AT&T INC (1T.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1T - US00206R1023 - Common Stock
20.795 EUR
-0.71 (-3.3%)
Taking everything into account, 1T scores 5 out of 10 in our fundamental rating. 1T was compared to 31 industry peers in the Diversified Telecommunication Services industry. 1T has only an average score on both its financial health and profitability. 1T has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year 1T was profitable.
1T had a positive operating cash flow in the past year.
In multiple years 1T reported negative net income over the last 5 years.
In the past 5 years 1T always reported a positive cash flow from operatings.
1.2 Ratios
1T's Return On Assets of 5.24% is amongst the best of the industry. 1T outperforms 81.82% of its industry peers.
1T has a Return On Equity of 20.02%. This is amongst the best in the industry. 1T outperforms 81.82% of its industry peers.
With a Return On Invested Capital value of 4.98%, 1T is not doing good in the industry: 63.64% of the companies in the same industry are doing better.
1T had an Average Return On Invested Capital over the past 3 years of 5.19%. This is below the industry average of 7.74%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.24% | ||
| ROE | 20.02% | ||
| ROIC | 4.98% |
ROA(3y)1.35%
ROA(5y)1.32%
ROE(3y)5.03%
ROE(5y)4.74%
ROIC(3y)5.19%
ROIC(5y)4.76%
1.3 Margins
1T has a better Profit Margin (17.81%) than 90.91% of its industry peers.
In the last couple of years the Profit Margin of 1T has grown nicely.
1T has a better Operating Margin (19.44%) than 66.67% of its industry peers.
1T's Operating Margin has improved in the last couple of years.
The Gross Margin of 1T (59.67%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of 1T has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.44% | ||
| PM (TTM) | 17.81% | ||
| GM | 59.67% |
OM growth 3Y0.54%
OM growth 5Y4.03%
PM growth 3Y-16.01%
PM growth 5Y2.75%
GM growth 3Y2.85%
GM growth 5Y2.22%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 1T is destroying value.
The number of shares outstanding for 1T has been increased compared to 1 year ago.
The number of shares outstanding for 1T has been reduced compared to 5 years ago.
Compared to 1 year ago, 1T has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.87, we must say that 1T is in the distress zone and has some risk of bankruptcy.
1T's Altman-Z score of 0.87 is on the low side compared to the rest of the industry. 1T is outperformed by 60.61% of its industry peers.
1T has a debt to FCF ratio of 6.99. This is a slightly negative value and a sign of low solvency as 1T would need 6.99 years to pay back of all of its debts.
1T's Debt to FCF ratio of 6.99 is fine compared to the rest of the industry. 1T outperforms 66.67% of its industry peers.
1T has a Debt/Equity ratio of 1.16. This is a high value indicating a heavy dependency on external financing.
1T's Debt to Equity ratio of 1.16 is in line compared to the rest of the industry. 1T outperforms 57.58% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.16 | ||
| Debt/FCF | 6.99 | ||
| Altman-Z | 0.87 |
ROIC/WACC0.75
WACC6.66%
2.3 Liquidity
A Current Ratio of 1.01 indicates that 1T should not have too much problems paying its short term obligations.
1T has a Current ratio of 1.01. This is amongst the best in the industry. 1T outperforms 87.88% of its industry peers.
1T has a Quick Ratio of 1.01. This is a bad value and indicates that 1T is not financially healthy enough and could expect problems in meeting its short term obligations.
1T's Quick ratio of 0.96 is amongst the best of the industry. 1T outperforms 84.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.01 | ||
| Quick Ratio | 0.96 |
3. Growth
3.1 Past
The earnings per share for 1T have decreased by -5.75% in the last year.
Measured over the past years, 1T shows a decrease in Earnings Per Share. The EPS has been decreasing by -8.79% on average per year.
Looking at the last year, 1T shows a small growth in Revenue. The Revenue has grown by 1.98% in the last year.
Measured over the past years, 1T shows a decrease in Revenue. The Revenue has been decreasing by -7.56% on average per year.
