TELEFONICA SA (1TEF.MI) Fundamental Analysis & Valuation

BIT:1TEF • ES0178430E18

Current stock price

3.615 EUR
-0.06 (-1.69%)
Last:

This 1TEF.MI fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

2

1. 1TEF.MI Profitability Analysis

1.1 Basic Checks

  • In the past year 1TEF was profitable.
  • 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.
  • 1TEF had a positive operating cash flow in each of the past 5 years.
1TEF.MI Yearly Net Income VS EBIT VS OCF VS FCF1TEF.MI Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5B 10B 15B

1.2 Ratios

  • 1TEF has a worse Return On Assets (-6.23%) than 77.14% of its industry peers.
  • With a Return On Equity value of -40.23%, 1TEF is not doing good in the industry: 80.00% of the companies in the same industry are doing better.
  • Looking at the Return On Invested Capital, with a value of 3.83%, 1TEF is doing worse than 62.86% 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 7.19%.
  • The last Return On Invested Capital (3.83%) for 1TEF is above the 3 year average (2.99%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA -6.23%
ROE -40.23%
ROIC 3.83%
ROA(3y)-2.13%
ROA(5y)0.49%
ROE(3y)-13.01%
ROE(5y)0.73%
ROIC(3y)2.99%
ROIC(5y)2.86%
1TEF.MI Yearly ROA, ROE, ROIC1TEF.MI Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 -20

1.3 Margins

  • 1TEF's Operating Margin of 6.34% is on the low side compared to the rest of the industry. 1TEF is outperformed by 71.43% of its industry peers.
  • 1TEF's Operating Margin has declined in the last couple of years.
  • 1TEF has a worse Gross Margin (32.85%) than 77.14% 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 RankSector Rank
OM 6.34%
PM (TTM) N/A
GM 32.85%
OM growth 3Y-17.43%
OM growth 5Y-15.35%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.44%
GM growth 5Y0.15%
1TEF.MI Yearly Profit, Operating, Gross Margins1TEF.MI Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 40

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3

2. 1TEF.MI Health Analysis

2.1 Basic Checks

  • 1TEF has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
  • Compared to 1 year ago, 1TEF has less shares outstanding
  • The number of shares outstanding for 1TEF has been reduced compared to 5 years ago.
  • 1TEF has a better debt/assets ratio than last year.
1TEF.MI Yearly Shares Outstanding1TEF.MI Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B
1TEF.MI Yearly Total Debt VS Total Assets1TEF.MI Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20B 40B 60B 80B 100B

2.2 Solvency

  • Based on the Altman-Z score of 1.09, we must say that 1TEF is in the distress zone and has some risk of bankruptcy.
  • 1TEF's Altman-Z score of 1.09 is in line compared to the rest of the industry. 1TEF outperforms 54.29% of its industry peers.
  • The Debt to FCF ratio of 1TEF is 9.70, which is on the high side as it means it would take 1TEF, 9.70 years of fcf income to pay off all of its debts.
  • 1TEF has a Debt to FCF ratio (9.70) which is comparable to the rest of the industry.
  • A Debt/Equity ratio of 2.51 is on the high side and indicates that 1TEF has dependencies on debt financing.
  • The Debt to Equity ratio of 1TEF (2.51) is worse than 82.86% of its industry peers.
Industry RankSector Rank
Debt/Equity 2.51
Debt/FCF 9.7
Altman-Z 1.09
ROIC/WACC0.68
WACC5.61%
1TEF.MI Yearly LT Debt VS Equity VS FCF1TEF.MI Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10B 20B 30B 40B

2.3 Liquidity

  • A Current Ratio of 0.89 indicates that 1TEF may have some problems paying its short term obligations.
  • Looking at the Current ratio, with a value of 0.89, 1TEF is in line with its industry, outperforming 57.14% of the companies in the same industry.
  • A Quick Ratio of 0.85 indicates that 1TEF may have some problems paying its short term obligations.
  • With a Quick ratio value of 0.85, 1TEF perfoms like the industry average, outperforming 51.43% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 0.89
Quick Ratio 0.85
1TEF.MI Yearly Current Assets VS Current Liabilites1TEF.MI Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10B 20B 30B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

