nicely.
1TEF's Gross Margin of 35.08% is on the low side compared to the rest of the industry. 1TEF is outperformed by 74.19% 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 | 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
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.
Compared to 5 years ago, 1TEF has less shares outstanding
1TEF has a worse debt/assets ratio than last year.
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.
With a Altman-Z score value of 1.27, 1TEF perfoms like the industry average, outperforming 58.06% 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 of 7.98. This is comparable to the rest of the industry: 1TEF outperforms 48.39% of 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 Debt to Equity ratio of 2.11. This is in the lower half of the industry: 1TEF underperforms 77.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.11 | ||
| Debt/FCF | 7.98 | ||
| Altman-Z | 1.27 |
ROIC/WACC1.8
WACC4.02%
2.3 Liquidity
1TEF has a Current 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.
Looking at the Current ratio, with a value of 0.85, 1TEF is in line with its industry, outperforming 58.06% of the companies in the same industry.
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 -27.27%.
The Revenue has grown by 42.35% 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)-27.27%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-41.67%
Revenue 1Y (TTM)42.35%
Revenue growth 3Y1.7%
Revenue growth 5Y-3.12%
Sales Q2Q%-12.7%
3.2 Future
The Earnings Per Share is expected to grow by 3.15% on average over the next years.
Based on estimates for the next years, 1TEF will show a decrease in Revenue. The Revenue will decrease by -0.22% on average per year.
EPS Next Y-30.53%
EPS Next 2Y-10.01%
EPS Next 3Y-3.54%
EPS Next 5Y3.15%
Revenue Next Year-9.62%
Revenue Next 2Y-4.72%
Revenue Next 3Y-2.66%
Revenue Next 5Y-0.22%
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
Based on the Price/Earnings ratio of 11.25, the valuation of 1TEF can be described as reasonable.
83.87% of the companies in the same industry are more expensive than 1TEF, based on the Price/Earnings ratio.
1TEF is valuated cheaply when we compare the Price/Earnings ratio to 26.35, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 11.11 indicates a reasonable valuation of 1TEF.
1TEF's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. 1TEF is cheaper than 64.52% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 33.72, 1TEF is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.25 | ||
| Fwd PE | 11.11 |
4.2 Price Multiples
100.00% 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 | 3.62 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
A cheap valuation may be justified as 1TEF's earnings are expected to decrease with -3.54% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-10.01%
EPS Next 3Y-3.54%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.55%, 1TEF is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.93, 1TEF pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.36, 1TEF pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.55% |
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-10.01%
EPS Next 3Y-3.54%
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)58.18B
Net Income(TTM)-4.06B
Analysts53.75
Price Target4.47 (24.17%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.55% |
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)1.99%
PT rev (3m)4.28%
EPS NQ rev (1m)-14.58%
EPS NQ rev (3m)N/A
EPS NY rev (1m)-8.88%
EPS NY rev (3m)-8.88%
Revenue NQ rev (1m)0.19%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-3.65%
Revenue NY rev (3m)-9.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.25 | ||
| Fwd PE | 11.11 | ||
| 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)0.32
EY8.89%
EPS(NY)0.32
Fwd EY9%
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 Number4.7
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
WACC4.02%
ROIC/WACC1.8
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-30.53%
EPS Next 2Y-10.01%
EPS Next 3Y-3.54%
EPS Next 5Y3.15%
Revenue 1Y (TTM)42.35%
Revenue growth 3Y1.7%
Revenue growth 5Y-3.12%
Sales Q2Q%-12.7%
Revenue Next Year-9.62%
Revenue Next 2Y-4.72%
Revenue Next 3Y-2.66%
Revenue Next 5Y-0.22%
EBIT growth 1Y55.8%
EBIT growth 3Y20.77%
EBIT growth 5Y4.69%
EBIT Next Year170.96%
EBIT Next 3Y40.95%
EBIT Next 5Y17.35%
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 4 / 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 11.25 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 3 / 10.