EPS 1Y (TTM)-5.75%
EPS 3Y-12.73%
EPS 5Y-8.79%
EPS Q2Q%-10%
Revenue 1Y (TTM)1.98%
Revenue growth 3Y-3%
Revenue growth 5Y-7.56%
Sales Q2Q%1.64%
3.2 Future
Based on estimates for the next years, 1T will show a small growth in Earnings Per Share. The EPS will grow by 5.70% on average per year.
Based on estimates for the next years, 1T will show a small growth in Revenue. The Revenue will grow by 2.26% on average per year.
EPS Next Y-7.37%
EPS Next 2Y0.43%
EPS Next 3Y4.01%
EPS Next 5Y5.7%
Revenue Next Year2.29%
Revenue Next 2Y1.87%
Revenue Next 3Y1.93%
Revenue Next 5Y2.26%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
1T is valuated reasonably with a Price/Earnings ratio of 11.43.
1T's Price/Earnings ratio is a bit cheaper when compared to the industry. 1T is cheaper than 78.79% of the companies in the same industry.
1T is valuated cheaply when we compare the Price/Earnings ratio to 26.57, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 10.69 indicates a reasonable valuation of 1T.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 1T indicates a somewhat cheap valuation: 1T is cheaper than 69.70% of the companies listed in the same industry.
1T's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.04.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.43 | ||
| Fwd PE | 10.69 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 1T is on the same level as its industry peers.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of 1T indicates a somewhat cheap valuation: 1T is cheaper than 75.76% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.65 | ||
| EV/EBITDA | 6.55 |
4.3 Compensation for Growth
1T has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y0.43%
EPS Next 3Y4.01%
5. Dividend
5.1 Amount
1T has a Yearly Dividend Yield of 4.58%, which is a nice return.
Compared to an average industry Dividend Yield of 3.36, 1T pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 1.88, 1T pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.58% |
5.2 History
The dividend of 1T decreases each year by -10.97%.
Dividend Growth(5Y)-10.97%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
37.01% of the earnings are spent on dividend by 1T. This is a low number and sustainable payout ratio.
DP37.01%
EPS Next 2Y0.43%
EPS Next 3Y4.01%
BIT:1T (12/23/2025, 7:00:00 PM)
20.795
-0.71 (-3.3%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners67.17%
Inst Owner ChangeN/A
Ins Owners0.06%
Ins Owner ChangeN/A
Market Cap147.43B
Revenue(TTM)124.48B
Net Income(TTM)22.17B
Analysts78.82
Price Target25.73 (23.73%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.58% |
Yearly Dividend0.98
Dividend Growth(5Y)-10.97%
DP37.01%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.95%
Min EPS beat(2)-0.97%
Max EPS beat(2)2.87%
EPS beat(4)3
Avg EPS beat(4)2.66%
Min EPS beat(4)-0.97%
Max EPS beat(4)6.05%
EPS beat(8)5
Avg EPS beat(8)0.93%
EPS beat(12)9
Avg EPS beat(12)1.37%
EPS beat(16)12
Avg EPS beat(16)1.73%
Revenue beat(2)0
Avg Revenue beat(2)-1.65%
Min Revenue beat(2)-2.47%
Max Revenue beat(2)-0.84%
Revenue beat(4)0
Avg Revenue beat(4)-1.39%
Min Revenue beat(4)-2.47%
Max Revenue beat(4)-0.84%
