AT&T INC (1T.MI) Stock Fundamental Analysis
BIT:1T - Euronext Milan - US00206R1023 - Common Stock - Currency: EUR
Taking everything into account, 1T scores 4 out of 10 in our fundamental rating. 1T was compared to 31 industry peers in the Diversified Telecommunication Services industry. 1T has a medium profitability rating, but doesn't score so well on its financial health evaluation. 1T has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
1T had positive earnings in the past year.
In the past year 1T had a positive cash flow from operations.
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
With a Return On Assets value of 2.96%, 1T perfoms like the industry average, outperforming 51.61% of the companies in the same industry.
The Return On Equity of 1T (11.32%) is better than 61.29% of its industry peers.
The Return On Invested Capital of 1T (5.31%) is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for 1T is in line with the industry average of 7.13%.
The 3 year average ROIC (5.19%) for 1T is below the current ROIC(5.31%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.96% | ||
| ROE | 11.32% | ||
| ROIC | 5.31% |
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
With a decent Profit Margin value of 9.55%, 1T is doing good in the industry, outperforming 64.52% of the companies in the same industry.
1T's Profit Margin has improved in the last couple of years.
1T's Operating Margin of 19.84% is fine compared to the rest of the industry. 1T outperforms 74.19% of its industry peers.
1T's Operating Margin has improved in the last couple of years.
The Gross Margin of 1T (59.90%) 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 | 19.84% | ||
| PM (TTM) | 9.55% | ||
| GM | 59.9% |
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.
1T has more shares outstanding than it did 1 year ago.
1T has less shares outstanding than it did 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 0.90, we must say that 1T is in the distress zone and has some risk of bankruptcy.
1T has a worse Altman-Z score (0.90) than 64.52% of its industry peers.
1T has a debt to FCF ratio of 6.47. This is a slightly negative value and a sign of low solvency as 1T would need 6.47 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 6.47, 1T is in the better half of the industry, outperforming 67.74% of the companies in the same industry.
1T has a Debt/Equity ratio of 1.13. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of 1T (1.13) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.13 | ||
| Debt/FCF | 6.47 | ||
| Altman-Z | 0.9 |
ROIC/WACC0.6
WACC8.85%
2.3 Liquidity
1T has a Current Ratio of 0.70. 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 has a worse Current ratio (0.70) than 61.29% of its industry peers.
A Quick Ratio of 0.65 indicates that 1T may have some problems paying its short term obligations.
1T has a Quick ratio of 0.65. This is in the lower half of the industry: 1T underperforms 67.74% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.7 | ||
| Quick Ratio | 0.65 |
3. Growth
3.1 Past
The earnings per share for 1T have decreased by -5.93% 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.
The Revenue has been growing slightly by 0.50% in the past year.
1T shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -7.56% yearly.
EPS 1Y (TTM)-5.93%
EPS 3Y-12.73%
EPS 5Y-8.79%
EPS Q2Q%-7.27%
Revenue 1Y (TTM)0.5%
Revenue growth 3Y-3%
Revenue growth 5Y-7.56%
Sales Q2Q%1.99%
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 4.72% on average per year.
1T is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.27% yearly.
EPS Next Y-7.74%
EPS Next 2Y0.69%
EPS Next 3Y4.34%
EPS Next 5Y4.72%
Revenue Next Year1.7%
Revenue Next 2Y1.53%
Revenue Next 3Y1.56%
Revenue Next 5Y2.27%
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
The Price/Earnings ratio is 12.64, which indicates a correct valuation of 1T.
Based on the Price/Earnings ratio, 1T is valued a bit cheaper than 77.42% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.34, 1T is valued rather cheaply.
1T is valuated correctly with a Price/Forward Earnings ratio of 12.25.
Based on the Price/Forward Earnings ratio, 1T is valued a bit cheaper than 70.97% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.19, 1T is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.64 | ||
| Fwd PE | 12.25 |
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.
Based on the Price/Free Cash Flow ratio, 1T is valued a bit cheaper than 64.52% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.37 | ||
| EV/EBITDA | 7.12 |
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 2Y0.69%
EPS Next 3Y4.34%
5. Dividend
5.1 Amount
1T has a Yearly Dividend Yield of 4.05%, which is a nice return.
1T's Dividend Yield is a higher than the industry average which is at 4.51.
