TELEFONICA SA (1TEF.MI) Stock Fundamental Analysis
BIT:1TEF - Euronext Milan - ES0178430E18 - Common Stock - Currency: EUR
Taking everything into account, 1TEF scores 3 out of 10 in our fundamental rating. 1TEF was compared to 27 industry peers in the Diversified Telecommunication Services industry. 1TEF has a bad profitability rating. Also its financial health evaluation is rather negative. 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
In the past year 1TEF was profitable.
1TEF had a positive operating cash flow in the past year.
In multiple years 1TEF reported negative net income over the last 5 years.
In the past 5 years 1TEF always reported a positive cash flow from operatings.
1.2 Ratios
1TEF's Return On Assets of -0.32% is on the low side compared to the rest of the industry. 1TEF is outperformed by 68.97% of its industry peers.
1TEF has a Return On Equity of -1.64%. This is in the lower half of the industry: 1TEF underperforms 72.41% of its industry peers.
1TEF's Return On Invested Capital of 2.41% is on the low side compared to the rest of the industry. 1TEF is outperformed by 72.41% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for 1TEF is below the industry average of 7.62%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.32% | ||
| ROE | -1.64% | ||
| ROIC | 2.41% |
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 worse Operating Margin (5.82%) than 68.97% of its industry peers.
In the last couple of years the Operating Margin of 1TEF has grown nicely.
The Gross Margin of 1TEF (49.39%) is comparable to the rest of the industry.
1TEF's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.82% | ||
| PM (TTM) | N/A | ||
| GM | 49.39% |
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 below the Cost of Capital (WACC), which means it is destroying 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 an Altman-Z score of 0.95. This is a bad value and indicates that 1TEF is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 0.95, 1TEF is not doing good in the industry: 72.41% of the companies in the same industry are doing better.
1TEF has a debt to FCF ratio of 9.58. This is a negative value and a sign of low solvency as 1TEF would need 9.58 years to pay back of all of its debts.
The Debt to FCF ratio of 1TEF (9.58) is comparable to the rest of the industry.
A Debt/Equity ratio of 2.03 is on the high side and indicates that 1TEF has dependencies on debt financing.
With a Debt to Equity ratio value of 2.03, 1TEF is not doing good in the industry: 79.31% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.03 | ||
| Debt/FCF | 9.58 | ||
| Altman-Z | 0.95 |
ROIC/WACC0.64
WACC3.78%
2.3 Liquidity
A Current Ratio of 0.87 indicates that 1TEF may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.87, 1TEF is in the better half of the industry, outperforming 68.97% of the companies in the same industry.
1TEF has a Quick Ratio of 0.87. 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 Quick ratio of 0.83. This is in the better half of the industry: 1TEF outperforms 65.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.87 | ||
| Quick Ratio | 0.83 |
3. Growth
3.1 Past
1TEF shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.11%, which is quite good.
The Revenue has been growing slightly by 1.63% in the past year.
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)11.11%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-50%
Revenue 1Y (TTM)1.63%
Revenue growth 3Y1.7%
Revenue growth 5Y-3.12%
Sales Q2Q%5.4%
3.2 Future
Based on estimates for the next years, 1TEF will show a decrease in Earnings Per Share. The EPS will decrease by -1.92% on average per year.
The Revenue is expected to decrease by -0.24% on average over the next years.
EPS Next Y-23.76%
EPS Next 2Y-11.43%
EPS Next 3Y-4.55%
EPS Next 5Y-1.92%
Revenue Next Year-0.4%
Revenue Next 2Y0.25%
Revenue Next 3Y0.55%
Revenue Next 5Y-0.24%
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 reasonably with a Price/Earnings ratio of 9.93.
Based on the Price/Earnings ratio, 1TEF is valued a bit cheaper than the industry average as 79.31% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of 1TEF to the average of the S&P500 Index (27.19), we can say 1TEF is valued rather cheaply.
With a Price/Forward Earnings ratio of 13.02, 1TEF is valued correctly.
