TELEFONICA SA-SPON ADR (TEF) Fundamental Analysis & Valuation

NYSE:TEF • US8793822086

Current stock price

3.81 USD
-0.04 (-1.04%)
At close:
3.8 USD
-0.01 (-0.26%)
After Hours:

This TEF fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

4

1. TEF Profitability Analysis

1.1 Basic Checks

  • TEF had positive earnings in the past year.
  • TEF had a positive operating cash flow in the past year.
  • The reported net income has been mixed in the past 5 years: TEF reported negative net income in multiple years.
  • Each year in the past 5 years TEF had a positive operating cash flow.
TEF Yearly Net Income VS EBIT VS OCF VS FCFTEF Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5B 10B 15B

1.2 Ratios

  • With a Return On Assets value of -4.10%, TEF is not doing good in the industry: 63.16% of the companies in the same industry are doing better.
  • TEF's Return On Equity of -21.56% is on the low side compared to the rest of the industry. TEF is outperformed by 71.05% of its industry peers.
  • With an excellent Return On Invested Capital value of 7.73%, TEF belongs to the best of the industry, outperforming 84.21% of the companies in the same industry.
  • TEF had an Average Return On Invested Capital over the past 3 years of 3.43%. This is below the industry average of 6.02%.
  • The last Return On Invested Capital (7.73%) for TEF is above the 3 year average (3.43%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA -4.1%
ROE -21.56%
ROIC 7.73%
ROA(3y)0.08%
ROA(5y)1.74%
ROE(3y)0.1%
ROE(5y)9.53%
ROIC(3y)3.43%
ROIC(5y)3.52%
TEF Yearly ROA, ROE, ROICTEF Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 20 30

1.3 Margins

  • The Operating Margin of TEF (12.00%) is comparable to the rest of the industry.
  • In the last couple of years the Operating Margin of TEF has grown nicely.
  • TEF has a Gross Margin of 35.73%. This is in the lower half of the industry: TEF underperforms 78.95% of its industry peers.
  • In the last couple of years the Gross Margin of TEF has remained more or less at the same level.
Industry RankSector Rank
OM 12%
PM (TTM) N/A
GM 35.73%
OM growth 3Y18.75%
OM growth 5Y8.06%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.37%
GM growth 5Y-1.04%
TEF Yearly Profit, Operating, Gross MarginsTEF Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 20 30 40 50

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2

2. TEF Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so TEF is still creating some value.
  • Compared to 1 year ago, TEF has about the same amount of shares outstanding.
  • Compared to 5 years ago, TEF has less shares outstanding
  • TEF has a worse debt/assets ratio than last year.
TEF Yearly Shares OutstandingTEF Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B
TEF Yearly Total Debt VS Total AssetsTEF Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 20B 40B 60B 80B 100B

2.2 Solvency

  • TEF has a debt to FCF ratio of 8.80. This is a slightly negative value and a sign of low solvency as TEF would need 8.80 years to pay back of all of its debts.
  • With a decent Debt to FCF ratio value of 8.80, TEF is doing good in the industry, outperforming 68.42% of the companies in the same industry.
  • A Debt/Equity ratio of 2.07 is on the high side and indicates that TEF has dependencies on debt financing.
  • With a Debt to Equity ratio value of 2.07, TEF is not doing good in the industry: 71.05% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 2.07
Debt/FCF 8.8
Altman-Z N/A
ROIC/WACC1.79
WACC4.31%
TEF Yearly LT Debt VS Equity VS FCFTEF Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 10B 20B 30B 40B

2.3 Liquidity

  • TEF has a Current Ratio of 0.84. This is a bad value and indicates that TEF is not financially healthy enough and could expect problems in meeting its short term obligations.
  • TEF has a worse Current ratio (0.84) than 73.68% of its industry peers.
  • TEF has a Quick Ratio of 0.84. This is a bad value and indicates that TEF is not financially healthy enough and could expect problems in meeting its short term obligations.
  • The Quick ratio of TEF (0.80) is worse than 76.32% of its industry peers.
Industry RankSector Rank
Current Ratio 0.84
Quick Ratio 0.8
TEF Yearly Current Assets VS Current LiabilitesTEF Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 10B 20B 30B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

3

3. TEF Growth Analysis

3.1 Past

  • TEF shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -34.78%.
  • Measured over the past years, TEF shows a decrease in Earnings Per Share. The EPS has been decreasing by -8.73% on average per year.
  • TEF shows a strong growth in Revenue. In the last year, the Revenue has grown by 40.77%.
  • The Revenue has been decreasing by -3.12% on average over the past years.
EPS 1Y (TTM)-34.78%
EPS 3YN/A
EPS 5Y-8.73%
EPS Q2Q%-18.18%
Revenue 1Y (TTM)40.77%
Revenue growth 3Y1.7%
Revenue growth 5Y-3.12%
Sales Q2Q%-10.63%

