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TELECOM ITALIA SPA (TIT.MI) Stock Fundamental Analysis

BIT:TIT - Euronext Milan - IT0003497168 - Common Stock - Currency: EUR

0.2751  +0.01 (+3.81%)

Fundamental Rating

2

We assign a fundamental rating of 2 out of 10 to TIT. TIT was compared to 29 industry peers in the Diversified Telecommunication Services industry. TIT may be in some trouble as it scores bad on both profitability and health. TIT has a expensive valuation and it also scores bad on growth.


Dividend Valuation Growth Profitability Health

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3

1. Profitability

1.1 Basic Checks

TIT had negative earnings in the past year.
In the past year TIT had a positive cash flow from operations.
In multiple years TIT reported negative net income over the last 5 years.
TIT had a positive operating cash flow in each of the past 5 years.
TIT.MI Yearly Net Income VS EBIT VS OCF VS FCFTIT.MI Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 5B -5B

1.2 Ratios

TIT's Return On Assets of -4.06% is on the low side compared to the rest of the industry. TIT is outperformed by 76.67% of its industry peers.
TIT has a worse Return On Equity (-12.55%) than 76.67% of its industry peers.
TIT has a Return On Invested Capital of 6.90%. This is in the better half of the industry: TIT outperforms 63.33% of its industry peers.
TIT had an Average Return On Invested Capital over the past 3 years of 1.75%. This is significantly below the industry average of 7.55%.
The last Return On Invested Capital (6.90%) for TIT is above the 3 year average (1.75%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA -4.06%
ROE -12.55%
ROIC 6.9%
ROA(3y)-6.51%
ROA(5y)-1.67%
ROE(3y)-26.55%
ROE(5y)-9.52%
ROIC(3y)1.75%
ROIC(5y)2.49%
TIT.MI Yearly ROA, ROE, ROICTIT.MI Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 20 -20 -40

1.3 Margins

TIT has a Operating Margin (10.96%) which is comparable to the rest of the industry.
TIT's Operating Margin has declined in the last couple of years.
The Gross Margin of TIT (53.43%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of TIT has declined.
Industry RankSector Rank
OM 10.96%
PM (TTM) N/A
GM 53.43%
OM growth 3Y-13.89%
OM growth 5Y-12.71%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-6.68%
GM growth 5Y-3.33%
TIT.MI Yearly Profit, Operating, Gross MarginsTIT.MI Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 50 -50

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2

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), TIT is creating some value.
Compared to 1 year ago, TIT has about the same amount of shares outstanding.
The number of shares outstanding for TIT has been increased compared to 5 years ago.
Compared to 1 year ago, TIT has a worse debt to assets ratio.
TIT.MI Yearly Shares OutstandingTIT.MI Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 5B 10B 15B 20B
TIT.MI Yearly Total Debt VS Total AssetsTIT.MI Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 20B 40B 60B

2.2 Solvency

TIT has an Altman-Z score of 1.02. This is a bad value and indicates that TIT is not financially healthy and even has some risk of bankruptcy.
TIT has a Altman-Z score of 1.02. This is in the lower half of the industry: TIT underperforms 60.00% of its industry peers.
A Debt/Equity ratio of 1.00 indicates that TIT is somewhat dependend on debt financing.
The Debt to Equity ratio of TIT (1.00) is better than 66.67% of its industry peers.
Industry RankSector Rank
Debt/Equity 1
Debt/FCF N/A
Altman-Z 1.02
ROIC/WACC1.2
WACC5.76%
TIT.MI Yearly LT Debt VS Equity VS FCFTIT.MI Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 10B 20B

2.3 Liquidity

TIT has a Current Ratio of 0.85. This is a bad value and indicates that TIT is not financially healthy enough and could expect problems in meeting its short term obligations.
TIT's Current ratio of 0.85 is fine compared to the rest of the industry. TIT outperforms 66.67% of its industry peers.
TIT has a Quick Ratio of 0.85. This is a bad value and indicates that TIT is not financially healthy enough and could expect problems in meeting its short term obligations.
TIT's Quick ratio of 0.82 is fine compared to the rest of the industry. TIT outperforms 66.67% of its industry peers.
Industry RankSector Rank
Current Ratio 0.85
Quick Ratio 0.82
TIT.MI Yearly Current Assets VS Current LiabilitesTIT.MI Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 5B 10B 15B

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2

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 59.51% over the past year.
Looking at the last year, TIT shows a decrease in Revenue. The Revenue has decreased by -4.25% in the last year.
TIT shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -2.96% yearly.
EPS 1Y (TTM)59.51%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%81.51%
Revenue 1Y (TTM)-4.25%
Revenue growth 3Y1.02%
Revenue growth 5Y-2.96%
Sales Q2Q%-13.1%

3.2 Future

TIT is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 30.31% yearly.
TIT is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.37% yearly.
EPS Next Y51.27%
EPS Next 2Y42.13%
EPS Next 3Y30.15%
EPS Next 5Y30.31%
Revenue Next Year-6.14%
Revenue Next 2Y-4.18%
Revenue Next 3Y-2.36%
Revenue Next 5Y-0.37%

