TELEFONICA SA (1TEF.MI) Stock Fundamental Analysis
Europe - BIT:1TEF - ES0178430E18 - Common Stock
4.337 EUR
-0.32 (-6.93%)
1TEF gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 29 industry peers in the Diversified Telecommunication Services industry. While 1TEF is still in line with the averages on profitability rating, there are concerns on its financial health. 1TEF has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
1TEF had positive earnings in the past year.
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.
Each year in the past 5 years 1TEF had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of -4.30%, 1TEF is doing worse than 73.33% of the companies in the same industry.
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.
With a decent Return On Invested Capital value of 7.25%, 1TEF is doing good in the industry, outperforming 70.00% 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 7.77%.
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 has a Operating Margin (11.51%) which is in line with its industry peers.
1TEF's Operating Margin has improved in the last couple of years.
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.
1TEF's Gross Margin has been stable in the last couple of years.
| 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 just above the Cost of Capital (WACC), which means it is 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.
Compared to 1 year ago, 1TEF has a worse debt to assets ratio.
2.2 Solvency
1TEF has an Altman-Z score of 1.30. This is a bad value and indicates that 1TEF is not financially healthy and even has some risk of bankruptcy.
1TEF has a Altman-Z score of 1.30. This is comparable to the rest of the industry: 1TEF outperforms 56.67% of its industry peers.
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 53.33% 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.
The Debt to Equity ratio of 1TEF (2.11) is worse than 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.11 | ||
| Debt/FCF | 7.98 | ||
| Altman-Z | 1.3 |
ROIC/WACC1.78
WACC4.07%
2.3 Liquidity
A Current Ratio of 0.85 indicates that 1TEF may have some problems paying its short term obligations.
The Current ratio of 1TEF (0.85) is better than 66.67% of its industry peers.
A Quick Ratio of 0.81 indicates that 1TEF may have some problems paying its short term obligations.
With a decent Quick ratio value of 0.81, 1TEF is doing good in the industry, outperforming 63.33% of the companies in the same 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!
The Revenue has been decreasing by -3.12% on average over the past years.
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
1TEF is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.15% yearly.
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
1TEF is valuated correctly with a Price/Earnings ratio of 13.55.
80.00% of the companies in the same industry are more expensive than 1TEF, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.00. 1TEF is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 13.39, 1TEF is valued correctly.
1TEF's Price/Forward Earnings ratio is in line with the industry average.
1TEF's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.55 | ||
| Fwd PE | 13.39 |
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 96.67% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.36 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
1TEF's earnings are expected to decrease with -3.54% in the coming years. This may justify a cheaper valuation.
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 4.74, 1TEF pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.31, 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
1TEF has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-45.46%
EPS Next 2Y-10.01%
EPS Next 3Y-3.54%
BIT:1TEF (10/2/2025, 7:00:00 PM)
4.337
-0.32 (-6.93%)
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 Cap24.45B
Revenue(TTM)58.18B
Net Income(TTM)-4061000000
Analysts53.75
Price Target4.47 (3.07%)
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 | 13.55 | ||
| Fwd PE | 13.39 | ||
| P/S | 0.42 | ||
| P/FCF | 4.36 | ||
| P/OCF | 2.26 | ||
| P/B | 1.41 | ||
| P/tB | N/A | ||
| EV/EBITDA | N/A |
EPS(TTM)0.32
EY7.38%
EPS(NY)0.32
Fwd EY7.47%
FCF(TTM)0.99
FCFY22.91%
OCF(TTM)1.92
OCFY44.25%
SpS10.32
BVpS3.07
TBVpS-1.56
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
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 | 1.3 |
F-Score5
WACC4.07%
ROIC/WACC1.78
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 3 / 10 to 1TEF.MI.
What is the valuation status for 1TEF stock?
ChartMill assigns a valuation rating of 4 / 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 3 / 10.
Can you provide the PE and PB ratios for 1TEF stock?
The Price/Earnings (PE) ratio for TELEFONICA SA (1TEF.MI) is 13.55 and the Price/Book (PB) ratio is 1.41.
How financially healthy is TELEFONICA SA?
The financial health rating of TELEFONICA SA (1TEF.MI) is 3 / 10.