TELEFONICA SA-SPON ADR (TEF) Stock Fundamental Analysis
USA - NYSE:TEF - US8793822086 - ADR
4.145 USD
-0.01 (-0.12%)
Taking everything into account, TEF scores 4 out of 10 in our fundamental rating. TEF was compared to 36 industry peers in the Diversified Telecommunication Services industry. TEF has a medium profitability rating, but doesn't score so well on its financial health evaluation. TEF 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 TEF was profitable.
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.
1.2 Ratios
The Return On Assets of TEF (-4.30%) is worse than 69.44% of its industry peers.
Looking at the Return On Equity, with a value of -23.50%, TEF is doing worse than 72.22% of the companies in the same industry.
The Return On Invested Capital of TEF (7.64%) is better than 80.56% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TEF is below the industry average of 6.44%.
The 3 year average ROIC (3.43%) for TEF is below the current ROIC(7.64%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.3% | ||
| ROE | -23.5% | ||
| ROIC | 7.64% |
ROA(3y)0.08%
ROA(5y)1.74%
ROE(3y)0.1%
ROE(5y)9.53%
ROIC(3y)3.43%
ROIC(5y)3.52%
1.3 Margins
The Operating Margin of TEF (11.51%) is comparable to the rest of the industry.
TEF's Operating Margin has improved in the last couple of years.
TEF has a Gross Margin of 35.08%. This is amonst the worse of the industry: TEF underperforms 80.56% 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 Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.51% | ||
| PM (TTM) | N/A | ||
| GM | 35.08% |
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%
2. Health
2.1 Basic Checks
TEF has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for TEF remains at a similar level compared to 1 year ago.
Compared to 5 years ago, TEF has less shares outstanding
TEF has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.26, we must say that TEF is in the distress zone and has some risk of bankruptcy.
TEF's Altman-Z score of 1.26 is fine compared to the rest of the industry. TEF outperforms 72.22% of its industry peers.
The Debt to FCF ratio of TEF is 7.98, which is on the high side as it means it would take TEF, 7.98 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 7.98, TEF is in the better half of the industry, outperforming 69.44% of the companies in the same industry.
A Debt/Equity ratio of 2.11 is on the high side and indicates that TEF has dependencies on debt financing.
With a Debt to Equity ratio value of 2.11, TEF is not doing good in the industry: 72.22% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.11 | ||
| Debt/FCF | 7.98 | ||
| Altman-Z | 1.26 |
ROIC/WACC1.85
WACC4.14%
2.3 Liquidity
A Current Ratio of 0.85 indicates that TEF may have some problems paying its short term obligations.
With a Current ratio value of 0.85, TEF is not doing good in the industry: 75.00% of the companies in the same industry are doing better.
A Quick Ratio of 0.81 indicates that TEF may have some problems paying its short term obligations.
TEF has a worse Quick ratio (0.81) than 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.81 |
3. Growth
3.1 Past
TEF shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -33.56%.
The Earnings Per Share has been decreasing by -8.73% on average over the past years.
Looking at the last year, TEF shows a small growth in Revenue. The Revenue has grown by 1.63% in the last year.
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)-33.56%
EPS 3YN/A
EPS 5Y-8.73%
EPS Q2Q%-13.08%
Revenue 1Y (TTM)1.63%
Revenue growth 3Y1.7%
Revenue growth 5Y-3.12%
Sales Q2Q%-9.19%
3.2 Future
The Earnings Per Share is expected to grow by 2.78% on average over the next years.
Based on estimates for the next years, TEF will show a small growth in Revenue. The Revenue will grow by 0.16% on average per year.
EPS Next Y-35.16%
EPS Next 2Y-8.66%
EPS Next 3Y-1.97%
EPS Next 5Y2.78%
Revenue Next Year-10.08%
Revenue Next 2Y-4.93%
Revenue Next 3Y-2.83%
Revenue Next 5Y0.16%
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
TEF is valuated reasonably with a Price/Earnings ratio of 11.84.
Based on the Price/Earnings ratio, TEF is valued cheaper than 83.33% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 25.51. TEF is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 10.72, the valuation of TEF can be described as reasonable.
Based on the Price/Forward Earnings ratio, TEF is valued cheaper than 88.89% of the companies in the same industry.
TEF is valuated cheaply when we compare the Price/Forward Earnings ratio to 34.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.84 | ||
| Fwd PE | 10.72 |
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 97.22% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.6 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-8.66%
EPS Next 3Y-1.97%
5. Dividend
5.1 Amount
TEF has a Yearly Dividend Yield of 6.54%, which is a nice return.
