TELEFONICA SA-SPON ADR (TEF) Stock Fundamental Analysis
NYSE:TEF - New York Stock Exchange, Inc. - US8793822086 - ADR - Currency: USD
TEF gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 31 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 is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year TEF was profitable.
TEF had a positive operating cash flow in the past year.
TEF had positive earnings in 4 of the past 5 years.
TEF had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
TEF's Return On Assets of -0.76% is in line compared to the rest of the industry. TEF outperforms 46.67% of its industry peers.
TEF has a Return On Equity (-3.73%) which is comparable to the rest of the industry.
TEF has a Return On Invested Capital of 5.56%. This is in the better half of the industry: TEF outperforms 76.67% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TEF is below the industry average of 5.65%.
The last Return On Invested Capital (5.56%) for TEF is above the 3 year average (2.62%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.76% | ||
| ROE | -3.73% | ||
| ROIC | 5.56% |
ROA(3y)2.59%
ROA(5y)1.95%
ROE(3y)12.48%
ROE(5y)10.86%
ROIC(3y)2.62%
ROIC(5y)3.17%
1.3 Margins
TEF has a Operating Margin (10.51%) which is in line with its industry peers.
In the last couple of years the Operating Margin of TEF has declined.
The Gross Margin of TEF (39.19%) is worse than 70.00% 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 | 10.51% | ||
| PM (TTM) | N/A | ||
| GM | 39.19% |
OM growth 3Y-18.41%
OM growth 5Y-15.25%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.4%
GM growth 5Y-1.05%
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 has been reduced compared to 1 year ago.
TEF has less shares outstanding than it did 5 years ago.
TEF has a worse debt/assets ratio than last year.
2.2 Solvency
TEF has a debt to FCF ratio of 9.01. This is a negative value and a sign of low solvency as TEF would need 9.01 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 9.01, TEF is in the better half of the industry, outperforming 63.33% of the companies in the same industry.
A Debt/Equity ratio of 1.85 is on the high side and indicates that TEF has dependencies on debt financing.
With a Debt to Equity ratio value of 1.85, TEF is not doing good in the industry: 70.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.85 | ||
| Debt/FCF | 9.01 | ||
| Altman-Z | N/A |
ROIC/WACC1.81
WACC3.08%
2.3 Liquidity
TEF has a Current Ratio of 0.85. 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 (0.85) than 66.67% of its industry peers.
TEF has a Quick Ratio of 0.85. 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 Quick ratio (0.81) than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.81 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 30.19% over the past year.
The earnings per share for TEF have been decreasing by -13.09% on average. This is quite bad
Looking at the last year, TEF shows a very strong growth in Revenue. The Revenue has grown by 24.60%.
The Revenue has been decreasing by -3.55% on average over the past years.
EPS 1Y (TTM)30.19%
EPS 3Y-9.34%
EPS 5Y-13.09%
EPS Q2Q%22.22%
Revenue 1Y (TTM)24.6%
Revenue growth 3Y-1.91%
Revenue growth 5Y-3.55%
Sales Q2Q%-2.89%
3.2 Future
TEF is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -7.77% yearly.
The Revenue is expected to grow by 1.24% on average over the next years.
EPS Next Y-13.69%
EPS Next 2Y-5.04%
EPS Next 3Y-2.31%
EPS Next 5Y-7.77%
Revenue Next Year0.57%
Revenue Next 2Y0.13%
Revenue Next 3Y0.41%
Revenue Next 5Y1.24%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
TEF is valuated reasonably with a Price/Earnings ratio of 8.32.
Compared to the rest of the industry, the Price/Earnings ratio of TEF indicates a rather cheap valuation: TEF is cheaper than 100.00% of the companies listed in the same industry.
TEF's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.58.
With a Price/Forward Earnings ratio of 11.76, the valuation of TEF can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TEF indicates a somewhat cheap valuation: TEF is cheaper than 76.67% of the companies listed in the same industry.
TEF is valuated cheaply when we compare the Price/Forward Earnings ratio to 24.47, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.32 | ||
| Fwd PE | 11.76 |
4.2 Price Multiples
100.00% of the companies in the same industry are more expensive than TEF, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.22 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
A cheap valuation may be justified as TEF's earnings are expected to decrease with -2.31% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-5.04%
EPS Next 3Y-2.31%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 9.60%, TEF is a good candidate for dividend investing.
TEF's Dividend Yield is rather good when compared to the industry average which is at 5.32. TEF pays more dividend than 96.67% of the companies in the same industry.
