TELEFONICA SA (TNE5.DE) Stock Fundamental Analysis
FRA:TNE5 - Deutsche Boerse Ag - ES0178430E18 - Common Stock - Currency: EUR
Overall TNE5 gets a fundamental rating of 3 out of 10. We evaluated TNE5 against 31 industry peers in the Diversified Telecommunication Services industry. TNE5 has a bad profitability rating. Also its financial health evaluation is rather negative. 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.
TNE5 had a positive operating cash flow in the past year.
Of the past 5 years TNE5 4 years were profitable.
TNE5 had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of TNE5 (-1.42%) is worse than 78.57% of its industry peers.
The Return On Equity of TNE5 (-6.96%) is worse than 78.57% of its industry peers.
With a Return On Invested Capital value of 4.47%, TNE5 is not doing good in the industry: 71.43% of the companies in the same industry are doing better.
Measured over the past 3 years, the Average Return On Invested Capital for TNE5 is below the industry average of 7.24%.
The last Return On Invested Capital (4.47%) for TNE5 is above the 3 year average (2.62%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.42% | ||
| ROE | -6.96% | ||
| ROIC | 4.47% |
ROA(3y)2.59%
ROA(5y)1.95%
ROE(3y)12.48%
ROE(5y)10.86%
ROIC(3y)2.62%
ROIC(5y)3.17%
1.3 Margins
Looking at the Operating Margin, with a value of 10.56%, TNE5 is doing worse than 67.86% of the companies in the same industry.
TNE5's Operating Margin has declined in the last couple of years.
The Gross Margin of TNE5 (48.99%) is worse than 78.57% of its industry peers.
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 | 10.56% | ||
| PM (TTM) | N/A | ||
| GM | 48.99% |
OM growth 3Y-18.41%
OM growth 5Y-15.25%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.4%
GM growth 5Y-1.05%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), TNE5 is creating some value.
TNE5 has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, TNE5 has less shares outstanding
Compared to 1 year ago, TNE5 has a worse debt to assets ratio.
2.2 Solvency
TNE5 has a debt to FCF ratio of 9.01. This is a negative value and a sign of low solvency as TNE5 would need 9.01 years to pay back of all of its debts.
TNE5's Debt to FCF ratio of 9.01 is in line compared to the rest of the industry. TNE5 outperforms 50.00% of its industry peers.
TNE5 has a Debt/Equity ratio of 1.85. This is a high value indicating a heavy dependency on external financing.
TNE5's Debt to Equity ratio of 1.85 is on the low side compared to the rest of the industry. TNE5 is outperformed by 78.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.85 | ||
| Debt/FCF | 9.01 | ||
| Altman-Z | N/A |
ROIC/WACC1.42
WACC3.15%
2.3 Liquidity
TNE5 has a Current Ratio of 0.85. This is a bad value and indicates that TNE5 is not financially healthy enough and could expect problems in meeting its short term obligations.
TNE5's Current ratio of 0.85 is fine compared to the rest of the industry. TNE5 outperforms 60.71% of its industry peers.
TNE5 has a Quick Ratio of 0.85. This is a bad value and indicates that TNE5 is not financially healthy enough and could expect problems in meeting its short term obligations.
TNE5 has a Quick ratio (0.81) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.81 |
3. Growth
3.1 Past
TNE5 shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 30.19%, which is quite impressive.
The earnings per share for TNE5 have been decreasing by -13.09% on average. This is quite bad
Looking at the last year, TNE5 shows a decrease in Revenue. The Revenue has decreased by -0.31% in the last year.
The Revenue has been decreasing by -3.55% on average over the past years.
EPS 1Y (TTM)30.19%
EPS 3Y-9.53%
EPS 5Y-13.09%
EPS Q2Q%22.22%
Revenue 1Y (TTM)-0.31%
Revenue growth 3Y-1.91%
Revenue growth 5Y-3.55%
Sales Q2Q%-2.89%
3.2 Future
The Earnings Per Share is expected to decrease by -7.77% on average over the next years.
TNE5 is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.00% yearly.
EPS Next Y-15.13%
EPS Next 2Y-6.91%
EPS Next 3Y-3.66%
EPS Next 5Y-7.77%
Revenue Next Year0.57%
Revenue Next 2Y0.13%
Revenue Next 3Y0.41%
Revenue Next 5Y1%
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.
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
A Price/Earnings ratio of 8.52 indicates a reasonable valuation of TNE5.
TNE5's Price/Earnings ratio is rather cheap when compared to the industry. TNE5 is cheaper than 89.29% of the companies in the same industry.
When comparing the Price/Earnings ratio of TNE5 to the average of the S&P500 Index (28.47), we can say TNE5 is valued rather cheaply.
The Price/Forward Earnings ratio is 12.56, which indicates a correct valuation of TNE5.
The rest of the industry has a similar Price/Forward Earnings ratio as TNE5.
