Telecom Italia SpA/Milano (TITR.MI) Stock Fundamental Analysis
BIT:TITR - Euronext Milan - IT0003497176
We assign a fundamental rating of 2 out of 10 to TITR. TITR was compared to 26 industry peers in the Diversified Telecommunication Services industry. TITR has a bad profitability rating. Also its financial health evaluation is rather negative. TITR is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year TITR has reported negative net income.
TITR had a positive operating cash flow in the past year.
TITR had negative earnings in 4 of the past 5 years.
TITR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of -2.32%, TITR is not doing good in the industry: 80.77% of the companies in the same industry are doing better.
The Return On Equity of TITR (-7.30%) is worse than 80.77% of its industry peers.
The Return On Invested Capital of TITR (6.92%) is better than 61.54% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TITR is below the industry average of 7.93%.
The last Return On Invested Capital (6.92%) for TITR is above the 3 year average (3.21%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.32% | ||
| ROE | -7.3% | ||
| ROIC | 6.92% |
ROA(3y)-2.88%
ROA(5y)-2.26%
ROE(3y)-11.69%
ROE(5y)-11.44%
ROIC(3y)3.21%
ROIC(5y)2.76%
1.3 Margins
TITR has a Operating Margin of 11.00%. This is comparable to the rest of the industry: TITR outperforms 46.15% of its industry peers.
TITR's Operating Margin has declined in the last couple of years.
TITR has a worse Gross Margin (48.24%) than 69.23% of its industry peers.
TITR's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11% | ||
| PM (TTM) | N/A | ||
| GM | 48.24% |
OM growth 3Y21.56%
OM growth 5Y-9.27%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-8.54%
GM growth 5Y-8.67%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), TITR is creating some value.
The number of shares outstanding for TITR remains at a similar level compared to 1 year ago.
The number of shares outstanding for TITR has been increased compared to 5 years ago.
The debt/assets ratio for TITR has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.02, we must say that TITR is in the distress zone and has some risk of bankruptcy.
TITR has a worse Altman-Z score (1.02) than 65.38% of its industry peers.
TITR has a debt to FCF ratio of 288.25. This is a negative value and a sign of low solvency as TITR would need 288.25 years to pay back of all of its debts.
TITR's Debt to FCF ratio of 288.25 is on the low side compared to the rest of the industry. TITR is outperformed by 80.77% of its industry peers.
TITR has a Debt/Equity ratio of 0.92. This is a neutral value indicating TITR is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.92, TITR is in the better half of the industry, outperforming 61.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.92 | ||
| Debt/FCF | 288.25 | ||
| Altman-Z | 1.02 |
ROIC/WACC1.05
WACC6.6%
2.3 Liquidity
A Current Ratio of 0.80 indicates that TITR may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.80, TITR is in line with its industry, outperforming 53.85% of the companies in the same industry.
A Quick Ratio of 0.77 indicates that TITR may have some problems paying its short term obligations.
TITR's Quick ratio of 0.77 is in line compared to the rest of the industry. TITR outperforms 53.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.8 | ||
| Quick Ratio | 0.77 |
3. Growth
3.1 Past
TITR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 48.74%, which is quite impressive.
TITR shows a decrease in Revenue. In the last year, the revenue decreased by -9.52%.
TITR shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -5.45% yearly.
EPS 1Y (TTM)48.74%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%75%
Revenue 1Y (TTM)-9.52%
Revenue growth 3Y-3.26%
Revenue growth 5Y-5.45%
Sales Q2Q%-12.23%
3.2 Future
The Earnings Per Share is expected to grow by 24.59% on average over the next years. This is a very strong growth
TITR is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -1.03% yearly.
