AT&T INC (SOBA.DE) Stock Fundamental Analysis
FRA:SOBA - Deutsche Boerse Ag - US00206R1023 - Common Stock - Currency: EUR
SOBA gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 31 industry peers in the Diversified Telecommunication Services industry. While SOBA is still in line with the averages on profitability rating, there are concerns on its financial health. SOBA is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year SOBA was profitable.
SOBA had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: SOBA reported negative net income in multiple years.
In the past 5 years SOBA always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of SOBA (2.72%) is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 10.30%, SOBA is in the better half of the industry, outperforming 64.29% of the companies in the same industry.
SOBA's Return On Invested Capital of 5.28% is on the low side compared to the rest of the industry. SOBA is outperformed by 64.29% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SOBA is below the industry average of 7.24%.
The last Return On Invested Capital (5.28%) for SOBA is above the 3 year average (5.19%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.72% | ||
| ROE | 10.3% | ||
| ROIC | 5.28% |
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
Looking at the Profit Margin, with a value of 8.78%, SOBA is in the better half of the industry, outperforming 67.86% of the companies in the same industry.
SOBA's Profit Margin has improved in the last couple of years.
SOBA has a better Operating Margin (19.74%) than 64.29% of its industry peers.
SOBA's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 59.77%, SOBA perfoms like the industry average, outperforming 53.57% of the companies in the same industry.
SOBA's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.74% | ||
| PM (TTM) | 8.78% | ||
| GM | 59.77% |
OM growth 3Y0.52%
OM growth 5Y4.02%
PM growth 3Y-16.01%
PM growth 5Y2.75%
GM growth 3Y2.85%
GM growth 5Y2.22%
2. Health
2.1 Basic Checks
SOBA has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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.
SOBA has a better debt/assets ratio than last year.
2.2 Solvency
SOBA has an Altman-Z score of 0.83. This is a bad value and indicates that SOBA is not financially healthy and even has some risk of bankruptcy.
SOBA has a worse Altman-Z score (0.83) than 75.00% of its industry peers.
The Debt to FCF ratio of SOBA is 6.67, which is on the high side as it means it would take SOBA, 6.67 years of fcf income to pay off all of its debts.
SOBA's Debt to FCF ratio of 6.67 is fine compared to the rest of the industry. SOBA outperforms 75.00% of its industry peers.
SOBA has a Debt/Equity ratio of 1.13. This is a high value indicating a heavy dependency on external financing.
SOBA has a Debt to Equity ratio (1.13) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.13 | ||
| Debt/FCF | 6.67 | ||
| Altman-Z | 0.83 |
ROIC/WACC0.75
WACC7.03%
2.3 Liquidity
SOBA has a Current Ratio of 0.66. This is a bad value and indicates that SOBA is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.66, SOBA is doing worse than 67.86% of the companies in the same industry.
A Quick Ratio of 0.62 indicates that SOBA may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.62, SOBA is doing worse than 71.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.66 | ||
| Quick Ratio | 0.62 |
3. Growth
3.1 Past
SOBA shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -6.22%.
The Earnings Per Share has been decreasing by -8.79% on average over the past years.
Looking at the last year, SOBA shows a decrease in Revenue. The Revenue has decreased by -0.08% in the last year.
The Revenue has been decreasing by -7.56% on average over the past years.
EPS 1Y (TTM)-6.22%
EPS 3Y-12.73%
EPS 5Y-8.79%
EPS Q2Q%0%
Revenue 1Y (TTM)-0.08%
Revenue growth 3Y-3%
Revenue growth 5Y-7.56%
Sales Q2Q%0.86%
3.2 Future
The Earnings Per Share is expected to grow by 5.51% on average over the next years.
SOBA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.94% yearly.
EPS Next Y-3.58%
EPS Next 2Y0.83%
EPS Next 3Y3.39%
EPS Next 5Y5.51%
Revenue Next Year1.21%
Revenue Next 2Y1.23%
Revenue Next 3Y1.36%
Revenue Next 5Y1.94%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 10.67, the valuation of SOBA can be described as very reasonable.
Based on the Price/Earnings ratio, SOBA is valued a bit cheaper than 67.86% of the companies in the same industry.
SOBA is valuated cheaply when we compare the Price/Earnings ratio to 28.47, which is the current average of the S&P500 Index.
SOBA is valuated reasonably with a Price/Forward Earnings ratio of 11.08.
SOBA's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. SOBA is cheaper than 64.29% of the companies in the same industry.
SOBA is valuated cheaply when we compare the Price/Forward Earnings ratio to 92.74, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.67 | ||
| Fwd PE | 11.08 |
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 is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.36 | ||
| EV/EBITDA | 6.58 |
4.3 Compensation for Growth
SOBA has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y0.83%
EPS Next 3Y3.39%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.62%, SOBA is a good candidate for dividend investing.
SOBA's Dividend Yield is comparable with the industry average which is at 5.48.
Compared to an average S&P500 Dividend Yield of 2.28, SOBA pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.62% |
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
76.38% of the earnings are spent on dividend by SOBA. This is not a sustainable payout ratio.
