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

BIT:1TEF • ES0178430E18

3.677 EUR
+0.19 (+5.54%)
Last: Feb 25, 2026, 07:00 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Forecast Earnings Financials Ownership

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

Fundamental Rating

3

1TEF gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 30 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.


Dividend Valuation Growth Profitability Health

4

1. 1TEF.MI Profitability Analysis

1.1 Basic Checks

  • 1TEF had positive earnings in the past year.
  • 1TEF had a positive operating cash flow in the past year.
  • In multiple years 1TEF reported negative net income over the last 5 years.
  • Each year in the past 5 years 1TEF had a positive operating cash flow.
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 0 5B 10B 15B

1.2 Ratios

  • With a Return On Assets value of -4.10%, 1TEF is not doing good in the industry: 80.00% of the companies in the same industry are doing better.
  • 1TEF's Return On Equity of -21.56% is on the low side compared to the rest of the industry. 1TEF is outperformed by 80.00% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 7.34%, 1TEF is in the better half of the industry, outperforming 73.33% of the companies in the same industry.
  • Measured over the past 3 years, the Average Return On Invested Capital for 1TEF is significantly below the industry average of 8.35%.
  • 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 RankSector 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%
1TEF.MI Yearly ROA, ROE, ROIC1TEF.MI Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 20 30

1.3 Margins

  • 1TEF has a Operating Margin (12.00%) which is in line with its industry peers.
  • In the last couple of years the Operating Margin of 1TEF has grown nicely.
  • 1TEF has a worse Gross Margin (35.73%) than 70.00% of its industry peers.
  • 1TEF's Gross Margin has been stable in the last couple of years.
Industry RankSector 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%
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 0 10 20 30 40 50

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2

2. 1TEF.MI Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so 1TEF is still creating some value.
  • 1TEF has about the same amout of shares outstanding than it did 1 year ago.
  • The number of shares outstanding for 1TEF has been reduced compared to 5 years ago.
  • 1TEF has a worse 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 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 20B 40B 60B 80B 100B

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 has a Debt to FCF ratio of 8.80. This is comparable to the rest of the industry: 1TEF outperforms 53.33% 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 83.33% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 2.07
Debt/FCF 8.8
Altman-Z N/A
ROIC/WACC1.77
WACC4.14%
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 10B 20B 30B 40B

2.3 Liquidity

  • A Current Ratio of 0.84 indicates that 1TEF may have some problems paying its short term obligations.
  • 1TEF's Current ratio of 0.84 is in line compared to the rest of the industry. 1TEF outperforms 56.67% 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.
  • 1TEF's Quick ratio of 0.80 is in line compared to the rest of the industry. 1TEF outperforms 53.33% of its industry peers.
Industry RankSector Rank
Current Ratio 0.84
Quick Ratio 0.8
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 10B 20B 30B

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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 -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

  • 1TEF is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 1.32% yearly.
  • 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

  • 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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5

4. 1TEF.MI Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 12.26, the valuation of 1TEF can be described as correct.
  • Compared to the rest of the industry, the Price/Earnings ratio of 1TEF indicates a somewhat cheap valuation: 1TEF is cheaper than 73.33% 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 26.29.
  • Based on the Price/Forward Earnings ratio of 11.18, the valuation of 1TEF can be described as reasonable.
  • Based on the Price/Forward Earnings ratio, 1TEF is valued a bit cheaper than the industry average as 76.67% 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 24.57.
Industry RankSector Rank
PE 12.26
Fwd PE 11.18
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 96.67% of the companies in the same industry.
Industry RankSector Rank
P/FCF 4.25
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 10

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

5

5. 1TEF.MI Dividend Analysis

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 3.04, 1TEF pays a better dividend. On top of this 1TEF pays more dividend than 96.67% 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 1.82.
Industry RankSector 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

  • 1TEF has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-48.26%
EPS Next 2Y-9.33%
EPS Next 3Y-2.22%
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 0 2B 4B 6B

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

TELEFONICA SA

BIT:1TEF (2/25/2026, 7:00:00 PM)

3.677

+0.19 (+5.54%)

Chartmill FA Rating
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)11-04
Earnings (Next)02-26
Inst Owners27.78%
Inst Owner ChangeN/A
Ins Owners0.37%
Ins Owner ChangeN/A
Market Cap20.73B
Revenue(TTM)57.11B
Net Income(TTM)-3.80B
Analysts53.75
Price Target4.14 (12.59%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector 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 RankSector Rank
PE 12.26
Fwd PE 11.18
P/S 0.36
P/FCF 4.25
P/OCF 2.01
P/B 1.18
P/tB N/A
EV/EBITDA N/A
EPS(TTM)0.3
EY8.16%
EPS(NY)0.33
Fwd EY8.94%
FCF(TTM)0.86
FCFY23.51%
OCF(TTM)1.83
OCFY49.85%
SpS10.13
BVpS3.12
TBVpS-1.5
PEG (NY)N/A
PEG (5Y)N/A
Graham Number4.59
Profitability
Industry RankSector 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 RankSector 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
WACC4.14%
ROIC/WACC1.77
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 3 / 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 12.26 and the Price/Book (PB) ratio is 1.18.


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.