TELEFONICA SA-SPON ADR (TEF) Stock Fundamental Analysis

NYSE:TEF • US8793822086

3.81 USD
-0.04 (-1.04%)
At close: Jan 16, 2026
3.8 USD
-0.01 (-0.26%)
After Hours: 1/16/2026, 8:04:00 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

4

Overall TEF gets a fundamental rating of 4 out of 10. We evaluated TEF against 37 industry peers in the Diversified Telecommunication Services industry. There are concerns on the financial health of TEF while its profitability can be described as average. TEF is valued correctly, but it does not seem to be growing.


Dividend Valuation Growth Profitability Health

4

1. Profitability

1.1 Basic Checks

  • In the past year TEF was profitable.
  • TEF had a positive operating cash flow in the past year.
  • In multiple years TEF reported negative net income over the last 5 years.
  • In the past 5 years TEF always reported a positive cash flow from operatings.
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

  • Looking at the Return On Assets, with a value of -4.10%, TEF is doing worse than 63.16% of the companies in the same industry.
  • The Return On Equity of TEF (-21.56%) is worse than 71.05% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 7.73%, TEF belongs to the top of the industry, outperforming 84.21% of the companies in the same industry.
  • Measured over the past 3 years, the Average Return On Invested Capital for TEF is below the industry average of 6.69%.
  • 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

  • TEF has a Operating Margin (12.00%) which is in line with its industry peers.
  • In the last couple of years the Operating Margin of TEF has grown nicely.
  • Looking at the Gross Margin, with a value of 35.73%, TEF is doing worse than 78.95% of the companies in the same industry.
  • TEF's Gross Margin has been stable in the last couple of years.
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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ROAROEROICOperating and Profit MarginShow most profitable peers

2

2. Health

2.1 Basic Checks

  • TEF has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
  • The number of shares outstanding for TEF remains at a similar level compared to 1 year ago.
  • TEF has less shares outstanding than it did 5 years ago.
  • The debt/assets ratio for TEF is higher compared to a year ago.
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

  • The Debt to FCF ratio of TEF is 8.80, which is on the high side as it means it would take TEF, 8.80 years of fcf income to pay off 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.
  • TEF's Debt to Equity ratio of 2.07 is on the low side compared to the rest of the industry. TEF is outperformed by 71.05% of its industry peers.
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.
  • A Quick Ratio of 0.80 indicates that TEF may have some problems paying its short term obligations.
  • TEF has a worse Quick ratio (0.80) 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. Growth

3.1 Past

  • The earnings per share for TEF have decreased strongly by -34.78% in the last year.
  • 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.
  • Looking at the last year, TEF shows a very strong growth in Revenue. The Revenue has grown by 40.77%.
  • Measured over the past years, TEF shows a decrease in Revenue. The Revenue has been decreasing by -3.12% on average per year.
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

  • TEF is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 1.32% yearly.
  • TEF is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -1.34% yearly.
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

  • 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.
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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Find the best growth stocksShow best growing peers

6

4. Valuation

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 10.89, the valuation of TEF can be described as reasonable.
  • 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.
  • Compared to an average S&P500 Price/Earnings ratio of 26.99, TEF is valued rather cheaply.
  • TEF is valuated reasonably with a Price/Forward Earnings ratio of 10.01.
  • 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 28.06, 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

  • Based on the Price/Free Cash Flow ratio, TEF is valued cheaper than 97.37% of the companies 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. Dividend

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 2.23, TEF pays a better dividend. On top of this TEF pays more dividend than 92.11% of the companies listed in the same industry.
  • TEF's Dividend Yield is rather good when compared to the S&P500 average which is at 1.85.
Industry RankSector Rank
Dividend Yield 7.35%

5.2 History

  • The dividend of TEF decreases each year by -5.71%.
  • TEF has been paying a dividend for at least 10 years, so it has 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

More info and screens

Find the best dividend stocksShow peers with best dividend

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-8.31%
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 Number5.37
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 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.


How profitable is TELEFONICA SA-SPON ADR (TEF) stock?

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


What is the valuation of TELEFONICA SA-SPON ADR based on its PE and PB ratios?

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


What is the earnings growth outlook for TELEFONICA SA-SPON ADR?

The Earnings per Share (EPS) of TELEFONICA SA-SPON ADR (TEF) is expected to decline by -37.45% in the next year.