EPS Next Y58.62%
EPS Next 2Y40.53%
EPS Next 3Y29.31%
EPS Next 5Y24.59%
Revenue Next Year-6.14%
Revenue Next 2Y-4.18%
Revenue Next 3Y-2.36%
Revenue Next 5Y-1.03%
3.3 Evolution
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
TITR reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
Besides the negative Price/Earnings Ratio, also the Forward Price/Earnings Ratio is negative for TITR. No positive earnings are expected for the next year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TITR is valued cheaper than 96.15% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TITR indicates a rather expensive valuation: TITR more expensive than 80.77% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 155.14 | ||
| EV/EBITDA | 3.07 |
4.3 Compensation for Growth
TITR's earnings are expected to grow with 29.31% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y40.53%
EPS Next 3Y29.31%
5. Dividend
5.1 Amount
No dividends for TITR!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
BIT:TITR (4/25/2025, 5:29:51 PM)
0.385
+0 (+0.79%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners17.07%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap8.22B
Analysts81
Price Target0.42 (9.09%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0.01
Dividend Growth(5Y)-10.69%
DP-18.21%
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)0
Avg Revenue beat(2)-2.34%
Min Revenue beat(2)-2.51%
Max Revenue beat(2)-2.17%
Revenue beat(4)2
Avg Revenue beat(4)17.88%
Min Revenue beat(4)-2.51%
Max Revenue beat(4)74.3%
Revenue beat(8)2
Avg Revenue beat(8)5.21%
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)6.69%
PT rev (3m)15.45%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-225%
EPS NY rev (3m)-110%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 0.37 | ||
| P/FCF | 155.14 | ||
| P/OCF | 4.1 | ||
| P/B | 0.69 | ||
| P/tB | N/A | ||
| EV/EBITDA | 3.07 |
EPS(TTM)-0.04
EYN/A
EPS(NY)0
Fwd EYN/A
FCF(TTM)0
FCFY0.64%
OCF(TTM)0.09
OCFY24.41%
SpS1.03
BVpS0.56
TBVpS-0.24
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.32% | ||
| ROE | -7.3% | ||
| ROCE | 9.23% | ||
| ROIC | 6.92% | ||
| ROICexc | 8.39% | ||
| ROICexgc | 39.91% | ||
| OM | 11% | ||
| PM (TTM) | N/A | ||
| GM | 48.24% | ||
| FCFM | 0.24% |
ROA(3y)-2.88%
ROA(5y)-2.26%
ROE(3y)-11.69%
ROE(5y)-11.44%
ROIC(3y)3.21%
ROIC(5y)2.76%
ROICexc(3y)3.77%
ROICexc(5y)3.22%
ROICexgc(3y)14.46%
ROICexgc(5y)10.83%
ROCE(3y)4.28%
ROCE(5y)3.69%
ROICexcg growth 3Y88.07%
ROICexcg growth 5Y21.28%
ROICexc growth 3Y50.62%
ROICexc growth 5Y4.66%
OM growth 3Y21.56%
OM growth 5Y-9.27%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-8.54%
GM growth 5Y-8.67%
F-Score6
Asset Turnover0.58
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.92 | ||
| Debt/FCF | 288.25 | ||
| Debt/EBITDA | 1.95 | ||
| Cap/Depr | 61.27% | ||
| Cap/Sales | 8.91% | ||
| Interest Coverage | 1.31 | ||
| Cash Conversion | 35.82% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.8 | ||
| Quick Ratio | 0.77 | ||
| Altman-Z | 1.02 |
F-Score6
WACC6.6%
ROIC/WACC1.05
Cap/Depr(3y)86.41%
Cap/Depr(5y)95.79%
Cap/Sales(3y)22.88%
Cap/Sales(5y)26.59%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)48.74%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%75%
EPS Next Y58.62%
EPS Next 2Y40.53%
EPS Next 3Y29.31%
EPS Next 5Y24.59%
Revenue 1Y (TTM)-9.52%
Revenue growth 3Y-3.26%
Revenue growth 5Y-5.45%
Sales Q2Q%-12.23%
Revenue Next Year-6.14%
Revenue Next 2Y-4.18%
Revenue Next 3Y-2.36%
Revenue Next 5Y-1.03%
EBIT growth 1Y9.13%
EBIT growth 3Y19.21%
EBIT growth 5Y-13.15%
EBIT Next Year245.89%
EBIT Next 3Y52.84%
EBIT Next 5Y38.73%
FCF growth 1Y-76.96%
FCF growth 3YN/A
FCF growth 5Y-44.71%
OCF growth 1Y-16.44%
OCF growth 3Y-22.65%
OCF growth 5Y-19.54%