Logo image of 1TEF.MI

TELEFONICA SA (1TEF.MI) Stock Fundamental Analysis

Europe - Euronext Milan - BIT:1TEF - ES0178430E18 - Common Stock

3.484 EUR
+0.06 (+1.87%)
Last: 12/29/2025, 7:00:00 PM
Fundamental Rating

3

We assign a fundamental rating of 3 out of 10 to 1TEF. 1TEF was compared to 36 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.


Dividend Valuation Growth Profitability Health

4

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.
  • 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

  • 1TEF's Return On Assets of -4.10% is on the low side compared to the rest of the industry. 1TEF is outperformed by 83.78% of its industry peers.
  • 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 7.93%.
  • The 3 year average ROIC (3.26%) for 1TEF is below the current ROIC(7.34%), indicating increased profibility in the last year.
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

  • 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.
  • In the last couple of years the Operating Margin of 1TEF has grown nicely.
  • 1TEF has a Gross Margin of 35.73%. This is in the lower half of the industry: 1TEF underperforms 70.27% 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

More info and screens

2

2. Health

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 1TEF is creating value.
  • 1TEF has about the same amout of shares outstanding than it did 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.
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

  • The Debt to FCF ratio of 1TEF is 8.80, which is on the high side as it means it would take 1TEF, 8.80 years of fcf income to pay off all of its debts.
  • With a Debt to FCF ratio value of 8.80, 1TEF perfoms like the industry average, outperforming 54.05% of the companies in the same industry.
  • 1TEF has a Debt/Equity ratio of 2.07. This is a high value indicating a heavy dependency on external financing.
  • 1TEF has a worse Debt to Equity ratio (2.07) than 86.49% of its industry peers.
Industry RankSector Rank
Debt/Equity 2.07
Debt/FCF 8.8
Altman-Z N/A
ROIC/WACC1.87
WACC3.92%
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 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 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

More info and screens

2

3. Growth

3.1 Past

  • The earnings per share for 1TEF have decreased strongly by -34.78% in the last year.
  • 1TEF shows a strong growth in Revenue. In the last year, the Revenue has grown by 40.77%.
  • The Revenue has been decreasing by -3.12% on average over the past years.
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

  • Based on estimates for the next years, 1TEF will show a small growth in Earnings Per Share. The EPS will grow by 1.32% on average per year.
  • 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.
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

More info and screens

5

4. Valuation

4.1 Price/Earnings Ratio

  • 1TEF is valuated reasonably with a Price/Earnings ratio of 11.61.
  • Compared to the rest of the industry, the Price/Earnings ratio of 1TEF indicates a somewhat cheap valuation: 1TEF is cheaper than 75.68% of the companies listed in the same industry.
  • Compared to an average S&P500 Price/Earnings ratio of 27.38, 1TEF is valued rather cheaply.
  • Based on the Price/Forward Earnings ratio of 10.59, the valuation of 1TEF can be described as reasonable.
  • Based on the Price/Forward Earnings ratio, 1TEF is valued a bit cheaper than 72.97% of the companies in the same industry.
  • When comparing the Price/Forward Earnings ratio of 1TEF to the average of the S&P500 Index (24.29), we can say 1TEF is valued rather cheaply.
Industry RankSector Rank
PE 11.61
Fwd PE 10.59
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

  • Based on the Price/Free Cash Flow ratio, 1TEF is valued cheaply inside the industry as 97.30% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 4.03
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%

More info and screens

5

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 3.36, 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 1.85, 1TEF pays a better dividend.
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

  • 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%
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

More info and screens

TELEFONICA SA

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

3.484

+0.06 (+1.87%)

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 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 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 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 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
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.