3.2 Future

  • Based on estimates for the next years, TEF will show a small growth in Earnings Per Share. The EPS will grow by 1.32% on average per year.
  • Based on estimates for the next years, TEF will show a decrease in Revenue. The Revenue will decrease by -1.34% on average per year.
EPS Next Y-37.45%
EPS Next 2Y-9.99%
EPS Next 3Y-2.86%
EPS Next 5Y1.32%
Revenue Next Year-11.05%
Revenue Next 2Y-5.32%
Revenue Next 3Y-3.08%
Revenue Next 5Y-1.34%

3.3 Evolution

  • When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
  • 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.
TEF Yearly Revenue VS EstimatesTEF Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 10B 20B 30B 40B 50B
TEF Yearly EPS VS EstimatesTEF Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 0.2 0.4 0.6

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6

4. TEF Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 10.89 indicates a reasonable valuation of TEF.
  • Compared to the rest of the industry, the Price/Earnings ratio of TEF indicates a rather cheap valuation: TEF is cheaper than 84.21% of the companies listed in the same industry.
  • When comparing the Price/Earnings ratio of TEF to the average of the S&P500 Index (27.71), we can say TEF is valued rather cheaply.
  • The Price/Forward Earnings ratio is 10.01, which indicates a very decent valuation of TEF.
  • Based on the Price/Forward Earnings ratio, TEF is valued cheaply inside the industry as 86.84% of the companies are valued more expensively.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 38.09, TEF is valued rather cheaply.
Industry RankSector Rank
PE 10.89
Fwd PE 10.01
TEF Price Earnings VS Forward Price EarningsTEF Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of TEF indicates a rather cheap valuation: TEF is cheaper than 97.37% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 3.75
EV/EBITDA N/A
TEF Per share dataTEF EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 4 6 8 10

4.3 Compensation for Growth

  • TEF's earnings are expected to decrease with -2.86% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-9.99%
EPS Next 3Y-2.86%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

5

5. TEF Dividend Analysis

5.1 Amount

  • TEF has a Yearly Dividend Yield of 7.35%, which is a nice return.
  • The stock price of TEF dropped by -26.73% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
  • Compared to an average industry Dividend Yield of 2.18, TEF pays a better dividend. On top of this TEF pays more dividend than 92.11% of the companies listed in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.81, TEF pays a better dividend.
Industry RankSector Rank
Dividend Yield 7.35%

5.2 History

  • The dividend of TEF decreases each year by -5.71%.
  • TEF has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-5.71%
Div Incr Years0
Div Non Decr Years0
TEF Yearly Dividends per shareTEF Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.2 0.4 0.6 0.8

5.3 Sustainability

  • The earnings of TEF are negative and hence is the payout ratio. TEF will probably not be able to sustain this dividend level.
DP-48.26%
EPS Next 2Y-9.99%
EPS Next 3Y-2.86%
TEF Yearly Income VS Free CF VS DividendTEF Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 2B 4B 6B

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TEF Fundamentals: All Metrics, Ratios and Statistics

TELEFONICA SA-SPON ADR

NYSE:TEF (1/16/2026, 8:04:00 PM)

After market: 3.8 -0.01 (-0.26%)

3.81

-0.04 (-1.04%)

