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 30 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 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.
The reported net income has been mixed in the past 5 years: 1TEF reported negative net income in multiple years.
In the past 5 years 1TEF always reported a positive cash flow from operatings.
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.
The Return On Equity of 1TEF (-23.50%) is worse than 73.33% of its industry peers.
1TEF has a better Return On Invested Capital (7.25%) than 70.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for 1TEF is below the industry average of 8.12%.
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 60.00% of its industry peers.
1TEF's Operating Margin has improved in the last couple of years.
The Gross Margin of 1TEF (35.08%) is worse than 66.67% 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 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 56.67% of the companies in the same industry.
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.
With a Debt to FCF ratio value of 7.98, 1TEF perfoms like the industry average, outperforming 53.33% of the companies in the same industry.
1TEF has a Debt/Equity ratio of 2.11. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 2.11, 1TEF is doing worse than 80.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.11 | ||
| Debt/FCF | 7.98 | ||
| Altman-Z | 1.27 |
ROIC/WACC1.83
WACC3.96%
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.
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 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%.
The Revenue has been growing slightly by 1.63% in the past year.
1TEF shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -3.12% yearly.
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.
1TEF is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.16% yearly.
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
The Price/Earnings ratio is 11.61, which indicates a very decent valuation of 1TEF.
1TEF's Price/Earnings ratio is rather cheap when compared to the industry. 1TEF is cheaper than 83.33% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.51, 1TEF is valued rather cheaply.
The Price/Forward Earnings ratio is 10.79, which indicates a very decent valuation of 1TEF.
70.00% of the companies in the same industry are more expensive than 1TEF, based on the Price/Forward Earnings ratio.
1TEF is valuated cheaply when we compare the Price/Forward Earnings ratio to 34.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.61 | ||
| Fwd PE | 10.79 |
4.2 Price Multiples
1TEF's Price/Free Cash Flow ratio is rather cheap when compared to the industry. 1TEF is cheaper than 100.00% of the companies in the same industry.
| 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 6.54%, which is a nice return.
1TEF's Dividend Yield is rather good when compared to the industry average which is at 4.92. 1TEF pays more dividend than 83.33% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.44, 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
1TEF has negative earnings and hence a negative payout ratio. The dividend may be in danger.
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
WACC3.96%
ROIC/WACC1.83
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.