Based on the Price/Forward Earnings ratio, 1TEF is valued a bit cheaper than the industry average as 65.52% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of 1TEF to the average of the S&P500 Index (35.33), we can say 1TEF is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.93 | ||
| Fwd PE | 13.02 |
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 96.55% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.56 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
1TEF's earnings are expected to decrease with -4.55% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-11.43%
EPS Next 3Y-4.55%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.61%, 1TEF is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.58, 1TEF pays a bit more dividend than its industry peers.
1TEF's Dividend Yield is rather good when compared to the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.61% |
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.
1TEF's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP-593.4%
EPS Next 2Y-11.43%
EPS Next 3Y-4.55%
BIT:1TEF (4/10/2025, 7:00:00 PM)
3.972
-0.24 (-5.81%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners28.66%
Inst Owner ChangeN/A
Ins Owners0.4%
Ins Owner ChangeN/A
Market Cap22.42B
Analysts54.84
Price Target4.28 (7.75%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.61% |
Yearly Dividend0.33
Dividend Growth(5Y)-5.71%
DP-593.4%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-16.24%
Min EPS beat(2)-51.51%
Max EPS beat(2)19.03%
EPS beat(4)3
Avg EPS beat(4)6.28%
Min EPS beat(4)-51.51%
Max EPS beat(4)36.57%
EPS beat(8)6
Avg EPS beat(8)3.94%
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)1
Avg Revenue beat(2)-0.43%
Min Revenue beat(2)-1.43%
Max Revenue beat(2)0.57%
Revenue beat(4)3
Avg Revenue beat(4)2.6%
Min Revenue beat(4)-1.43%
Max Revenue beat(4)10.07%
Revenue beat(8)4
Avg Revenue beat(8)1.31%
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)-0.38%
PT rev (3m)1.58%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.26%
EPS NY rev (3m)-6.32%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.64%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.93 | ||
| Fwd PE | 13.02 | ||
| P/S | 0.54 | ||
| P/FCF | 4.56 | ||
| P/OCF | 2.15 | ||
| P/B | 1.16 | ||
| P/tB | N/A | ||
| EV/EBITDA | N/A |
EPS(TTM)0.4
EY10.07%
EPS(NY)0.3
Fwd EY7.68%
FCF(TTM)0.87
FCFY21.93%
OCF(TTM)1.85
OCFY46.56%
SpS7.32
BVpS3.43
TBVpS-1.24
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.32% | ||
| ROE | -1.64% | ||
| ROCE | 3.22% | ||
| ROIC | 2.41% | ||
| ROICexc | 2.72% | ||
| ROICexgc | 4.52% | ||
| OM | 5.82% | ||
| PM (TTM) | N/A | ||
| GM | 49.39% | ||
| FCFM | 11.9% |
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%
ROICexcg growth 3Y26.02%
ROICexcg 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-Score6
Asset Turnover0.41
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.03 | ||
| Debt/FCF | 9.58 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | 13.36% | ||
| Interest Coverage | -2.27 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.87 | ||
| Quick Ratio | 0.83 | ||
| Altman-Z | 0.95 |
F-Score6
WACC3.78%
ROIC/WACC0.64
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)11.11%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-50%
EPS Next Y-23.76%
EPS Next 2Y-11.43%
EPS Next 3Y-4.55%
EPS Next 5Y-1.92%
Revenue 1Y (TTM)1.63%
Revenue growth 3Y1.7%
Revenue growth 5Y-3.12%
Sales Q2Q%5.4%
Revenue Next Year-0.4%
Revenue Next 2Y0.25%
Revenue Next 3Y0.55%
Revenue Next 5Y-0.24%
EBIT growth 1Y-42.5%
EBIT growth 3Y20.77%
EBIT growth 5Y4.69%
EBIT Next Year186.65%
EBIT Next 3Y42.49%
EBIT Next 5Y23.68%
FCF growth 1Y8.31%
FCF growth 3Y6.37%
FCF growth 5Y-7.72%
OCF growth 1Y0.45%
OCF growth 3Y0.61%
OCF growth 5Y-7%