AT&T INC (SOBA.DE) Stock Fundamental Analysis
Europe - FRA:SOBA - US00206R1023 - Common Stock
25.155 EUR
+0.14 (+0.58%)
SOBA gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 30 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 has a valuation in line with the averages, 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.
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
SOBA has a Return On Assets (3.12%) which is comparable to the rest of the industry.
The Return On Equity of SOBA (12.03%) is better than 66.67% of its industry peers.
SOBA's Return On Invested Capital of 5.25% is in line compared to the rest of the industry. SOBA outperforms 50.00% of 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 7.68%.
The 3 year average ROIC (5.19%) for SOBA is below the current ROIC(5.25%), indicating increased profibility in the last year.
| 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
SOBA has a better Profit Margin (10.21%) than 70.00% of its industry peers.
In the last couple of years the Profit Margin of SOBA has grown nicely.
SOBA has a Operating Margin of 19.86%. This is in the better half of the industry: SOBA outperforms 76.67% 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 | 19.86% | ||
| 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
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
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 0.92. 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 (0.92) than 70.00% 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.
Looking at the Debt to FCF ratio, with a value of 6.74, SOBA is in line with its industry, outperforming 60.00% of the companies in the same industry.
SOBA has a Debt/Equity ratio of 1.17. This is a high value indicating a heavy dependency on external financing.
SOBA has a Debt to Equity ratio (1.17) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.17 | ||
| Debt/FCF | 6.74 | ||
| Altman-Z | 0.92 |
ROIC/WACC0.77
WACC6.79%
2.3 Liquidity
A Current Ratio of 0.81 indicates that SOBA may have some problems paying its short term obligations.
SOBA has a Current ratio of 0.81. This is comparable to the rest of the industry: SOBA outperforms 56.67% of its industry peers.
SOBA has a Quick 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.
SOBA has a Quick ratio (0.76) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.76 |
3. Growth
3.1 Past
SOBA shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -4.78%.
SOBA shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -8.79% yearly.
Looking at the last year, SOBA shows a small growth in Revenue. The Revenue has grown by 1.46% in the last 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)-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
SOBA is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.24% yearly.
The Revenue is expected to grow by 2.29% on average over the next years.
EPS Next Y-7.63%
EPS Next 2Y0.15%
EPS Next 3Y4.04%
EPS Next 5Y5.24%
Revenue Next Year2.35%
Revenue Next 2Y1.87%
Revenue Next 3Y1.84%
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
Based on the Price/Earnings ratio of 13.45, the valuation of SOBA can be described as correct.
80.00% of the companies in the same industry are more expensive than SOBA, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.30. SOBA is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 13.00 indicates a correct valuation of SOBA.
SOBA's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. SOBA is cheaper than 63.33% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.73. SOBA is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.45 | ||
| Fwd PE | 13 |
4.2 Price Multiples
SOBA's Enterprise Value to EBITDA ratio is in line with 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 70.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.74 | ||
| EV/EBITDA | 7.31 |
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 2Y0.15%
EPS Next 3Y4.04%
5. Dividend
5.1 Amount
SOBA has a Yearly Dividend Yield of 3.76%.
Compared to an average industry Dividend Yield of 4.57, SOBA has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.38, SOBA pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.76% |
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 2Y0.15%
EPS Next 3Y4.04%
FRA:SOBA (9/12/2025, 7:00:00 PM)
25.155
+0.14 (+0.58%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners66.3%
Inst Owner ChangeN/A
Ins Owners0.06%
Ins Owner ChangeN/A
Market Cap179.87B
Analysts78.89
Price Target25.67 (2.05%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.76% |
Yearly Dividend0.98
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)-1.04%
PT rev (3m)0.82%
EPS NQ rev (1m)0.11%
EPS NQ rev (3m)-1.9%
EPS NY rev (1m)-0.3%
EPS NY rev (3m)0.12%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.64%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)0.64%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.45 | ||
| Fwd PE | 13 | ||
| P/S | 1.7 | ||
| P/FCF | 10.74 | ||
| P/OCF | 5.15 | ||
| P/B | 2 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.31 |
EPS(TTM)1.87
EY7.43%
EPS(NY)1.93
Fwd EY7.69%
FCF(TTM)2.34
FCFY9.31%
OCF(TTM)4.89
OCFY19.43%
SpS14.8
BVpS12.56
TBVpS-10.86
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 | 0.92 |
F-Score7
WACC6.79%
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)-4.78%
EPS 3Y-12.73%
EPS 5Y-8.79%
EPS Q2Q%-5.26%
EPS Next Y-7.63%
EPS Next 2Y0.15%
EPS Next 3Y4.04%
EPS Next 5Y5.24%
Revenue 1Y (TTM)1.46%
Revenue growth 3Y-3%
Revenue growth 5Y-7.56%
Sales Q2Q%3.52%
Revenue Next Year2.35%
Revenue Next 2Y1.87%
Revenue Next 3Y1.84%
Revenue Next 5Y2.29%
EBIT growth 1Y0.41%
EBIT growth 3Y-2.47%
EBIT growth 5Y-3.83%
EBIT Next Year97.55%
EBIT Next 3Y28.51%
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%