TELEFONICA SA (TNE5.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:TNE5 - ES0178430E18 - Common Stock
3.717 EUR
+0.05 (+1.39%)
We assign a fundamental rating of 4 out of 10 to TNE5. TNE5 was compared to 33 industry peers in the Diversified Telecommunication Services industry. While TNE5 is still in line with the averages on profitability rating, there are concerns on its financial health. TNE5 has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
TNE5 had positive earnings in the past year.
In the past year TNE5 had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: TNE5 reported negative net income in multiple years.
In the past 5 years TNE5 always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of -4.10%, TNE5 is doing worse than 78.13% of the companies in the same industry.
The Return On Equity of TNE5 (-21.56%) is worse than 78.13% of its industry peers.
Looking at the Return On Invested Capital, with a value of 6.89%, TNE5 is in the better half of the industry, outperforming 62.50% of the companies in the same industry.
TNE5 had an Average Return On Invested Capital over the past 3 years of 3.06%. This is below the industry average of 7.72%.
The last Return On Invested Capital (6.89%) for TNE5 is above the 3 year average (3.06%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.1% | ||
| ROE | -21.56% | ||
| ROIC | 6.89% |
ROA(3y)0.08%
ROA(5y)1.74%
ROE(3y)0.1%
ROE(5y)9.53%
ROIC(3y)3.06%
ROIC(5y)3.14%
1.3 Margins
TNE5 has a Operating Margin (12.00%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of TNE5 has grown nicely.
Looking at the Gross Margin, with a value of 35.73%, TNE5 is doing worse than 71.88% of the companies in the same industry.
In the last couple of years the Gross Margin of TNE5 has remained more or less at the same level.
| Industry Rank | Sector 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%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), TNE5 is creating value.
TNE5 has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for TNE5 has been reduced compared to 5 years ago.
Compared to 1 year ago, TNE5 has a worse debt to assets ratio.
2.2 Solvency
TNE5 has a debt to FCF ratio of 8.80. This is a slightly negative value and a sign of low solvency as TNE5 would need 8.80 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 8.80, TNE5 is in line with its industry, outperforming 50.00% of the companies in the same industry.
A Debt/Equity ratio of 2.07 is on the high side and indicates that TNE5 has dependencies on debt financing.
TNE5 has a Debt to Equity ratio of 2.07. This is amonst the worse of the industry: TNE5 underperforms 84.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.07 | ||
| Debt/FCF | 8.8 | ||
| Altman-Z | N/A |
ROIC/WACC1.82
WACC3.78%
2.3 Liquidity
A Current Ratio of 0.84 indicates that TNE5 may have some problems paying its short term obligations.
TNE5 has a better Current ratio (0.84) than 65.63% of its industry peers.
TNE5 has a Quick Ratio of 0.84. This is a bad value and indicates that TNE5 is not financially healthy enough and could expect problems in meeting its short term obligations.
With a decent Quick ratio value of 0.80, TNE5 is doing good in the industry, outperforming 62.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.8 |
3. Growth
3.1 Past
TNE5 shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -34.78%.
Measured over the past years, TNE5 shows a decrease in Earnings Per Share. The EPS has been decreasing by -8.86% on average per year.
Looking at the last year, TNE5 shows a very strong growth in Revenue. The Revenue has grown by 40.77%.
Measured over the past years, TNE5 shows a decrease in Revenue. The Revenue has been decreasing by -3.12% on average per year.
EPS 1Y (TTM)-34.78%
EPS 3YN/A
EPS 5Y-8.86%
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
The Earnings Per Share is expected to grow by 1.32% on average over the next years.
TNE5 is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -1.53% yearly.
EPS Next Y-36.15%
EPS Next 2Y-10.35%
EPS Next 3Y-3.01%
EPS Next 5Y1.32%
Revenue Next Year-10.39%
Revenue Next 2Y-5.29%
Revenue Next 3Y-3.07%
Revenue Next 5Y-1.53%
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.
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
TNE5 is valuated correctly with a Price/Earnings ratio of 12.39.
TNE5's Price/Earnings ratio is rather cheap when compared to the industry. TNE5 is cheaper than 81.25% of the companies in the same industry.
