TELEFONICA SA (1TEF.MI) Stock Fundamental Analysis
BIT:1TEF - Borsa Italiana Milan - ES0178430E18 - Common Stock - Currency: EUR
Taking everything into account, 1TEF scores 3 out of 10 in our fundamental rating. 1TEF was compared to 31 industry peers in the Diversified Telecommunication Services industry. Both the profitability and financial health of 1TEF have multiple concerns. 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.
1TEF had a positive operating cash flow in the past year.
Of the past 5 years 1TEF 4 years were profitable.
1TEF had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of -0.92%, 1TEF is not doing good in the industry: 75.00% of the companies in the same industry are doing better.
1TEF's Return On Equity of -4.44% is on the low side compared to the rest of the industry. 1TEF is outperformed by 75.00% of its industry peers.
The Return On Invested Capital of 1TEF (4.32%) is worse than 75.00% of its industry peers.
1TEF had an Average Return On Invested Capital over the past 3 years of 2.62%. This is below the industry average of 7.24%.
The 3 year average ROIC (2.62%) for 1TEF is below the current ROIC(4.32%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.92% | ||
| ROE | -4.44% | ||
| ROIC | 4.32% |
ROA(3y)2.59%
ROA(5y)1.95%
ROE(3y)12.48%
ROE(5y)10.86%
ROIC(3y)2.62%
ROIC(5y)3.17%
1.3 Margins
1TEF has a worse Operating Margin (10.48%) than 71.43% of its industry peers.
In the last couple of years the Operating Margin of 1TEF has declined.
Looking at the Gross Margin, with a value of 48.63%, 1TEF is doing worse than 82.14% 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 | 10.48% | ||
| PM (TTM) | N/A | ||
| GM | 48.63% |
OM growth 3Y-18.41%
OM growth 5Y-15.25%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.4%
GM growth 5Y-1.05%
2. Health
2.1 Basic Checks
1TEF has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for 1TEF has been reduced compared to 1 year ago.
Compared to 5 years ago, 1TEF has less shares outstanding
The debt/assets ratio for 1TEF is higher compared to a year ago.
2.2 Solvency
1TEF has an Altman-Z score of 1.01. This is a bad value and indicates that 1TEF is not financially healthy and even has some risk of bankruptcy.
1TEF has a Altman-Z score of 1.01. This is in the lower half of the industry: 1TEF underperforms 67.86% of its industry peers.
The Debt to FCF ratio of 1TEF is 9.00, which is on the high side as it means it would take 1TEF, 9.00 years of fcf income to pay off all of its debts.
1TEF has a Debt to FCF ratio (9.00) which is comparable to the rest of the industry.
1TEF has a Debt/Equity ratio of 1.89. This is a high value indicating a heavy dependency on external financing.
1TEF's Debt to Equity ratio of 1.89 is on the low side compared to the rest of the industry. 1TEF is outperformed by 82.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.89 | ||
| Debt/FCF | 9 | ||
| Altman-Z | 1.01 |
ROIC/WACC1.36
WACC3.17%
2.3 Liquidity
1TEF has a Current Ratio of 0.85. 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's Current ratio of 0.85 is fine compared to the rest of the industry. 1TEF outperforms 64.29% 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 of 0.81. This is comparable to the rest of the industry: 1TEF outperforms 57.14% of 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 -161.84%.
1TEF shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -13.09% yearly.
1TEF shows a small growth in Revenue. In the last year, the Revenue has grown by 0.36%.
Measured over the past years, 1TEF shows a decrease in Revenue. The Revenue has been decreasing by -3.55% on average per year.
EPS 1Y (TTM)-161.84%
EPS 3YN/A
EPS 5Y-13.09%
EPS Q2Q%100%
Revenue 1Y (TTM)0.36%
Revenue growth 3Y-1.91%
Revenue growth 5Y-3.55%
Sales Q2Q%1.2%
3.2 Future
Based on estimates for the next years, 1TEF will show a decrease in Earnings Per Share. The EPS will decrease by -4.48% on average per year.
The Revenue is expected to grow by 1.18% on average over the next years.
EPS Next Y-14.25%
EPS Next 2Y-4.91%
EPS Next 3Y-2.95%
EPS Next 5Y-4.48%
Revenue Next Year0.64%
Revenue Next 2Y0.41%
Revenue Next 3Y0.49%
Revenue Next 5Y1.18%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
A Price/Earnings ratio of 9.02 indicates a reasonable valuation of 1TEF.
Based on the Price/Earnings ratio, 1TEF is valued a bit cheaper than 78.57% of the companies in the same industry.
1TEF's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.47.
A Price/Forward Earnings ratio of 12.19 indicates a correct valuation of 1TEF.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 1TEF is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of 1TEF to the average of the S&P500 Index (92.74), we can say 1TEF is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.02 | ||
| Fwd PE | 12.19 |
4.2 Price Multiples
85.71% 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 | 4.35 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
1TEF's earnings are expected to decrease with -2.95% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-4.91%
EPS Next 3Y-2.95%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 8.45%, 1TEF is a good candidate for dividend investing.
