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

NYSE:TEF • US8793822086

Current stock price

3.81 USD
-0.04 (-1.04%)
At close:
3.8 USD
-0.01 (-0.26%)
After Hours:

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

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.
  • 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.
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

  • TEF's Return On Assets of -4.10% is on the low side compared to the rest of the industry. TEF is outperformed by 63.16% of its industry peers.
  • With a Return On Equity value of -21.56%, TEF is not doing good in the industry: 71.05% of the companies in the same industry are doing better.
  • Looking at the Return On Invested Capital, with a value of 7.73%, TEF belongs to the top of the industry, outperforming 84.21% 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 5.91%.
  • 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 (12.00%) which is comparable to the rest of the industry.
  • TEF's Operating Margin has improved in the last couple of years.
  • TEF's Gross Margin of 35.73% is on the low side compared to the rest of the industry. TEF is outperformed by 78.95% 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 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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2

2. TEF Health Analysis

2.1 Basic Checks

  • TEF has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
  • The number of shares outstanding for TEF remains at a similar level compared to 1 year ago.
  • Compared to 5 years ago, TEF has less shares outstanding
  • TEF has a worse debt/assets ratio than last year.
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

  • 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 68.42% 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.
  • The Debt to Equity ratio of TEF (2.07) is worse than 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.
  • TEF's Current ratio of 0.84 is on the low side compared to the rest of the industry. TEF is outperformed by 73.68% of its industry peers.
  • TEF has a Quick 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.
  • The Quick ratio of TEF (0.80) is worse than 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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3

3. TEF Growth Analysis

3.1 Past

  • TEF shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -34.78%.
  • 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!
  • 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.
  • Based on estimates for the next years, TEF will show a decrease in Revenue. The Revenue will decrease by -1.34% on average per year.
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.
  • The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
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

  • Based on the Price/Earnings ratio of 10.89, the valuation of TEF can be described as reasonable.
  • TEF's Price/Earnings ratio is rather cheap when compared to the industry. TEF is cheaper than 84.21% of the companies in the same industry.
  • The average S&P500 Price/Earnings ratio is at 24.88. TEF is valued rather cheaply when compared to this.
  • With a Price/Forward Earnings ratio of 10.01, 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 rather cheap valuation: TEF is cheaper than 86.84% of the companies listed in the same industry.
  • TEF is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.19, which is the current average of the S&P500 Index.
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 cheaply inside the industry as 97.37% of the companies are valued more expensively.
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

  • A cheap valuation may be justified as TEF's earnings are expected to decrease with -2.86% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-9.99%
EPS Next 3Y-2.86%

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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.
  • In the last 3 months the price of TEF has falen by -26.73%. 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 2.21, TEF pays a better dividend. On top of this TEF pays more dividend than 92.11% 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 1.89.
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

  • 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-9.99%
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 Fundamental Analysis 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.