TELEFONICA SA (1TEF.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1TEF - ES0178430E18 - Common Stock
3.6 EUR
-0.02 (-0.69%)
Taking everything into account, 1TEF scores 3 out of 10 in our fundamental rating. 1TEF was compared to 29 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.
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.
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
With a Return On Assets value of -4.30%, 1TEF is not doing good in the industry: 74.19% of the companies in the same industry are doing better.
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.
1TEF's Return On Invested Capital of 7.25% is fine compared to the rest of the industry. 1TEF outperforms 70.97% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for 1TEF is below the industry average of 7.77%.
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
The Operating Margin of 1TEF (11.51%) is comparable to the rest of the industry.
1TEF's Operating Margin has improved in the last couple of years.
1TEF has a Gross Margin of 35.08%. This is in the lower half of the industry: 1TEF underperforms 64.52% 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.
1TEF has less shares outstanding than it did 5 years ago.
1TEF has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.27, we must say that 1TEF is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of 1TEF (1.27) is better than 61.29% of its industry peers.
The Debt to FCF ratio of 1TEF is 7.98, which is on the high side as it means it would take 1TEF, 7.98 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of 1TEF (7.98) is comparable to the rest of the industry.
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 amonst the worse of the industry: 1TEF underperforms 80.65% 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.
The Current ratio of 1TEF (0.85) is better than 61.29% of its industry peers.
A Quick Ratio of 0.81 indicates that 1TEF may have some problems paying its short term obligations.
1TEF has a Quick ratio (0.81) which is in line with its industry peers.
| 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 -34.78%.
1TEF shows a small growth in Revenue. In the last year, the Revenue has grown by 1.63%.
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)-34.78%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-18.18%
Revenue 1Y (TTM)1.63%
Revenue growth 3Y1.7%
Revenue growth 5Y-3.12%
Sales Q2Q%-10.63%
3.2 Future
The Earnings Per Share is expected to grow by 1.32% on average over the next years.
The Revenue is expected to decrease by -1.53% on average over the next years.
EPS Next Y-35.16%
EPS Next 2Y-8.66%
EPS Next 3Y-1.97%
EPS Next 5Y1.32%
Revenue Next Year-10.08%
Revenue Next 2Y-4.93%
Revenue Next 3Y-2.83%
Revenue Next 5Y-1.53%
3.3 Evolution
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 12.00, the valuation of 1TEF can be described as correct.
Based on the Price/Earnings ratio, 1TEF is valued cheaply inside the industry as 83.87% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.31, 1TEF is valued rather cheaply.
The Price/Forward Earnings ratio is 10.79, which indicates a very decent valuation of 1TEF.
Based on the Price/Forward Earnings ratio, 1TEF is valued a bit cheaper than the industry average as 70.97% of the companies are valued more expensively.
1TEF is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.56, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12 | ||
| Fwd PE | 10.79 |
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
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-8.66%
EPS Next 3Y-1.97%
5. Dividend
5.1 Amount
1TEF has a Yearly Dividend Yield of 6.72%, which is a nice return.
1TEF's Dividend Yield is rather good when compared to the industry average which is at 4.73. 1TEF pays more dividend than 87.10% of the companies in the same industry.
1TEF's Dividend Yield is rather good when compared to the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.72% |
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 Target4.18 (16.11%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.72% |
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)-6.38%
PT rev (3m)-4.52%
EPS NQ rev (1m)-23.58%
EPS NQ rev (3m)-34.72%
EPS NY rev (1m)-6.67%
EPS NY rev (3m)-14.95%
Revenue NQ rev (1m)0.29%
Revenue NQ rev (3m)0.47%
Revenue NY rev (1m)-0.5%
Revenue NY rev (3m)-4.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12 | ||
| 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)0.3
EY8.33%
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 Number4.55
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)-34.78%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-18.18%
EPS Next Y-35.16%
EPS Next 2Y-8.66%
EPS Next 3Y-1.97%
EPS Next 5Y1.32%
Revenue 1Y (TTM)1.63%
Revenue growth 3Y1.7%
Revenue growth 5Y-3.12%
Sales Q2Q%-10.63%
Revenue Next Year-10.08%
Revenue Next 2Y-4.93%
Revenue Next 3Y-2.83%
Revenue Next 5Y-1.53%
EBIT growth 1Y55.8%
EBIT growth 3Y20.77%
EBIT growth 5Y4.69%
EBIT Next Year170.96%
EBIT Next 3Y40.95%
EBIT Next 5Y23.75%
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 12 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.