In the last 3 months the price of TEF has falen by -23.57%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 5.85, TEF pays a better dividend. On top of this TEF pays more dividend than 88.89% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.44, TEF pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.54% |
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
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-45.46%
EPS Next 2Y-8.66%
EPS Next 3Y-1.97%
NYSE:TEF (11/19/2025, 10:45:55 AM)
4.145
-0.01 (-0.12%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners28.04%
Inst Owner Change-0.05%
Ins Owners0.37%
Ins Owner ChangeN/A
Market Cap23.37B
Revenue(TTM)41.31B
Net Income(TTM)-4.06B
Analysts54.19
Price Target5.13 (23.76%)
Short Float %0.09%
Short Ratio4.77
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.54% |
Yearly Dividend0.39
Dividend Growth(5Y)-5.71%
DP-45.46%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)12.51%
Min EPS beat(2)-0.99%
Max EPS beat(2)26.01%
EPS beat(4)2
Avg EPS beat(4)-1.86%
Min EPS beat(4)-51.51%
Max EPS beat(4)26.01%
EPS beat(8)6
Avg EPS beat(8)9.89%
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)-1.71%
Min Revenue beat(2)-2.28%
Max Revenue beat(2)-1.14%
Revenue beat(4)1
Avg Revenue beat(4)-1.07%
Min Revenue beat(4)-2.28%
Max Revenue beat(4)0.57%
Revenue beat(8)3
Avg Revenue beat(8)0.69%
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)-0.56%
PT rev (3m)1.19%
EPS NQ rev (1m)-4.88%
EPS NQ rev (3m)-18.74%
EPS NY rev (1m)-6.67%
EPS NY rev (3m)-14.93%
Revenue NQ rev (1m)0.44%
Revenue NQ rev (3m)0.63%
Revenue NY rev (1m)-0.5%
Revenue NY rev (3m)-4.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.84 | ||
| Fwd PE | 10.72 | ||
| P/S | 0.35 | ||
| P/FCF | 3.6 | ||
| P/OCF | 1.86 | ||
| P/B | 1.17 | ||
| P/tB | N/A | ||
| EV/EBITDA | N/A |
EPS(TTM)0.35
EY8.44%
EPS(NY)0.39
Fwd EY9.33%
FCF(TTM)1.15
FCFY27.79%
OCF(TTM)2.22
OCFY53.66%
SpS11.96
BVpS3.55
TBVpS-1.81
PEG (NY)N/A
PEG (5Y)N/A
Graham Number5.29
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.3% | ||
| ROE | -23.5% | ||
| ROCE | 9.67% | ||
| ROIC | 7.64% | ||
| ROICexc | 8.46% | ||
| ROICexgc | 14.51% | ||
| OM | 11.51% | ||
| PM (TTM) | N/A | ||
| GM | 35.08% | ||
| FCFM | 9.63% |
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-Score5
Asset Turnover0.62
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.11 | ||
| Debt/FCF | 7.98 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | 8.97% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.81 | ||
| Altman-Z | 1.26 |
F-Score5
WACC4.14%
ROIC/WACC1.85
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)-33.56%
EPS 3YN/A
EPS 5Y-8.73%
EPS Q2Q%-13.08%
EPS Next Y-35.16%
EPS Next 2Y-8.66%
EPS Next 3Y-1.97%
EPS Next 5Y2.78%
Revenue 1Y (TTM)1.63%
Revenue growth 3Y1.7%
Revenue growth 5Y-3.12%
Sales Q2Q%-9.19%
Revenue Next Year-10.08%
Revenue Next 2Y-4.93%
Revenue Next 3Y-2.83%
Revenue Next 5Y0.16%
EBIT growth 1Y55.8%
EBIT growth 3Y20.77%
EBIT growth 5Y4.69%
EBIT Next Year170.96%
EBIT Next 3Y40.95%
EBIT Next 5Y21.15%
FCF growth 1Y-12.25%
FCF growth 3Y6.37%
FCF growth 5Y-7.72%
OCF growth 1Y-12.05%
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.
What is the valuation status for TEF stock?
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.
Can you provide the financial health for TEF stock?
The financial health rating of TELEFONICA SA-SPON ADR (TEF) is 3 / 10.
Can you provide the expected EPS growth for TEF stock?
The Earnings per Share (EPS) of TELEFONICA SA-SPON ADR (TEF) is expected to decline by -35.16% in the next year.