TEF's Dividend Yield is rather good when compared to the S&P500 average which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.6% |
5.2 History
The dividend of TEF decreases each year by -3.17%.
TEF has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of TEF decreased recently.
Dividend Growth(5Y)-3.17%
Div Incr Years1
Div Non Decr Years1
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.
TEF's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP-244.13%
EPS Next 2Y-5.04%
EPS Next 3Y-2.31%
TELEFONICA SA-SPON ADR
NYSE:TEF (1/27/2025, 11:41:00 AM)
3.995
+0.08 (+2.17%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners29.93%
Inst Owner Change-0.06%
Ins Owners0.4%
Ins Owner ChangeN/A
Market Cap22.53B
Analysts64
Price Target4.45 (11.39%)
Short Float %0.16%
Short Ratio8.6
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.6% |
Yearly Dividend0.38
Dividend Growth(5Y)-3.17%
DP-244.13%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)27.8%
Min EPS beat(2)19.03%
Max EPS beat(2)36.57%
EPS beat(4)4
Avg EPS beat(4)23.56%
Min EPS beat(4)17.64%
Max EPS beat(4)36.57%
EPS beat(8)N/A
Avg EPS beat(8)N/A
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)1
Avg Revenue beat(2)-0.12%
Min Revenue beat(2)-1.43%
Max Revenue beat(2)1.19%
Revenue beat(4)2
Avg Revenue beat(4)2.12%
Min Revenue beat(4)-1.43%
Max Revenue beat(4)10.07%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
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)-1.76%
PT rev (3m)-3.1%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-8.59%
EPS NY rev (1m)0%
EPS NY rev (3m)0.57%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.49%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)-0.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.32 | ||
| Fwd PE | 11.76 | ||
| P/S | 0.42 | ||
| P/FCF | 4.22 | ||
| P/OCF | 2.05 | ||
| P/B | 1.05 | ||
| P/tB | N/A | ||
| EV/EBITDA | N/A |
EPS(TTM)0.48
EY12.02%
EPS(NY)0.34
Fwd EY8.5%
FCF(TTM)0.95
FCFY23.72%
OCF(TTM)1.95
OCFY48.89%
SpS9.42
BVpS3.82
TBVpS-1.34
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.76% | ||
| ROE | -3.73% | ||
| ROCE | 7.1% | ||
| ROIC | 5.56% | ||
| ROICexc | 6.29% | ||
| ROICexgc | 10.81% | ||
| OM | 10.51% | ||
| PM (TTM) | N/A | ||
| GM | 39.19% | ||
| FCFM | 10.06% |
ROA(3y)2.59%
ROA(5y)1.95%
ROE(3y)12.48%
ROE(5y)10.86%
ROIC(3y)2.62%
ROIC(5y)3.17%
ROICexc(3y)2.93%
ROICexc(5y)3.55%
ROICexgc(3y)4.84%
ROICexgc(5y)6.23%
ROCE(3y)3.34%
ROCE(5y)4.06%
ROICexcg growth 3Y-21.66%
ROICexcg growth 5Y-22%
ROICexc growth 3Y-21.54%
ROICexc growth 5Y-17.49%
OM growth 3Y-18.41%
OM growth 5Y-15.25%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.4%
GM growth 5Y-1.05%
F-Score4
Asset Turnover0.5
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.85 | ||
| Debt/FCF | 9.01 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | 10.68% | ||
| Interest Coverage | -3.82 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.81 | ||
| Altman-Z | N/A |
F-Score4
WACC3.08%
ROIC/WACC1.81
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)14.62%
Cap/Sales(5y)15.19%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)30.19%
EPS 3Y-9.34%
EPS 5Y-13.09%
EPS Q2Q%22.22%
EPS Next Y-13.69%
EPS Next 2Y-5.04%
EPS Next 3Y-2.31%
EPS Next 5Y-7.77%
Revenue 1Y (TTM)24.6%
Revenue growth 3Y-1.91%
Revenue growth 5Y-3.55%
Sales Q2Q%-2.89%
Revenue Next Year0.57%
Revenue Next 2Y0.13%
Revenue Next 3Y0.41%
Revenue Next 5Y1.24%
EBIT growth 1Y25.13%
EBIT growth 3Y-19.97%
EBIT growth 5Y-18.26%
EBIT Next Year253.75%
EBIT Next 3Y51.94%
EBIT Next 5Y30.87%
FCF growth 1Y-12.09%
FCF growth 3Y-2.14%
FCF growth 5Y4.14%
OCF growth 1Y-3.01%
OCF growth 3Y-4.1%
OCF growth 5Y-2.65%