Telecom Italia SpA/Milano(BIT:TITR) stock Fundamental Analysis

Fundamental Rating

Overall TITR gets a fundamental rating of 2 out of 10. We evaluated TITR against 31 industry peers in the Diversified Telecommunication Services industry. Both the profitability and financial health of TITR have multiple concerns. TITR has a valuation in line with the averages, but it does not seem to be growing.

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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.

In multiple years TITR reported negative net income over the last 5 years.

Each year in the past 5 years TITR had a positive operating cash flow.

1.2 Ratios

TITR has a worse Return On Assets (-4.06%) than 85.71% of its industry peers.

Looking at the Return On Equity, with a value of -12.55%, TITR is doing worse than 85.71% of the companies in the same industry.

TITR has a Return On Invested Capital of 6.90%. This is comparable to the rest of the industry: TITR outperforms 57.14% of its industry peers.

TITR had an Average Return On Invested Capital over the past 3 years of 1.75%. This is significantly below the industry average of 7.24%.

The last Return On Invested Capital (6.90%) for TITR is above the 3 year average (1.75%), which is a sign of increasing profitability.

		Industry Rank	Sector 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%

1.3 Margins

The Operating Margin of TITR (10.96%) is worse than 60.71% of its industry peers.

TITR's Operating Margin has declined in the last couple of years.

TITR's Gross Margin of 53.43% is on the low side compared to the rest of the industry. TITR is outperformed by 71.43% of its industry peers.

TITR's Gross Margin has declined in the last couple of years.

		Industry Rank	Sector 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%

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ROA

ROE

ROIC

Operating and Profit Margin

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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.

Compared to 1 year ago, TITR has about the same amount of shares outstanding.

The number of shares outstanding for TITR has been increased compared to 5 years ago.

Compared to 1 year ago, TITR has a worse debt to assets ratio.

2.2 Solvency

Based on the Altman-Z score of 1.04, we must say that TITR is in the distress zone and has some risk of bankruptcy.

TITR's Altman-Z score of 1.04 is on the low side compared to the rest of the industry. TITR is outperformed by 60.71% of its industry peers.

TITR has a Debt/Equity ratio of 1.00. This is a neutral value indicating TITR is somewhat dependend on debt financing.

The Debt to Equity ratio of TITR (1.00) is better than 64.29% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	1
Debt/FCF	N/A
Altman-Z	1.04

ROIC/WACC1.25

WACC5.54%

2.3 Liquidity

TITR has a Current Ratio of 0.85. This is a bad value and indicates that TITR is not financially healthy enough and could expect problems in meeting its short term obligations.

With a Current ratio value of 0.85, TITR perfoms like the industry average, outperforming 53.57% of the companies in the same industry.

A Quick Ratio of 0.82 indicates that TITR may have some problems paying its short term obligations.

The Quick ratio of TITR (0.82) is better than 60.71% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	0.85
Quick Ratio	0.82

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 59.51% over the past year.

TITR shows a decrease in Revenue. In the last year, the revenue decreased by -4.25%.

The Revenue has been decreasing by -2.96% on average over the past years.

EPS 1Y (TTM)59.51%

EPS 3YN/A

EPS 5YN/A

EPS Q2Q%81.35%

Revenue 1Y (TTM)-4.25%

Revenue growth 3Y1.02%

Revenue growth 5Y-2.96%

Sales Q2Q%-13.1%

3.2 Future

TITR is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 30.31% yearly.

The Revenue is expected to decrease by -0.37% on average over the next years.

EPS Next Y70.61%

EPS Next 2Y51.48%

EPS Next 3Y34%

EPS Next 5Y30.31%

Revenue Next Year-6.31%

Revenue Next 2Y-3.68%

Revenue Next 3Y-1.71%

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.

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4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings Ratio is negative for TITR. In the last year negative earnings were reported.

A Price/Forward Earnings ratio of 27.15 indicates a quite expensive valuation of TITR.

Based on the Price/Forward Earnings ratio, TITR is valued more expensive than 85.71% of the companies in the same industry.

TITR's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 92.74.

		Industry Rank	Sector Rank
PE	N/A
Fwd PE	27.15

4.2 Price Multiples

TITR's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. TITR is cheaper than 96.43% of the companies in the same industry.

		Industry Rank	Sector Rank
P/FCF	N/A
EV/EBITDA	2.65

4.3 Compensation for Growth

The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.

TITR's earnings are expected to grow with 34.00% in the coming years. This may justify a more expensive valuation.

PEG (NY)N/A

PEG (5Y)N/A

EPS Next 2Y51.48%

EPS Next 3Y34%

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5. Dividend

5.1 Amount

TITR does not give a dividend.

		Industry Rank	Sector Rank
Dividend Yield	N/A

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Telecom Italia SpA/Milano

BIT:TITR (2/5/2025, 5:35:15 PM)

0.32

+0 (+0.95%)

Chartmill FA Rating

GICS SectorCommunication Services

GICS IndustryGroupTelecommunication Services

GICS IndustryDiversified Telecommunication Services

Earnings (Last)11-13 2024-11-13

Earnings (Next)02-12 2025-02-12/amc

Inst Owners16.09%

Inst Owner ChangeN/A

Ins OwnersN/A

Ins Owner ChangeN/A

Market Cap6.83B

Analysts77

Price Target0.37 (15.62%)

Short Float %N/A

Short RatioN/A

Dividend

		Industry Rank	Sector 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)0.11%

PT rev (3m)-0.19%

EPS NQ rev (1m)0%

EPS NQ rev (3m)0%

EPS NY rev (1m)-352.92%

EPS NY rev (3m)34.83%

Revenue NQ rev (1m)0%

Revenue NQ rev (3m)0%

Revenue NY rev (1m)-0.77%

Revenue NY rev (3m)-3.11%

Valuation

		Industry Rank	Sector Rank
PE	N/A
Fwd PE	27.15
P/S	0.3
P/FCF	N/A
P/OCF	2.79
P/B	0.56
P/tB	N/A
EV/EBITDA	2.65

EPS(TTM)-0.04

EYN/A

EPS(NY)0.01

Fwd EY3.68%

FCF(TTM)-0.02

FCFYN/A

OCF(TTM)0.11

OCFY35.88%

SpS1.08

BVpS0.57

TBVpS-0.23

PEG (NY)N/A

PEG (5Y)N/A

Profitability

		Industry Rank	Sector 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 Rank	Sector 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	1.04

F-Score6

WACC5.54%

ROIC/WACC1.25

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%81.35%

EPS Next Y70.61%

EPS Next 2Y51.48%

EPS Next 3Y34%

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-6.31%

Revenue Next 2Y-3.68%

Revenue Next 3Y-1.71%

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%

Telecom Italia SpA/Milano (TITR.MI) Stock Fundamental Analysis

1. Profitability

1.1 Basic Checks

1.2 Ratios

1.3 Margins

More info and screens

2. Health

2.1 Basic Checks

2.2 Solvency

2.3 Liquidity

More info and screens

3. Growth

3.1 Past

3.2 Future

3.3 Evolution

More info and screens

4. Valuation

4.1 Price/Earnings Ratio

4.2 Price Multiples

4.3 Compensation for Growth

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5. Dividend

5.1 Amount

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