AT&T INC (SOBA.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:SOBA - US00206R1023 - Common Stock
19.952 EUR
+0.04 (+0.22%)
SOBA gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 35 industry peers in the Diversified Telecommunication Services industry. Both the profitability and the financial health of SOBA get a neutral evaluation. Nothing too spectacular is happening here. SOBA has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
- SOBA had positive earnings in the past year.
- In the past year SOBA had a positive cash flow from operations.
- The reported net income has been mixed in the past 5 years: SOBA reported negative net income in multiple years.
- SOBA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- SOBA has a Return On Assets of 5.24%. This is in the better half of the industry: SOBA outperforms 77.14% of its industry peers.
- The Return On Equity of SOBA (20.02%) is better than 80.00% of its industry peers.
- With a Return On Invested Capital value of 4.98%, SOBA is not doing good in the industry: 65.71% of the companies in the same industry are doing better.
- Measured over the past 3 years, the Average Return On Invested Capital for SOBA is below the industry average of 8.42%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.24% | ||
| ROE | 20.02% | ||
| ROIC | 4.98% |
ROA(3y)1.35%
ROA(5y)1.32%
ROE(3y)5.03%
ROE(5y)4.74%
ROIC(3y)5.19%
ROIC(5y)4.76%
1.3 Margins
- With an excellent Profit Margin value of 17.81%, SOBA belongs to the best of the industry, outperforming 91.43% of the companies in the same industry.
- In the last couple of years the Profit Margin of SOBA has grown nicely.
- SOBA's Operating Margin of 19.44% is fine compared to the rest of the industry. SOBA outperforms 68.57% of its industry peers.
- SOBA's Operating Margin has improved in the last couple of years.
- SOBA has a Gross Margin (59.67%) which is comparable to the rest of the industry.
- SOBA's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.44% | ||
| PM (TTM) | 17.81% | ||
| GM | 59.67% |
OM growth 3Y0.54%
OM growth 5Y4.03%
PM growth 3Y-16.01%
PM growth 5Y2.75%
GM growth 3Y2.85%
GM growth 5Y2.22%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SOBA is destroying value.
- The number of shares outstanding for SOBA has been increased compared to 1 year ago.
- SOBA has less shares outstanding than it did 5 years ago.
- Compared to 1 year ago, SOBA has an improved debt to assets ratio.
2.2 Solvency
- SOBA has an Altman-Z score of 0.85. This is a bad value and indicates that SOBA is not financially healthy and even has some risk of bankruptcy.
- SOBA's Altman-Z score of 0.85 is on the low side compared to the rest of the industry. SOBA is outperformed by 71.43% of its industry peers.
- SOBA has a debt to FCF ratio of 6.99. This is a slightly negative value and a sign of low solvency as SOBA would need 6.99 years to pay back of all of its debts.
- SOBA has a Debt to FCF ratio of 6.99. This is in the better half of the industry: SOBA outperforms 65.71% of its industry peers.
- SOBA has a Debt/Equity ratio of 1.16. This is a high value indicating a heavy dependency on external financing.
- SOBA has a Debt to Equity ratio (1.16) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.16 | ||
| Debt/FCF | 6.99 | ||
| Altman-Z | 0.85 |
ROIC/WACC0.75
WACC6.61%
2.3 Liquidity
- SOBA has a Current Ratio of 1.01. This is a normal value and indicates that SOBA is financially healthy and should not expect problems in meeting its short term obligations.
- SOBA's Current ratio of 1.01 is amongst the best of the industry. SOBA outperforms 88.57% of its industry peers.
- SOBA has a Quick Ratio of 1.01. This is a bad value and indicates that SOBA is not financially healthy enough and could expect problems in meeting its short term obligations.
- SOBA's Quick ratio of 0.96 is amongst the best of the industry. SOBA outperforms 85.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.01 | ||
| Quick Ratio | 0.96 |
3. Growth
3.1 Past
- SOBA shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -5.75%.
- The Earnings Per Share has been decreasing by -8.79% on average over the past years.
- The Revenue has been growing slightly by 1.98% in the past year.
- Measured over the past years, SOBA shows a decrease in Revenue. The Revenue has been decreasing by -7.56% on average per year.
EPS 1Y (TTM)-5.75%
EPS 3Y-12.73%
EPS 5Y-8.79%
EPS Q2Q%-10%
Revenue 1Y (TTM)1.98%
Revenue growth 3Y-3%
Revenue growth 5Y-7.56%
Sales Q2Q%1.64%
3.2 Future
- Based on estimates for the next years, SOBA will show a small growth in Earnings Per Share. The EPS will grow by 5.70% on average per year.
- The Revenue is expected to grow by 2.26% on average over the next years.
EPS Next Y-7.49%
EPS Next 2Y-0.05%
EPS Next 3Y3.36%
EPS Next 5Y5.7%
Revenue Next Year2.35%
Revenue Next 2Y1.92%
Revenue Next 3Y1.88%
Revenue Next 5Y2.26%
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.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 11.02, the valuation of SOBA can be described as very reasonable.
- Compared to the rest of the industry, the Price/Earnings ratio of SOBA indicates a somewhat cheap valuation: SOBA is cheaper than 80.00% of the companies listed in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.21. SOBA is valued rather cheaply when compared to this.
- With a Price/Forward Earnings ratio of 10.38, the valuation of SOBA can be described as very reasonable.
- Based on the Price/Forward Earnings ratio, SOBA is valued a bit cheaper than 74.29% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of SOBA to the average of the S&P500 Index (25.98), we can say SOBA is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.02 | ||
| Fwd PE | 10.38 |
4.2 Price Multiples
- SOBA's Enterprise Value to EBITDA is on the same level as the industry average.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of SOBA indicates a somewhat cheap valuation: SOBA is cheaper than 77.14% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.32 | ||
| EV/EBITDA | 6.29 |
4.3 Compensation for Growth
- The decent profitability rating of SOBA may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-0.05%
EPS Next 3Y3.36%
5. Dividend
5.1 Amount
- SOBA has a Yearly Dividend Yield of 4.71%, which is a nice return.
- SOBA's Dividend Yield is a higher than the industry average which is at 3.26.
- SOBA's Dividend Yield is rather good when compared to the S&P500 average which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.71% |
5.2 History
- The dividend of SOBA decreases each year by -10.97%.
Dividend Growth(5Y)-10.97%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
- SOBA pays out 37.01% of its income as dividend. This is a sustainable payout ratio.
DP37.01%
EPS Next 2Y-0.05%
EPS Next 3Y3.36%
AT&T INC / SOBA.DE FAQ
Can you provide the ChartMill fundamental rating for AT&T INC?
ChartMill assigns a fundamental rating of 5 / 10 to SOBA.DE.
Can you provide the valuation status for AT&T INC?
ChartMill assigns a valuation rating of 6 / 10 to AT&T INC (SOBA.DE). This can be considered as Fairly Valued.
Can you provide the profitability details for AT&T INC?
AT&T INC (SOBA.DE) has a profitability rating of 6 / 10.
What is the valuation of AT&T INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for AT&T INC (SOBA.DE) is 11.02 and the Price/Book (PB) ratio is 1.5.
How sustainable is the dividend of AT&T INC (SOBA.DE) stock?
The dividend rating of AT&T INC (SOBA.DE) is 6 / 10 and the dividend payout ratio is 37.01%.