AT&T INC (SOBA.DE) Stock Fundamental Analysis
Europe - FRA:SOBA - US00206R1023 - Common Stock
22.405 EUR
+0.12 (+0.52%)
We assign a fundamental rating of 4 out of 10 to SOBA. SOBA was compared to 33 industry peers in the Diversified Telecommunication Services industry. There are concerns on the financial health of SOBA while its profitability can be described as average. SOBA has a valuation in line with the averages, but it does not seem to be growing.
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.
In the past 5 years SOBA always reported a positive cash flow from operatings.
1.2 Ratios
SOBA has a Return On Assets (3.12%) which is in line with its industry peers.
With a decent Return On Equity value of 12.03%, SOBA is doing good in the industry, outperforming 66.67% of the companies in the same industry.
SOBA has a Return On Invested Capital (5.25%) which is in line with its industry peers.
SOBA had an Average Return On Invested Capital over the past 3 years of 5.19%. This is below the industry average of 7.55%.
The last Return On Invested Capital (5.25%) for SOBA is above the 3 year average (5.19%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.12% | ||
| ROE | 12.03% | ||
| ROIC | 5.25% |
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 10.21%, SOBA is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
In the last couple of years the Profit Margin of SOBA has grown nicely.
The Operating Margin of SOBA (19.86%) is better than 72.73% of its industry peers.
In the last couple of years the Operating Margin of SOBA has grown nicely.
The Gross Margin of SOBA (59.67%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of SOBA has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.86% | ||
| PM (TTM) | 10.21% | ||
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SOBA is destroying value.
Compared to 1 year ago, SOBA has more shares outstanding
SOBA has less shares outstanding than it did 5 years ago.
The debt/assets ratio for SOBA has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.87, we must say that SOBA is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of SOBA (0.87) is worse than 66.67% of its industry peers.
SOBA has a debt to FCF ratio of 6.74. This is a slightly negative value and a sign of low solvency as SOBA would need 6.74 years to pay back of all of its debts.
SOBA has a Debt to FCF ratio of 6.74. This is in the better half of the industry: SOBA outperforms 63.64% of its industry peers.
SOBA has a Debt/Equity ratio of 1.17. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of SOBA (1.17) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.17 | ||
| Debt/FCF | 6.74 | ||
| Altman-Z | 0.87 |
ROIC/WACC0.79
WACC6.65%
2.3 Liquidity
SOBA has a Current Ratio of 0.81. 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 Current ratio of SOBA (0.81) is comparable to the rest of the industry.
A Quick Ratio of 0.76 indicates that SOBA may have some problems paying its short term obligations.
SOBA has a Quick ratio (0.76) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.76 |
3. Growth
3.1 Past
The earnings per share for SOBA have decreased by -4.78% 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.
The Revenue has been growing slightly by 1.46% in the past year.
The Revenue has been decreasing by -7.56% on average over the past years.
EPS 1Y (TTM)-4.78%
EPS 3Y-12.73%
EPS 5Y-8.79%
EPS Q2Q%-5.26%
Revenue 1Y (TTM)1.46%
Revenue growth 3Y-3%
Revenue growth 5Y-7.56%
Sales Q2Q%3.52%
3.2 Future
The Earnings Per Share is expected to grow by 4.99% on average over the next years.
Based on estimates for the next years, SOBA will show a small growth in Revenue. The Revenue will grow by 2.29% on average per year.
EPS Next Y-7.63%
EPS Next 2Y0.14%
EPS Next 3Y4.01%
EPS Next 5Y4.99%
Revenue Next Year2.36%
Revenue Next 2Y1.87%
Revenue Next 3Y1.83%
Revenue Next 5Y2.29%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
A Price/Earnings ratio of 11.79 indicates a reasonable valuation of SOBA.
Based on the Price/Earnings ratio, SOBA is valued cheaply inside the industry as 81.82% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.55, SOBA is valued rather cheaply.
A Price/Forward Earnings ratio of 11.42 indicates a reasonable valuation of SOBA.
60.61% of the companies in the same industry are more expensive than SOBA, based on the Price/Forward Earnings ratio.
SOBA's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.04.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.79 | ||
| Fwd PE | 11.42 |
4.2 Price Multiples
SOBA's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, SOBA is valued a bit cheaper than 72.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.43 | ||
| EV/EBITDA | 6.72 |
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 2Y0.14%
EPS Next 3Y4.01%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.25%, SOBA is a good candidate for dividend investing.
