AT&T INC (SOBA.DE) Stock Fundamental Analysis
FRA:SOBA - Deutsche Boerse Ag - US00206R1023 - Common Stock - Currency: EUR
We assign a fundamental rating of 4 out of 10 to SOBA. SOBA was compared to 27 industry peers in the Diversified Telecommunication Services industry. SOBA has a medium profitability rating, but doesn't score so well on its financial health evaluation. 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.
In the past year SOBA had a positive cash flow from operations.
In multiple years SOBA reported negative net income over the last 5 years.
In the past 5 years SOBA always reported a positive cash flow from operatings.
1.2 Ratios
SOBA has a Return On Assets of 2.96%. This is comparable to the rest of the industry: SOBA outperforms 48.15% of its industry peers.
SOBA has a Return On Equity (11.32%) which is comparable to the rest of the industry.
SOBA has a Return On Invested Capital of 5.31%. This is in the lower half of the industry: SOBA underperforms 62.96% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SOBA is below the industry average of 7.62%.
The last Return On Invested Capital (5.31%) for SOBA is above the 3 year average (5.19%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.96% | ||
| ROE | 11.32% | ||
| ROIC | 5.31% |
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 9.55%, SOBA is in the better half of the industry, outperforming 62.96% of the companies in the same industry.
SOBA's Profit Margin has improved in the last couple of years.
SOBA's Operating Margin of 19.84% is fine compared to the rest of the industry. SOBA outperforms 74.07% of its industry peers.
In the last couple of years the Operating Margin of SOBA has grown nicely.
SOBA has a Gross Margin (59.90%) 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 | 19.84% | ||
| PM (TTM) | 9.55% | ||
| GM | 59.9% |
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
SOBA has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, SOBA has more shares outstanding
The number of shares outstanding for SOBA has been reduced compared to 5 years ago.
SOBA has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.88, we must say that SOBA is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.88, SOBA is doing worse than 66.67% of the companies in the same industry.
The Debt to FCF ratio of SOBA is 6.47, which is on the high side as it means it would take SOBA, 6.47 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 6.47, SOBA is doing good in the industry, outperforming 66.67% of the companies in the same industry.
A Debt/Equity ratio of 1.13 is on the high side and indicates that SOBA has dependencies on debt 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 | 6.47 | ||
| Altman-Z | 0.88 |
ROIC/WACC0.77
WACC6.91%
2.3 Liquidity
A Current Ratio of 0.70 indicates that SOBA may have some problems paying its short term obligations.
SOBA has a Current ratio (0.70) which is in line with its industry peers.
SOBA has a Quick Ratio of 0.70. This is a bad value and indicates that SOBA is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of SOBA (0.65) is worse than 62.96% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.7 | ||
| Quick Ratio | 0.65 |
3. Growth
3.1 Past
The earnings per share for SOBA have decreased by -5.93% in the last year.
SOBA shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -8.79% yearly.
SOBA shows a small growth in Revenue. In the last year, the Revenue has grown by 0.50%.
SOBA shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -7.56% yearly.
EPS 1Y (TTM)-5.93%
EPS 3Y-12.73%
EPS 5Y-8.79%
EPS Q2Q%-7.27%
Revenue 1Y (TTM)0.5%
Revenue growth 3Y-3%
Revenue growth 5Y-7.56%
Sales Q2Q%1.99%
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 6.07% on average per year.
SOBA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.18% yearly.
EPS Next Y-7.35%
EPS Next 2Y0.44%
EPS Next 3Y4.07%
EPS Next 5Y6.07%
Revenue Next Year1.68%
Revenue Next 2Y1.51%
Revenue Next 3Y1.53%
Revenue Next 5Y2.18%
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
SOBA is valuated correctly with a Price/Earnings ratio of 12.17.
Compared to the rest of the industry, the Price/Earnings ratio of SOBA indicates a somewhat cheap valuation: SOBA is cheaper than 77.78% of the companies listed in the same industry.
SOBA's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.19.
With a Price/Forward Earnings ratio of 11.86, the valuation of SOBA can be described as very reasonable.
Based on the Price/Forward Earnings ratio, SOBA is valued a bit cheaper than 77.78% of the companies in the same industry.
SOBA is valuated cheaply when we compare the Price/Forward Earnings ratio to 35.33, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.17 | ||
| Fwd PE | 11.86 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SOBA is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, SOBA is valued a bit cheaper than the industry average as 74.07% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.98 | ||
| EV/EBITDA | 6.99 |
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 2Y0.44%
EPS Next 3Y4.07%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.02%, SOBA is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.58, SOBA has a dividend in line with its industry peers.