2

3. 1TEF.MI Growth Analysis

3.1 Past

  • 1TEF shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -25.00%.
  • The Revenue has been growing slightly by 3.82% in the past year.
  • The Revenue has been decreasing by -4.00% on average over the past years.
EPS 1Y (TTM)-25%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%0%
Revenue 1Y (TTM)3.82%
Revenue growth 3Y-4.24%
Revenue growth 5Y-4%
Sales Q2Q%-14.27%

3.2 Future

  • 1TEF is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.12% yearly.
  • 1TEF is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.91% yearly.
EPS Next Y11.04%
EPS Next 2Y11.66%
EPS Next 3Y6.12%
EPS Next 5YN/A
Revenue Next Year-0.32%
Revenue Next 2Y0.51%
Revenue Next 3Y0.84%
Revenue Next 5Y1.91%

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.
1TEF.MI Yearly Revenue VS Estimates1TEF.MI Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 10B 20B 30B 40B 50B
1TEF.MI Yearly EPS VS Estimates1TEF.MI Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 0.2 0.4 0.6

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6

4. 1TEF.MI Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 12.05, 1TEF is valued correctly.
  • Compared to the rest of the industry, the Price/Earnings ratio of 1TEF indicates a somewhat cheap valuation: 1TEF is cheaper than 74.29% of the companies listed in the same industry.
  • 1TEF's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.88.
  • 1TEF is valuated reasonably with a Price/Forward Earnings ratio of 10.85.
  • Based on the Price/Forward Earnings ratio, 1TEF is valued a bit cheaper than the industry average as 74.29% of the companies are valued more expensively.
  • When comparing the Price/Forward Earnings ratio of 1TEF to the average of the S&P500 Index (22.19), we can say 1TEF is valued rather cheaply.
Industry RankSector Rank
PE 12.05
Fwd PE 10.85
1TEF.MI Price Earnings VS Forward Price Earnings1TEF.MI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • 1TEF's Price/Free Cash Flow ratio is rather cheap when compared to the industry. 1TEF is cheaper than 97.14% of the companies in the same industry.
Industry RankSector Rank
P/FCF 4.72
EV/EBITDA N/A
1TEF.MI Per share data1TEF.MI EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 4 6 8

4.3 Compensation for Growth

  • 1TEF's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.09
PEG (5Y)N/A
EPS Next 2Y11.66%
EPS Next 3Y6.12%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

6

5. 1TEF.MI Dividend Analysis

5.1 Amount

  • 1TEF has a Yearly Dividend Yield of 6.69%, which is a nice return.
  • Compared to an average industry Dividend Yield of 3.09, 1TEF pays a better dividend. On top of this 1TEF pays more dividend than 94.29% of the companies listed in the same industry.
  • 1TEF's Dividend Yield is rather good when compared to the S&P500 average which is at 1.90.
Industry RankSector Rank
Dividend Yield 6.69%

5.2 History

  • On average, the dividend of 1TEF grows each year by 8.88%, which is quite nice.
Dividend Growth(5Y)8.88%
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.
  • 1TEF's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP-32.37%
EPS Next 2Y11.66%
EPS Next 3Y6.12%
1TEF.MI Yearly Income VS Free CF VS Dividend1TEF.MI Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 2B -2B 4B -4B 6B

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1TEF.MI Fundamentals: All Metrics, Ratios and Statistics

TELEFONICA SA

BIT:1TEF (3/10/2026, 7:00:00 PM)

3.615

-0.06 (-1.69%)