TNE5 is valuated cheaply when we compare the Price/Forward Earnings ratio to 92.74, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.52 | ||
| Fwd PE | 12.56 |
4.2 Price Multiples
89.29% 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 | 4.33 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
A cheap valuation may be justified as TNE5's earnings are expected to decrease with -3.66% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-6.91%
EPS Next 3Y-3.66%
5. Dividend
5.1 Amount
TNE5 has a Yearly Dividend Yield of 9.19%, which is a nice return.
Compared to an average industry Dividend Yield of 5.48, TNE5 pays a better dividend. On top of this TNE5 pays more dividend than 92.86% of the companies listed in the same industry.
TNE5's Dividend Yield is rather good when compared to the S&P500 average which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.19% |
5.2 History
The dividend of TNE5 decreases each year by -3.17%.
Dividend Growth(5Y)-3.17%
Div Incr Years0
Div Non Decr Years1
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.
The Dividend Rate of TNE5 has been decling, while earnings will also be declining. This means the current dividend is most likely not sustainable.
DP-130.68%
EPS Next 2Y-6.91%
EPS Next 3Y-3.66%
TELEFONICA SA
FRA:TNE5 (2/4/2025, 7:00:00 PM)
3.918
-0.05 (-1.19%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners29.93%
Inst Owner ChangeN/A
Ins Owners0.4%
Ins Owner ChangeN/A
Market Cap22.10B
Analysts64
Price Target4.3 (9.75%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.19% |
Yearly Dividend0.38
Dividend Growth(5Y)-3.17%
DP-130.68%
Div Incr Years0
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)27.8%
Min EPS beat(2)19.03%
Max EPS beat(2)36.57%
EPS beat(4)4
Avg EPS beat(4)23.56%
Min EPS beat(4)17.64%
Max EPS beat(4)36.57%
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)-0.12%
Min Revenue beat(2)-1.43%
Max Revenue beat(2)1.19%
Revenue beat(4)2
Avg Revenue beat(4)2.12%
Min Revenue beat(4)-1.43%
Max Revenue beat(4)10.07%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
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)-0.01%
PT rev (3m)0.78%
EPS NQ rev (1m)13.95%
EPS NQ rev (3m)4.26%
EPS NY rev (1m)-1.67%
EPS NY rev (3m)-1.67%
Revenue NQ rev (1m)-0.61%
Revenue NQ rev (3m)-1.1%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)0.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.52 | ||
| Fwd PE | 12.56 | ||
| P/S | 0.54 | ||
| P/FCF | 4.33 | ||
| P/OCF | 2.1 | ||
| P/B | 1.07 | ||
| P/tB | N/A | ||
| EV/EBITDA | N/A |
EPS(TTM)0.46
EY11.74%
EPS(NY)0.31
Fwd EY7.96%
FCF(TTM)0.9
FCFY23.1%
OCF(TTM)1.87
OCFY47.6%
SpS7.19
BVpS3.65
TBVpS-1.28
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.42% | ||
| ROE | -6.96% | ||
| ROCE | 5.71% | ||
| ROIC | 4.47% | ||
| ROICexc | 5.06% | ||
| ROICexgc | 8.7% | ||
| OM | 10.56% | ||
| PM (TTM) | N/A | ||
| GM | 48.99% | ||
| FCFM | 12.58% |
ROA(3y)2.59%
ROA(5y)1.95%
ROE(3y)12.48%
ROE(5y)10.86%
ROIC(3y)2.62%
ROIC(5y)3.17%
ROICexc(3y)2.93%
ROICexc(5y)3.55%
ROICexgc(3y)4.84%
ROICexgc(5y)6.23%
ROCE(3y)3.34%
ROCE(5y)4.06%
ROICexcg growth 3Y-21.66%
ROICexcg growth 5Y-22%
ROICexc growth 3Y-21.54%
ROICexc growth 5Y-17.49%
OM growth 3Y-18.41%
OM growth 5Y-15.25%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.4%
GM growth 5Y-1.05%
F-Score5
Asset Turnover0.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.85 | ||
| Debt/FCF | 9.01 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | 13.35% | ||
| Interest Coverage | -3.07 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.81 | ||
| Altman-Z | N/A |
F-Score5
WACC3.15%
ROIC/WACC1.42
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)14.62%
Cap/Sales(5y)15.19%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)30.19%
EPS 3Y-9.53%
EPS 5Y-13.09%
EPS Q2Q%22.22%
EPS Next Y-15.13%
EPS Next 2Y-6.91%
EPS Next 3Y-3.66%
EPS Next 5Y-7.77%
Revenue 1Y (TTM)-0.31%
Revenue growth 3Y-1.91%
Revenue growth 5Y-3.55%
Sales Q2Q%-2.89%
Revenue Next Year0.57%
Revenue Next 2Y0.13%
Revenue Next 3Y0.41%
Revenue Next 5Y1%
EBIT growth 1Y0.66%
EBIT growth 3Y-19.97%
EBIT growth 5Y-18.26%
EBIT Next Year253.75%
EBIT Next 3Y51.94%
EBIT Next 5Y30.55%
FCF growth 1Y-12.09%
FCF growth 3Y-2.14%
FCF growth 5Y4.14%
OCF growth 1Y-3.01%
OCF growth 3Y-4.1%
OCF growth 5Y-2.65%