SOBA's Dividend Yield is rather good when compared to the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.02% |
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 70.36% of its income as dividend. This is not a sustainable payout ratio.
DP70.36%
EPS Next 2Y0.44%
EPS Next 3Y4.07%
FRA:SOBA (7/15/2025, 7:00:00 PM)
23.125
-0.16 (-0.71%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners65.83%
Inst Owner ChangeN/A
Ins Owners0.06%
Ins Owner ChangeN/A
Market Cap166.40B
Analysts78.92
Price Target25.26 (9.23%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.02% |
Yearly Dividend0.98
Dividend Growth(5Y)-10.97%
DP70.36%
Div Incr Years0
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.37%
Min EPS beat(2)2.7%
Max EPS beat(2)6.05%
EPS beat(4)3
Avg EPS beat(4)2.5%
Min EPS beat(4)-2.25%
Max EPS beat(4)6.05%
EPS beat(8)6
Avg EPS beat(8)1.15%
EPS beat(12)10
Avg EPS beat(12)2.39%
EPS beat(16)13
Avg EPS beat(16)2.81%
Revenue beat(2)0
Avg Revenue beat(2)-1.12%
Min Revenue beat(2)-1.17%
Max Revenue beat(2)-1.08%
Revenue beat(4)0
Avg Revenue beat(4)-1.83%
Min Revenue beat(4)-2.71%
Max Revenue beat(4)-1.08%
Revenue beat(8)0
Avg Revenue beat(8)-1.83%
Revenue beat(12)0
Avg Revenue beat(12)-1.84%
Revenue beat(16)0
Avg Revenue beat(16)-6.87%
PT rev (1m)-0.79%
PT rev (3m)-1.01%
EPS NQ rev (1m)-0.05%
EPS NQ rev (3m)-1.21%
EPS NY rev (1m)0.43%
EPS NY rev (3m)0.73%
Revenue NQ rev (1m)0.11%
Revenue NQ rev (3m)0.93%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)0.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.17 | ||
| Fwd PE | 11.86 | ||
| P/S | 1.58 | ||
| P/FCF | 9.98 | ||
| P/OCF | 4.83 | ||
| P/B | 1.87 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.99 |
EPS(TTM)1.9
EY8.22%
EPS(NY)1.95
Fwd EY8.43%
FCF(TTM)2.32
FCFY10.02%
OCF(TTM)4.79
OCFY20.7%
SpS14.61
BVpS12.33
TBVpS-10.97
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.96% | ||
| ROE | 11.32% | ||
| ROCE | 6.98% | ||
| ROIC | 5.31% | ||
| ROICexc | 5.41% | ||
| ROICexgc | 12.65% | ||
| OM | 19.84% | ||
| PM (TTM) | 9.55% | ||
| GM | 59.9% | ||
| FCFM | 15.85% |
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)6.27%
ROICexcg growth 3Y9.2%
ROICexcg growth 5Y-1.63%
ROICexc growth 3Y4.26%
ROICexc growth 5Y2.35%
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%
F-Score8
Asset Turnover0.31
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.13 | ||
| Debt/FCF | 6.47 | ||
| Debt/EBITDA | 2.6 | ||
| Cap/Depr | 100.29% | ||
| Cap/Sales | 16.91% | ||
| Interest Coverage | 3.56 | ||
| Cash Conversion | 89.28% | ||
| Profit Quality | 165.94% | ||
| Current Ratio | 0.7 | ||
| Quick Ratio | 0.65 | ||
| Altman-Z | 0.88 |
F-Score8
WACC6.91%
ROIC/WACC0.77
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)-5.93%
EPS 3Y-12.73%
EPS 5Y-8.79%
EPS Q2Q%-7.27%
EPS Next Y-7.35%
EPS Next 2Y0.44%
EPS Next 3Y4.07%
EPS Next 5Y6.07%
Revenue 1Y (TTM)0.5%
Revenue growth 3Y-3%
Revenue growth 5Y-7.56%
Sales Q2Q%1.99%
Revenue Next Year1.68%
Revenue Next 2Y1.51%
Revenue Next 3Y1.53%
Revenue Next 5Y2.18%
EBIT growth 1Y-1.17%
EBIT growth 3Y-2.47%
EBIT growth 5Y-3.83%
EBIT Next Year97.53%
EBIT Next 3Y28.45%
EBIT Next 5Y17.76%
FCF growth 1Y43.57%
FCF growth 3Y-11.18%
FCF growth 5Y-8.74%
OCF growth 1Y22.15%
OCF growth 3Y-2.6%
OCF growth 5Y-4.45%