TELEFONICA SA-SPON ADR (TEF) Stock Fundamental Analysis
NYSE:TEF - New York Stock Exchange, Inc. - US8793822086 - ADR - Currency: USD
Overall TEF gets a fundamental rating of 3 out of 10. We evaluated TEF against 33 industry peers in the Diversified Telecommunication Services industry. TEF has a bad profitability rating. Also its financial health evaluation is rather negative. TEF is valued correctly, 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.
In the past 5 years TEF always reported a positive cash flow from operatings.
1.2 Ratios
TEF has a Return On Assets of -2.17%. This is in the lower half of the industry: TEF underperforms 72.73% of its industry peers.
The Return On Equity of TEF (-10.91%) is worse than 69.70% of its industry peers.
TEF has a Return On Invested Capital (2.61%) which is comparable to the rest of the industry.
TEF had an Average Return On Invested Capital over the past 3 years of 3.43%. This is below the industry average of 7.13%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.17% | ||
| ROE | -10.91% | ||
| ROIC | 2.61% |
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
TEF has a Operating Margin (6.11%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of TEF has grown nicely.
The Gross Margin of TEF (50.52%) is comparable to the rest of the industry.
TEF's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.11% | ||
| PM (TTM) | N/A | ||
| GM | 50.52% |
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 below the Cost of Capital (WACC), which means it is destroying value.
TEF has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, TEF has less shares outstanding
The debt/assets ratio for TEF is higher compared to a year ago.
2.2 Solvency
TEF has a debt to FCF ratio of 8.71. This is a slightly negative value and a sign of low solvency as TEF would need 8.71 years to pay back of all of its debts.
TEF has a Debt to FCF ratio (8.71) which is comparable to the rest of the industry.
TEF has a Debt/Equity ratio of 1.96. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.96, TEF is doing worse than 72.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.96 | ||
| Debt/FCF | 8.71 | ||
| Altman-Z | N/A |
ROIC/WACC0.61
WACC4.25%
2.3 Liquidity
TEF has a Current Ratio of 0.97. 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 Current ratio (0.97) which is in line with its industry peers.
TEF has a Quick Ratio of 0.97. 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 (0.93) is worse than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.97 | ||
| Quick Ratio | 0.93 |
3. Growth
3.1 Past
TEF shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -2.63%.
The Earnings Per Share has been decreasing by -8.75% on average over the past years.
The Revenue has decreased by -0.86% in the past year.
The Revenue has been decreasing by -3.12% on average over the past years.
EPS 1Y (TTM)-2.63%
EPS 3YN/A
EPS 5Y-8.75%
EPS Q2Q%-27.27%
Revenue 1Y (TTM)-0.86%
Revenue growth 3Y1.7%
Revenue growth 5Y-3.12%
Sales Q2Q%-9.06%
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 1.08% on average per year.
The Revenue is expected to decrease by -0.84% on average over the next years.
EPS Next Y-23.76%
EPS Next 2Y-11.43%
EPS Next 3Y-4.55%
EPS Next 5Y1.08%
Revenue Next Year-3.13%
Revenue Next 2Y-1.49%
Revenue Next 3Y-0.94%
Revenue Next 5Y-0.84%
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
With a Price/Earnings ratio of 12.12, TEF is valued correctly.
TEF's Price/Earnings ratio is a bit cheaper when compared to the industry. TEF is cheaper than 78.79% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.30, TEF is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 14.23, the valuation of TEF can be described as correct.
Based on the Price/Forward Earnings ratio, TEF is valued a bit cheaper than the industry average as 72.73% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.76, TEF is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.12 | ||
| Fwd PE | 14.23 |
4.2 Price Multiples
84.85% 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 | 4.82 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
TEF's earnings are expected to decrease with -4.55% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-11.43%
EPS Next 3Y-4.55%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.41%, TEF is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 5.05, TEF pays a bit more dividend than its industry peers.
TEF's Dividend Yield is rather good when compared to the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.41% |
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
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-81.03%
EPS Next 2Y-11.43%
EPS Next 3Y-4.55%
5.21
+0.01 (+0.19%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners23.12%
Inst Owner Change0%
Ins Owners0.37%
Ins Owner ChangeN/A
Market Cap29.40B
Analysts53.75
Price Target4.93 (-5.37%)
Short Float %0.13%
Short Ratio8.11
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.41% |
Yearly Dividend0.39
Dividend Growth(5Y)-5.71%
DP-81.03%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-26.25%
Min EPS beat(2)-51.51%
Max EPS beat(2)-0.99%
EPS beat(4)2
Avg EPS beat(4)0.77%
Min EPS beat(4)-51.51%
Max EPS beat(4)36.57%
EPS beat(8)5
Avg EPS beat(8)2.39%
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)-0.85%
Min Revenue beat(2)-2.28%
Max Revenue beat(2)0.57%
Revenue beat(4)2
Avg Revenue beat(4)-0.48%
Min Revenue beat(4)-2.28%
Max Revenue beat(4)1.19%
Revenue beat(8)3
Avg Revenue beat(8)0.81%
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)2.01%
PT rev (3m)7.41%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.01%
EPS NY rev (1m)0%
EPS NY rev (3m)0.2%
Revenue NQ rev (1m)-0.52%
Revenue NQ rev (3m)-5.13%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.74%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.12 | ||
| Fwd PE | 14.23 | ||
| P/S | 0.62 | ||
| P/FCF | 4.82 | ||
| P/OCF | 2.37 | ||
| P/B | 1.28 | ||
| P/tB | N/A | ||
| EV/EBITDA | N/A |
EPS(TTM)0.43
EY8.25%
EPS(NY)0.37
Fwd EY7.03%
FCF(TTM)1.08
FCFY20.75%
OCF(TTM)2.2
OCFY42.21%
SpS8.36
BVpS4.08
TBVpS-1.41
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.17% | ||
| ROE | -10.91% | ||
| ROCE | 3.3% | ||
| ROIC | 2.61% | ||
| ROICexc | 3.02% | ||
| ROICexgc | 5.12% | ||
| OM | 6.11% | ||
| PM (TTM) | N/A | ||
| GM | 50.52% | ||
| FCFM | 12.93% |
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%
ROICexcg growth 3Y26.02%
ROICexcg 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-Score6
Asset Turnover0.41
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.96 | ||
| Debt/FCF | 8.71 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | 13.37% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.97 | ||
| Quick Ratio | 0.93 | ||
| Altman-Z | N/A |
F-Score6
WACC4.25%
ROIC/WACC0.61
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)-2.63%
EPS 3YN/A
EPS 5Y-8.75%
EPS Q2Q%-27.27%
EPS Next Y-23.76%
EPS Next 2Y-11.43%
EPS Next 3Y-4.55%
EPS Next 5Y1.08%
Revenue 1Y (TTM)-0.86%
Revenue growth 3Y1.7%
Revenue growth 5Y-3.12%
Sales Q2Q%-9.06%
Revenue Next Year-3.13%
Revenue Next 2Y-1.49%
Revenue Next 3Y-0.94%
Revenue Next 5Y-0.84%
EBIT growth 1Y-41.72%
EBIT growth 3Y20.77%
EBIT growth 5Y4.69%
EBIT Next Year177.98%
EBIT Next 3Y41.61%
EBIT Next 5Y22.84%
FCF growth 1Y-16.47%
FCF growth 3Y6.37%
FCF growth 5Y-7.72%
OCF growth 1Y-11.92%
OCF growth 3Y0.61%
OCF growth 5Y-7%