TNE5 is valuated cheaply when we compare the Price/Earnings ratio to 26.56, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 11.56, which indicates a very decent valuation of TNE5.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TNE5 indicates a somewhat cheap valuation: TNE5 is cheaper than 65.63% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of TNE5 to the average of the S&P500 Index (23.79), we can say TNE5 is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.39 | ||
| Fwd PE | 11.56 |
4.2 Price Multiples
100.00% of the companies in the same industry are more expensive than TNE5, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.3 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
A cheap valuation may be justified as TNE5's earnings are expected to decrease with -3.01% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-10.35%
EPS Next 3Y-3.01%
5. Dividend
5.1 Amount
TNE5 has a Yearly Dividend Yield of 6.62%, which is a nice return.
TNE5's Dividend Yield is rather good when compared to the industry average which is at 3.41. TNE5 pays more dividend than 81.25% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 1.87, TNE5 pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.62% |
5.2 History
The dividend of TNE5 decreases each year by -5.71%.
Dividend Growth(5Y)-5.71%
Div Incr Years0
Div Non Decr Years2
5.3 Sustainability
The earnings of TNE5 are negative and hence is the payout ratio. TNE5 will probably not be able to sustain this dividend level.
DP-48.26%
EPS Next 2Y-10.35%
EPS Next 3Y-3.01%
FRA:TNE5 (12/12/2025, 7:00:00 PM)
3.717
+0.05 (+1.39%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners27.99%
Inst Owner ChangeN/A
Ins Owners0.37%
Ins Owner ChangeN/A
Market Cap20.96B
Revenue(TTM)57.11B
Net Income(TTM)-3.80B
Analysts52.26
Price Target4.11 (10.57%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.62% |
Yearly Dividend0.33
Dividend Growth(5Y)-5.71%
DP-48.26%
Div Incr Years0
Div Non Decr Years2
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)-8.85%
PT rev (3m)-7.95%
EPS NQ rev (1m)-8.53%
EPS NQ rev (3m)-8.53%
EPS NY rev (1m)-1.53%
EPS NY rev (3m)-15.69%
Revenue NQ rev (1m)0.67%
Revenue NQ rev (3m)0.88%
Revenue NY rev (1m)-0.35%
Revenue NY rev (3m)-1.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.39 | ||
| Fwd PE | 11.56 | ||
| P/S | 0.37 | ||
| P/FCF | 4.3 | ||
| P/OCF | 2.03 | ||
| P/B | 1.19 | ||
| P/tB | N/A | ||
| EV/EBITDA | N/A |
EPS(TTM)0.3
EY8.07%
EPS(NY)0.32
Fwd EY8.65%
FCF(TTM)0.86
FCFY23.26%
OCF(TTM)1.83
OCFY49.32%
SpS10.13
BVpS3.12
TBVpS-1.5
PEG (NY)N/A
PEG (5Y)N/A
Graham Number4.59
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.1% | ||
| ROE | -21.56% | ||
| ROCE | 9.79% | ||
| ROIC | 6.89% | ||
| ROICexc | 7.58% | ||
| ROICexgc | 12.83% | ||
| 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)3.06%
ROIC(5y)3.14%
ROICexc(3y)3.42%
ROICexc(5y)3.52%
ROICexgc(3y)5.7%
ROICexgc(5y)5.87%
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 Rank | Sector 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
WACC3.78%
ROIC/WACC1.82
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-8.86%
EPS Q2Q%-18.18%
EPS Next Y-36.15%
EPS Next 2Y-10.35%
EPS Next 3Y-3.01%
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-10.39%
Revenue Next 2Y-5.29%
Revenue Next 3Y-3.07%
Revenue Next 5Y-1.53%
EBIT growth 1Y59.92%
EBIT growth 3Y20.77%
EBIT growth 5Y4.69%
EBIT Next Year169.05%
EBIT Next 3Y40.87%
EBIT Next 5Y23.75%
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 / TNE5.DE FAQ
What is the fundamental rating for TNE5 stock?
ChartMill assigns a fundamental rating of 4 / 10 to TNE5.DE.
Can you provide the valuation status for TELEFONICA SA?
ChartMill assigns a valuation rating of 5 / 10 to TELEFONICA SA (TNE5.DE). This can be considered as Fairly Valued.
How profitable is TELEFONICA SA (TNE5.DE) stock?
TELEFONICA SA (TNE5.DE) has a profitability rating of 4 / 10.
Can you provide the financial health for TNE5 stock?
The financial health rating of TELEFONICA SA (TNE5.DE) is 3 / 10.
Can you provide the dividend sustainability for TNE5 stock?
The dividend rating of TELEFONICA SA (TNE5.DE) is 5 / 10 and the dividend payout ratio is -48.26%.