Compared to an average S&P500 Dividend Yield of 2.40, 1T pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.05% |
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
70.36% of the earnings are spent on dividend by 1T. This is not a sustainable payout ratio.
DP70.36%
EPS Next 2Y0.69%
EPS Next 3Y4.34%
BIT:1T (6/13/2025, 7:00:00 PM)
24.4
-0.43 (-1.71%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners63.96%
Inst Owner ChangeN/A
Ins Owners0.06%
Ins Owner ChangeN/A
Market Cap175.57B
Analysts78.92
Price Target25.41 (4.14%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.05% |
Yearly Dividend1.01
Dividend Growth(5Y)-10.97%
DP70.36%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.37%
Min EPS beat(2)2.7%
Max EPS beat(2)6.05%
EPS beat(4)3
Avg EPS beat(4)2.5%
Min EPS beat(4)-2.25%
Max EPS beat(4)6.05%
EPS beat(8)6
Avg EPS beat(8)1.15%
EPS beat(12)10
Avg EPS beat(12)2.39%
EPS beat(16)13
Avg EPS beat(16)2.81%
Revenue beat(2)0
Avg Revenue beat(2)-1.12%
Min Revenue beat(2)-1.17%
Max Revenue beat(2)-1.08%
Revenue beat(4)0
Avg Revenue beat(4)-1.83%
Min Revenue beat(4)-2.71%
Max Revenue beat(4)-1.08%
Revenue beat(8)0
Avg Revenue beat(8)-1.83%
Revenue beat(12)0
Avg Revenue beat(12)-1.84%
Revenue beat(16)0
Avg Revenue beat(16)-6.87%
PT rev (1m)-0.49%
PT rev (3m)2.42%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.22%
EPS NY rev (1m)0.22%
EPS NY rev (3m)0.35%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.76%
Revenue NY rev (1m)0.38%
Revenue NY rev (3m)0.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.64 | ||
| Fwd PE | 12.25 | ||
| P/S | 1.64 | ||
| P/FCF | 10.37 | ||
| P/OCF | 5.02 | ||
| P/B | 1.95 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.12 |
EPS(TTM)1.93
EY7.91%
EPS(NY)1.99
Fwd EY8.16%
FCF(TTM)2.35
FCFY9.65%
OCF(TTM)4.86
OCFY19.93%
SpS14.85
BVpS12.53
TBVpS-11.14
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.96% | ||
| ROE | 11.32% | ||
| ROCE | 6.98% | ||
| ROIC | 5.31% | ||
| ROICexc | 5.41% | ||
| ROICexgc | 12.65% | ||
| OM | 19.84% | ||
| PM (TTM) | 9.55% | ||
| GM | 59.9% | ||
| FCFM | 15.85% |
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%
ROICexcg growth 3Y10.1%
ROICexcg 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-Score8
Asset Turnover0.31
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.13 | ||
| Debt/FCF | 6.47 | ||
| Debt/EBITDA | 2.6 | ||
| Cap/Depr | 100.29% | ||
| Cap/Sales | 16.91% | ||
| Interest Coverage | 3.56 | ||
| Cash Conversion | 89.28% | ||
| Profit Quality | 165.94% | ||
| Current Ratio | 0.7 | ||
| Quick Ratio | 0.65 | ||
| Altman-Z | 0.9 |
F-Score8
WACC8.85%
ROIC/WACC0.6
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)-5.93%
EPS 3Y-12.73%
EPS 5Y-8.79%
EPS Q2Q%-7.27%
EPS Next Y-7.74%
EPS Next 2Y0.69%
EPS Next 3Y4.34%
EPS Next 5Y4.72%
Revenue 1Y (TTM)0.5%
Revenue growth 3Y-3%
Revenue growth 5Y-7.56%
Sales Q2Q%1.99%
Revenue Next Year1.7%
Revenue Next 2Y1.53%
Revenue Next 3Y1.56%
Revenue Next 5Y2.27%
EBIT growth 1Y-1.17%
EBIT growth 3Y-2.47%
EBIT growth 5Y-3.83%
EBIT Next Year97.53%
EBIT Next 3Y28.45%
EBIT Next 5Y17.72%
FCF growth 1Y43.57%
FCF growth 3Y-11.18%
FCF growth 5Y-8.74%
OCF growth 1Y22.15%
OCF growth 3Y-2.6%
OCF growth 5Y-4.45%