1TEF Fundamental Analysis - TELEFONICA SA

Fundamental Rating

We assign a fundamental rating of 3 out of 10 to 1TEF. 1TEF was compared to 31 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.

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1. Profitability

1.1 Basic Checks

In the past year 1TEF was profitable.
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

Looking at the Return On Assets, with a value of -4.10%, 1TEF is doing worse than 83.78% of the companies in the same industry.
With a Return On Equity value of -21.56%, 1TEF is not doing good in the industry: 83.78% of the companies in the same industry are doing better.
The Return On Invested Capital of 1TEF (7.34%) is better than 64.86% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for 1TEF is below the industry average of 8.25%.
The last Return On Invested Capital (7.34%) for 1TEF is above the 3 year average (3.26%), which is a sign of increasing profitability.

		Industry Rank	Sector Rank
ROA	-4.1%
ROE	-21.56%
ROIC	7.34%

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

Looking at the Operating Margin, with a value of 12.00%, 1TEF is in line with its industry, outperforming 51.35% of the companies in the same industry.
1TEF's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 35.73%, 1TEF is doing worse than 70.27% 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	12%
PM (TTM)	N/A
GM	35.73%

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%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 1TEF is creating value.
1TEF has about the same amout of shares outstanding than it did 1 year ago.
1TEF has less shares outstanding than it did 5 years ago.
1TEF has a worse debt/assets ratio than last year.

2.2 Solvency

1TEF has a debt to FCF ratio of 8.80. This is a slightly negative value and a sign of low solvency as 1TEF would need 8.80 years to pay back of all of its debts.
1TEF's Debt to FCF ratio of 8.80 is in line compared to the rest of the industry. 1TEF outperforms 54.05% of its industry peers.
1TEF has a Debt/Equity ratio of 2.07. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 2.07, 1TEF is doing worse than 86.49% of the companies in the same industry.

		Industry Rank	Sector Rank
Debt/Equity	2.07
Debt/FCF	8.8
Altman-Z	N/A

ROIC/WACC1.87

WACC3.92%

2.3 Liquidity

1TEF has a Current Ratio of 0.84. 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 Current ratio of 0.84. This is in the better half of the industry: 1TEF outperforms 62.16% of its industry peers.
1TEF has a Quick Ratio of 0.84. 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 Quick ratio, with a value of 0.80, 1TEF is in line with its industry, outperforming 59.46% of the companies in the same industry.

		Industry Rank	Sector Rank
Current Ratio	0.84
Quick Ratio	0.8

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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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%.
The Revenue has grown by 40.77% 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)-34.78%

EPS 3YN/A

EPS 5YN/A

EPS Q2Q%-18.18%

Revenue 1Y (TTM)40.77%

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.
1TEF is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -1.34% yearly.

EPS Next Y-37.95%

EPS Next 2Y-9.33%

EPS Next 3Y-2.22%

EPS Next 5Y1.32%

Revenue Next Year-11.05%

Revenue Next 2Y-5.32%

Revenue Next 3Y-3.08%

Revenue Next 5Y-1.34%

3.3 Evolution

The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 11.61, which indicates a very decent valuation of 1TEF.
Based on the Price/Earnings ratio, 1TEF is valued a bit cheaper than 75.68% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.47, 1TEF is valued rather cheaply.
The Price/Forward Earnings ratio is 10.59, 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 72.97% of the companies are valued more expensively.
1TEF's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.26.

		Industry Rank	Sector Rank
PE	11.61
Fwd PE	10.59

4.2 Price Multiples

97.30% 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	4.03
EV/EBITDA	N/A

4.3 Compensation for Growth

1TEF's earnings are expected to decrease with -2.22% in the coming years. This may justify a cheaper valuation.

PEG (NY)N/A

PEG (5Y)N/A

EPS Next 2Y-9.33%

EPS Next 3Y-2.22%

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5. Dividend

5.1 Amount

1TEF has a Yearly Dividend Yield of 7.04%, which is a nice return.
Compared to an average industry Dividend Yield of 3.17, 1TEF pays a better dividend. On top of this 1TEF pays more dividend than 97.30% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 1.87, 1TEF pays a better dividend.