SOBA's Dividend Yield is a higher than the industry average which is at 4.42.
SOBA's Dividend Yield is rather good when compared to the S&P500 average which is at 2.43.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.25% |
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
64.83% of the earnings are spent on dividend by SOBA. This is not a sustainable payout ratio.
DP64.83%
EPS Next 2Y0.14%
EPS Next 3Y4.01%
FRA:SOBA (10/15/2025, 7:00:00 PM)
22.405
+0.12 (+0.52%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners66.66%
Inst Owner ChangeN/A
Ins Owners0.06%
Ins Owner ChangeN/A
Market Cap160.20B
Analysts78.86
Price Target25.81 (15.2%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.25% |
Yearly Dividend0.99
Dividend Growth(5Y)-10.97%
DP64.83%
Div Incr Years0
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.78%
Min EPS beat(2)2.7%
Max EPS beat(2)2.87%
EPS beat(4)4
Avg EPS beat(4)3.78%
Min EPS beat(4)2.7%
Max EPS beat(4)6.05%
EPS beat(8)6
Avg EPS beat(8)1.22%
EPS beat(12)10
Avg EPS beat(12)2.2%
EPS beat(16)13
Avg EPS beat(16)2.36%
Revenue beat(2)0
Avg Revenue beat(2)-0.96%
Min Revenue beat(2)-1.08%
Max Revenue beat(2)-0.84%
Revenue beat(4)0
Avg Revenue beat(4)-1.45%
Min Revenue beat(4)-2.71%
Max Revenue beat(4)-0.84%
Revenue beat(8)0
Avg Revenue beat(8)-1.68%
Revenue beat(12)0
Avg Revenue beat(12)-1.77%
Revenue beat(16)0
Avg Revenue beat(16)-5.8%
PT rev (1m)0.06%
PT rev (3m)2.18%
EPS NQ rev (1m)-0.1%
EPS NQ rev (3m)-1.91%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.3%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)0.84%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)0.67%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.79 | ||
| Fwd PE | 11.42 | ||
| P/S | 1.49 | ||
| P/FCF | 9.43 | ||
| P/OCF | 4.52 | ||
| P/B | 1.76 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.72 |
EPS(TTM)1.9
EY8.48%
EPS(NY)1.96
Fwd EY8.76%
FCF(TTM)2.38
FCFY10.6%
OCF(TTM)4.96
OCFY22.12%
SpS15.01
BVpS12.74
TBVpS-11.01
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.12% | ||
| ROE | 12.03% | ||
| ROCE | 6.9% | ||
| ROIC | 5.25% | ||
| ROICexc | 5.41% | ||
| ROICexgc | 12.47% | ||
| OM | 19.86% | ||
| PM (TTM) | 10.21% | ||
| GM | 59.67% | ||
| FCFM | 15.83% |
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-Score7
Asset Turnover0.31
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.17 | ||
| Debt/FCF | 6.74 | ||
| Debt/EBITDA | 2.7 | ||
| Cap/Depr | 102% | ||
| Cap/Sales | 17.2% | ||
| Interest Coverage | 3.62 | ||
| Cash Conversion | 89.93% | ||
| Profit Quality | 154.96% | ||
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.76 | ||
| Altman-Z | 0.87 |
F-Score7
WACC6.65%
ROIC/WACC0.79
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)-4.78%
EPS 3Y-12.73%
EPS 5Y-8.79%
EPS Q2Q%-5.26%
EPS Next Y-7.63%
EPS Next 2Y0.14%
EPS Next 3Y4.01%
EPS Next 5Y4.99%
Revenue 1Y (TTM)1.46%
Revenue growth 3Y-3%
Revenue growth 5Y-7.56%
Sales Q2Q%3.52%
Revenue Next Year2.36%
Revenue Next 2Y1.87%
Revenue Next 3Y1.83%
Revenue Next 5Y2.29%
EBIT growth 1Y0.41%
EBIT growth 3Y-2.47%
EBIT growth 5Y-3.83%
EBIT Next Year97.59%
EBIT Next 3Y28.47%
EBIT Next 5Y17.43%
FCF growth 1Y7.65%
FCF growth 3Y-11.18%
FCF growth 5Y-8.74%
OCF growth 1Y10.7%
OCF growth 3Y-2.6%
OCF growth 5Y-4.45%