DP76.38%
EPS Next 2Y0.83%
EPS Next 3Y3.39%
AT&T INC
FRA:SOBA (2/5/2025, 11:25:34 AM)
23.365
-0.1 (-0.43%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners61.02%
Inst Owner ChangeN/A
Ins Owners0.06%
Ins Owner ChangeN/A
Market Cap167.65B
Analysts74.86
Price Target24.87 (6.44%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.62% |
Yearly Dividend1.15
Dividend Growth(5Y)-10.97%
DP76.38%
Div Incr Years0
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.77%
Min EPS beat(2)3.5%
Max EPS beat(2)6.05%
EPS beat(4)3
Avg EPS beat(4)1.92%
Min EPS beat(4)-2.25%
Max EPS beat(4)6.05%
EPS beat(8)6
Avg EPS beat(8)0.88%
EPS beat(12)9
Avg EPS beat(12)1.85%
EPS beat(16)13
Avg EPS beat(16)3.18%
Revenue beat(2)0
Avg Revenue beat(2)-1.94%
Min Revenue beat(2)-2.71%
Max Revenue beat(2)-1.17%
Revenue beat(4)0
Avg Revenue beat(4)-2.45%
Min Revenue beat(4)-3.57%
Max Revenue beat(4)-1.17%
Revenue beat(8)0
Avg Revenue beat(8)-1.99%
Revenue beat(12)0
Avg Revenue beat(12)-3.73%
Revenue beat(16)0
Avg Revenue beat(16)-7.9%
PT rev (1m)2.98%
PT rev (3m)19.51%
EPS NQ rev (1m)-12.38%
EPS NQ rev (3m)-11.24%
EPS NY rev (1m)-3.74%
EPS NY rev (3m)-4.56%
Revenue NQ rev (1m)0.05%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)-0.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.67 | ||
| Fwd PE | 11.08 | ||
| P/S | 1.42 | ||
| P/FCF | 9.36 | ||
| P/OCF | 4.47 | ||
| P/B | 1.66 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.58 |
EPS(TTM)2.19
EY9.37%
EPS(NY)2.11
Fwd EY9.02%
FCF(TTM)2.5
FCFY10.68%
OCF(TTM)5.23
OCFY22.38%
SpS16.5
BVpS14.07
TBVpS-12.32
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.72% | ||
| ROE | 10.3% | ||
| ROCE | 6.94% | ||
| ROIC | 5.28% | ||
| ROICexc | 5.33% | ||
| ROICexgc | 12.33% | ||
| OM | 19.74% | ||
| PM (TTM) | 8.78% | ||
| GM | 59.77% | ||
| FCFM | 15.13% |
ROA(3y)1.35%
ROA(5y)1.32%
ROE(3y)5.03%
ROE(5y)4.74%
ROIC(3y)5.19%
ROIC(5y)4.76%
ROICexc(3y)5.26%
ROICexc(5y)4.87%
ROICexgc(3y)12.3%
ROICexgc(5y)11.33%
ROCE(3y)6.83%
ROCE(5y)6.26%
ROICexcg growth 3Y9.18%
ROICexcg growth 5Y-1.64%
ROICexc growth 3Y4.24%
ROICexc growth 5Y2.34%
OM growth 3Y0.52%
OM growth 5Y4.02%
PM growth 3Y-16.01%
PM growth 5Y2.75%
GM growth 3Y2.85%
GM growth 5Y2.22%
F-Score7
Asset Turnover0.31
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.13 | ||
| Debt/FCF | 6.67 | ||
| Debt/EBITDA | 2.65 | ||
| Cap/Depr | 98.46% | ||
| Cap/Sales | 16.56% | ||
| Interest Coverage | 3.39 | ||
| Cash Conversion | 86.68% | ||
| Profit Quality | 172.23% | ||
| Current Ratio | 0.66 | ||
| Quick Ratio | 0.62 | ||
| Altman-Z | 0.83 |
F-Score7
WACC7.03%
ROIC/WACC0.75
Cap/Depr(3y)100.82%
Cap/Depr(5y)90.95%
Cap/Sales(3y)15.8%
Cap/Sales(5y)13.85%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-6.22%
EPS 3Y-12.73%
EPS 5Y-8.79%
EPS Q2Q%0%
EPS Next Y-3.58%
EPS Next 2Y0.83%
EPS Next 3Y3.39%
EPS Next 5Y5.51%
Revenue 1Y (TTM)-0.08%
Revenue growth 3Y-3%
Revenue growth 5Y-7.56%
Sales Q2Q%0.86%
Revenue Next Year1.21%
Revenue Next 2Y1.23%
Revenue Next 3Y1.36%
Revenue Next 5Y1.94%
EBIT growth 1Y-2.1%
EBIT growth 3Y-2.49%
EBIT growth 5Y-3.84%
EBIT Next Year97.44%
EBIT Next 3Y27.42%
EBIT Next 5Y17.5%
FCF growth 1Y-9.54%
FCF growth 3Y-11.18%
FCF growth 5Y-8.74%
OCF growth 1Y1.19%
OCF growth 3Y-2.6%
OCF growth 5Y-4.45%