		Industry Rank	Sector Rank
Dividend Yield	7.04%

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-48.26%

EPS Next 2Y-9.33%

EPS Next 3Y-2.22%

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TELEFONICA SA

BIT:1TEF (12/29/2025, 7:00:00 PM)

3.484

+0.06 (+1.87%)

Chartmill FA Rating

GICS SectorCommunication Services

GICS IndustryGroupTelecommunication Services

GICS IndustryDiversified Telecommunication Services

Earnings (Last)11-04 2025-11-04/dmh

Earnings (Next)02-26 2026-02-26/amc

Inst Owners27.78%

Inst Owner ChangeN/A

Ins Owners0.37%

Ins Owner ChangeN/A

Market Cap19.64B

Revenue(TTM)57.11B

Net Income(TTM)-3.80B

Analysts53.75

Price Target4.14 (18.83%)

Short Float %N/A

Short RatioN/A

Dividend

		Industry Rank	Sector Rank
Dividend Yield	7.04%

Yearly Dividend0.33

Dividend Growth(5Y)-5.71%

DP-48.26%

Div Incr YearsN/A

Div Non Decr YearsN/A

Ex-DateN/A

Surprises & Revisions

EPS beat(2)2

Avg EPS beat(2)19.89%

Min EPS beat(2)13.76%

Max EPS beat(2)26.01%

EPS beat(4)2

Avg EPS beat(4)-3.18%

Min EPS beat(4)-51.51%

Max EPS beat(4)26.01%

EPS beat(8)6

Avg EPS beat(8)10.19%

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)-1.45%

Min Revenue beat(2)-1.77%

Max Revenue beat(2)-1.14%

Revenue beat(4)1

Avg Revenue beat(4)-1.15%

Min Revenue beat(4)-2.28%

Max Revenue beat(4)0.57%

Revenue beat(8)3

Avg Revenue beat(8)0.48%

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)-1.02%

PT rev (3m)-5.48%

EPS NQ rev (1m)0%

EPS NQ rev (3m)-15.71%

EPS NY rev (1m)-4.31%

EPS NY rev (3m)-18.62%

Revenue NQ rev (1m)0%

Revenue NQ rev (3m)0.48%

Revenue NY rev (1m)-1.09%

Revenue NY rev (3m)-5.18%

Valuation

		Industry Rank	Sector Rank
PE	11.61
Fwd PE	10.59
P/S	0.34
P/FCF	4.03
P/OCF	1.9
P/B	1.12
P/tB	N/A
EV/EBITDA	N/A

EPS(TTM)0.3

EY8.61%

EPS(NY)0.33

Fwd EY9.44%

FCF(TTM)0.86

FCFY24.81%

OCF(TTM)1.83

OCFY52.62%

SpS10.13

BVpS3.12

TBVpS-1.5

PEG (NY)N/A

PEG (5Y)N/A

Graham Number4.59

Profitability

		Industry Rank	Sector Rank
ROA	-4.1%
ROE	-21.56%
ROCE	9.79%
ROIC	7.34%
ROICexc	8.07%
ROICexgc	13.67%
OM	12%
PM (TTM)	N/A
GM	35.73%
FCFM	8.53%

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-Score4

Asset Turnover0.62

Health

		Industry Rank	Sector Rank
Debt/Equity	2.07
Debt/FCF	8.8
Debt/EBITDA	N/A
Cap/Depr	N/A
Cap/Sales	9.56%
Interest Coverage	-7.45
Cash Conversion	N/A
Profit Quality	N/A
Current Ratio	0.84
Quick Ratio	0.8
Altman-Z	N/A

F-Score4

WACC3.92%

ROIC/WACC1.87

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-37.95%

EPS Next 2Y-9.33%

EPS Next 3Y-2.22%

EPS Next 5Y1.32%

Revenue 1Y (TTM)40.77%

Revenue growth 3Y1.7%

Revenue growth 5Y-3.12%

Sales Q2Q%-10.63%

Revenue Next Year-11.05%

Revenue Next 2Y-5.32%

Revenue Next 3Y-3.08%

Revenue Next 5Y-1.34%

EBIT growth 1Y59.92%

EBIT growth 3Y20.77%

EBIT growth 5Y4.69%

EBIT Next Year166.12%

EBIT Next 3Y40.69%

EBIT Next 5Y23.72%

FCF growth 1Y-20.22%

FCF growth 3Y6.37%

FCF growth 5Y-7.72%

OCF growth 1Y-14.64%

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 of TELEFONICA SA (1TEF.MI) stock?

ChartMill assigns a valuation rating of 5 / 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 1.12.

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 decline by -37.95% in the next year.

TELEFONICA SA (1TEF.MI) Stock Fundamental Analysis

1. Profitability

1.1 Basic Checks

1.2 Ratios

1.3 Margins

More info and screens

2. Health

2.1 Basic Checks

2.2 Solvency

2.3 Liquidity

More info and screens

3. Growth

3.1 Past

3.2 Future

3.3 Evolution

More info and screens

4. Valuation

4.1 Price/Earnings Ratio

4.2 Price Multiples

4.3 Compensation for Growth

More info and screens

5. Dividend

5.1 Amount

5.2 History

5.3 Sustainability

More info and screens

TELEFONICA SA / 1TEF.MI FAQ

Can you provide the ChartMill fundamental rating for TELEFONICA SA?

What is the valuation status of TELEFONICA SA (1TEF.MI) stock?

What is the profitability of 1TEF stock?

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

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