Revenue beat(8)0
Avg Revenue beat(8)-1.81%
Revenue beat(12)0
Avg Revenue beat(12)-1.87%
Revenue beat(16)0
Avg Revenue beat(16)-4.61%
PT rev (1m)-2.01%
PT rev (3m)0.53%
EPS NQ rev (1m)0.38%
EPS NQ rev (3m)2.34%
EPS NY rev (1m)0.07%
EPS NY rev (3m)0.29%
Revenue NQ rev (1m)0.11%
Revenue NQ rev (3m)0.24%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)-0.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.43 | ||
| Fwd PE | 10.69 | ||
| P/S | 1.39 | ||
| P/FCF | 8.65 | ||
| P/OCF | 4.23 | ||
| P/B | 1.56 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.55 |
EPS(TTM)1.82
EY8.75%
EPS(NY)1.95
Fwd EY9.36%
FCF(TTM)2.4
FCFY11.56%
OCF(TTM)4.92
OCFY23.66%
SpS14.99
BVpS13.33
TBVpS-10.33
PEG (NY)N/A
PEG (5Y)N/A
Graham Number23.37
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.24% | ||
| ROE | 20.02% | ||
| ROCE | 6.55% | ||
| ROIC | 4.98% | ||
| ROICexc | 5.27% | ||
| ROICexgc | 12.06% | ||
| OM | 19.44% | ||
| PM (TTM) | 17.81% | ||
| GM | 59.67% | ||
| FCFM | 16.03% |
ROA(3y)1.35%
ROA(5y)1.32%
ROE(3y)5.03%
ROE(5y)4.74%
ROIC(3y)5.19%
ROIC(5y)4.76%
ROICexc(3y)5.26%
ROICexc(5y)4.86%
ROICexgc(3y)12.3%
ROICexgc(5y)11.29%
ROCE(3y)6.83%
ROCE(5y)6.27%
ROICexgc growth 3Y10.1%
ROICexgc growth 5Y-1.63%
ROICexc growth 3Y4.68%
ROICexc growth 5Y2.35%
OM growth 3Y0.54%
OM growth 5Y4.03%
PM growth 3Y-16.01%
PM growth 5Y2.75%
GM growth 3Y2.85%
GM growth 5Y2.22%
F-Score7
Asset Turnover0.29
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.16 | ||
| Debt/FCF | 6.99 | ||
| Debt/EBITDA | 2.83 | ||
| Cap/Depr | 98.92% | ||
| Cap/Sales | 16.79% | ||
| Interest Coverage | 3.62 | ||
| Cash Conversion | 90.13% | ||
| Profit Quality | 90.02% | ||
| Current Ratio | 1.01 | ||
| Quick Ratio | 0.96 | ||
| Altman-Z | 0.87 |
F-Score7
WACC6.66%
ROIC/WACC0.75
Cap/Depr(3y)100.82%
Cap/Depr(5y)90.95%
Cap/Sales(3y)15.8%
Cap/Sales(5y)13.85%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-5.75%
EPS 3Y-12.73%
EPS 5Y-8.79%
EPS Q2Q%-10%
EPS Next Y-7.37%
EPS Next 2Y0.43%
EPS Next 3Y4.01%
EPS Next 5Y5.7%
Revenue 1Y (TTM)1.98%
Revenue growth 3Y-3%
Revenue growth 5Y-7.56%
Sales Q2Q%1.64%
Revenue Next Year2.29%
Revenue Next 2Y1.87%
Revenue Next 3Y1.93%
Revenue Next 5Y2.26%
EBIT growth 1Y-1.92%
EBIT growth 3Y-2.47%
EBIT growth 5Y-3.83%
EBIT Next Year98.4%
EBIT Next 3Y28.59%
EBIT Next 5Y17.67%
FCF growth 1Y0.95%
FCF growth 3Y-11.18%
FCF growth 5Y-8.74%
OCF growth 1Y9.69%
OCF growth 3Y-2.6%
OCF growth 5Y-4.45%
AT&T INC / 1T.MI FAQ
What is the ChartMill fundamental rating of AT&T INC (1T.MI) stock?
ChartMill assigns a fundamental rating of 5 / 10 to 1T.MI.
What is the valuation status of AT&T INC (1T.MI) stock?
ChartMill assigns a valuation rating of 6 / 10 to AT&T INC (1T.MI). This can be considered as Fairly Valued.
How profitable is AT&T INC (1T.MI) stock?
AT&T INC (1T.MI) has a profitability rating of 6 / 10.
Can you provide the PE and PB ratios for 1T stock?
The Price/Earnings (PE) ratio for AT&T INC (1T.MI) is 11.43 and the Price/Book (PB) ratio is 1.56.
What is the expected EPS growth for AT&T INC (1T.MI) stock?
The Earnings per Share (EPS) of AT&T INC (1T.MI) is expected to decline by -7.37% in the next year.