TELEFONICA SA (1TEF.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1TEF - ES0178430E18 - Common Stock
3.42 EUR
-0.06 (-1.87%)
Overall 1TEF gets a fundamental rating of 3 out of 10. We evaluated 1TEF against 31 industry peers in the Diversified Telecommunication Services industry. 1TEF has a medium profitability rating, but doesn't score so well on its financial health evaluation. 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.
In the past year 1TEF had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: 1TEF reported negative net income in multiple years.
In the past 5 years 1TEF always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of -4.10%, 1TEF is not doing good in the industry: 74.19% 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 74.19% of its industry peers.
1TEF has a Return On Invested Capital of 7.34%. This is in the better half of the industry: 1TEF outperforms 70.97% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for 1TEF is below the industry average of 7.74%.
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
1TEF has a Operating Margin (12.00%) which is in line with its industry peers.
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 67.74% of the companies in the same industry.
In the last couple of years the Gross Margin of 1TEF has remained more or less at the same level.
| 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%
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.
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.
The debt/assets ratio for 1TEF is higher compared to a year ago.
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 51.61% 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 80.65% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.07 | ||
| Debt/FCF | 8.8 | ||
| Altman-Z | N/A |
ROIC/WACC1.77
WACC4.15%
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 64.52% of its industry peers.
A Quick Ratio of 0.80 indicates that 1TEF may have some problems paying its short term obligations.
The Quick ratio of 1TEF (0.80) is better than 61.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.8 |
3. Growth
3.1 Past
The earnings per share for 1TEF have decreased strongly by -34.78% in the last year.
The Revenue has grown by 40.77% in the past year. This is a very strong growth!
1TEF shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -3.12% yearly.
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.
The Revenue is expected to decrease by -1.53% on average over the next years.
EPS Next Y-36.15%
EPS Next 2Y-10.35%
EPS Next 3Y-3.01%
EPS Next 5Y1.32%
Revenue Next Year-10.39%
Revenue Next 2Y-5.29%
Revenue Next 3Y-3.07%
Revenue Next 5Y-1.53%
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
The Price/Earnings ratio is 11.40, which indicates a very decent valuation of 1TEF.
Compared to the rest of the industry, the Price/Earnings ratio of 1TEF indicates a rather cheap valuation: 1TEF is cheaper than 87.10% of the companies listed in the same industry.
1TEF is valuated cheaply when we compare the Price/Earnings ratio to 26.59, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 10.64 indicates a reasonable valuation of 1TEF.
1TEF's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. 1TEF is cheaper than 77.42% of the companies in the same industry.
1TEF's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.03.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.4 | ||
| Fwd PE | 10.64 |
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 100.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.96 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
A cheap valuation may be justified as 1TEF's earnings are expected to decrease with -3.01% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-10.35%
EPS Next 3Y-3.01%
5. Dividend
5.1 Amount
1TEF has a Yearly Dividend Yield of 6.98%, which is a nice return.
Compared to an average industry Dividend Yield of 3.36, 1TEF pays a better dividend. On top of this 1TEF pays more dividend than 93.55% 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 1.88.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.98% |
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-10.35%
EPS Next 3Y-3.01%
BIT:1TEF (12/19/2025, 7:00:00 PM)
3.42
-0.06 (-1.87%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners27.99%
Inst Owner ChangeN/A
Ins Owners0.37%
Ins Owner ChangeN/A
Market Cap19.28B
Revenue(TTM)57.11B
Net Income(TTM)-3.80B
Analysts52.26
Price Target4.14 (21.05%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.98% |
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)-8.16%
PT rev (3m)-5.48%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-15.71%
EPS NY rev (1m)-1.53%
EPS NY rev (3m)-16.25%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.48%
Revenue NY rev (1m)-0.35%
Revenue NY rev (3m)-4.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.4 | ||
| Fwd PE | 10.64 | ||
| P/S | 0.34 | ||
| P/FCF | 3.96 | ||
| P/OCF | 1.87 | ||
| P/B | 1.09 | ||
| P/tB | N/A | ||
| EV/EBITDA | N/A |
EPS(TTM)0.3
EY8.77%
EPS(NY)0.32
Fwd EY9.4%
FCF(TTM)0.86
FCFY25.28%
OCF(TTM)1.83
OCFY53.6%
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
WACC4.15%
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-36.15%
EPS Next 2Y-10.35%
EPS Next 3Y-3.01%
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-10.39%
Revenue Next 2Y-5.29%
Revenue Next 3Y-3.07%
Revenue Next 5Y-1.53%
EBIT growth 1Y59.92%
EBIT growth 3Y20.77%
EBIT growth 5Y4.69%
EBIT Next Year169.05%
EBIT Next 3Y40.87%
EBIT Next 5Y23.75%
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 for 1TEF 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 4 / 10.
Can you provide the PE and PB ratios for 1TEF stock?
The Price/Earnings (PE) ratio for TELEFONICA SA (1TEF.MI) is 11.4 and the Price/Book (PB) ratio is 1.09.
How financially healthy is TELEFONICA SA?
The financial health rating of TELEFONICA SA (1TEF.MI) is 2 / 10.