Chartmill FA Rating
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)02-24
Earnings (Next)05-14
Inst Owners28.06%
Inst Owner ChangeN/A
Ins Owners0.37%
Ins Owner ChangeN/A
Market Cap20.38B
Revenue(TTM)53.30B
Net Income(TTM)-5.74B
Analysts54.38
Price Target4.06 (12.31%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 6.69%
Yearly Dividend0.33
Dividend Growth(5Y)8.88%
DP-32.37%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)120.08%
Min EPS beat(2)13.76%
Max EPS beat(2)226.4%
EPS beat(4)3
Avg EPS beat(4)66.29%
Min EPS beat(4)-0.99%
Max EPS beat(4)226.4%
EPS beat(8)6
Avg EPS beat(8)36.28%
EPS beat(12)9
Avg EPS beat(12)24.72%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-1.8%
Min Revenue beat(2)-1.83%
Max Revenue beat(2)-1.77%
Revenue beat(4)0
Avg Revenue beat(4)-1.75%
Min Revenue beat(4)-2.28%
Max Revenue beat(4)-1.14%
Revenue beat(8)3
Avg Revenue beat(8)0.43%
Revenue beat(12)4
Avg Revenue beat(12)0.29%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-1.83%
PT rev (3m)-1.83%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)1.3%
EPS NY rev (3m)3.63%
Revenue NQ rev (1m)-0.73%
Revenue NQ rev (3m)-0.73%
Revenue NY rev (1m)-2.15%
Revenue NY rev (3m)-2.19%
Valuation
Industry RankSector Rank
PE 12.05
Fwd PE 10.85
P/S 0.38
P/FCF 4.72
P/OCF 2.17
P/B 1.43
P/tB N/A
EV/EBITDA N/A
EPS(TTM)0.3
EY8.3%
EPS(NY)0.33
Fwd EY9.22%
FCF(TTM)0.77
FCFY21.2%
OCF(TTM)1.66
OCFY46%
SpS9.45
BVpS2.53
TBVpS-1.89
PEG (NY)1.09
PEG (5Y)N/A
Graham Number4.13
Profitability
Industry RankSector Rank
ROA -6.23%
ROE -40.23%
ROCE 5.03%
ROIC 3.83%
ROICexc 4.27%
ROICexgc 7.29%
OM 6.34%
PM (TTM) N/A
GM 32.85%
FCFM 8.11%
ROA(3y)-2.13%
ROA(5y)0.49%
ROE(3y)-13.01%
ROE(5y)0.73%
ROIC(3y)2.99%
ROIC(5y)2.86%
ROICexc(3y)3.35%
ROICexc(5y)3.21%
ROICexgc(3y)5.62%
ROICexgc(5y)5.34%
ROCE(3y)3.92%
ROCE(5y)3.76%
ROICexgc growth 3Y-12.92%
ROICexgc growth 5Y-16.49%
ROICexc growth 3Y-13.93%
ROICexc growth 5Y-16.49%
OM growth 3Y-17.43%
OM growth 5Y-15.35%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.44%
GM growth 5Y0.15%
F-Score5
Asset Turnover0.58
Health
Industry RankSector Rank
Debt/Equity 2.51
Debt/FCF 9.7
Debt/EBITDA N/A
Cap/Depr N/A
Cap/Sales 9.48%
Interest Coverage 250
Cash Conversion N/A
Profit Quality N/A
Current Ratio 0.89
Quick Ratio 0.85
Altman-Z 1.09
F-Score5
WACC5.61%
ROIC/WACC0.68
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)14.75%
Cap/Sales(5y)14.75%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-25%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%0%
EPS Next Y11.04%
EPS Next 2Y11.66%
EPS Next 3Y6.12%
EPS Next 5YN/A
Revenue 1Y (TTM)3.82%
Revenue growth 3Y-4.24%
Revenue growth 5Y-4%
Sales Q2Q%-14.27%
Revenue Next Year-0.32%
Revenue Next 2Y0.51%
Revenue Next 3Y0.84%
Revenue Next 5Y1.91%
EBIT growth 1Y-40.77%
EBIT growth 3Y-20.93%
EBIT growth 5Y-18.73%
EBIT Next Year244.64%
EBIT Next 3Y52.01%
EBIT Next 5Y31.13%
FCF growth 1Y-12.12%
FCF growth 3Y-11.6%
FCF growth 5Y-6.89%
OCF growth 1Y-10.18%
OCF growth 3Y-7.28%
OCF growth 5Y-6.6%

TELEFONICA SA / 1TEF.MI Fundamental Analysis 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 of TELEFONICA SA (1TEF.MI) 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 2 / 10.


Can you provide the PE and PB ratios for 1TEF stock?

The Price/Earnings (PE) ratio for TELEFONICA SA (1TEF.MI) is 12.05 and the Price/Book (PB) ratio is 1.43.


What is the expected EPS growth for TELEFONICA SA (1TEF.MI) stock?

The Earnings per Share (EPS) of TELEFONICA SA (1TEF.MI) is expected to grow by 11.04% in the next year.