AT&T INC (1T.MI) Stock Fundamental Analysis
BIT:1T - US00206R1023 - Common Stock
24.87 EUR
+0.36 (+1.47%)
Taking everything into account, 1T scores 4 out of 10 in our fundamental rating. 1T was compared to 30 industry peers in the Diversified Telecommunication Services industry. While 1T is still in line with the averages on profitability rating, there are concerns on its financial health. 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.
The reported net income has been mixed in the past 5 years: 1T reported negative net income in multiple years.
1T had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
1T has a Return On Assets of 3.12%. This is comparable to the rest of the industry: 1T outperforms 53.33% of its industry peers.
The Return On Equity of 1T (12.03%) is better than 66.67% of its industry peers.
With a Return On Invested Capital value of 5.25%, 1T perfoms like the industry average, outperforming 46.67% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for 1T is below the industry average of 7.40%.
The 3 year average ROIC (5.19%) for 1T is below the current ROIC(5.25%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.12% | ||
| ROE | 12.03% | ||
| ROIC | 5.25% |
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 10.21%, 1T is doing good in the industry, outperforming 66.67% of the companies in the same industry.
1T's Profit Margin has improved in the last couple of years.
1T has a Operating Margin of 19.86%. This is in the better half of the industry: 1T outperforms 76.67% of its industry peers.
1T's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 59.67%, 1T perfoms like the industry average, outperforming 53.33% of the companies in the same industry.
In the last couple of years the Gross Margin of 1T has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.86% | ||
| PM (TTM) | 10.21% | ||
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 1T is destroying value.
1T has more shares outstanding than it did 1 year ago.
The number of shares outstanding for 1T has been reduced compared to 5 years ago.
1T has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.92, we must say that 1T is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.92, 1T is doing worse than 70.00% of the companies in the same industry.
The Debt to FCF ratio of 1T is 6.74, which is on the high side as it means it would take 1T, 6.74 years of fcf income to pay off all of its debts.
1T's Debt to FCF ratio of 6.74 is in line compared to the rest of the industry. 1T outperforms 60.00% of its industry peers.
1T has a Debt/Equity ratio of 1.17. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of 1T (1.17) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.17 | ||
| Debt/FCF | 6.74 | ||
| Altman-Z | 0.92 |
ROIC/WACC0.76
WACC6.93%
2.3 Liquidity
A Current Ratio of 0.81 indicates that 1T may have some problems paying its short term obligations.
1T's Current ratio of 0.81 is in line compared to the rest of the industry. 1T outperforms 56.67% of its industry peers.
1T has a Quick Ratio of 0.81. This is a bad value and indicates that 1T is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.76, 1T is in line with its industry, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.76 |
3. Growth
3.1 Past
1T shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -4.78%.
1T shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -8.79% yearly.
Looking at the last year, 1T shows a small growth in Revenue. The Revenue has grown by 1.46% 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)-4.78%
EPS 3Y-12.73%
EPS 5Y-8.79%
EPS Q2Q%-5.26%
Revenue 1Y (TTM)1.46%
Revenue growth 3Y-3%
Revenue growth 5Y-7.56%
Sales Q2Q%3.52%
3.2 Future
1T is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.07% yearly.
Based on estimates for the next years, 1T will show a small growth in Revenue. The Revenue will grow by 2.18% on average per year.
EPS Next Y-7.35%
EPS Next 2Y0.44%
EPS Next 3Y4.07%
EPS Next 5Y6.07%
Revenue Next Year2.29%
Revenue Next 2Y1.83%
Revenue Next 3Y1.76%
Revenue Next 5Y2.18%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
Based on the Price/Earnings ratio of 13.23, the valuation of 1T can be described as correct.
83.33% of the companies in the same industry are more expensive than 1T, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.24. 1T is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 12.70 indicates a correct valuation of 1T.
Based on the Price/Forward Earnings ratio, 1T is valued a bit cheaper than 73.33% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.82, 1T is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.23 | ||
| Fwd PE | 12.7 |
4.2 Price Multiples
1T's Enterprise Value to EBITDA ratio is in line with the industry average.
70.00% of the companies in the same industry are more expensive than 1T, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.55 | ||
| EV/EBITDA | 7.22 |
4.3 Compensation for Growth
The decent profitability rating of 1T may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y0.44%
EPS Next 3Y4.07%
5. Dividend
5.1 Amount
1T has a Yearly Dividend Yield of 4.05%, which is a nice return.