3.3 Evolution

The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
TIT.MI Yearly Revenue VS EstimatesTIT.MI Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 5B 10B 15B 20B
TIT.MI Yearly EPS VS EstimatesTIT.MI Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 0 0.02 -0.02 0.04 0.06

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2

4. Valuation

4.1 Price/Earnings Ratio

TIT reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
The Price/Forward Earnings ratio is 340.47, which means the current valuation is very expensive for TIT.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TIT indicates a rather expensive valuation: TIT more expensive than 80.00% of the companies listed in the same industry.
TIT is valuated expensively when we compare the Price/Forward Earnings ratio to 22.10, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE N/A
Fwd PE 340.47
TIT.MI Price Earnings VS Forward Price EarningsTIT.MI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 100 200 300

4.2 Price Multiples

TIT's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. TIT is cheaper than 100.00% of the companies in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 2.5
TIT.MI Per share dataTIT.MI EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 0.2 -0.2 0.4 0.6 0.8 1

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates TIT does not grow enough to justify the current Price/Earnings ratio.
A more expensive valuation may be justified as TIT's earnings are expected to grow with 30.15% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y42.13%
EPS Next 3Y30.15%

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0

5. Dividend

5.1 Amount

No dividends for TIT!.
Industry RankSector Rank
Dividend Yield N/A

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TELECOM ITALIA SPA

BIT:TIT (3/7/2025, 7:00:00 PM)

0.2751

+0.01 (+3.81%)

Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)02-13 2025-02-13/amc
Earnings (Next)N/A N/A
Inst Owners17.07%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap5.88B
Analysts81.05
Price Target0.35 (27.23%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly Dividend0.01
Dividend Growth(5Y)-6.11%
DP-9.3%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
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)36.07%
Min Revenue beat(2)-2.17%
Max Revenue beat(2)74.3%
Revenue beat(4)2
Avg Revenue beat(4)15.93%
Min Revenue beat(4)-10.31%
Max Revenue beat(4)74.3%
Revenue beat(8)3
Avg Revenue beat(8)18.58%
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)10.21%
PT rev (3m)12.17%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)-65.81%
EPS NY rev (3m)-650.97%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0.18%
Revenue NY rev (3m)-0.59%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE 340.47
P/S 0.26
P/FCF N/A
P/OCF 2.4
P/B 0.48
P/tB N/A
EV/EBITDA 2.5
EPS(TTM)-0.04
EYN/A
EPS(NY)0
Fwd EY0.29%
FCF(TTM)-0.02
FCFYN/A
OCF(TTM)0.11
OCFY41.73%
SpS1.08
BVpS0.57
TBVpS-0.23
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -4.06%
ROE -12.55%
ROCE 9.3%
ROIC 6.9%
ROICexc 8.09%
ROICexgc 30.9%
OM 10.96%
PM (TTM) N/A
GM 53.43%
FCFM N/A
ROA(3y)-6.51%
ROA(5y)-1.67%
ROE(3y)-26.55%
ROE(5y)-9.52%
ROIC(3y)1.75%
ROIC(5y)2.49%
ROICexc(3y)2.02%
ROICexc(5y)2.78%
ROICexgc(3y)5.42%
ROICexgc(5y)6.72%
ROCE(3y)2.34%
ROCE(5y)3.32%
ROICexcg growth 3Y6.56%
ROICexcg growth 5Y-16.01%
ROICexc growth 3Y-3.21%
ROICexc growth 5Y-11.92%
OM growth 3Y-13.89%
OM growth 5Y-12.71%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-6.68%
GM growth 5Y-3.33%
F-Score6
Asset Turnover0.61
Health
Industry RankSector Rank
Debt/Equity 1
Debt/FCF N/A
Debt/EBITDA 1.99
Cap/Depr 76.49%
Cap/Sales 12.09%
Interest Coverage 1.17
Cash Conversion 39.81%
Profit Quality N/A
Current Ratio 0.85
Quick Ratio 0.82
Altman-Z 1.02
F-Score6
WACC5.76%
ROIC/WACC1.2
Cap/Depr(3y)110.53%
Cap/Depr(5y)106.65%
Cap/Sales(3y)32.96%
Cap/Sales(5y)31.2%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)59.51%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%81.51%
EPS Next Y51.27%
EPS Next 2Y42.13%
EPS Next 3Y30.15%
EPS Next 5Y30.31%
Revenue 1Y (TTM)-4.25%
Revenue growth 3Y1.02%
Revenue growth 5Y-2.96%
Sales Q2Q%-13.1%
Revenue Next Year-6.14%
Revenue Next 2Y-4.18%
Revenue Next 3Y-2.36%
Revenue Next 5Y-0.37%
EBIT growth 1Y50.54%
EBIT growth 3Y-13%
EBIT growth 5Y-15.3%
EBIT Next Year338.05%
EBIT Next 3Y65.19%
EBIT Next 5Y34.59%
FCF growth 1Y88.16%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-49.73%
OCF growth 3Y-15.56%
OCF growth 5Y-3%