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

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 Forecast Earnings Financials Ownership News

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

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. 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.


Dividend Valuation Growth Profitability Health

4

1. TEF Profitability Analysis

1.1 Basic Checks

  • In the past year TEF was profitable.
  • In the past year TEF had a positive cash flow from operations.
  • The reported net income has been mixed in the past 5 years: TEF reported negative net income in multiple years.
  • TEF had a positive operating cash flow in each of the past 5 years.
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

  • The Return On Assets of TEF (-4.10%) is worse than 63.16% of its industry peers.
  • TEF has a worse Return On Equity (-21.56%) than 71.05% of its industry peers.
  • TEF's Return On Invested Capital of 7.73% is amongst the best of the industry. TEF outperforms 84.21% of its industry peers.
  • TEF had an Average Return On Invested Capital over the past 3 years of 3.43%. This is below the industry average of 5.74%.
  • 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 of 12.00%. This is comparable to the rest of the industry: TEF outperforms 55.26% of 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. 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.
  • TEF has about the same amout of shares outstanding than it did 1 year ago.
  • The number of shares outstanding for TEF has been reduced compared to 5 years ago.
  • Compared to 1 year ago, TEF has a worse debt to assets ratio.
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.
  • TEF has a Debt to FCF ratio of 8.80. This is in the better half of the industry: TEF outperforms 68.42% of its industry peers.
  • TEF has a Debt/Equity ratio of 2.07. This is a high value indicating a heavy dependency on external financing.
  • TEF has a Debt to Equity ratio of 2.07. This is in the lower half of the industry: TEF underperforms 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

  • A Current Ratio of 0.84 indicates that TEF may have some problems paying its short term obligations.
  • The Current ratio of TEF (0.84) is worse 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 Quick ratio of 0.80. This is in the lower half of the industry: TEF underperforms 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

  • The earnings per share for TEF have decreased strongly by -34.78% in the last year.
  • TEF shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -8.73% yearly.
  • TEF shows a strong growth in Revenue. In the last year, 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

  • 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.
  • 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

  • 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.
  • 84.21% of the companies in the same industry are more expensive than TEF, based on the Price/Earnings ratio.
  • Compared to an average S&P500 Price/Earnings ratio of 26.29, TEF is valued rather cheaply.
  • A Price/Forward Earnings ratio of 10.01 indicates a reasonable valuation of TEF.
  • Based on the Price/Forward Earnings ratio, TEF is valued cheaper than 86.84% of the companies in the same industry.
  • TEF's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.60.
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 5 10 15 20 25

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. TEF Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 7.35%, TEF is a good candidate for dividend investing.
  • 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.
  • TEF's Dividend Yield is rather good when compared to the industry average which is at 2.12. TEF pays more dividend than 92.11% of the companies in the same industry.
  • TEF's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
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

  • TEF has negative earnings and hence a negative payout ratio. The dividend may be in danger.
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 Number5.37
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.