TELEFONICA SA-SPON ADR (TEF) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TEF - US8793822086 - ADR
4.17 USD
+0.01 (+0.24%)
Overall TEF gets a fundamental rating of 4 out of 10. We evaluated TEF against 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 on the other hand it scores bad on growth.
1. Profitability
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.
Each year in the past 5 years TEF had a positive operating cash flow.
1.2 Ratios
The Return On Assets of TEF (-4.30%) is worse than 62.16% of its industry peers.
Looking at the Return On Equity, with a value of -23.50%, TEF is doing worse than 72.97% of the companies in the same industry.
With an excellent Return On Invested Capital value of 7.64%, TEF belongs to the best 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 6.50%.
The 3 year average ROIC (3.43%) for TEF is below the current ROIC(7.64%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.3% | ||
| ROE | -23.5% | ||
| ROIC | 7.64% |
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 (11.51%) which is in line with its industry peers.
In the last couple of years the Operating Margin of TEF has grown nicely.
TEF's Gross Margin of 35.08% is on the low side compared to the rest of the industry. TEF is outperformed by 78.38% 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 | 11.51% | ||
| PM (TTM) | N/A | ||
| GM | 35.08% |
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 well above the Cost of Capital (WACC), so TEF is creating 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
Based on the Altman-Z score of 1.26, we must say that TEF is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of TEF (1.26) is better than 72.97% of its industry peers.
The Debt to FCF ratio of TEF is 7.98, which is on the high side as it means it would take TEF, 7.98 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of TEF (7.98) is better than 70.27% of its industry peers.
A Debt/Equity ratio of 2.11 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 2.11, TEF is doing worse than 70.27% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.11 | ||
| Debt/FCF | 7.98 | ||
| Altman-Z | 1.26 |
ROIC/WACC1.84
WACC4.16%
2.3 Liquidity
A Current Ratio of 0.85 indicates that TEF may have some problems paying its short term obligations.
With a Current ratio value of 0.85, TEF is not doing good in the industry: 72.97% of the companies in the same industry are doing better.
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 75.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.81 |
3. Growth
3.1 Past
TEF shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -34.78%.
TEF shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -8.73% yearly.
Looking at the last year, TEF shows a small growth in Revenue. The Revenue has grown by 1.63% in the last year.
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)1.63%
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 -1.53% yearly.
EPS Next Y-35.16%
EPS Next 2Y-8.66%
EPS Next 3Y-1.97%
EPS Next 5Y1.32%
Revenue Next Year-10.08%
Revenue Next 2Y-4.93%
Revenue Next 3Y-2.83%
Revenue Next 5Y-1.53%
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 11.91, 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 83.78% of the companies listed in the same industry.
TEF is valuated cheaply when we compare the Price/Earnings ratio to 26.15, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 10.76, which indicates a very decent valuation of TEF.
89.19% of the companies in the same industry are more expensive than TEF, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 36.22. TEF is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.91 | ||
| Fwd PE | 10.76 |
4.2 Price Multiples
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TEF indicates a rather cheap valuation: TEF is cheaper than 97.30% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.61 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-8.66%
EPS Next 3Y-1.97%
5. Dividend
5.1 Amount
TEF has a Yearly Dividend Yield of 6.43%, which is a nice return.
The stock price of TEF dropped by -22.10% 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.
Compared to an average industry Dividend Yield of 5.67, TEF pays a better dividend. On top of this TEF pays more dividend than 89.19% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.32, TEF pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.43% |
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-45.46%
EPS Next 2Y-8.66%
EPS Next 3Y-1.97%
NYSE:TEF (12/3/2025, 3:59:51 PM)
4.17
+0.01 (+0.24%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners28.04%
Inst Owner Change0.05%
Ins Owners0.37%
Ins Owner ChangeN/A
Market Cap23.51B
Revenue(TTM)41.31B
Net Income(TTM)-4.06B
Analysts54.19
Price Target4.82 (15.59%)
Short Float %0.1%
Short Ratio4.99
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.43% |
Yearly Dividend0.39
Dividend Growth(5Y)-5.71%
DP-45.46%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)12.51%
Min EPS beat(2)-0.99%
Max EPS beat(2)26.01%
EPS beat(4)2
Avg EPS beat(4)-1.86%
Min EPS beat(4)-51.51%
Max EPS beat(4)26.01%
EPS beat(8)6
Avg EPS beat(8)9.89%
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)-1.71%
Min Revenue beat(2)-2.28%
Max Revenue beat(2)-1.14%
Revenue beat(4)1
Avg Revenue beat(4)-1.07%
Min Revenue beat(4)-2.28%
Max Revenue beat(4)0.57%
Revenue beat(8)3
Avg Revenue beat(8)0.69%
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)-6.59%
PT rev (3m)-6.45%
EPS NQ rev (1m)-19.66%
EPS NQ rev (3m)-34.71%
EPS NY rev (1m)-6.67%
EPS NY rev (3m)-14.36%
Revenue NQ rev (1m)0.27%
Revenue NQ rev (3m)0.47%
Revenue NY rev (1m)-0.5%
Revenue NY rev (3m)-2.82%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.91 | ||
| Fwd PE | 10.76 | ||
| P/S | 0.35 | ||
| P/FCF | 3.61 | ||
| P/OCF | 1.87 | ||
| P/B | 1.17 | ||
| P/tB | N/A | ||
| EV/EBITDA | N/A |
EPS(TTM)0.35
EY8.39%
EPS(NY)0.39
Fwd EY9.3%
FCF(TTM)1.15
FCFY27.68%
OCF(TTM)2.23
OCFY53.45%
SpS11.98
BVpS3.56
TBVpS-1.81
PEG (NY)N/A
PEG (5Y)N/A
Graham Number5.3
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.3% | ||
| ROE | -23.5% | ||
| ROCE | 9.67% | ||
| ROIC | 7.64% | ||
| ROICexc | 8.46% | ||
| ROICexgc | 14.51% | ||
| OM | 11.51% | ||
| PM (TTM) | N/A | ||
| GM | 35.08% | ||
| FCFM | 9.63% |
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-Score5
Asset Turnover0.62
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.11 | ||
| Debt/FCF | 7.98 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | 8.97% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.81 | ||
| Altman-Z | 1.26 |
F-Score5
WACC4.16%
ROIC/WACC1.84
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-35.16%
EPS Next 2Y-8.66%
EPS Next 3Y-1.97%
EPS Next 5Y1.32%
Revenue 1Y (TTM)1.63%
Revenue growth 3Y1.7%
Revenue growth 5Y-3.12%
Sales Q2Q%-10.63%
Revenue Next Year-10.08%
Revenue Next 2Y-4.93%
Revenue Next 3Y-2.83%
Revenue Next 5Y-1.53%
EBIT growth 1Y55.8%
EBIT growth 3Y20.77%
EBIT growth 5Y4.69%
EBIT Next Year170.96%
EBIT Next 3Y40.95%
EBIT Next 5Y23.75%
FCF growth 1Y-12.25%
FCF growth 3Y6.37%
FCF growth 5Y-7.72%
OCF growth 1Y-12.05%
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.
What is the valuation status for TEF stock?
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.
Can you provide the financial health for TEF stock?
The financial health rating of TELEFONICA SA-SPON ADR (TEF) is 3 / 10.
Can you provide the expected EPS growth for TEF stock?
The Earnings per Share (EPS) of TELEFONICA SA-SPON ADR (TEF) is expected to decline by -35.16% in the next year.