Compared to an average industry Dividend Yield of 4.67, 1T has a dividend in line with its industry peers.
1T's Dividend Yield is rather good when compared to the S&P500 average which is at 2.36.
| 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
64.83% of the earnings are spent on dividend by 1T. This is not a sustainable payout ratio.
DP64.83%
EPS Next 2Y0.44%
EPS Next 3Y4.07%
BIT:1T (8/18/2025, 7:00:00 PM)
24.87
+0.36 (+1.47%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners65.83%
Inst Owner ChangeN/A
Ins Owners0.06%
Ins Owner ChangeN/A
Market Cap177.83B
Analysts78.92
Price Target25.49 (2.49%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.05% |
Yearly Dividend1
Dividend Growth(5Y)-10.97%
DP64.83%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.78%
Min EPS beat(2)2.7%
Max EPS beat(2)2.87%
EPS beat(4)4
Avg EPS beat(4)3.78%
Min EPS beat(4)2.7%
Max EPS beat(4)6.05%
EPS beat(8)6
Avg EPS beat(8)1.22%
EPS beat(12)10
Avg EPS beat(12)2.2%
EPS beat(16)13
Avg EPS beat(16)2.36%
Revenue beat(2)0
Avg Revenue beat(2)-0.96%
Min Revenue beat(2)-1.08%
Max Revenue beat(2)-0.84%
Revenue beat(4)0
Avg Revenue beat(4)-1.45%
Min Revenue beat(4)-2.71%
Max Revenue beat(4)-0.84%
Revenue beat(8)0
Avg Revenue beat(8)-1.68%
Revenue beat(12)0
Avg Revenue beat(12)-1.77%
Revenue beat(16)0
Avg Revenue beat(16)-5.8%
PT rev (1m)0.77%
PT rev (3m)5.15%
EPS NQ rev (1m)-2.08%
EPS NQ rev (3m)-1.83%
EPS NY rev (1m)-0.01%
EPS NY rev (3m)0.65%
Revenue NQ rev (1m)0.67%
Revenue NQ rev (3m)0.49%
Revenue NY rev (1m)0.58%
Revenue NY rev (3m)0.97%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.23 | ||
| Fwd PE | 12.7 | ||
| P/S | 1.67 | ||
| P/FCF | 10.55 | ||
| P/OCF | 5.06 | ||
| P/B | 1.97 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.22 |
EPS(TTM)1.88
EY7.56%
EPS(NY)1.96
Fwd EY7.88%
FCF(TTM)2.36
FCFY9.48%
OCF(TTM)4.92
OCFY19.78%
SpS14.9
BVpS12.65
TBVpS-10.93
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.12% | ||
| ROE | 12.03% | ||
| ROCE | 6.9% | ||
| ROIC | 5.25% | ||
| ROICexc | 5.41% | ||
| ROICexgc | 12.47% | ||
| OM | 19.86% | ||
| PM (TTM) | 10.21% | ||
| GM | 59.67% | ||
| FCFM | 15.83% |
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-Score7
Asset Turnover0.31
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.17 | ||
| Debt/FCF | 6.74 | ||
| Debt/EBITDA | 2.7 | ||
| Cap/Depr | 102% | ||
| Cap/Sales | 17.2% | ||
| Interest Coverage | 3.62 | ||
| Cash Conversion | 89.93% | ||
| Profit Quality | 154.96% | ||
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.76 | ||
| Altman-Z | 0.92 |
F-Score7
WACC6.93%
ROIC/WACC0.76
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)-4.78%
EPS 3Y-12.73%
EPS 5Y-8.79%
EPS Q2Q%-5.26%
EPS Next Y-7.35%
EPS Next 2Y0.44%
EPS Next 3Y4.07%
EPS Next 5Y6.07%
Revenue 1Y (TTM)1.46%
Revenue growth 3Y-3%
Revenue growth 5Y-7.56%
Sales Q2Q%3.52%
Revenue Next Year2.29%
Revenue Next 2Y1.83%
Revenue Next 3Y1.76%
Revenue Next 5Y2.18%
EBIT growth 1Y0.41%
EBIT growth 3Y-2.47%
EBIT growth 5Y-3.83%
EBIT Next Year97.53%
EBIT Next 3Y28.45%
EBIT Next 5Y17.76%
FCF growth 1Y7.65%
FCF growth 3Y-11.18%
FCF growth 5Y-8.74%
OCF growth 1Y10.7%
OCF growth 3Y-2.6%
OCF growth 5Y-4.45%