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 29 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 has a valuation in line with the averages, but on the other hand it scores bad on growth.
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.
SOBA had a positive operating cash flow in each of the past 5 years.
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 line with its industry, outperforming 60.00% of the companies in the same industry.
SOBA has a Return On Invested Capital (5.28%) which is comparable to the rest of the industry.
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 (5.28%) 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
SOBA's Profit Margin of 8.78% is fine compared to the rest of the industry. SOBA outperforms 66.67% of its industry peers.
In the last couple of years the Profit Margin of SOBA has grown nicely.
Looking at the Operating Margin, with a value of 19.74%, SOBA is in the better half of the industry, outperforming 73.33% of the companies in the same industry.
SOBA's Operating Margin has improved in the last couple of years.
The Gross Margin of SOBA (59.77%) 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 | 19.74% | ||
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SOBA is destroying value.
SOBA has more shares outstanding than it did 1 year ago.
The number of shares outstanding for SOBA has been reduced compared to 5 years ago.
Compared to 1 year ago, SOBA has an improved debt to assets ratio.
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.
SOBA has a worse Altman-Z score (0.87) than 73.33% of its industry peers.
SOBA has a debt to FCF ratio of 6.67. This is a slightly negative value and a sign of low solvency as SOBA would need 6.67 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 6.67, SOBA is in the better half of the industry, outperforming 76.67% of the companies in the same industry.
SOBA has a Debt/Equity ratio of 1.13. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of SOBA (1.13) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.13 | ||
| Debt/FCF | 6.67 | ||
| Altman-Z | 0.87 |
ROIC/WACC0.75
WACC7.03%
2.3 Liquidity
A Current Ratio of 0.66 indicates that SOBA may have some problems paying its short term obligations.
SOBA has a Current ratio (0.66) which is in line with its industry peers.
A Quick Ratio of 0.62 indicates that SOBA may have some problems paying its short term obligations.
SOBA's Quick ratio of 0.62 is on the low side compared to the rest of the industry. SOBA is outperformed by 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.66 | ||
| Quick Ratio | 0.62 |
3. Growth
3.1 Past
The earnings per share for SOBA have decreased by -6.22% 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 decrease in Revenue. In the last year, the revenue decreased by -0.08%.
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)-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-8.06%
EPS Next 2Y0.65%
EPS Next 3Y4.2%
EPS Next 5Y5.51%
Revenue Next Year1.41%
Revenue Next 2Y1.39%
Revenue Next 3Y1.46%
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
SOBA is valuated reasonably with a Price/Earnings ratio of 11.99.
66.67% of the companies in the same industry are more expensive than SOBA, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 29.35, SOBA is valued rather cheaply.
The Price/Forward Earnings ratio is 13.03, which indicates a correct valuation of SOBA.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SOBA indicates a somewhat cheap valuation: SOBA is cheaper than 63.33% of the companies listed in the same industry.
SOBA is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.10, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.99 | ||
| Fwd PE | 13.03 |
4.2 Price Multiples
SOBA's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, SOBA is valued a bit cheaper than the industry average as 63.33% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.5 | ||
| EV/EBITDA | 7.03 |
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 2Y0.65%
EPS Next 3Y4.2%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.15%, SOBA is a good candidate for dividend investing.
SOBA's Dividend Yield is comparable with the industry average which is at 5.01.
SOBA's Dividend Yield is rather good when compared to the S&P500 average which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.15% |
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 76.38% of its income as dividend. This is not a sustainable payout ratio.
DP76.38%
EPS Next 2Y0.65%
EPS Next 3Y4.2%
FRA:SOBA (3/7/2025, 7:00:00 PM)
24.945
+0.61 (+2.51%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners63.96%
Inst Owner ChangeN/A
Ins Owners0.06%
Ins Owner ChangeN/A
Market Cap179.06B
Analysts80
Price Target25.89 (3.79%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.15% |
Yearly Dividend1.06
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)4.13%
PT rev (3m)15.81%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-13.12%
EPS NY rev (1m)-4.65%
EPS NY rev (3m)-9%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.14%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.99 | ||
| Fwd PE | 13.03 | ||
| P/S | 1.59 | ||
| P/FCF | 10.5 | ||
| P/OCF | 5.01 | ||
| P/B | 1.86 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.03 |
EPS(TTM)2.08
EY8.34%
EPS(NY)1.91
Fwd EY7.67%
FCF(TTM)2.37
FCFY9.52%
OCF(TTM)4.97
OCFY19.94%
SpS15.7
BVpS13.39
TBVpS-11.72
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 | 0.87 |
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-8.06%
EPS Next 2Y0.65%
EPS Next 3Y4.2%
EPS Next 5Y5.51%
Revenue 1Y (TTM)-0.08%
Revenue growth 3Y-3%
Revenue growth 5Y-7.56%
Sales Q2Q%0.86%
Revenue Next Year1.41%
Revenue Next 2Y1.39%
Revenue Next 3Y1.46%
Revenue Next 5Y1.94%
EBIT growth 1Y-2.1%
EBIT growth 3Y-2.49%
EBIT growth 5Y-3.84%
EBIT Next Year97.94%
EBIT Next 3Y28.38%
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%