TELEFONICA SA-SPON ADR (TEF) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TEF - US8793822086 - ADR
3.81 USD
-0.04 (-1.04%)
3.8 USD
-0.01 (-0.26%)
Taking everything into account, TEF scores 4 out of 10 in our fundamental rating. TEF was compared to 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.
1. Profitability
1.1 Basic Checks
- TEF had positive earnings in the past year.
- TEF had a positive operating cash flow in the past year.
- In multiple years TEF reported negative net income over the last 5 years.
- Each year in the past 5 years TEF had a positive operating cash flow.
1.2 Ratios
- With a Return On Assets value of -4.10%, TEF is not doing good in the industry: 62.16% of the companies in the same industry are doing better.
- TEF's Return On Equity of -21.56% is on the low side compared to the rest of the industry. TEF is outperformed by 70.27% of its industry peers.
- With an excellent Return On Invested Capital value of 7.73%, TEF belongs to the best of the industry, outperforming 83.78% of the companies in the same industry.
- TEF had an Average Return On Invested Capital over the past 3 years of 3.43%. This is below the industry average of 6.52%.
- 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 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 in line with its industry peers.
- TEF's Operating Margin has improved in the last couple of years.
- 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
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so TEF is still creating some value.
- Compared to 1 year ago, TEF has about the same amount of shares outstanding.
- The number of shares outstanding for TEF has been reduced compared to 5 years ago.
- The debt/assets ratio for TEF is higher compared to a year ago.
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.
- TEF's Debt to FCF ratio of 8.80 is fine compared to the rest of the industry. TEF outperforms 70.27% of its industry peers.
- A Debt/Equity ratio of 2.07 is on the high side and indicates that TEF has dependencies on debt 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/WACC1.79
WACC4.32%
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 worse Current ratio (0.84) than 72.97% 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 worse Quick ratio (0.80) than 75.68% of its industry peers.
| 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.
- Looking at the last year, TEF shows a very strong growth in Revenue. The Revenue has grown by 40.77%.
- The Revenue has been decreasing by -3.12% on average over the past years.
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-37.95%
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
- 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.
- 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 10.89.
- Based on the Price/Earnings ratio, TEF is valued cheaply inside the industry as 86.49% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Earnings ratio of 27.38, TEF is valued rather cheaply.
- With a Price/Forward Earnings ratio of 9.97, the valuation of TEF can be described as very reasonable.
- 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 24.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.89 | ||
| Fwd PE | 9.97 |
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 | 3.79 | ||
| 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
- TEF has a Yearly Dividend Yield of 7.20%, which is a nice return.
- 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 2.33. TEF pays more dividend than 91.89% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.85, TEF pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.2% |
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-48.26%
EPS Next 2Y-9.33%
EPS Next 3Y-2.22%
3.81
-0.04 (-1.04%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)11-04 2025-11-04/dmh
Earnings (Next)02-26 2026-02-26/amc
Inst Owners27.78%
Inst Owner Change-0.05%
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 %0.09%
Short Ratio3.22
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.2% |
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)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 | 10.89 | ||
| Fwd PE | 9.97 | ||
| P/S | 0.32 | ||
| P/FCF | 3.79 | ||
| P/OCF | 1.79 | ||
| P/B | 1.05 | ||
| P/tB | N/A | ||
| EV/EBITDA | N/A |
EPS(TTM)0.35
EY9.19%
EPS(NY)0.38
Fwd EY10.03%
FCF(TTM)1
FCFY26.36%
OCF(TTM)2.13
OCFY55.89%
SpS11.77
BVpS3.63
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
WACC4.32%
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-37.95%
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 10.89 and the Price/Book (PB) ratio is 1.05.
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.