TELEFONICA SA-SPON ADR (TEF) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TEF - US8793822086 - ADR
3.95 USD
+0.07 (+1.8%)
Overall TEF gets a fundamental rating of 4 out of 10. We evaluated TEF against 37 industry peers in the Diversified Telecommunication Services industry. While TEF is still in line with the averages on profitability rating, there are concerns on its financial health. TEF has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
TEF had positive earnings in the past year.
In the past year TEF had a positive cash flow from operations.
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.
1.2 Ratios
Looking at the Return On Assets, with a value of -4.10%, TEF is doing worse than 62.16% of the companies in the same industry.
TEF has a worse Return On Equity (-21.56%) than 70.27% 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 83.78% 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 6.52%.
The 3 year average ROIC (3.43%) for TEF is below the current ROIC(7.73%), indicating increased profibility in the last year.
| Industry Rank | Sector 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%
1.3 Margins
TEF has a Operating Margin (12.00%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of TEF has grown nicely.
TEF has a Gross Margin of 35.73%. This is in the lower half of the industry: TEF underperforms 78.38% of its industry peers.
TEF's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector 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%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), TEF is creating 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
TEF has a worse debt/assets ratio than last year.
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.
The Debt to FCF ratio of TEF (8.80) is better than 70.27% 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.
Looking at the Debt to Equity ratio, with a value of 2.07, TEF is doing worse than 70.27% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.07 | ||
| Debt/FCF | 8.8 | ||
| Altman-Z | N/A |
ROIC/WACC1.83
WACC4.23%
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 Current ratio of 0.84. This is in the lower half of the industry: TEF underperforms 72.97% of its industry peers.
A Quick Ratio of 0.80 indicates that TEF may have some problems paying its short term obligations.
With a Quick ratio value of 0.80, TEF is not doing good in the industry: 75.68% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.8 |
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.
The Revenue has grown by 40.77% in the past year. This is a very strong growth!
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
The Earnings Per Share is expected to grow by 1.32% on average over the next years.
TEF is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -1.34% yearly.
EPS Next Y-37.95%
EPS Next 2Y-9.33%
EPS Next 3Y-2.22%
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.
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
Based on the Price/Earnings ratio of 11.29, 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 86.49% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.19. TEF is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 10.32 indicates a reasonable valuation of TEF.
89.19% of the companies in the same industry are more expensive than TEF, based on the Price/Forward Earnings ratio.
TEF's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.29 | ||
| Fwd PE | 10.32 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, TEF is valued cheaper than 97.30% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.92 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
TEF's earnings are expected to decrease with -2.22% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-9.33%
EPS Next 3Y-2.22%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.04%, TEF is a good candidate for dividend investing.
In the last 3 months the price of TEF has falen by -22.40%. 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 2.37, TEF pays a better dividend. On top of this TEF pays more dividend than 91.89% 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 1.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.04% |
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
TEF has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-48.26%
EPS Next 2Y-9.33%
EPS Next 3Y-2.22%
NYSE:TEF (1/12/2026, 11:35:39 AM)
3.95
+0.07 (+1.8%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners27.78%
Inst Owner Change-0.14%
Ins Owners0.37%
Ins Owner ChangeN/A
Market Cap22.27B
Revenue(TTM)57.11B
Net Income(TTM)-3.80B
Analysts53.75
Price Target4.72 (19.49%)
Short Float %0.09%
Short Ratio3.22
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.04% |
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)0%
PT rev (3m)-8.39%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-8.54%
EPS NY rev (1m)-2.82%
EPS NY rev (3m)-10.7%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.88%
Revenue NY rev (1m)-0.74%
Revenue NY rev (3m)-1.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.29 | ||
| Fwd PE | 10.32 | ||
| P/S | 0.33 | ||
| P/FCF | 3.92 | ||
| P/OCF | 1.85 | ||
| P/B | 1.09 | ||
| P/tB | N/A | ||
| EV/EBITDA | N/A |
EPS(TTM)0.35
EY8.86%
EPS(NY)0.38
Fwd EY9.69%
FCF(TTM)1.01
FCFY25.48%
OCF(TTM)2.13
OCFY54.03%
SpS11.79
BVpS3.64
TBVpS-1.75
PEG (NY)N/A
PEG (5Y)N/A
Graham Number5.35
Profitability
| Industry Rank | Sector 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 Rank | Sector 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
WACC4.23%
ROIC/WACC1.83
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-37.95%
EPS Next 2Y-9.33%
EPS Next 3Y-2.22%
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 11.29 and the Price/Book (PB) ratio is 1.09.
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 -37.95% in the next year.