1TEF's Dividend Yield is rather good when compared to the industry average which is at 5.48. 1TEF pays more dividend than 89.29% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.28, 1TEF pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.45% |
5.2 History
The dividend of 1TEF decreases each year by -3.17%.
Dividend Growth(5Y)-3.17%
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.
The Dividend Rate of 1TEF has been decling, while earnings will also be declining. This means the current dividend is most likely not sustainable.
DP-211.15%
EPS Next 2Y-4.91%
EPS Next 3Y-2.95%
TELEFONICA SA
BIT:1TEF (2/3/2025, 7:00:00 PM)
3.967
+0.12 (+3.12%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst OwnersN/A
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap22.37B
Analysts63.33
Price Target4.22 (6.38%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.45% |
Yearly Dividend0.38
Dividend Growth(5Y)-3.17%
DP-211.15%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)28.79%
Min EPS beat(2)21.01%
Max EPS beat(2)36.57%
EPS beat(4)4
Avg EPS beat(4)21.65%
Min EPS beat(4)11.39%
Max EPS beat(4)36.57%
EPS beat(8)N/A
Avg EPS beat(8)N/A
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)2
Avg Revenue beat(2)5.63%
Min Revenue beat(2)1.19%
Max Revenue beat(2)10.07%
Revenue beat(4)2
Avg Revenue beat(4)2.45%
Min Revenue beat(4)-1.36%
Max Revenue beat(4)10.07%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
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)-1.37%
PT rev (3m)-1.37%
EPS NQ rev (1m)-5.18%
EPS NQ rev (3m)-5.18%
EPS NY rev (1m)-3%
EPS NY rev (3m)-3%
Revenue NQ rev (1m)-0.82%
Revenue NQ rev (3m)-0.82%
Revenue NY rev (1m)-0.23%
Revenue NY rev (3m)-0.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.02 | ||
| Fwd PE | 12.19 | ||
| P/S | 0.55 | ||
| P/FCF | 4.35 | ||
| P/OCF | 2.04 | ||
| P/B | 1.06 | ||
| P/tB | N/A | ||
| EV/EBITDA | N/A |
EPS(TTM)0.44
EY11.09%
EPS(NY)0.33
Fwd EY8.21%
FCF(TTM)0.91
FCFY22.99%
OCF(TTM)1.94
OCFY49%
SpS7.25
BVpS3.73
TBVpS-1.33
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.92% | ||
| ROE | -4.44% | ||
| ROCE | 5.52% | ||
| ROIC | 4.32% | ||
| ROICexc | 4.67% | ||
| ROICexgc | 7.75% | ||
| OM | 10.48% | ||
| PM (TTM) | N/A | ||
| GM | 48.63% | ||
| FCFM | 12.58% |
ROA(3y)2.59%
ROA(5y)1.95%
ROE(3y)12.48%
ROE(5y)10.86%
ROIC(3y)2.62%
ROIC(5y)3.17%
ROICexc(3y)2.93%
ROICexc(5y)3.55%
ROICexgc(3y)4.84%
ROICexgc(5y)6.23%
ROCE(3y)3.34%
ROCE(5y)4.06%
ROICexcg growth 3Y-21.66%
ROICexcg growth 5Y-22%
ROICexc growth 3Y-21.54%
ROICexc growth 5Y-17.49%
OM growth 3Y-18.41%
OM growth 5Y-15.25%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.4%
GM growth 5Y-1.05%
F-Score5
Asset Turnover0.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.89 | ||
| Debt/FCF | 9 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | 14.24% | ||
| Interest Coverage | -4.7 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.81 | ||
| Altman-Z | 1.01 |
F-Score5
WACC3.17%
ROIC/WACC1.36
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)14.62%
Cap/Sales(5y)15.19%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-161.84%
EPS 3YN/A
EPS 5Y-13.09%
EPS Q2Q%100%
EPS Next Y-14.25%
EPS Next 2Y-4.91%
EPS Next 3Y-2.95%
EPS Next 5Y-4.48%
Revenue 1Y (TTM)0.36%
Revenue growth 3Y-1.91%
Revenue growth 5Y-3.55%
Sales Q2Q%1.2%
Revenue Next Year0.64%
Revenue Next 2Y0.41%
Revenue Next 3Y0.49%
Revenue Next 5Y1.18%
EBIT growth 1Y3.96%
EBIT growth 3Y-19.97%
EBIT growth 5Y-18.26%
EBIT Next Year248.37%
EBIT Next 3Y51.65%
EBIT Next 5Y30.48%
FCF growth 1Y10.67%
FCF growth 3Y-2.14%
FCF growth 5Y4.14%
OCF growth 1Y10.82%
OCF growth 3Y-4.1%
OCF growth 5Y-2.65%