Chartmill FA Rating
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)11-04
Earnings (Next)02-26
Inst Owners27.78%
Inst Owner Change-4.99%
Ins Owners0.37%
Ins Owner ChangeN/A
Market Cap21.48B
Revenue(TTM)57.11B
Net Income(TTM)-3.80B
Analysts53.75
Price Target4.64 (21.78%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 7.35%
Yearly Dividend0.39
Dividend Growth(5Y)-5.71%
DP-48.26%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)19.89%
Min EPS beat(2)13.76%
Max EPS beat(2)26.01%
EPS beat(4)2
Avg EPS beat(4)-3.18%
Min EPS beat(4)-51.51%
Max EPS beat(4)26.01%
EPS beat(8)6
Avg EPS beat(8)10.19%
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-1.45%
Min Revenue beat(2)-1.77%
Max Revenue beat(2)-1.14%
Revenue beat(4)1
Avg Revenue beat(4)-1.15%
Min Revenue beat(4)-2.28%
Max Revenue beat(4)0.57%
Revenue beat(8)3
Avg Revenue beat(8)0.48%
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-1.73%
PT rev (3m)-9.98%
EPS NQ rev (1m)-139.83%
EPS NQ rev (3m)-136.43%
EPS NY rev (1m)0.81%
EPS NY rev (3m)-9.98%
Revenue NQ rev (1m)-0.41%
Revenue NQ rev (3m)0.46%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.59%
Valuation
Industry RankSector Rank
PE 10.89
Fwd PE 10.01
P/S 0.32
P/FCF 3.75
P/OCF 1.77
P/B 1.04
P/tB N/A
EV/EBITDA N/A
EPS(TTM)0.35
EY9.19%
EPS(NY)0.38
Fwd EY9.99%
FCF(TTM)1.02
FCFY26.64%
OCF(TTM)2.15
OCFY56.49%
SpS11.89
BVpS3.67
TBVpS-1.77
PEG (NY)N/A
PEG (5Y)N/A
Graham Number5.37484 (41.07%)
Profitability
Industry RankSector Rank
ROA -4.1%
ROE -21.56%
ROCE 9.79%
ROIC 7.73%
ROICexc 8.5%
ROICexgc 14.4%
OM 12%
PM (TTM) N/A
GM 35.73%
FCFM 8.53%
ROA(3y)0.08%
ROA(5y)1.74%
ROE(3y)0.1%
ROE(5y)9.53%
ROIC(3y)3.43%
ROIC(5y)3.52%
ROICexc(3y)3.84%
ROICexc(5y)3.95%
ROICexgc(3y)6.39%
ROICexgc(5y)6.59%
ROCE(3y)4.35%
ROCE(5y)4.46%
ROICexgc growth 3Y26.02%
ROICexgc growth 5Y3.81%
ROICexc growth 3Y25.08%
ROICexc growth 5Y8.63%
OM growth 3Y18.75%
OM growth 5Y8.06%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.37%
GM growth 5Y-1.04%
F-Score4
Asset Turnover0.62
Health
Industry RankSector Rank
Debt/Equity 2.07
Debt/FCF 8.8
Debt/EBITDA N/A
Cap/Depr N/A
Cap/Sales 9.56%
Interest Coverage -7.45
Cash Conversion N/A
Profit Quality N/A
Current Ratio 0.84
Quick Ratio 0.8
Altman-Z N/A
F-Score4
WACC4.31%
ROIC/WACC1.79
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)13.84%
Cap/Sales(5y)14.7%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-34.78%
EPS 3YN/A
EPS 5Y-8.73%
EPS Q2Q%-18.18%
EPS Next Y-37.45%
EPS Next 2Y-9.99%
EPS Next 3Y-2.86%
EPS Next 5Y1.32%
Revenue 1Y (TTM)40.77%
Revenue growth 3Y1.7%
Revenue growth 5Y-3.12%
Sales Q2Q%-10.63%
Revenue Next Year-11.05%
Revenue Next 2Y-5.32%
Revenue Next 3Y-3.08%
Revenue Next 5Y-1.34%
EBIT growth 1Y59.92%
EBIT growth 3Y20.77%
EBIT growth 5Y4.69%
EBIT Next Year166.12%
EBIT Next 3Y40.69%
EBIT Next 5Y23.72%
FCF growth 1Y-20.22%
FCF growth 3Y6.37%
FCF growth 5Y-7.72%
OCF growth 1Y-14.64%
OCF growth 3Y0.61%
OCF growth 5Y-7%

TELEFONICA SA-SPON ADR / TEF Fundamental Analysis FAQ

What is the ChartMill fundamental rating of TELEFONICA SA-SPON ADR (TEF) stock?

ChartMill assigns a fundamental rating of 4 / 10 to TEF.


Can you provide the valuation status for TELEFONICA SA-SPON ADR?

ChartMill assigns a valuation rating of 6 / 10 to TELEFONICA SA-SPON ADR (TEF). This can be considered as Fairly Valued.


Can you provide the profitability details for TELEFONICA SA-SPON ADR?

TELEFONICA SA-SPON ADR (TEF) has a profitability rating of 4 / 10.


What are the PE and PB ratios of TELEFONICA SA-SPON ADR (TEF) stock?

The Price/Earnings (PE) ratio for TELEFONICA SA-SPON ADR (TEF) is 10.89 and the Price/Book (PB) ratio is 1.04.


How financially healthy is TELEFONICA SA-SPON ADR?

The financial health rating of TELEFONICA SA-SPON ADR (TEF) is 2 / 10.